Product Development and Technology - Veea has developed the VeeaHub product, which integrates a Linux server, Wi-Fi Access Point, firewall, IoT gateway, and NVMe data storage, with approximately 125 granted patents and 25 pending applications[124] - 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'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] - Veea's business model resembles the Android OS platform architecture, focusing on hybrid edge-cloud computing and AI-enabled applications[126] 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%, totaling $215,575 for the three months ended March 31, 2025, driven by increased internal development and contractor costs[150] - Sales and marketing expenses rose significantly by $262,987, or 305%, reaching $349,251 for the three months ended March 31, 2025, due to enhanced go-to-market strategies[151] - General and administrative expenses decreased by $736,302, or 13%, totaling $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] - The net income for the three months ended March 31, 2025, was $4,299,052, a significant improvement from a net loss of $6,547,412 in the prior year[147] - 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, reflecting ongoing operational challenges[163] Financing and Investment - 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 $25.0 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] - 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 expects to fund operations through a combination of private and public equity and debt offerings, including anticipated cash tax refunds of up to $7 million related to R&D activities and inventory prepayments[160] Management and Leadership - Randal V. Stephenson was appointed as the Senior Vice President, Finance and Chief Strategy Officer on May 1, 2025[137] Market Risk - Not applicable for quantitative and qualitative disclosures about market risk as the company is a smaller reporting company[164]
Veea Inc.(VEEA) - 2025 Q1 - Quarterly Report