Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 28

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 28
---
 adjustment for anti-dilutive shares, equal to
the product of (i) the number of shares of Private Veea’s common stock subject to such Preferred Stock warrant immediately prior
to the Business Combination and (ii) the Exchange Ratio, at an exercise price per share equal to (A) the exercise price per share of such
Preferred Stock warrant immediately prior to the consummation of the Business Combination, divided by (B) the Exchange Ratio. On November
6, 2024, the warrant holder exercised warrants to purchase 79,654 shares of Common Stock at an exercise price of $0.05 per share for an
aggregate purchase price of $3,983. The outstanding Exchanged Warrants are exercisable at the option of the holder until September 28,
2028, for an exercise price of $10.19 per share. As of March 31, 2025, there are 159,307 Exchanged Warrants outstanding.

12 - RELATED PARTY TRANSACTIONS

Lease Agreements

On March 1, 2014, Private Veea entered
into a sublease agreement with NLabs Inc., an affiliate of the Company’s CEO that held approximately 33% of the Company’s
outstanding capital stock at December 31, 2024, for office space for an initial term of five years. In 2018, Private Veea renewed the
sublease for an additional five-year term, with all other terms and conditions of the sublease remaining the same. The renewal term expired
February 28, 2024, and was subsequently extended to December 31, 2025. Rent for the office space is accrued and not paid in cash. The
Company recognized rent expense of $61,200 for each of the three months ended March 31, 2025 and 2024, which was classified as general
and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income (loss). Accrued
and unpaid rent expense included in the Company’s condensed consolidated balance sheets was $1,774,800 as of March 31, 2025 and
$1,713,600 as of December 31, 2024.

In April 2017, Private Veea entered
into a lease agreement with 83rd Street LLC to lease office space for an initial term of two years. The sole member of
83rd Street LLC is the Salmasi 2004 Trust. At December 31,