Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 41

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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”) in the Company’s financial statements. The initial
value of the contingent Earn-out Share Liability of $53.6 million was recorded as a transaction cost within operating expenses. The fair
value of the Earn-out Share Liability was estimated using a Monte Carlo simulation utilizing assumptions related to the contractual term
of the instruments, estimated volatility, the price of the Common Stock, and current interest rates.

21

The following table presents the changes
in fair value of the earn-out liability:

    Six months ended  June 30, 2025 
  
    Balance, beginning of period 
    $15,560,000 
  
    Change in fair value 
     (8,800,000)
  
    Balance, end of period 
    $6,760,000 

The key inputs for the Earn-out Share
Liability were as follows:

    June 30,  2025  
    December 31, 2024 
  
    Stock Price 
    $1.83  
    $6.5 
  
    Expected term (years) 
     9.2  
     10 
  
    Volatility 
     80% 
     75.0%
  
    Risk-Free Rate 
     4.19% 
     3.81%

16 - EARNINGS PER SHARE

The computation of basic and dilutive
net loss per share attributable to common stockholders for the six months ended June 30, 2025 and 2024, are as follows:

    Three Months Ended June 30,  
    Six Months Ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Basic: 

    Numerator: 

    Net loss attributable to common shareholders 
    $(7,410,858) 
     (7,278,070) 
    $(3,111,806) 
    $(13,297,064)
  
    Denominator: 

    Weighted-average common shares outstanding 
     38,813,663  
     21,327,643  
     37,621,401  
     20,926,336 
  
    Net loss per share – basic: 
     (0.19) 
     (0.34) 
    $(0.08) 
    $(0.64)
  
    Diluted: 

    Numerator: