Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 51

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 the form of debt or equity to fund operating deficits from existing investors, including
related parties, which may include the Company’s CEO and his affiliates. The Company expects it will be able to fund its operations
over the next twelve months and 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 $826,000 in additional loans from related parties and $1.0 million
of loans from unrelated parties in connection with the consummation of the acquisition of Crowdkeep. 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 in fair value of earn-out share liabilities and other expense, which
includes asset impairments. Our management uses this measure internally to evaluate the performance of our business and this measure is
one of the primary metrics by which our internal budgets are based. We exclude the above items as some are non-cash in nature, and others
are non-recurring that they may not be representative of normal operating results. This non-GAAP financial measure adjusts for the impact
of items that we do not consider indicative of the operational performance of our business. While we believe that this non-GAAP financial
measure is useful in evaluating our business, this information should be considered as