Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1072

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1072
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 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 Commitment Amount. As the Company received approximately $1.5 million
of the total expected $15 million proceeds at the Financing Closing, 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 December
31, 2024, the deferred financing assets was reversed on the Company’s consolidated financial statements.

The
Company and Private Veea are co-borrowers under each September 2024 Note (together, the “Borrowers”) and are jointly responsible
for the obligations to each Investor thereunder. Each September 2024 Note has a maturity date of 18 months after the Financing Closing
but is prepayable in whole or in part by the Borrowers at any time without penalty. The outstanding obligations under each September
2024 Note accrues interest at a rate equal to the Secured Overnight Financing Rate plus 2% per annum, adjusted quarterly, but interest
is only payable upon the maturity date of the September 2024 Note as long as there is no event of default thereunder. Each September
2024 Note is unsecured and expressly subordinated to any senior debt of the Borrowers. The September 2024 Notes and the Note Purchase
Agreements do not include any operational or financial covenants for the Borrowers. Each September 2024 Note includes customary events
of default for failure to pay amounts due on the maturity date, for failure to otherwise comply with the Borrowers’ covenants thereunder
or for Borrower insolvency events, in each case, with customary cure periods, and upon an event of default, the Investor may accelerate
all obligations under its September 2024 Note and the Borrowers will be required to pay for the Investor’s reasonable out-of-pocket
collection costs.

F-23

Veea
Inc. and Subsidiaries
Notes to the Consolidated Financial Statements 
For the Years ended December 31, 2024 and 2023

The outstanding obligations under each September 2024 Note are convertible
in whole or in part into shares of our common stock (the “Conversion Shares”) at a conversion price of $7.50 per share (subject
to equitable adjustment for stock splits, stock dividends and the like with respect to our common stock