Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 26

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 adjusted quarterly, but interest is only payable upon the maturity
date of the September 2024 Note as long as there is no event of default thereunder. Each September 2024 Note is unsecured and expressly
subordinated to any senior debt of the Borrowers. The September 2024 Notes and the Note Purchase Agreements do not include any operational
or financial covenants for the Borrowers. Each September 2024 Note includes customary events of default including, without limitation,
failure to pay amounts due on the maturity date, failure to otherwise comply with the Borrowers’ covenants or for Borrower insolvency
events, in each case, with customary cure periods. Upon an event of default, the Investor may accelerate all obligations under its September
2024 Note and the Borrowers will be required to pay for the Investor’s reasonable out-of-pocket collection costs.

The outstanding obligations under each
September 2024 Note are convertible in whole or in part into shares of Common Stock (the “Conversion Shares”) at a conversion
price of $7.50 per share (subject to equitable adjustment for stock splits, stock dividends and the like with respect to the Common Stock
after the Financing Closing) (the “Conversion Price”) at any time after the Financing Closing at the sole election of the
Investor. The outstanding obligations under each September 2024 Note will automatically convert at the Conversion Price if (i) the Company
or its subsidiaries consummate one or more additional financings for equity or equity-linked securities for at least $20 million in the
aggregate or makes one or more significant acquisitions valued in the aggregate (based on the consideration provided by the Company and
its subsidiaries) to be at least $20 million, (ii) the Investors holding a majority of the aggregate outstanding obligations under the
September 2024 Notes expressly agree to convert all obligations under the September 2024 Notes or (iii) the Common Stock trades with an
average daily VWAP of at least $10.00 (subject to equitable adjustment for stock splits, stock dividends and the like with respect to
the Common Stock after the Financing Closing) for ten (10) consecutive trading days. The obligations under each September 2024 Note will
also automatically convert in connection with a Brokerage Transfer, as described below.

The Conversion Shares were initially
subject to a lock-up for a period of 6 months after the Financing Closing. The Transferred Shares were not subject to any lock-up restrictions,
but for a period of 6