Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 313

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 313
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 December 15, 2024. In addition, each Investor
received as a transfer from NLabs immediately prior to the September 2024 Note Offering a number of shares of Private Veea’s Series
A-1 Preferred Stock that upon the Closing of the Business Combination became a number of registered shares of our common stock equal
to such 2024 Note Offering Investors’ original principal note amount divided by $7.50 (the “2024 Note Offering Transferred Shares”). 2,000,000 Transfer Shares were delivered to the 2024 Note Offering Investors at the closing of the September
2024 Note Offering. The 2024 Note Purchase Agreements include customary registration rights.

The 2024 Note Offering 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 closing of the September 2024 Note Offering,
one of the 2024 Investors (the “Principal Investor”) committed to purchase approximately $13.6 million (the
“2024 Note 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 Principal Investor entered into a mutual Settlement and Release
Agreement pursuant to which the Company agreed to terminate the Principal Investor’s obligation to purchase a note in the 2024
Note 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 amount includes payments previously made to the Company in respect of the 2024 Note Commitment Amount.
As the Company received approximately $1.5 million of the total expected $15 million proceeds at the closing of September 2024 Note Offering,
a proportional amount (approximately $19.5 million) of the substantial discount had been deferred and recorded as a deferred financing
asset on the Company’s consolidated financial statements. At March 31, 2025 and December 31, 2024, the deferred financing assets
was reversed on the Company’s consolidated financial statements.

<div align='center'>II-4</div>

The Company and Private Veea
are co-borrowers under each September 2024 Note (together, the “2024 Note Borrowers