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Veea Inc.(VEEA) - 2024 Q3 - Quarterly Report
VEEAVeea Inc.(VEEA)2024-11-19 22:55

Financial Performance - Veea incurred net losses of approximately 33.3millionand33.3 million and 46.4 million for the three and nine months ended September 30, 2024, respectively[140]. - Veea generated net revenue of approximately 51,000and51,000 and 108,000 for the three and nine months ended September 30, 2024, respectively, compared to approximately 9,000and9,000 and 40,000 for the same periods in 2023[140]. - The Company generated revenue of 50,683forthethreemonthsendedSeptember30,2024,adecreaseof9950,683 for the three months ended September 30, 2024, a decrease of 99% compared to 9,009,254 for the same period in 2023[155]. - For the nine months ended September 30, 2024, revenue was 108,264,down99108,264, down 99% from 9,040,359 in 2023, primarily due to 9millionrecognizedfromthelicenseofAdEdgein2023[155].Thecompanyincurrednetlossesof9 million recognized from the license of AdEdge™ in 2023[155]. - The company incurred net losses of 46.6 million for the nine months ended September 30, 2024, compared to 9.4millionforthesameperiodin2023[168].AsofSeptember30,2024,thecompanyhadanaccumulateddeficitof9.4 million for the same period in 2023[168]. - As of September 30, 2024, the company had an accumulated deficit of 216.9 million, up from 170.3millionasofDecember31,2023[168].AdjustedEBITDAforthethreemonthsendedSeptember30,2024,was170.3 million as of December 31, 2023[168]. - Adjusted EBITDA for the three months ended September 30, 2024, was (2,331,722), compared to 3,505,189forthesameperiodin2023[170].BusinessDevelopmentsTheBusinessCombinationwithPlumAcquisitionCorp.IwascompletedonSeptember13,2024,resultinginVeeaInc.becomingawhollyownedsubsidiaryofPlum[141].TheBusinessCombinationwasaccountedforasa"reverserecapitalization,"withnogoodwillorotherintangibleassetsrecorded[143].TheCompanyraised3,505,189 for the same period in 2023[170]. Business Developments - The Business Combination with Plum Acquisition Corp. I was completed on September 13, 2024, resulting in Veea Inc. becoming a wholly owned subsidiary of Plum[141]. - The Business Combination was accounted for as a "reverse recapitalization," with no goodwill or other intangible assets recorded[143]. - The Company raised 1.45 million from the issuance of convertible promissory notes as part of a private placement offering, with a commitment for an additional 13.55million[144].Thecompanyplanstofundoperationsthroughacombinationofprivateandpublicequityanddebtofferings,witharemainingconvertiblenotecommitmentofapproximately13.55 million[144]. - The company plans to fund operations through a combination of private and public equity and debt offerings, with a remaining convertible note commitment of approximately 13.6 million[170]. Expenses and Costs - Total operating expenses for the three months ended September 30, 2024, were 57,533,067,a92257,533,067, a 922% increase compared to 5,631,507 for the same period in 2023[153]. - Cost of goods sold decreased by approximately 9,310,or389,310, or 38%, for the three months ended September 30, 2024, compared to the same period in 2023[156]. - Cost of goods sold increased by 10,524, or 22%, for the nine months ended September 30, 2024, compared to the same period in 2023[156]. - Product development expenses increased by 170,997,or92170,997, or 92%, for the three months ended September 30, 2024, compared to the same period in 2023[157]. - Product development expenses increased by 476,327, or 70%, for the nine months ended September 30, 2024, compared to the same period in 2023[157]. - Sales and marketing expenses decreased by 57,006,or4157,006, or 41%, for the three months ended September 30, 2024, compared to the same period in 2023[158]. - Sales and marketing expenses increased by 160,211, or 54%, for the nine months ended September 30, 2024, compared to the same period in 2023[158]. - General and administrative expenses decreased by 3.2million,or623.2 million, or 62%, for the three months ended September 30, 2024, compared to the same period in 2023[159]. - Depreciation and amortization decreased by 7,588, or 10%, for the three months ended September 30, 2024, and by 529,195,or72529,195, or 72%, for the nine months ended September 30, 2024, compared to the same periods in 2023[162]. - Interest expense decreased by 1.3 million, or 75%, for the three months ended September 30, 2024, and by 3.1million,or693.1 million, or 69%, for the nine months ended September 30, 2024, compared to the same periods in 2023[167]. Recognition and Awards - Veea was recognized by Gartner in 2023 as a Leading Smart Edge Platform and named a Cool Vendor in Edge Computing in 2021[140]. - The Company was listed among the top 10 Edge AI solution providers in a report published by Market Reports World in October 2023[140]. - The Veea Edge Platform provides highly secure connectivity and computing solutions for digital transformation in underserved communities[140]. Financial Instruments - The September 2024 Notes have a maturity date of 18 months after the Financing Closing and accrue interest at a rate equal to the Secured Overnight Financing Rate plus 2% per annum[144]. - The September 2024 Notes are convertible into shares of Common Stock at a conversion price of 7.50 per share[144]. - The fair value of the earn-out share liability was 24.8millionforthethreeandninemonthsendedSeptember30,2024,determinedusingaMonteCarlosimulation[165].Thecompanyrecordedacontingentearnoutshareliabilityof24.8 million for the three and nine months ended September 30, 2024, determined using a Monte Carlo simulation[165]. - The company recorded a contingent earn-out share liability of 53.6 million for the three and nine months ended September 30, 2024, as part of transaction costs[161]. Tax Credits - The company received an R&D tax credit of $1.2 million from its UK subsidiary[164].