Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 37

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 37
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may impact Veea’s results and its ability to operate profitably.

The
markets in which Veea operates are competitive in terms of price, functionality, service quality, customization, timing of development,
and the introduction of new products and services. Veea may encounter increased competition from new market entrants and alternative
technologies. Veea’s competitors may implement new technologies before Veea does, offer more attractively priced or enhanced products,
services or solutions, or they may offer other incentives that Veea does not provide. Some of Veea’s competitors may also have
greater resources in certain business segments or geographic areas than Veea does. In addition, industry convergence and consolidation
could potentially result in stronger competitors with greater resources and competitive advantages than Veea.

If
Veea fails to compete effectively, this could have a materially adverse effect on Veea’s revenues, financial condition, profitability
and cash flows. Competitive forces may also lead to reduced profit margins, loss of market share, and increased costs in research and
development, manufacturing, and sales and marketing expense.

Veea’s
sales efforts involve considerable time and expense and its sales cycle is often long and unpredictable.

Veea’s
results of operations may fluctuate, in part, because of the intensive nature of Veea’s sales efforts and the length and unpredictability
of Veea’s sales cycle. As part of Veea’s sales efforts, Veea invests considerable time and expense evaluating the specific
organizational needs of its potential customers and educating these potential customers about the technical capabilities and value of
our platforms and services. Veea often also provides its platforms to potential customers at no or low cost initially to them for evaluation
purposes through short-term pilot deployments of Veea’s platforms, and there is no guarantee that Veea will be able to convert
customers from these short-term pilot deployments to full revenue-generating contracts. The length of Veea’s sales cycle, from
initial demonstration of its platforms to sale of its platforms and services, tends to be long and varies substantially from customer
to customer. Veea’s sales cycle often lasts many months. Because decisions to purchase Veea’s platforms involves significant
financial commitments, potential customers generally evaluate Veea’s platforms at multiple levels within their organization, each
of which often have specific requirements and typically involve their senior management.

22

Veea’s
results of operations depend on sales to government and commercial enterprise organizations, which make product purchasing decisions
based in part or entirely on factors, or perceived factors