Veea Inc.(VEEA) - 2024 Q3 - Quarterly Report

Financial Performance - Veea incurred net losses of approximately $33.3 million and$46.4 million for the three and nine months ended September 30, 2024, respectively[140]. - Veea generated net revenue of approximately $51,000 and$108,000 for the three and nine months ended September 30, 2024, respectively, compared to approximately $9,000 and$40,000 for the same periods in 2023[140]. - The Company generated revenue of $50,683 for the three months ended September 30, 2024, a decrease of 99$9,009,254 for the same period in 2023[155]. - For the nine months ended September 30, 2024, revenue was $108,264, down 99$9,040,359 in 2023, primarily due to $9 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 $9.4 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 $170.3 million as of December 31, 2023[168]. - Adjusted EBITDA for the three months ended September 30, 2024, was$(2,331,722), compared to $3,505,189 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 $13.55 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, a 922$5,631,507 for the same period in 2023[153]. - Cost of goods sold decreased by approximately $9,310, or 38$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, or 92$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, or 41$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 $3.2 million, or 62$7,588, or 10%, for the three months ended September 30, 2024, and by $529,195, or 72$1.3 million, or 75%, for the three months ended September 30, 2024, and by $3.1 million, or 69$7.50 per share[144]. - The fair value of the earn-out share liability was $24.8 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].