Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 69

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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of $213.5 million as of March 31, 2025. Since its inception, the Company has 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. As of March 31, 2025, the Company
had cash of $247,341 and outstanding debt of $15.2 million, of which $750,000 was outstanding under the September 2024 Notes (as defined
below), $14.0 million was outstanding under the working capital facility, and $485,000 was related party debt outstanding under the NLabs
2025 Notes (as defined below).

Although the Company has had recurring
losses each year since inception, the Company plans to fund its operations and capital funding needs through a combination of private
and public equity and debt offerings, or a combination thereof, including (1) cash proceeds from the ELOC Program (as defined below) (2)
the expected cash tax refund of up to $2.0 million in respect of the Company’s UK subsidiary’s 2023 and 2024 research and
development activities (3) the anticipated refund by June 30, 2025, of up to $5.0 million of the Company’s prepayment for purchased
inventory and (4) potential additional investments in the form of debt or equity to fund operating deficits from existing and/or new investors,
including related parties, which may include the Company’s CEO and his affiliates. The Company expects it will be able to fund its
operations over the next twelve months and has a reasonable basis to believe it has alleviated substantial doubt regarding its ability
to continue as a going concern. Since January 1, 2025, the Company has received $826,000 in additional loans from related parties and
$1.0 million in loans from unrelated parties in connection with the consummation of the acquisition of Crowdkeep. See Note 12 and Note
17 for additional information. Although management continues to pursue these plans, there is no assurance that the Company will be successful
in obtaining sufficient funding on terms acceptable to the Company, if at all.

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying unaudited condensed
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the