Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 221

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 221
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Development Inc., formerly known as Veea Systems Inc., a Delaware corporation; Veea Systems Ltd., a company organized under the laws
of England and Wales; and VeeaSystems SAS, a French simplified joint stock company; and one majority owned subsidiary, VeeaSystems Mexico,
S. de R.L. de C.V., a limited capital company organized under the laws of Mexico (“VeeaSystems MX”). VeeaSystems MX is 95%
owned by VeeaSystems Inc., and due to local law requirements, the remaining 5% is held by the Company’s CEO. The Company is headquartered
in New York City with offices in the United States, Mexico, and Europe.

<div align='center'>F-6</div>

2 - LIQUIDITY AND MANAGEMENT’S PLAN

During the three months ended March
31, 2025 and 2024, the Company incurred operating losses of $5.7 million and $6.1 million, respectively, and had an accumulated deficit
of $213.5 million as of March 31, 2025. Since its inception, the Company has incurred significant operating losses and negative cash flows.
The Company expects to continue to incur net losses as it continues to grow and scale its business. As of March 31, 2025, the Company
had cash of $247,341 and outstanding debt of $15.2 million, of which $750,000 was outstanding under the September 2024 Notes (as defined
below), $14.0 million was outstanding under the working capital facility, and $485,000 was related party debt outstanding under the NLabs
2025 Notes (as defined below).

Although the Company has had recurring
losses each year since inception, the Company plans to fund its operations and capital funding needs through a combination of private
and public equity and debt offerings, or a combination thereof, including (1) cash proceeds from the ELOC Program (as defined below) (2)
the expected cash tax refund of up to $2.0 million in respect of the Company’s UK subsidiary’s 2023 and 2024 research and
development activities (3) the anticipated refund by June 30, 2025, of up to $5.0 million of the Company’s prepayment for purchased
inventory and (4) potential additional investments in the form of debt or equity to fund operating deficits from existing and/or new investors,
including related parties, which may include the Company’s CEO and his affiliates. The Company