Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 37

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 operations and comprehensive income (loss). Accrued and unpaid rent expense included
in the Company’s condensed consolidated balance sheets was $2,088,000 and $1,944,000 as of June 30, 2025 and December 31, 2024,
respectively.

Related Party Debt 

At the Closing of the Business Combination,
promissory notes evidencing loans made by NLabs to the Company from 2021 through the Closing (the “Related Party Notes”) in
the aggregate amount, including accrued interest, of $15,739,897, were converted into shares of Common Stock at a price of $5.00 per share,
which shares were not considered Existing Veea Shares and were in addition to the shares of Common Stock issued to holders of Existing
Veea Shares. See Note 4 for further information regarding the conversion of the Related Party Notes. 

During the six months ended June 30, 2025, NLabs made loans to the
Company in the aggregate principal amount of $2,626,000. Subsequent to June 30, 2025, NLabs made additional loans to the Company in the
aggregate principal amount of $550,000. (collectively, the “NLabs 2025 Notes”). Interest on the loans accrue at a rate of 10%
per annum, calculated on the basis of a 365-day year. Accrued interest on the NLabs 2025 Notes through June 30, 2025 was $28,432. The
Company satisfied the payment of the outstanding NLabs 2025 Notes, plus accrued interest, in the aggregate amount of approximately $3,239,096,
with the issuance of approximately 3,239,096 shares of Common Stock with accompanying common warrants issued in the Offering, based on
the assumed offering price of $1.00 per share. See Note 15 for additional information.

14 - COMMITMENTS AND CONTINGENCIES

Purchase Commitments with Contract
Manufacturers and Suppliers

As of June 30, 2025, the Company had
no unconditional purchase obligations for the purchase of goods or services from suppliers and contract manufacturers. Unconditional purchase
obligations are obligations that are enforceable and legally binding on the Company and specify all significant terms, including quantities
to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. Unconditional purchase obligations
exclude agreements that are cancellable without penalty.

19

Leases

The