Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 110

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 110
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houses.

Cost of Goods Sold

Cost of goods sold decreased
by approximately $9,310, or 38%, in the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Cost of goods sold increased by $10,524, or 22%, in the nine months ended September 30, 2024 compared to the nine months ended September
30, 2023. The increase is immaterial as it is related to the costs incurred to generate our revenue earned from paid pilots for our VeeaHubdevices.

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Product Development Expense

Product development expense
increased by $170,997, or 92%, in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Product
development expense increased by $476,327, or 70%, in the nine months ended September 30, 2024 compared to the nine months ended September
30, 2023. The increase in product development expenses was due to increased internal development and additional costs incurred by outside
contractors related to products manufactured during the period.

Sales and Marketing Expense

Sales and marketing expense
decreased by $57,006, or 41%, in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Sales
and marketing expense increased by $160,211, or 54%, in the nine months ended September 30, 2024 compared to the nine months ended September
30, 2023. In the third quarter, management had reduced efforts in marketing as the focus was on the Business Combination completion.
The year-to-date increase was due primarily to an increase in customer evaluations and fees paid to third-party marketing firm during
the period.

General and Administrative Expense

General and administrative
expense decreased by $3.2 million, or 62%, in the three months ended September 30, 2024 compared to the three months ended September
30, 2023. General and administrative expense increased by $0.6 million, or 5%, in the nine months ended September 30, 2024 compared to
the nine months ended September 30, 2023. The decrease for the quarter is primarily related to the foreign exchange gain of $1.8 million
for the three months ended, as well as a reclassification of $1.4 million