Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 137

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 137
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 note option liability 
     59,000  
     -  
    $59,000  
     100%
  
    Change in fair value of warrant liabilities 
     420,497  
     -  
    $420,497  
     100%
  
    Change in fair value of Earn-Out Share Liability 
     10,530,000  
     -  
    $10,530,000  
     100%
  
    Other expense 
     2,750  
     (2,836) 
    $5,586  
     -197%
  
    Interest expense 
     (946,484) 
     (456,768) 
    $(489,716) 
     107%
  
    Total other income (expense) 
     10,066,535  
     (457,020) 

    Net income (loss) 
    $4,299,052  
    $(6,547,412) 

Revenue, net

The Company generated revenue
of $14,262 and $16,770 for the three months ended March 31, 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 $346, or 3%, in the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The decrease is immaterial
as it is related to the costs incurred to generate our revenue earned from paid pilots for our VeeaHub® devices.

28

Product Development Expense

Product development expense
increased by $121,352, or 129%, in the three months ended March 31, 2025 compared to the three months ended March 31, 202