Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 130

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 130
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 of warrant liabilities of $420,497 for the three months ended
March 31, 2025, was determined based on the trading value of the public warrants. The gain on the change in fair value of the Earn-Out
Share Liability (as defined below) of $10,530,000 for the three months ended March 31, 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 March 31, 2025
and 2024.

Interest expense

Interest expense increased
by $489,716, or 107%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due
to additional draws on our revolving line of credit.

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For the year ended December 31, 2024 compared to year ended December 31, 2023:

|                                                            |     |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |     |   |   Variance 
          $ |   |     |     | Variance 
        % |   |
|:-----------------------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|:----|:--|-----------:|:--|:----|:----|---------:|:--|
| Sales, net                                                 |     | $ |      141,760 |   |     | $ |    9,072,130 |   |     | $ | (8,930,370 | ) |     |     |      -98 | % |
| Cost of Goods Sold                                         |     |   |       83,290 |   |     |   |      466,802 |   |     | $ |   (383,512 | ) |     |     |      -82 | % |
| Gross profit (loss)                                        |     |   |       58,470 |   |     |   |    8,605,328 |   |     |   |            |   |     |     |          |   |
| Operating Expenses:                                        |