Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 101

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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assets of the CEO. In consideration for the security provided by the CEO, Private Veea issued common stock warrants (the “Related
Party Common Stock Warrants”) to NLabs, a principal shareholder of the Company and affiliate of Allen Salmasi (“NLabs”),
in consideration for the CEO’s guaranteeing the advances. See Note 12 for further information. In December 2023, Private Veea repaid
$5,000,000 of the principal balance of the Loan. Following the acquisition of First Republic, the Loan was transferred to the Bank. There
were no borrowings during the three months ended September 30, 2025, and $1.3 million of borrowings during the nine months ended September
30, 2025. As of September 30, 2025, the outstanding principal amount of the Loan was $14.0 million, and there is no availability to borrow
additional funds.

Convertible Notes Payable

Business Combination Convertible
Notes Payable

Simultaneously with the closing of
the Business Combination, the Company and Private Veea issued convertible notes under note purchase agreements (the “Note Purchase
Agreements”) with certain accredited investors unaffiliated with the Company and Private Veea (each, an “Investor”)
for the sale of unsecured subordinated convertible promissory notes (the “September 2024 Notes”) as part of a private placement
offering of up to $15.0 million in purchase price for such September 2024 Notes in the aggregate (the “Financing Closing”).
The Company received $1.45 million in proceeds from the issuance of its convertible promissory notes. In addition to a September 2024
Note, each Investor received, as a transfer from NLabs Inc., an affiliated of Allen Salmasi, our Chief Executive Officer (“NLabs”),
immediately prior to the Financing Closing, a number of shares of Private Veea’s Series A-1 Preferred Stock that upon the Closing
became a number of registered shares of Common Stock equal to such Investors’ original principal note loan amount under their respective
notes divided by $7.50 (the “Transferred Shares”). 2.0 million Transfer Shares were delivered to Investors at the Financing
Closing. The Note Purchase Agreements include customary registration rights.

13

The Transferred Shares were recorded
at a fair value of $21.6 million on the Company’s consolidated financial statements at issuance, which reflected a significant discount