Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 58

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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4 and increased
by $67,282, or 49%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was due to additional
amortization for the Crowdkeep technology.

Other income, net

Other income, net relates
to immaterial non-operating transactions incurred during the period. These amounts were immaterial for the three months ended June 30,
2025 and 2024 and six months ended June 30, 2025 and 2024.

Change in fair value of derivative liabilities

Change in fair value of derivative
liabilities is comprised of the fair value adjustment to the conversion option, Private Warrants, and earn-out shares at balance sheet
date. The gain on the change in fair value of conversion note option liability of $59,730 for the six months ended June 30, 2025, was
determined using a Black-Scholes option pricing model. The gain on the change in fair value of warrant liabilities of for the six months
ended June 30, 2025, was determined based on the trading value of the public warrants. The gain on the change in fair value of the Earn-Out
Share Liability of $8,800,000 for the six months ended June 30, 2025, was determined using a Monte Carlo simulation. A significant driver
of the changes in fair value was due to the decline in the Company’s stock price.

Other expense

Other expenses relate to
immaterial non-operating expenses incurred during the period. These amounts were immaterial for the three months ended June 30, 2025 and
2024 and six months ended June 30, 2025 and 2024.

Interest expense

Interest expense decreased
by $11,076, or 2%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Interest expense increased
by $478,639, or 53%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was due to additional
draws on our revolving line of credit.

31

Liquidity and Capital Resources

During the three months ended
June 30, 2025 and 2024, the Company incurred operating losses of $4.9 million and $6.8 million, respectively, and during the six