Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 309

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 309
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was outstanding under a notes payable with an inventory vendor.

Although the Company has had recurring losses
each year since inception, the Company plans to fund its operations and capital funding needs for the next 12 months through a combination
of private and public equity and debt offerings, or a combination thereof, including (1) cash proceeds of approximately $6.0 million from
the Offering (as defined below), (2) the ELOC Program (as defined below) (3) the expected cash tax refund of up to $1.0 million in respect
of the Company’s UK subsidiary’s 2023 and 2024 research and development activities and (4) potential additional investments
in the form of debt or equity to fund operating deficits from existing and/or new investors, including related parties, which may include
the Company’s CEO and his affiliates. The Company has a reasonable basis to believe it has alleviated substantial doubt regarding
its ability to continue as a going concern. Since January 1, 2025, the Company has received approximately $3.2 million in additional loans
from related parties and $1.0 million in loans from unrelated parties in connection with the consummation of the acquisition of Crowdkeep.
See Note 13 for additional information. 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, if at all.

Non-GAAP Financial Measures

To supplement our consolidated
financial statements, which are prepared and presented in accordance with GAAP, we use Adjusted EBITDA, as described below, to understand
and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by
other companies, is presented to enhance investors’ overall understanding of our financial performance and should not be considered
a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Adjusted EBITDA

The primary financial measure
we use is Adjusted EBITDA. EBITDA is defined as net (loss) income, before interest, taxes, depreciation, and amortization. We define Adjusted
EBITDA as net (loss) income excluding income tax provision, interest expense, net of interest income from related party loans, depreciation
and amortization, stock-based compensation expense, and non-core expenses/losses (gains), including transaction-related costs, litigation-related
costs, management fees, changes in fair value of liabilities, change