Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 136

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 136
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 expenses in the Company’s consolidated
statements of operations and comprehensive loss. Accrued and unpaid rent expense included in the Company’s consolidated balance
sheet was $1,652,400 and $1,468,800, as of September 30, 2024 and December 31, 2023, respectively.

In April 2017, Private Veea
entered into a lease agreement with 83 Street LLC to lease office space for an initial term of two years. In 2018, Private
Veea renewed the lease for an additional five-year term, with all other terms and conditions of the lease remaining the same. The renewal
term expired February 28, 2024 and was subsequently extended to December 31, 2024. Rent for the office space is accrued and not paid
in cash. The sole member of 83 Street is the Salmasi 2004 Trust. The Salmasi 2004 Trust holds approximately 7.9% of Veea’s
outstanding capital stock. Veea’s CEO is the grantor of the Salmasi 2004 Trust. Veea recognized rent expense of $72,000 and $72,000
in the three months ended September 30, 2024 and 2023, respectively, and $216,000 and $184,925 in the nine months ended September 30,
2024 and 2023, respectively. Accrued and unpaid rent expense included in the Company’s consolidated balance sheet was $1,872,000
and $1,656,000, as of September 30, 2024 and December 31, 2023, respectively.

Rent expense for the above
leases is reported as general and administrative expenses in Veea’s consolidated statements of operations.

Related Party Debt

In 2021 and 2022, NLabs
made loans to Private Veea evidenced by promissory notes aggregating $9,500,000 (the “Bridge Notes”). The Bridge Notes bear
interest on the outstanding principal at a rate of 10% per annum, calculated on the basis of a 365-day year. Principal and accrued interest
are payable on the maturity date of the Notes. The original maturity date of the Bridge Notes was December 31, 2022, which was extended
to December 31, 2023 and has been subsequently extended to September 30, 2024. The Company accounted for the extension as a modification
of the Bridge Notes. The