Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 240

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 240
---
 of the effectiveness of Veea’s platforms could be harmed.
Alleviating any of these problems could require additional significant expenditures of Veea’s capital and other resources and could
cause interruptions, delays, or cessation of Veea’s product licensing, which could cause Veea to lose existing or potential customers
and could adversely affect Veea’s business, financial condition, results of operations, and growth prospects.

24

A
product failure could expose Veea to damages (including consequential damages or strict liability) if used in certain critical usage
situations (e.g., monitoring a critical system like a transportation control system or water level control use case). Veea’s contractual
liability disclaimers could be set-aside by a court or administrative agency, exposing Veea to economic and reputational injury.

Veea
bears costs and risks associated with relying on distribution and partnering arrangements.

Recruiting
and retaining qualified third-party distributors and channel partners and training them in our technology and product offerings require
significant time and resources. To develop and expand our distributors and channel partners, we must continue to scale and improve our
processes and procedures that support our distributors and channel partners.

Furthermore,
if our relationship with a successful distributor or channel partner terminates, we may be unable to replace them without disruption
to our business. If we fail to maintain positive relationships with our distributors or channel partners, fail to develop new relationships
with other distributors or channel partners (including in new markets), fail to manage, train, or incentivize our existing distributors
or channel partners effectively, or fail to strike agreements with attractive terms, or if our distributors and channel partners are
not successful in their businesses, our revenue may decrease, and our operating results, reputation, and business may be harmed.

Additionally,
if Veea does not effectively manage its sales channel and distributor inventory and product mix, it may incur costs associated with excess
inventory or lose sales from having too few products. If we improperly forecast demand for our products, we could incur increased expenses
associated with writing off excessive or obsolete inventory, lose sales, incur penalties for late delivery or incur additional costs
by having to ship products by air freight.

Any
disruption of Veea’s operations, whether due to natural or political events, may be highly damaging to the operation of Veea’s
business.

Veea’s
business operations and those of its suppliers are vulnerable to interruption by fire, earthquake, hurricane, flood or other natural
disasters, power loss, computer viruses, computer