Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 224

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 224
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Warranties

The Company accrues the
estimated cost of product warranties at the time of recognizing revenue. The Company’s standard product warranty terms generally
include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. The Company
engages in product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers.
The estimated warranty obligation is based on contractual warranty terms, repair costs, current period product shipments and product
failure rates. Warranty terms are generally limited to twelve months.

Indemnifications

In the normal course of
business, the Company has indemnification obligations to other parties, including customers, lessors, and parties to other transactions
with us, with respect to certain matters. The Company has agreed to indemnify against losses arising from a breach of representations
or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the
time or circumstances within which an indemnification claim can be made and the amount of the claim.

It is not possible to determine
the maximum potential amount for claims made under the indemnification obligations due to uncertainties in the litigation process, coordination
with and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in
each particular case and agreement. To date, the Company has made no indemnity payments. In addition, the Company has entered into indemnification
agreements with its officers and directors, and its Amended and Restated Bylaws contain similar indemnification obligations to its agents.

Litigation

In November 2020 the
Company engaged an independent contractor basis (“Contractor”) to provide legal services to the Company. The Company subsequently
terminated the Contractor in early 2021. In April 2021, the Contractor commenced a legal action against the Company alleging discrimination
and retaliation as a result of the Contractor’s disability and/or perceived disability. The Contractor sought three years
of contract payments in the amount of $. The Company timely submitted a claim under its Employment Practices Liability insurance.
In accordance with the terms of the Company’s policy, the insurance carrier assumed defense of the litigation. Due to the
early stage of the litigation, as well as uncertainties in the litigation due to the proceeding being stayed in 2021, the Company could
not estimate the outcome as of December 31, 2021. In July 2023, the litigation was submitted to