Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 73

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 for the service of a stock exchange listing for its shares and was expensed as incurred.

The warrants issued at the time of
Plum’s initial public offering (the “Public Warrants”), and warrants issued in connection with private placement at
the time of Plum’s initial public offering (the “Private Placement Warrants”) remain outstanding and are now outstanding
warrants for the Company.

Earn-out Share Liability

Following the Closing, stockholders
who previously held certain capital stock of Private Veea have the contingent right to receive up to 4.5 million additional shares of
the common stock, par value $0.0001 per share, of the Company (“Common Stock”) if certain trading-price based milestones
of the Company’s Common Stock are achieved or a change of control transaction occurs during the ten-year period following the Closing.

Under accounting principles, the Company’s
obligation to issue the earn-out shares is recorded as a contingent liability (the “Earn-out Share Liability”) in the Company’s
financial statements and the initial value of the Earn-out Share Liability was recorded as a transaction cost within operating expenses
in the Company’s financial statements for the year ended December 31, 2024. For each subsequent reporting period, changes in the
fair value of the Earn-out Share Liability are reported in the Company’s financial statements.

5 - BALANCE SHEET COMPONENTS

Inventory

Inventory consists of the following:

    March 31, 2025  
    December 31, 2024 
  
    Inventory 
    $7,256,166  
    $7,377,966 
  
    Inventory allowance 
     (904,653) 
     (904,653)
  
    Consigned parts 
     1,425,736  
     985,927 
  
    Total 
    $7,777,249  
    $7,459,240 

Property and Equipment, net

Property and equipment, net consists
of the following:

    March 31, 2025  
    December 31, 2024 
  
    Furniture and fixtures 
    $703,101  
    $702,122 
  
    Computer equipment 
     330,598  
     327,166 
  
    Leasehold improvements 
     390,742  
     390,742 
  
    Total property and equipment gross 
     1,424,441  
     1,420,030 
  
    Less