Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 239

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 239
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related parties.

<div align='center'>F-43

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

At
the Closing of the Business Combination, the Company converted approximately $16 million
of related party debt to equity concurrently; and received $1.45 million in proceeds from
the issuance of its convertible promissory note with a commitment from a convertible note
purchaser for the remaining unfunded amount of $13.55 million, which is to be funded on or
prior to November 15, 2024, subsequently extended to December 15, 2024. Following the Closing,
the Company received approximately $1.1 million of net proceeds from Plum’s trust account
and received a cash tax refund of approximately $1.2 million in respect to the Company’s
UK subsidiary’s R&D activities. Taking into account, the cash proceeds received
to date, the anticipated funding of the remaining convertible note commitment, the term sheet
entered into with White Lion Capital, LLC for access to a $25 million Equity Line of Credit
and the anticipated return by year end of the Company’s $5 million downpayment for
certain inventory purchased from iFREE Group Holdings Limited, the Company expects it will
be able to funds its operations over the next twelve months. The Company may seek additional
funding through debt or other equity financing arrangements, implement incremental expense
reduction measures or a combination thereof to continue financing its operations. 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 to fund continuing
operations, if at all. See Note 17 “Subsequent Events”for further information
regarding the Equity Line of Credit.

The Company’s condensed consolidated
financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things,
the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements
do not include adjustments to reflect the possible future effects on the recoverability and classification of recorded assets or the
amounts of liabilities that might be necessary should the Company be unable to continue as a going concern.

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The
accompanying unaudited condensed consolidated financial statements