Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 91

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 91
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4) Smart Retail and
Smart Warehouses.

Cost of Goods Sold

Cost of goods sold decreased
by $26,119, or 85%, in the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Cost of goods sold decreased
by $37,540, or 88%, in the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The decrease is primarily related
to earning more service based revenue in the quarter as opposed to paid pilots for our VeeaHub® devices.

30

Product Development Expense

Product development expense
decreased by $648,529, or 92%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and decreased
by $625,101, or 79%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. 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