Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 41

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 41
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 that there is a failure of warranties
in such agreements, Veea is generally obligated to correct the product or service to conform to the warranty provision as set forth in
the applicable agreement, or, if Veea is unable to do so, the customer is entitled to seek a refund of the purchase price of the product
and service (generally prorated over the contract term). The sale and support of Veea’s products also entail the risk of product
liability claims. Veea maintains insurance to protect against certain claims associated with the use of its products, but its insurance
coverage may not adequately cover any claim asserted against us. In addition, even claims that ultimately are unsuccessful could result
in Veea’s expenditure of funds in litigation and divert management’s time and other resources.

In
addition, Veea’s platforms integrate a wide variety of other elements, and Veea’s platforms must successfully interoperate
with products from other vendors and its customers’ internally developed software. As a result, when problems occur for a customer
using Veea’s platforms, it may be difficult to identify the sources of these problems, and Veea may receive blame for a security,
access control, or other compliance breach that was the result of the failure of one of the other elements in a customer’s or another
vendor’s information technology, security, or compliance infrastructure. The occurrence of software or errors in data, whether
or not caused by Veea’s platforms, could delay or reduce market acceptance of Veea’s platforms and have an adverse effect
on Veea’s business and financial performance, and any necessary revisions may cause Veea to incur significant expenses. The occurrence
of any such problems could harm Veea’s business, financial condition, and results of operations. If an actual or perceived breach
of information correctness, auditability, integrity, or availability occurs in one of our customers’ systems, regardless of whether
the breach is attributable to Veea’s platforms, the market perception 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
situ