VEEA

Business Context and Reporting Period

Company: Plum Acquisition Corp. I (PLMI), a Cayman Islands exempted company and Special Purpose Acquisition Company (SPAC).

Reporting Period: Quarterly period ended June 30, 2024.

Business Status: The Company has not commenced operations. Its sole purpose is to effect a business combination. On November 27, 2023, the Company entered into a Business Combination Agreement with Veea Inc. Shareholders approved the combination on June 4, 2024. The Company extended its deadline to complete the combination to September 14, 2024.

Key Financial Metrics

Material Changes vs. Prior Period

• Net Income Volatility: The Company reported a net income of $3.2 million for the three months ended June 30, 2024, driven primarily by a $3.9 million unrealized gain on warrant liabilities. This contrasts with a net loss of $981,242 for the six-month period, which included a $568,824 unrealized loss on warrant liabilities.
• Trust Account Balance: The Trust Account balance increased to approximately $36.6 million as of June 30, 2024, from $35.6 million at December 31, 2023, due to interest income and extension payments.
• Redemptions: In connection with the June 4, 2024 shareholder vote to approve the Veea business combination, 2,662,592 shares were tendered for redemption (aggregate price ~$29.9 million). Additionally, 19,230 shares were redeemed in connection with the June 14, 2024 extension vote.
• Debt Forgiveness: On June 26, 2024, the Sponsor agreed to forgive $1,760,944 in principal balance of promissory notes, recorded as a non-cash transaction.

Outlook, Risks, and Management Commentary

• Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern. The Company has a working capital deficit of $8.1 million and minimal operating cash ($1,969). If the business combination is not completed by September 14, 2024, the Company will cease operations and liquidate.
• Business Combination: The Company is actively working toward closing the merger with Veea Inc. Shareholders approved the transaction, but significant redemptions occurred. The Company intends to use funds outside the Trust Account to complete the combination.
• Liquidity: The Company relies on Working Capital Loans from the Sponsor and affiliates to finance transaction costs. As of June 30, 2024, $1,000,000 was outstanding under convertible promissory notes.
• Internal Controls: The Company disclosed a material weakness in internal controls over financial reporting, specifically regarding the accounting for complex financial instruments, classification of warrants, and classification of assets/liabilities. Management performed additional analysis to ensure financial statements are accurate.
• Legal Proceedings: A demand letter was received in January 2024 regarding the draft S-4 registration statement; no further correspondence was received as of the filing date.

Investor Verification Checklist

• Redemption Impact: Verify the final number of shares redeemed and the resulting cash available in the Trust Account post-closing to ensure sufficient funds for the Veea transaction.
• Going Concern Status: Confirm the Company's ability to secure additional financing if the current working capital deficit prevents closing the deal before the September 14, 2024 deadline.
• Internal Control Remediation: Review the Company's plan to remediate the material weakness in internal controls identified in Item 4.
• Warrant Liability Valuation: Assess the sensitivity of the financial results to changes in the fair value of warrant liabilities, which caused significant volatility in net income.
• Debt Obligations: Verify the terms of the remaining $1,000,000 convertible promissory note and the $213,050 advance from the Sponsor.