Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 49

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 49
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 technological, military, and political
competition across the world. At the same time, there are numerous ongoing local and regional conflicts, of which the ongoing military
conflict between the Ukraine and Russia, are of particular significance. It is not yet clear how these new dynamics will play out across
the world. These tensions, including trade restrictions, enhanced sanctions measures and increased safeguards for national security purposes,
can impact global market conditions and continue to be challenging for global supply chains.

Because
some of Veea’s products are manufactured in China and Taiwan, further changes in the economic and political policies in or relating
to China and tensions between China and Taiwan could have a material adverse effect on Veea’s business. Additionally, political
instability in the regions in which Veea operates may further increase the risk of possible legal or regulatory violations by Veea or
its suppliers, agents and employees. Any violation could cause severe reputational harm to Veea and a material adverse effect on Veea’s
business operations. Additional impacts could include:

    ●
    reduced or lost market
    access;

    ●
    decreased ability for unrestricted
    use of Veea’s global supply chain for all markets, e.g., as a result of import or export restrictions in the US and China;

    ●
    increased trade restrictions,
    including economic sanctions and export controls, tariffs and increased costs which may not be recoverable;

    ●
    separation of global standards
    for mobile telecommunication;

    ●
    sourcing restrictions and
    constraints for access to hardware and software products and components;

    ●
    reduced efficiency in research
    and development (“R&D”) and restrictions in use of R&D resources;

    ●
    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;

    ●
    impairment losses related
    to Veea’s intangible assets as a result of lower forecasted sales of certain products; and

    ●
    increased difficulties
    in forecasting sales and financial results as well as increased volatility in Veea’s reported results.

29

If
Veea fails to maintain effective internal control over financial reporting or identify a material weakness or significant deficiency
in its internal control over financial reporting, Veea’s ability to report its financial condition and results of operations in
a timely and accurate manner could be adversely affected, investor