Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 179

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 179
---
 option liability, SPAC Private Placement Warrants, the Earn-Out Share
Liability, and the 2025 Investors Warrants at balance sheet date. The gain on the change in fair value of conversion note option liability
of $270 for the nine months ended September 30, 2025, was determined using a Black-Scholes option pricing model. The gain on the change
in fair value of the SPAC Private Placement Warrant of $555,498 for the nine months ended September 30, 2025, was determined based on
the trading value of the Public Warrants and the Black-Scholes option pricing model. The gain on the change in fair value of the Earn-Out
Share Liability of $4,720,000 for the nine months ended September 30, 2025, was determined using a Monte Carlo simulation. A significant
driver of the changes in fair value was due to the decline in the Company’s stock price.

Other expense

Other expenses relate to
immaterial non-operating expenses incurred during the period. These amounts were immaterial for the three months ended September 30, 2025
and 2024 and nine months ended September 30, 2025 and 2024.

Interest expense

Interest expense decreased
by $9,014 or 2%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Interest expense
increased by $469,625, or 35%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase
was due to additional draws on our revolving line of credit and new related party notes entered into during the nine months ended September
30, 2025.

35

Liquidity and Capital Resources

During the three months ended
September 30, 2025 and 2024, we incurred operating losses of $4.7 million and $57.5 million, respectively, and during the nine months
ended September 30, 2025 and 2024, we incurred operating losses of $15.3 million and $69.9 million, respectively, and had an accumulated
deficit of $219.6 million as of September 30, 2025. Since our inception, we have incurred significant operating losses and negative cash
flows. The Company expects to continue to incur net losses as it continues to grow and scale its business.