VEEA INC. 10-K Summary: Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
This Annual Report covers the fiscal year ended December 31, 2025, for Veea Inc. (VEEA), a Delaware corporation formed via a business combination with Plum Acquisition Corp. I in September 2024. Veea develops the VeeaONE platform, a hybrid edge-cloud computing solution that brings virtualized data center capabilities, AI, and cybersecurity to the "Device Edge." The company operates as a single segment and is classified as an Emerging Growth Company and a Smaller Reporting Company.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue (Net) | $222,018 | $141,760 |
| Gross Profit | $152,037 | $58,470 |
| Net Loss | $(6,660,038) | $(47,547,768) |
| Adjusted EBITDA | $(17,052,610) | $(22,066,194) |
| Cash and Equivalents (End of Period) | $133,860 | $1,685,633 |
| Total Debt (Outstanding) | ~$19.8 million | ~$13.9 million |
| Accumulated Deficit | $(224.5 million) | $(217.8 million) |
Note: Revenue is primarily derived from paid pilots for VeeaHub devices. The significant reduction in net loss compared to 2024 is largely driven by a $13.0 million gain from the change in fair value of the Earn-out Share Liability.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 57% to $222,018, driven by paid pilots, though absolute revenue remains immaterial.
- Operating Expenses: Total operating expenses decreased significantly from $84.1 million in 2024 to $19.0 million in 2025. This reduction was primarily due to a $55.0 million decrease in transaction costs (related to the 2024 Business Combination earn-out liability) and a $6.8 million decrease in share-based compensation.
- Non-GAAP Adjustments: The 2024 net loss included a $53.6 million initial loss on the earn-out liability, which was not present in 2025. Instead, 2025 recorded a $13.0 million gain on the change in fair value of this liability.
- Debt Structure: The company repaid its $14.0 million revolving line of credit in January 2026. It has since secured new financing, including a $5.5 million secured term loan (February 2026) and convertible notes from White Lion (January 2026).
Guidance, Outlook, and Risks
Outlook and Strategy: Management expects revenue growth through hardware sales, licenses, and subscriptions, specifically targeting the "SecureConnect" (broadband/cybersecurity) and "AirLynx" (managed Wi-Fi for unserved areas) platforms. A significant commercial agreement with Telcel in Mexico is expected to drive future recurring revenue.
Liquidity and Capital Needs: The company reported cash of approximately $0.1 million as of December 31, 2025. Management plans to fund operations for the next 12 months through revenue, existing financing arrangements (ELOC, secured term loans), and potential additional equity or debt financing. The company explicitly states it will need to raise substantial additional funding to continue operations and commercialization efforts.
Listing Status: Veea received deficiency notices from Nasdaq in September 2025 regarding minimum bid price and market value requirements. In April 2026, the company transferred its listing from the Nasdaq Global Market to the Nasdaq Capital Market and was granted an 180-day compliance period to regain the $1.00 minimum bid price requirement, potentially via a reverse stock split.
Key Risks:
- Going Concern: The company has incurred significant losses since inception and has an accumulated deficit of $224.5 million. Continued losses and the need for additional capital raise substantial doubt about the ability to continue as a going concern without further financing.
- Delisting Risk: Failure to meet Nasdaq Capital Market listing requirements could result in delisting, adversely affecting liquidity and stock price.
- Concentration of Ownership: CEO Allen Salmasi and affiliates beneficially own approximately 70.9% of the voting power, giving them significant control over corporate matters.
- Commercialization: The company has not yet generated significant revenue from product sales and faces risks related to market acceptance, long sales cycles, and competition.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $0.1 million cash balance against the $19.8 million debt load and ongoing operating burn rate.
- Financing Terms: Review the specific covenants and dilution risks associated with the new White Lion notes, the Pasadena Private Lending secured term loan, and the ELOC facility.
- Nasdaq Compliance: Monitor the company's progress in meeting the $1.00 minimum bid price requirement by September 28, 2026, to avoid delisting.
- Revenue Recognition: Scrutinize the transition from "paid pilots" to commercial recurring revenue, particularly the execution of the Telcel agreement.
- Related Party Transactions: Assess the impact of significant related-party debt conversions (NLabs, 83rd Street) and the issuance of Series A Preferred Stock in March 2026.