Financial Performance - Revenue for the three months ended September 30, 2025, was $144,926, representing a 186% increase compared to $50,683 for the same period in 2024[170]. - Revenue for the nine months ended September 30, 2025, was $232,094, a 114% increase from $108,264 in the same period in 2024[171]. - For the three months ended September 30, 2025, the company reported a net income of $1,375,294, compared to a net loss of $33,323,555 for the same period in 2024[187]. - For the nine months ended September 30, 2025, the company reported a net loss of $(1,736,512), compared to a net loss of $(46,620,619) for the same period in 2024[189]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(4,127,015), while for the same period in 2024, it was $(2,331,722)[188]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(14,128,556), slightly improved from $(14,258,963) in the same period of 2024[189]. - The company incurred interest expenses of $1,822,448 for the nine months ended September 30, 2025, compared to $1,352,823 for the same period in 2024[189]. - The company recognized a UK R&D tax credit of $(1,223,328) for the nine months ended September 30, 2025, compared to $(1,251,243) for the same period in 2024[189]. - The change in fair value of Earn-Out Share Liability was $(13,520,000) for the nine months ended September 30, 2025, compared to $(24,750,000) for the same period in 2024[189]. - The company reported transaction costs of $25,000 for the nine months ended September 30, 2025, significantly lower than $55,038,544 for the same period in 2024[189]. Expenses - Cost of Goods Sold for the three months ended September 30, 2025, increased by $38,009, or 253%, compared to the same period in 2024[173]. - General and administrative expenses increased by $2,533,495, or 127%, for the three months ended September 30, 2025, compared to the same period in 2024[176]. - Product development expenses decreased by $356,761, or 100%, for the three months ended September 30, 2025, compared to the same period in 2024[174]. - Sales and marketing expenses decreased by $65,382, or 81%, for the three months ended September 30, 2025, compared to the same period in 2024[175]. - Depreciation and amortization increased by $148,704, or 220%, for the three months ended September 30, 2025, compared to the same period in 2024[177]. Capital and Funding - The Company closed a public offering of 9,189,096 shares at a combined price of $1.00 per share, raising approximately $6.0 million in gross proceeds[153]. - The warrants from the public offering have an exercise price of $1.10 and are exercisable immediately, expiring five years from issuance[153]. - The Crowdkeep Convertible Notes have an aggregate principal amount of $1,000,000, with an annual interest rate of 8% and maturity dates in 2026[159]. - The company had cash of $1,071,151 and outstanding debt of $17.5 million as of September 30, 2025[182]. - The company plans to fund operations through revenue, private and public equity offerings, and anticipated cash tax refunds of approximately $1.2 million[183]. - The company’s management continues to pursue funding opportunities to alleviate substantial doubt regarding its ability to continue as a going concern[184]. Intellectual Property and Technology - The Company has approximately 125 granted patents and 25 pending applications, indicating a strong intellectual property position in the market[148]. - The Supply Agreement with Telcel includes a comprehensive Platform-as-a-Service solution featuring 5G-based Fixed Wireless Access, with an initial term of three years[154][155]. - The Company acquired assets from Crowdkeep, Inc. for 4,065,689 shares of common stock, enhancing its IoT technology platform capabilities[158]. - The VeeaONE Platform enables the formation of secure private clouds, enhancing data privacy and reducing costs compared to traditional cloud solutions[151]. - The Company is focused on expanding its market presence through strategic partnerships and innovative product offerings in Edge AI and Hybrid Edge-Cloud Computing[147]. Revenue Recognition - The Company has a five-step approach to revenue recognition based on ASC 606, ensuring compliance and accuracy in financial reporting[164]. Operating Losses - Operating losses for the three months ended September 30, 2025, were $4.7 million, compared to $57.5 million for the same period in 2024[182].
Veea Inc.(VEEA) - 2025 Q3 - Quarterly Report