Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 96

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 the impact of this ASU on its condensed
consolidated financial statements.

9

4 - ACQUISITION

On May 13, 2025, the Company entered
into an Asset Purchase Agreement with Crowdkeep, Inc., a Delaware corporation (the “Seller”), pursuant to which the Company
acquired certain assets of Seller relating to Seller’s IoT technology platform business, free and clear of any liens other than
certain specified liabilities of Seller that were assumed. In consideration for the acquisition, the Company issued 4,065,689 shares of
its Common Stock (the “Purchase Price”).

The transaction was accounted for as
an asset acquisition, as the Company determined that substantially all of the fair value was concentrated in a single identifiable intangible
asset, proprietary technology, and therefore applied a model consistent with asset acquisition accounting. The total purchase consideration
of $6,957,456 was comprised of equity consideration of $6,830,358 based on the number of shares issued at the closing share price, and
direct acquisition-related costs for legal and advisory fees of $127,098, the total of which was allocated to the acquired assets on a
relative fair value basis. Because this was not a business combination, no goodwill was recognized.

The transaction was considered a related
party transaction due to the involvement of a Company board member who was also the CEO and shareholder of Crowdkeep. The Company established
a special committee of the Board comprised of independent members of the Board, that evaluated and approved the transaction, concluding
that the terms were commercially reasonable and negotiated at arm’s length.

The patented technology, which is recorded
as part of intangible assets, net in the condensed consolidated balance sheet, will be amortized over its estimated useful life of 10
years.

5 - REVERSE RECAPITALIZATION

As discussed in Note 1, the Business
Combination was consummated on September 13, 2024, which, for accounting and reporting purposes under GAAP, was treated as the equivalent
of Private Veea issuing stock for the net assets of Plum, accompanied by an equity recapitalization of Private Veea, which was determined
to fall within the scope of Accounting Standards Codification (“ASC”) 805, “Business Combinations”. Plum
was treated as the acquired company, and its net assets were stated at historical cost, with no goodwill or other intangible assets recorded.
The excess of the fair value of shares issued to Plum over the fair value of Plum