Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 46

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 46
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 would increase Veea’s
operating costs in future periods.

Global
economic conditions could materially adversely impact demand for Veea’s products and services.

Veea’s
operations and performance depend significantly on worldwide economic conditions. Uncertainty about global economic conditions could
result in customers postponing purchases of Veea’s products and services in response to tighter credit, unemployment, negative
financial news and/or declines in income or asset values and other macroeconomic factors, which could have a material negative effect
on demand for Veea’s products and services and, accordingly, on Veea’s business, results of operations or financial condition.
For example, any economic and political uncertainty caused by the United States tariffs imposed on goods from various countries, and
any corresponding tariffs from those countries in response, may negatively impact demand and/or increase the cost for Veea’s products.
There is also potential adverse impact including reduced demand for products and services, excess and obsolete inventories, financial
difficulties among our suppliers and vendors, difficulty in collecting on accounts receivable, increased difficulty in forecasting sales
and operating results and increased volatility in results.

The
challenging global economic conditions, e.g., downturn in the global economy, political unrest and uncertainty, labor and supply shortages,
increasing inflation and rising interest rates, or geopolitical risks and trade frictions may have adverse, wide-ranging effects on demand
for Veea’s products and for the products of Veea’s customers. This could cause customers to postpone investments or initiate
other cost-cutting measures to maintain or improve their financial position. This could also result in significantly reduced expenditures
for Veea’s products and services, including network infrastructure, in which case Veea’s operating results would suffer.
If demand for Veea’s products and services were to fall, Veea may experience material adverse effects on Veea’s revenues,
cash flow, capital employed and value of Veea’s assets and Veea could incur operating losses. The potential adverse effects of
an economic downturn include:

    ●
    reduced demand for products
    and services, resulting in increased price competition or deferrals of purchases, with lower revenues not fully compensated through
    reduced costs;

    ●
    excess and obsolete inventories
    and excess manufacturing capacity;

    ●
    financial difficulties
    or failures among Veea’s suppliers;

    ●
    increased demand for customer
    finance, difficulties in collection of accounts receivable and increased risk of counter party failures;

27

    ●
    impairment losses related