Product Development and Technology - Veea has developed the VeeaHub product, which integrates a Linux server, Wi-Fi Access Point, firewall, IoT gateway, and 4G/5G modules, with approximately 125 granted patents and 25 pending applications [124]. - Veea's Edge Platform offers a distributed computing architecture that enhances data privacy, reliability, and low latency for real-time decisions [125]. - The Company aims to simplify the journey towards intelligent connectivity for devices and applications at the edge of the network [123]. Financial Performance - For the three months ended March 31, 2025, the Company reported net revenues of $14,262, a decrease of $2,508 or 15% compared to $16,770 for the same period in 2024 [147]. - Cost of goods sold increased by $346, or 3%, to $12,330 for the three months ended March 31, 2025, compared to $11,984 in the prior year [149]. - Product development expenses surged by $121,352, or 129%, reaching $215,575 for the three months ended March 31, 2025, primarily due to increased internal development and contractor costs [150]. - Sales and marketing expenses rose significantly by $262,987, or 305%, totaling $349,251 for the three months ended March 31, 2025, driven by enhanced go-to-market strategies [151]. - General and administrative expenses decreased by $736,302, or 13%, to $5,109,473 for the three months ended March 31, 2025, attributed to cost reduction measures [152]. - The Company incurred a loss from operations of $5,767,483 for the three months ended March 31, 2025, compared to a loss of $6,090,392 in the same period of 2024 [147]. - Interest expense increased by $489,716, or 107%, to $946,484 for the three months ended March 31, 2025, due to additional draws on the revolving line of credit [158]. - The Company had an accumulated deficit of $213.5 million as of March 31, 2025, and expects to continue incurring net losses as it scales its business [159]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(5,618,846), compared to $(5,959,058) for the same period in 2024 [163]. Strategic Initiatives - The Company entered into an Asset Purchase Agreement with Crowdkeep, Inc., acquiring certain IoT technology assets for the issuance of 4,065,689 shares of Common Stock [129]. - Veea secured $1,000,000 in loans from the Crowdkeep Investor through two Note Purchase Agreements, with an annual interest rate of 8% [131]. - The Company has the right to direct White Lion Capital to purchase up to $25 million in newly issued shares of Common Stock under the Equity Line of Credit program [138]. - The Crowdkeep Convertible Notes can convert into shares of Common Stock at a price of $5.00, subject to certain conditions, and will automatically convert if the stock price reaches $7.50 for ten consecutive trading days [132]. - The Company is focused on expanding its market presence through strategic acquisitions and partnerships, as evidenced by the Crowdkeep transaction [129]. - The Company plans to fund operations through a combination of equity and debt offerings, including expected cash proceeds from the ELOC Program and anticipated tax refunds totaling up to $7 million [160]. Leadership Changes - The appointment of Randal V. Stephenson as Senior Vice President, Finance and Chief Strategy Officer was made on May 1, 2025 [137]. Market Risk Disclosure - Not applicable for quantitative and qualitative disclosures about market risk as the company is a smaller reporting company [164].
Plum Acquisition I(PLMI) - 2025 Q1 - Quarterly Report