Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 118

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 such holder would
have been entitled to receive upon the occurrence of the fundamental transaction, had the warrants been exercised immediately prior to
such fundamental transaction.

The Company recognized the 2025 Investor Warrants as liability-classified
at fair value as of the closing date, with an offsetting entry to additional paid-in capital and adjusts the carrying value to fair value
through other income (expense) on the condensed consolidated statement of operations and comprehensive income (loss) at each reporting
period until they are exercised. As of September 30, 2025, the 2025 Investor Warrants are presented within warrant liability on the condensed
consolidated balance sheet.

13 - RELATED PARTY TRANSACTIONS

Lease Agreements

On March 1, 2014, Private Veea entered
into a sublease agreement with NLabs Inc., an affiliate of the Company’s CEO that held approximately 35% of the Company’s
outstanding capital stock at September 30, 2025, for office space for an initial term of five years. In 2018, Private Veea renewed the
sublease for an additional five-year term, with all other terms and conditions of the sublease remaining the same. The renewal term expired
February 28, 2024, and was subsequently extended to December 31, 2025. Rent for the office space is accrued and not paid in cash. The
Company recognized rent expense of $61,200 and $183,600 for each of the three and nine months ended September 30, 2025 and 2024, respectively,
which was classified as general and administrative expenses in the Company’s condensed consolidated statements of operations and
comprehensive income (loss). Accrued and unpaid rent expense included in the Company’s condensed consolidated balance sheets was
$1,897,200 as of September 30, 2025 and $1,713,600 as of December 31, 2024.

In April 2017, Private Veea entered into a lease agreement with 83rd Street
LLC to lease office space for an initial term of two years. The sole member of 83rd Street LLC is the Salmasi 2004 Trust.
At December 31, 2024, the Salmasi 2004 Trust held approximately 8% of Veea’s outstanding capital stock. Veea’s CEO is the
grantor of the Salmasi 2004 Trust. In 2018, Private V