Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 257

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 257
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 of unsecured subordinated convertible
promissory notes (the “September 2024 Notes”) as part of a private placement offering of up to $ million in purchase price
for such September 2024 Notes in the aggregate. The sale of the September 2024 Notes (the “Financing Closing”) occurred simultaneously
with the Closing of the Business Combinationat the Financing Closing and a commitment from an Investor, of which the Company received
$ million to date. In addition to a September 2024 Note, each Investor received as a transfer from NLabs immediately prior to the Financing
Closing a number of shares of Legacy Veea’s Series A-1 Preferred Stock that upon the Closing became a number of registered shares
of Common Stock equal to such Investors’ loan amount under their respective notes divided by $ (the “Transferred Shares”).
As of September 30, 2024, Transfer Shares were delivered to Investors. These Transfer Shares were recorded at fair value at
the date of transfer of approximately $ million and represent a substantial discount on the September 2024 Notes. As the Company has
received $ million of the total expected $ million proceeds, a proportional amount ($ million) of the substantial discount has
been deferred and recorded as a deferred financing asset until the remaining debt proceeds are received.

The Company and Private Veea are co-borrowers
under each September 2024 Note (together, the “Borrowers”) and are jointly responsible for the obligations to each Investor
thereunder. Each September 2024 Note has a maturity date of months after the Financing Closing but is prepayable in whole or in part
by the Borrowers at any time without penalty. The outstanding obligations under each September 2024 Note accrues interest at a rate equal
to the Secured Overnight Financing Rate plus % per annum, adjusted quarterly, but interest is only payable upon the maturity date of
the September 2024 Note as long as there is no event of default thereunder. Each September 2024 Note is unsecured and expressly subordinated
to any senior debt of the Borrowers. The September 2024 Notes and the Note Purchase Agreements do not include any operational or financial
covenants for the Borrowers. Each September 2024 Note includes customary events of default for failure to pay amounts due on the maturity
date, for failure to otherwise comply with the Borrowers’ covenants thereunder or for Borrower insolvency events, in each case,
with customary cure periods