Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 109

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 109
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3 compared to the year ended December 31, 2022. The increase was due to an increase in our inventory
reserves.

Product Development Expense

Product development expense decreased by $2.5
million, or 79%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was due to a decrease
in product development expenses due in part to (1) the completion of certain development projects with outside contractors that reached
their conclusion and a reduction in ongoing associated costs, (2) a reduction in internal development costs related to products manufactured
during the period and (3) delays in completion by technology partners of their development efforts.

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Sales and Marketing Expense

Sales and marketing expense decreased by $.2 million,
or 44%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was due primarily to a reduction
in costs paid to a third-party marketing firm.

General and Administrative Expense

General and administrative expense decreased by
$1.6 million, or 8%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was due to reduced
spending as a result of cost containment measures.

Depreciation and Amortization

Depreciation and amortization decreased by $1.1
million, or 56%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The decrease was due to certain intangibles
reaching the end of their useful lives.

Interest income

Interest income relates to interest on cash and
cash equivalents. These amounts were immaterial for the years ended December 31, 2023 and 2022.

Foreign Currency gain (loss)

Foreign Currency loss increased by $3.5 million,
or 159%, in the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was due to a change in foreign
exchange rate related to agreements with our foreign subsidiaries. The Company maintains an intercompany revolving loan agreement with
its UK subsidiary and an intercompany services agreement with its French subsidiary. The advances under the loan agreement are denominated
in US dollars and reflected in local currency on the books and records of the subsidiary. Payments under the intercompany agreement with
the Company