Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 177

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 177
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 880,995  
     NM 
  
    Change in fair value of Earn-Out Share Liability 
     13,520,000  
     24,750,000  
     (11,230,000) 
     (45)%
  
    Other expense 
     (46,351) 
     (9,346) 
     (37,005) 
     NM 
  
    Interest expense 
     (1,822,448) 
     (1,352,823) 
     (469,625) 
     35%
  
    Total other income (expense) 
     13,597,263  
     23,276,233  

    Net income (loss) 
    $(1,736,512) 
    $(46,620,619) 

Revenue, net

The Company generated revenue
of $144,926 and $50,683 for the three months ended September 30, 2025 and 2024, and revenue of $232,094 and $108,264 for the nine months
ended September 30, 2025 and 2024, respectively. Revenue has been principally earned from paid pilots for our VeeaHub®
devices. Our focus over the past several years has been on field testing and refining our product to meet customer needs as well as market
developments. As a result of these efforts, we expect revenue to grow over the next several quarters through the sales of our hardware,
licenses and subscriptions. We are especially focused in four principal market opportunities: 1) Digital Equity and Inclusion, 2) Energy
and Sustainability solutions for Smart Buildings and Climate Smart Agriculture, 3) Convergence of Fixed, Wireless, and 5G Networks, and
4) Smart Retail and Smart Warehouses.

Cost of Goods Sold

Cost of goods sold increased
by $38,009, or 253%, in the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Cost of goods
sold stayed flat for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. 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