Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 217

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 217
---
laws contain similar indemnification obligations to its agents.

Litigation

In November 2020 the
Company engaged an independent contractor basis (“Contractor”) to provide legal services to the Company. The Company subsequently
terminated the Contractor in early 2021. In April 2021, the Contractor commenced a legal action against the Company alleging discrimination
and retaliation as a result of the Contractor’s disability and/or perceived disability. The Contractor sought three years
of contract payments in the amount of $600,000. The Company timely submitted a claim under its Employment Practices Liability insurance.
In accordance with the terms of the Company’s policy, the insurance carrier assumed defense of the litigation. Due to the
early stage of the litigation, as well as uncertainties in the litigation due to the proceeding being stayed in 2021, the Company could
not estimate the outcome as of December 31, 2021. In July 2023, the litigation was submitted to mediation and ultimately confidentially
settled. The Company’s portion of the settlement amount totaled the amount of the recorded reserve and settlement amounts in excess
of the Company’s deductible were paid by the Company’s insurance carrier.

<div align='center'>F-31

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

11 - COMMITMENTS AND CONTINGENCIES (cont.)

Other Commitments

In connection with the Business
Combination transaction, Veea agreed to pay certain legal expenses contingent upon the closing of the Business Combination. As of December 31,
2023, the amount of the deferred fees totaled approximately $104,000.

12 - FAIR VALUE MEASUREMENTS

Money Market Funds

The Money Market Funds are
classified within Level 1 as these securities are traded on an active public market. As of December 31, 2023, the Company held approximately
$120,000 in money market funds. The Company held no money market funds at December 31, 2022.

13 - EARNINGS PER SHARE

The computation of basic
and dilutive net loss per share attributable to common stockholders for the years ended December 31, 2023 and December 31,
2022 are as follows:

| Numerator:                                               |     | Years Ended December 31, 
 2023                     |             |   |     | 2022 |             |   |
|:---------------------------------------------------------|:----|:-------------------------|------------