Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 62

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 The disparity is
primarily related to an increase in service-based revenue in the quarter.

34

Product Development Expense

Product development expense
decreased by $356,761 or 100%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and
decreased by $988,052 or 86%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease
in product development expenses was due to decreased internal development costs during the period.

Sales and Marketing Expense

Sales and marketing expense
decreased by $65,382 or 81%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and sales
and marketing expense decreased by $94,485, or 21%, in the nine months ended September 30, 2025, compared to the nine months ended September
30, 2024. The decrease is primarily due to a reduction in unpaid customer pilots.

General and Administrative Expense

General and administrative
expense increased by $2,533,495, or 127%, in the three months ended September 30, 2025 compared to the three months ended September 30,
2024 and increased by $1,440,379, or 11%, in the nine months ended September 30, 2025, compared to the nine months ended September 30,
2024. The increase is primarily related to certain non-capitalized expenses associated with the August 2025 Public Offering, and increased
costs of additional personnel, resources, and administrative costs associated with the Company’s sales activities.

Depreciation and Amortization

Depreciation and amortization
increased by $148,704 or 220%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and
increased by $215,985 or 105%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase
was due to additional amortization for the technology assets acquired from Crowdkeep, Inc. in May 2025.

Other income, net

Other income, net relates
to immaterial non-operating transactions incurred during the period. These amounts were immaterial for the three months ended September
30, 202