Company Overview

Veea is dedicated to simplifying the journey towards creating a world in which virtually everyone and everything is intelligently connected, while bringing applications and AI to the edge of the network. The company has developed several generations of highly integrated all-in-one “VeeaHub” devices that incorporate a Linux server, a virtualized software environment, Wi-Fi Access Point (AP) with a mesh router, a firewall, an IoT gateway, NVMe data storage and 4G/5G modules.

Veea’s end-to-end Hybrid Edge-Cloud Computing platform represents a new product category that has the potential for wide scale customer adoption in large segments of consumer and enterprise markets. The Veea Edge Platform’s products, applications, and services with a distributed computing architecture, offered as a Platform-as-a-Service capability, empower companies to capitalize on the transformative potential of Edge AI. Key benefits include optimal latency, lower data transport costs, data privacy, security and ownership, Edge AI, as well as “always-on” availability for mission critical applications, and contextual awareness.

Veea earns revenue primarily from the sale of its VeeaHub devices, licenses, and subscriptions.

Recent Developments

Veea made the following key developments in the first quarter of 2025:

Asset Purchase Transaction with Crowdkeep, Inc.

• Veea acquired certain assets of Crowdkeep, Inc.’s IoT technology platform business for 4,065,689 shares of Veea common stock.
• Veea also received $1 million in convertible loans from Crowdkeep’s majority stockholder.

Appointment of Chief Strategy Officer and Senior Vice President, Finance

• Veea appointed Randal V. Stephenson as the company’s Senior Vice President, Finance and Chief Strategy Officer.

Equity Line of Credit

• Veea entered into a $25 million common stock purchase agreement with White Lion Capital, LLC, providing an equity line of credit (ELOC) facility.
• During Q1 2025, Veea issued 27,498 shares as a commitment fee and sold 240,500 shares to White Lion for $604,426.

Results of Operations

For the three months ended March 31, 2025 compared to the same period in 2024:

Revenue, net

• Revenue decreased 15% from $16,770 to $14,262, primarily from lower paid pilots for VeeaHub devices.
• Veea expects revenue to grow in the coming quarters through sales of hardware, licenses and subscriptions.

Cost of Goods Sold

• Cost of goods sold increased slightly by 3% from $11,984 to $12,330.

Operating Expenses

• Product development expenses increased 129% from $94,223 to $215,575 due to increased internal development and outside contractor costs.
• Sales and marketing expenses increased 305% from $86,264 to $349,251 to support greater investment in go-to-market strategies.
• General and administrative expenses decreased 13% from $5,845,775 to $5,109,473 due to cost reduction measures.
• Transaction costs of $35,000 were incurred related to the Crowdkeep acquisition and ELOC commitment shares.
• Depreciation and amortization decreased 13% from $68,916 to $60,116 as certain assets reached the end of their useful lives.

Other Income (Expense)

• Veea recognized gains of $59,000, $420,497 and $10,530,000 from changes in fair value of the conversion note option liability, warrant liabilities, and earn-out share liability, respectively, primarily due to the decline in Veea’s stock price.
• Interest expense increased 107% from $456,768 to $946,484 due to additional draws on the revolving line of credit.

Liquidity and Capital Resources

• As of March 31, 2025, Veea had $247,341 in cash and $15.2 million in outstanding debt.
• Veea plans to fund operations through a combination of the ELOC program, tax refunds, inventory prepayment refunds, and potential additional investments from existing investors.
• Management believes Veea has alleviated substantial doubt regarding its ability to continue as a going concern over the next 12 months.

Non-GAAP Financial Measures

• Veea uses Adjusted EBITDA, which excludes the impact of certain non-cash and non-recurring items, to evaluate its core operating performance.
• Adjusted EBITDA improved from a loss of $5,959,058 in Q1 2024 to a loss of $5,618,846 in Q1 2025.

Overall, Veea’s financial results in Q1 2025 showed some progress, with improvements in Adjusted EBITDA and gains from changes in fair value of certain liabilities, though revenue declined and operating expenses increased as the company continued to invest in product development and sales and marketing. The company’s liquidity position remains challenging, but management believes it has a plan to fund operations over the next 12 months.