Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 43

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 43
---
 financial condition.

Veea’s
operations are complex and rely on third party manufacturers. If critical components used in Veea’s products become scarce or unavailable,
Veea may incur delays in delivering its products and providing services, which could damage its business. Veea relies on a sustainable
supply chain. Any issues with this supply chain could adversely affect daily business operations and profitability.

Veea
depends on third party providers, suppliers and licensors to supply some of the hardware, software and support necessary to provide some
of Veea’s products and services. Veea obtains these materials from a limited number of vendors, some of which do not have a long
operating history, or which may not be able to continue to supply the equipment, supplies, and services it desires. Some of Veea’s
hardware, software and operational support vendors represent Veea’s primary or sole source of supply or have, either through contract
or as a result of intellectual property rights, a position of some exclusivity. If demand exceeds these vendors’ capacity or if
these vendors experience operating or financial difficulties or are otherwise unable to provide the equipment or services Veea needs
in a timely manner, at its specifications and at reasonable prices, its ability to provide some services might be materially adversely
affected, or the need to procure or develop alternative sources of the affected materials or services might delay Veea’s ability
to serve our customers. These events could materially and adversely affect Veea’s ability to retain and attract customers, and
have a material negative impact on Veea’s operations, business, financial results and financial condition.

25

Veea’s
reliance on third-party manufacturers also exposes Veea to the following risks over which it has limited control:

    ●
    unexpected increases in
    manufacturing and repair costs;

    ●
    inability to control the
    timing, quality and reliability of finished products;

    ●
    inability to control delivery
    schedules;

    ●
    liability for expenses
    incurred by third-party manufacturers in reliance on forecasts that later prove to be inaccurate, including the cost of components
    purchased by third-party manufacturers on Veea’s behalf;

    ●
    industry consolidation
    and divestitures, which may result in changed business and product priorities among certain suppliers.

    ●
    lack of adequate capacity
    to manufacture all or a part of the products Veea requires; and

    ●
    labor unrest affecting
    the ability of the third-party manufacturers to produce Veea products.