Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 18

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 a change of control transaction occurs during the ten-year period following the Closing.

Under accounting principles, the Company’s
obligation to issue the earn-out shares is recorded as a contingent liability (the “Earn-out Share Liability”) in the Company’s
financial statements and the initial value of the Earn-out Share Liability was recorded as a transaction cost within operating expenses
in the Company’s financial statements for the year ended December 31, 2024. For each subsequent reporting period, changes in the
fair value of the Earn-out Share Liability are reported in the Company’s financial statements.

6 - BALANCE SHEET COMPONENTS

Inventory

Inventory consists of the following:

    June 30, 2025  
    December 31, 2024 
  
    Inventory 
    $8,014,752  
    $7,377,966 
  
    Inventory allowance 
     (904,653) 
     (904,653)
  
    Consigned parts 
     2,301,975  
     985,927 
  
    Total 
    $9,412,074  
    $7,459,240 

Property and Equipment, net

Property and equipment, net consists
of the following:

    June 30, 2025  
    December 31, 2024 
  
    Furniture and fixtures 
    $705,726  
    $702,122 
  
    Computer equipment 
     337,340  
     327,166 
  
    Leasehold improvements 
     390,742  
     390,742 
  
    Total property and equipment gross 
     1,433,808  
     1,420,030 
  
    Less - Accumulated depreciation 
     (1,296,584) 
     (1,209,401)
  
    Total property and equipment net 
    $137,224  
    $210,629 

Depreciation expense for the three
months ended June 30, 2025 and 2024, totaled $36,335 and $54,000, respectively. Depreciation expense for the six months ended June 30,
2025 and 2024, totaled $77,391 and $109,000, respectively.

10

7 - GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following is a summary of activity
in goodwill for the six months ended June 30, 2025 and