Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 307

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 307
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. The decrease in product development
expenses was due to decreased internal development and costs incurred by outside contractors related to products manufactured during the
period.

Sales and Marketing Expense

Sales and marketing expense
decreased by $251,625, or 86%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and sales and
marketing expense increased by $11,362, or 3%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The
decrease is primarily due both a reduction in unpaid customer pilots and costs incurred from an outside consulting service.

General and Administrative Expense

General and administrative
expense decreased by $1,034,307, or 18%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and
decreased by $1,114,771, or 10%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease for
the quarter is primarily related to the Company’s continued cost reduction measures.

Depreciation and Amortization

Depreciation and amortization
increased by $76,142, or 111%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased
by $67,282, or 49%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was due to additional
amortization for the Crowdkeep technology.

Other income, net

Other income, net relates
to immaterial non-operating transactions incurred during the period. These amounts were immaterial for the three months ended June 30,
2025 and 2024 and six months ended June 30, 2025 and 2024.

Change in fair value of derivative liabilities

Change in fair value of derivative
liabilities is comprised of the fair value adjustment to the conversion option, Private Warrants, and earn-out shares at balance sheet
date. The gain on the change in fair value of conversion note option liability of $59,730 for the six months ended June 30, 2025, was
determined using a Black-Scholes option pricing model. The gain on the change in