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]. - The company incurred net losses of $46.6 million and $9.4 million for the nine months ended September 30, 2024, and 2023, respectively, with an accumulated deficit of $216.9 million as of September 30, 2024[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]. - The company expects to continue incurring net losses as it grows and scales its business[168]. Revenue Generation - 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]. - Veea's revenue primarily comes from the sale of VeeaHub devices, licenses, and subscriptions[140]. - The Company generated revenue of $50,683 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, down 99% from $9,040,359 in 2023, primarily due to $9 million recognized from the license of AdEdge™ in 2023[155]. - The Company expects revenue to grow over the next several quarters through sales of hardware, licenses, and subscriptions, focusing on four principal market opportunities[155]. Expenses - Total operating expenses for the three months ended September 30, 2024, were $57,533,067, a 922% increase compared to $5,631,507 for the same period in 2023[153]. - Cost of goods sold decreased by approximately $9,310, 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, 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, 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 $3.2 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, 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 $3.1 million, or 69%, for the nine months ended September 30, 2024, compared to the same periods in 2023[167]. Financing and Capital Structure - The Company raised $1.45 million from the issuance of convertible promissory notes as part of a private placement offering of up to $15 million[144]. - 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]. - As of September 30, 2024, the company had cash of $2.8 million and outstanding debt of $14.15 million[168]. 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]. - 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 named one of the top 10 Edge AI solution providers in a report published in October 2023[140]. - The Company aims to address underserved communities lacking Internet connectivity through its Veea Edge Platform[140]. Contingent Liabilities - The initial value of the contingent earn-out share liability was recorded at $53.6 million for the three and nine months ended September 30, 2024[161]. - The change in fair value of earn-out share liability resulted in a loss of $24.8 million for the three and nine months ended September 30, 2024[165]. Tax Credits - The company received an R&D tax credit of $1.2 million from its UK subsidiary[164].
Plum Acquisition I(PLMI) - 2024 Q3 - Quarterly Report