Veea Inc., a provider of edge computing and communications devices, reported significant financial changes in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a dramatic decline in revenue, with total revenue for the third quarter falling to $50,683, a decrease of 99% from $9,009,254 in the same period of 2023. For the nine months ended September 30, 2024, revenue was $108,264, down from $9,040,359 in the prior year. This decline is attributed to the absence of a $9 million revenue contribution from the licensing of AdEdge™ in 2023.
Gross profit mirrored this trend, dropping to $35,686 for the third quarter of 2024 from $8,984,947 in 2023, and to $50,577 for the nine-month period, down from $8,993,196. The company's operating expenses surged, totaling $57,533,067 for the third quarter, an increase of 922% compared to $5,631,507 in 2023. This rise in expenses was primarily driven by increased product development costs, which rose by 92% in the third quarter and 70% for the nine-month period.
Veea reported a net loss of $33,323,555 for the third quarter of 2024, a stark contrast to a net income of $1,961,799 in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $46,620,619, compared to a loss of $9,409,208 in the previous year. The company’s accumulated deficit increased to $216,903,369 as of September 30, 2024, up from $170,282,750 at the end of 2023.
Strategically, Veea completed a business combination with Plum Acquisition Corp. I on September 13, 2024, which resulted in a reverse recapitalization. This transaction included the conversion of approximately $16 million of related party debt to equity and the issuance of a convertible promissory note for $1.45 million, with an additional $13.55 million expected by December 15, 2024. The company also signed a term sheet with White Lion Capital, LLC for a potential $25 million equity line of credit.
As of September 30, 2024, Veea's total assets were reported at $44,995,225, a significant increase from $20,837,306 at the end of 2023. The company’s cash position stood at $2,802,970, down from $6,000,000 at the end of the previous fiscal year.
About VEEA INC.
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