Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 110

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 110
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Product development expense
decreased by $2.5 million, or 79%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was
due to a decrease in product development expenses due in part to (1) the completion of certain development projects with outside contractors
that reached their conclusion and a reduction in ongoing associated costs, (2) a reduction in internal development costs related to products
manufactured during the period and (3) delays in completion by technology partners of their development efforts.

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Sales and Marketing Expense

Sales and marketing expense
decreased by $.2 million, or 44%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was
due primarily to a reduction in costs paid to a third-party marketing firm.

General and Administrative Expense

General and administrative
expense decreased by $1.6 million, or 8%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease
was due to reduced spending as a result of cost containment measures.

Depreciation and Amortization

Depreciation and amortization
decreased by $1.1 million, or 56%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was
due to certain intangibles reaching the end of their useful lives.

Interest income

Interest income relates
to interest on cash and cash equivalents. These amounts were immaterial for the years ended December 31, 2023 and 2022.

Foreign Currency gain (loss)

Foreign Currency loss increased
by $3.5 million, or 159%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was due to a
change in foreign exchange rate related to agreements with our foreign subsidiaries. The Company maintains an intercompany revolving
loan agreement with its UK subsidiary and an intercompany services agreement with its French subsidiary. The advances under the loan
agreement are denominated in US dollars and reflected in local currency on the books and records of the subsidiary. Payments under the
intercompany agreement with the Company’s French subsidiary are denominated in Euros and reflected in US dollars on the books and
records of the Company and