Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 433

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 433
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of the total expected $15 million proceeds at the Financing Closing, a proportional amount (approximately $19.5 million) of the substantial
discount had been deferred and recorded as a deferred financing asset on the Company’s consolidated financial statements. At December
31, 2024, the deferred financing assets was reversed on the Company’s consolidated financial statements.

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 18 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 accrue interest at a rate equal to the Secured Overnight Financing
Rate plus 2% per annum, adjusted quarterly, but interest is only payable upon the maturity of the September 2024 Notes 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, and
upon an event of default, the Investor may accelerate all obligations under its September 2024 Note and the Borrowers will be required
to pay for the Investor’s reasonable out-of-pocket collection costs.

The outstanding obligations under each September 2024 Note are convertible
in whole or in part into shares of our common stock (the “Conversion Shares”) at a conversion price of $7.50 per share (subject
to equitable adjustment for stock splits, stock dividends and the like with respect to our common stock after the Financing Closing) (the
“Conversion Price”) at any time after the Financing Closing at the sole election of the Investor. The outstanding obligations
under each September 2024 Note will automatically convert at the Conversion Price if (i) the Company or its subsidiaries consummate one
or more additional financings for equity or equity-linked securities for at least $20 million in the aggregate or makes one or more significant
acquisitions valued