Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 131

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 131
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Revenue, net

The Company generated revenue
of $141,760 and $9,072,130 for the years ended December 31, 2024 and 2023, respectively. Revenue has been principally earned from paid
pilots for our VeeaHub devices. The decrease was due to $9 million income recognized in connection with the license
of AdEdge™ in 2023.

Our focus over the past several
years has been on field testing and refining our product to meet customer needs as well as market developments. As a result of these
efforts, we expect revenue to grow over the next several quarters through the sales of our hardware, licenses and subscriptions. We are
especially focused in four principal market opportunities: 1) Digital Equity and Inclusion, 2) Energy and Sustainability solutions for
Smart Buildings and Climate Smart Agriculture, 3) Convergence of Fixed, Wireless, and 5G Networks, and 4) Smart Retail and Smart Warehouses.

Cost of Goods Sold

Cost of goods sold decreased
by $383,512, or 82%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease is immaterial as
it is related to the costs incurred to generate our revenue earned from paid pilots for our VeeaHub devices.

Product Development Expense

Product development expense
increased by $679,903, or 98%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase in product
development expenses was due to increased internal development and additional costs incurred of outside contractors related to software
development and product manufacturing during the period.

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Sales and Marketing Expense

Sales and marketing expense
increased by $596,205, or 277%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. 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 increase by $9.4 million, or 55%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase
is primarily related to a $6.3 million increase to share based compensation, $