Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 109

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 Interest expense 
     (946,484) 
     (456,768) 
    $(489,716) 
     107%
  
    Total other income (expense) 
     10,066,535  
     (457,020) 

    Net income (loss) 
    $4,299,052  
    $(6,547,412) 

Revenue, net

The Company generated revenue
of $14,262 and $16,770 for the three months ended March 31, 2025 and 2024, respectively. Revenue has been principally earned from paid
pilots for our VeeaHub® devices. Our focus over the past several years has been on field testing and refining our product
to meet customer needs as well as market developments. As a result of these efforts, we expect revenue to grow over the next several
quarters through the sales of our hardware, licenses and subscriptions. We are especially focused in four principal market opportunities:
1) Digital Equity and Inclusion, 2) Energy and Sustainability solutions for Smart Buildings and Climate Smart Agriculture, 3) Convergence
of Fixed, Wireless, and 5G Networks, and 4) Smart Retail and Smart Warehouses.

Cost of Goods Sold

Cost of goods sold increased
by $346, or 3%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The decrease is immaterial
as it is related to the costs incurred to generate our revenue earned from paid pilots for our VeeaHub® devices.

28

Product Development Expense

Product development expense
increased by $121,352, or 129%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase
in product development expenses was due to increased internal development and additional costs incurred by outside contractors related
to products manufactured during the period.

Sales and Marketing Expense

Sales and marketing expense
increased by $262,987, or 305%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase
is primarily due to increased program spend to support a greater investment in our go-to-market strategies and drive revenue growth.

General and Administrative Expense

General and administrative
expense decreased by $736,302, or 13%, in the three months ended March