Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 264

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 264
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 based on a variable (enterprise value) that was
not an input to the fair value of a “fixed-for-fixed” option as defined under FASB ASC Topic No. 815 - 40
and is therefore considered a conversion option liability that should be bifurcated from the debt host. As the fair value of the conversion
option liability exceeded the net proceeds received, in accordance with ASC 470-20, the Company recorded the conversion option liability
at fair value with the excess of the fair value over the net proceeds received recognized as a loss in earnings. See Note 13 “Fair Value Measurements” for further information.

8 - INVESTMENTS

The Company accounts for its private
company investments without readily determinable fair values under the cost method. These investments, for which the Company is not able
to exercise significant influence over any one individual investee, is measured and accounted for using an alternative measurement basis
of a) the security’s carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price changes.
Observable price changes or impairments recognized on the Company’s private company investments would be classified as a Level
3 financial instrument within the fair value hierarchy based on the nature of the fair value inputs. Any adjustments to the carrying
values are recognized in other income, net in the Company’s consolidated statements of operations and comprehensive loss. As of
December 31, 2023, the Company performed the qualitative assessment for impairment of its investments. Based on this qualitative assessment,
impairment indicators were present for one of its investments therefore the company performed an analysis to estimate its fair value
and recognized an impairment loss of $ due to a change in the fair value. As of September 30, 2024 and December 31, 2023, the
carrying value of the Company’s private company investments, including impairment, for the periods ended was $ and $,
respectively, and was classified as Investments on the Company’s consolidated balance sheet as these investments did not have a
stated contractual maturity date.

9 - STOCK INCENTIVE PLANS

In September 2014, the Company’s
Board of Directors adopted the Max2 Inc. Equity Incentive Plan (“2014 Plan”). Upon adoption of the 2014 Plan, the aggregate
number of shares of Common Stock reserved for awards under the Plan were .

In September 2018, the Company’s
Board of Directors adopted the Veea Inc. 2018 Equity Incentive