Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 107

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 period.

Cost of Goods Sold

Cost of goods sold consists
primarily of the cost of finished goods, components purchased for manufacturing and freight. Cost of goods sold also includes third-party
vendor costs related to cloud hosting fees.

Operating Expenses

We classify our operating
expenses into the following categories:

●Product development expenses.
Product development expenses primarily consist of employee compensation, employee benefits, stock-based compensation related to technology
developers and product management employees, as well as fees paid for outside services and materials.

●Sales and marketing expenses.
Sales and marketing expenses consist of compensation and other employee-related costs for personnel engaged in selling, marketing and
sales support functions. Selling expenses also include marketing and the costs associated with customer evaluations. The Company does
not currently incur advertising costs.

●General and administrative
expenses. General and administrative expenses consist of compensation expense (including stock-based compensation expense) for employees
and executive management, and expenses associated with finance, tax, and human resources. General and administrative expenses also includes
transaction costs, expenses associated with facilities, information technology, external professional services, legal costs and settlement
of legal claims and other administrative expenses.

●Depreciation and amortization:
Depreciation and amortization expense consists of depreciation of Veea’s property and equipment and amortization of Veea’s
patents and other intellectual property.

●Impairment: Impairment
consists of impairment charges related to our in-process research and development (“IPR&D”)

27

Results of Operations

The following tables set
forth the results of our operations for the periods presented, as well as the changes between periods. The period-to-period comparison
of financial results is not necessarily indicative of future results.

For the three months ended March 31, 2025
compared to three months ended March 31, 2024

The following table sets
forth Veea’s unaudited statements of operations data for the three months ended March 31, 2025 and 2024, respectively. Veea has
prepared the three month data on a consistent basis with the audited consolidated financial statements as of and for the years ended
December 31, 2024 and 2023, included in the Form 10-K filed with the SEC on April 15, 2025. In the opinion of Veea’s management,
the unaudited three month financial information reflects all necessary adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation of this data.

    For the Three Months Ended