Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 39

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 39
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’s products and for the products of Veea’s customers. This could cause customers to postpone investments or initiate
other cost-cutting measures to maintain or improve their financial position. This could also result in significantly reduced
expenditures for Veea’s products and services, including network infrastructure, in which case Veea’s operating results
would suffer. If demand for Veea’s products and services were to fall, Veea may experience material adverse effects on
Veea’s revenues, cash flow, capital employed and value of Veea’s assets and Veea could incur operating losses. The
potential adverse effects of an economic downturn include:

| ● | reduced                                                                                                                                         
 demand for products and services, resulting in increased price competition or 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; |

| ● | increased                                                                                                                    
 demand for customer finance, difficulties in collection of accounts receivable and increased risk of counter party failures; |

| ● | 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. |

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Veea’s operations in foreign countries expose us to certain risks inherent in doing business internationally, which may adversely affect Veea’s business, results of operations or financial condition.

Veea has revenue, operations, contract manufacturing
arrangements in foreign countries that expose Veea to certain risks. For example, fluctuations in exchange rates may affect Veea’s
revenue, expenses and results of operations as well as the value of Veea’s assets and liabilities as reflected in our financial
statements. Veea is also subject to other types of risks, including the following:

| ● | protection of intellectual property and trade secrets; |

| ● | tariffs,                                                                                                                                  
 customs, trade sanctions, trade embargoes and other barriers to importing/exporting materials and products in a cost-effective and timely 
 manner, or changes in applicable tariffs or custom rules;                                                                                 |

| ● | the                                                                              
 burden of complying with and changes in U.S. or international taxation policies; |

| ● | timing                                                                                          
 and availability of export licenses including authorization for the export of controlled items; |

| ● | rising       
 labor costs;