Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 98

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 98
---
 this method of accounting,
Plum was treated as the “acquired” company for financial reporting purposes. For accounting purposes, Private Veea was deemed
to be the accounting acquirer in the transaction and, consequently, the transaction was treated as a recapitalization of Private Veea
(i.e., a capital transaction involving the issuance of stock by Plum for the stock of Private Veea). Accordingly, the consolidated assets,
liabilities and results of operations of Private Veea became the historical financial statements of the combined company, and Plum’s
assets, liabilities and results of operations were consolidated with the Company’s beginning on the acquisition date. Operations
prior to the Business Combination were presented as those of Private Veea in future reports. The net assets of Private Veea were recognized
at carrying value, with no goodwill or other intangible assets recorded.

Private Placements

Simultaneously with the closing of the Business Combination, the Company and Private Veea issued convertible notes under note purchase agreements (the “Note Purchase Agreements”) with certain accredited investors unaffiliated with Plum and Private Veea (each, an “Investor”) for the sale of unsecured subordinated convertible promissory notes (the “September 2024 Notes”) as part of a private placement offering of up to $15 million in purchase price for such September 2024 Notes in the aggregate (the “Financing Closing”). The Company 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 was to be funded on or prior to November 15, 2024, subsequently extended to December 15, 2024. On December 31, 2024, the Company and the convertible note purchaser entered into a mutual Settlement and Release Agreement, terminating the purchaser’s obligation for the remaining unfunded amount of $13.55 million in exchange for a payment to the Company of $5,364,159, which includes amounts previously paid to the Company. In addition to a September 2024 Note, each Investor received as a transfer from NLabs immediately prior to the Financing Closing a number of shares of Private Veea Series A-1 Preferred Stock that upon the Closing became a number of registered shares of Common Stock equal to such Investors’ loan amount under their respective notes divided by $7.50 (the “Transferred Shares”).

The Company and Private Veea
are co-borrowers under each September