Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 989

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 989
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 purchaser
for the remaining unfunded amount of $13.55, which is to be funded on or prior to November 15, 2024, subsequently extended to December
15, 2024. In addition, each Investor received as a transfer from NLabs immediately prior to the Financing Closing a number of shares of
Private Veea’s Series A-1 Preferred Stock that upon the Closing became a number of registered shares of our common stock equal to
such Investors’ original principal note amount divided by $7.50 (the “Transferred Shares”). 2,000,000 Transfer Shares
were delivered to Investors at the Financing Closing. The Note Purchase Agreements include customary registration rights.

The Transferred Shares were recorded at a fair value of $21.6 million
on the Company’s consolidated financial statements, which reflected a significant discount to the face amount of the September 2024
Notes, In addition to the cash received at the Financing Closing, one of the Investors committed to purchase approximately $13.6 million
(the “Commitment Amount”) of September 2024 Notes, on or prior to November 15, 2024, which date was subsequently extended
to December 15, 2024. On December 31, 2024, the Company and the Investor entered into a mutual Settlement and Release Agreement pursuant
to which the Company agreed to terminate the Investor’s obligation to purchase a note in the Commitment Amount and provided for
a mutual release of claims, in exchange for a payment to the Company of an aggregate amount of approximately $5.4 million, which amount
includes payments previously made to the Company in respect of the Commitment Amount. As the Company received approximately $1.5 million
of the total expected $15 million proceeds at the Financing Closing, a proportional amount (approximately $19.5 million) of the substantial
discount had been deferred and recorded as a deferred financing asset on the Company’s consolidated financial statements. At December
31, 2024, the deferred financing assets was reversed on the Company’s consolidated financial statements.

The Company and Private Veea are co-borrowers under each September
2024 Note (together, the “Borrowers”) and are jointly responsible for the obligations to each Investor thereunder. Each September
2024 Note has a maturity date of 18 months after the Financing Closing but is prepayable in whole or in part by the Borrowers at any time
without penalty. The outstanding obligations under each September 2024 Note