Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 272

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 272
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 placement
offering of up to $15.0 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 notes. 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 Common Stock equal to such Investors’ original
principal note loan amount under their respective notes divided by $7.50 (the “Transferred Shares”). 2.0 million Transfer
Shares were delivered to Investors at the Financing Closing. The Note Purchase Agreements include customary registration rights.

12

The Transferred Shares were recorded
at a fair value of $21.6 million on the Company’s consolidated financial statements at issuance, 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 one of the Investors 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 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 $15.0 million proceeds at the Financing Closing, a proportional amount
(approximately $19.5 million) of the substantial discount was deferred and recorded as a deferred financing asset on the Company’s
consolidated financial statements. At December 31, 2024, the deferred financing assets were reversed on the Company’s consolidated
financial statements.

The Company and VeeaSystems Inc. (“VeeaSystems”)
are co-borrowers under each September 2024 Note (together, the “Borrowers”) and are jointly responsible for the obligations
to each Investor thereunder. Each September