Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 270

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 270
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 are no longer precluded from equity classification. Equity-classified contracts are initially measured
at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified
in equity.

The Company continues to recognize the
Private Placement Warrants as liabilities at fair value as of the Closing Date, with an offsetting entry to additional paid-in capital
and adjusts the carrying value of the instruments to fair value through other income (expense) on the condensed consolidated statement
of operations at each reporting period until they are exercised. As of September 30, 2024, the Private Placement Warrants are presented
within warrants sheet.

Legacy Veea Warrants

Upon the closing of the Business
Combination the Company’s equity-classified Common stock warrants were recasted and fully exercised.

Upon the closing of the Business Combination the Company’s
equity-classified Preferred stock warrants were recasted and adjusted for the anti-dilutive shares leaving the Company with shares
in the money. The Public Warrants were initially classified as a derivative liability instrument

<div align='center'>F-59

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

11 - RELATED PARTY TRANSACTIONS

Lease Arrangements

On March 1, 2014, the Company entered
into a sublease agreement with NLabs Inc., an affiliate of the CEO and that holds approximately % of the Company’s outstanding
capital stock (“NLabs”) for office space for an initial term of years. In 2018, the Company renewed the sublease for an
additional -year term with all other terms and conditions of the sublease remaining the same. The renewal term extended to December
31, 2024.

In February 2024, the Lease Agreement
was extended. The Company accrues rent for the office space. The Company recognized rent expense of $ and $ in
the three months ended September 30, 2024 and 2023, respectively, and $ and $ in the nine months ended September
30, 2024 and 2023, respectively, all of which is classified as general and administrative expenses in the Company’s consolidated
statements of operations and comprehensive loss. Accrued and unpaid rent expense included in the Company’s consolidated balance
sheet was $ and $, as of September 30, 2024