Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 106

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 106
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, or 10%, in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Depreciation
and amortization decreased by $529,195, or 72%, in the nine months ended September 30, 2024 compared to the nine months ended September
30, 2023. The decrease was due to certain intangibles reaching the end of their useful lives.

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Other income, net

Other income, net relates
to immaterial non-operating transactions incurred during the period. These amounts were immaterial for the three and nine months ended
September 30, 2024 and 2023.

UK R&D Tax Credit

The increase is related to
the receipt of an R&D tax credit of $1.2 million received by the Company’s UK subsidiary.

Loss on initial issuance of convertible note

The loss on initial measurement
of the convertible note was $1,770,993 for the three and nine months ended September 30, 2024. The Convertible Note Payable was entered
into in September 2024.

Change in fair value of derivative liabilities

Change in fair value of derivative
liabilities comprised of the fair value adjustment to the conversion option, Private Warrants, and earn-out shares at balance sheet date.
The gain on the change in fair value of conversion note option liability was $797,500 for the three and nine months ended September 30,
2024 was determined using a Black-Scholes option pricing model. The loss of the change in fair value of warrant liabilities was $220,373
for the three and nine months ended September 30, 2024 was determined based on the trading value of the public warrants. The loss on the
change in fair value of earn out share liability was $24.8 million for the three and nine months ended September 30, 2024 was determined
using a Monte Carlo simulation. A significant driver of the value of the earn-out at the close of the Business Combination was our closing
stock price on September 30, 2024 which was $6.50. These derivative instruments were entered into in September 2024 related to the Business
Combination.

Other expense

Other expenses relate to
immaterial non-operating expenses incurred during the period. These amounts were immaterial for the three and nine months ended September
30, 2024 and 2023.

Interest expense