Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 42

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 42
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ations (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 systems failure, telecommunications failure, pandemics, quarantines, national catastrophe,
terrorist activities, war and other events beyond its control. If any disaster were to occur, our or our supplier’s ability to
operate could be seriously impaired and Veea could experience material harm to our business, operating results and financial condition.

The
delivery of goods from suppliers, and to customers, could also be hampered for the reasons stated above. Interruptions to Veea’s
systems and communications may have an adverse effect on Veea’s operations and