Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1210

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1210
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 outstanding principal amount of the Loan was $12.7 million and $1.3 million is available for
borrowing.

Convertible
Note Payable

Simultaneously with the closing of
the Business Combination, the Company and Private Veea issued convertible notes under note purchase agreements (the “Note Purchase
Agreements”) with certain accredited investors unaffiliated with the Company and Private Veea (each, an “Investor”)
for the sale of unsecured subordinated convertible promissory notes (the “September 2024 Notes”) as part of a private placement
offering of up to $15 million in purchase price for such September 2024 Notes in the aggregate (the “Financing Closing”).
The Company received $1.45 million in proceeds from the issuance of its convertible promissory note with a commitment from a convertible
note purchaser for the remaining unfunded amount of $13.6 million, which is to be funded on or prior to November 15, 2024, subsequently
extended to December 15, 2024. In addition to a September 2024 Note, each Investor received as a transfer from NLabs immediately prior
to the Financing Closing a number of shares of Private Veea’s Series A-1 Preferred Stock that upon the Closing became a number of
registered shares of our common stock equal to such Investors’ original principal note loan amount under their respective notes
divided by $7.50 (the “Transferred Shares”). 2,000,000 Transfer Shares were delivered to Investors at the Financing Closing.
The Note Purchase Agreements include customary registration rights.

The Transferred Shares were recorded at a fair value of $21.6 million
on the Company’s consolidated financial statements, which reflected a significant discount to the face amount of the September 2024
Notes, In addition to the cash received at the Financing Closing, one of the Investors committed to purchase approximately $13.6 million
(the “Commitment Amount”) of September 2024 Notes, on or prior to November 15, 2024, which date was subsequently extended
to December 15, 2024. On December 31, 2024, the Company and the Investor entered into a mutual Settlement and Release Agreement pursuant
to which the Company agreed to terminate the Investor’s obligation to purchase a note in the Commitment Amount and provided for
a mutual release of claims, in exchange for a payment to the Company of an aggregate amount of approximately $5.4 million, which