Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 111

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 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,
$14.0 million was outstanding under the working capital facility, and $485,000 was related party debt outstanding under the NLabs 2025
Notes.

Although we have incurred
recurring losses each year since our inception, we plan to fund our operations and capital funding needs through a combination of private
and public equity and debt offerings, or a combination thereof, including (1) expected cash proceeds from the ELOC Program, (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 investors, including
related parties, which may include the Company’s CEO and his affiliates. The Company expects it will be able to fund its operations
over the next twelve months and has a reasonable basis to believe it has alleviated substantial doubt regarding its ability to continue
as a going concern. Since January 1, 2025, the Company has received $826,000 in additional loans from related parties and $1.0 million
of loans from unrelated parties in connection with the consummation of the acquisition of Crowdkeep. Although management continues to
pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to
the Company, if at all.

Non-GAAP Financial Measures

To supplement our consolidated
financial statements, which are prepared and presented in accordance with GAAP, we use Adjusted EBITDA, as described below, to understand
and evaluate our core operating performance. These