Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 135

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 135
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 administrative expenses in the Company’s consolidated statements of
operations and comprehensive loss. Accrued and unpaid rent expense included in the Company’s consolidated balance sheet was $1,652,400
and $1,468,800, as of September 30, 2024 and December 31, 2023, respectively.

In April 2017, Private Veea entered into
a lease agreement with 83 Street LLC to lease office space for an initial term of two years. In 2018, Private Veea renewed
the lease for an additional five-year term, with all other terms and conditions of the lease remaining the same. The renewal term expired
February 28, 2024 and was subsequently extended to December 31, 2024. Rent for the office space is accrued and not paid in cash. The sole
member of 83 Street is the Salmasi 2004 Trust. The Salmasi 2004 Trust holds approximately 7.9% of Veea’s outstanding
capital stock. Veea’s CEO is the grantor of the Salmasi 2004 Trust. Veea recognized rent expense of $72,000 and $72,000 in the three
months ended September 30, 2024 and 2023, respectively, and $216,000 and $184,925 in the nine months ended September 30, 2024 and 2023,
respectively. Accrued and unpaid rent expense included in the Company’s consolidated balance sheet was $1,872,000 and $1,656,000,
as of September 30, 2024 and December 31, 2023, respectively.

Rent expense for the above
leases is reported as general and administrative expenses in Veea’s consolidated statements of operations.

Related Party Debt

In 2021 and 2022, NLabs made loans to Private
Veea evidenced by promissory notes aggregating $9,500,000 (the “Bridge Notes”). The Bridge Notes bear interest on the outstanding
principal at a rate of 10% per annum, calculated on the basis of a 365-day year. Principal and accrued interest are payable on the maturity
date of the Notes. The original maturity date of the Bridge Notes was December 31, 2022, which was extended to December 31, 2023 and has
been subsequently extended to September 30, 2024. The Company accounted for the extension as a modification of the Bridge Notes. The