Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 17

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 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 of approximately $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’s identifiable net assets acquired represented
compensation for the service of a stock exchange listing for its shares and was expensed as incurred.

The warrants issued at the time of
Plum’s initial public offering (the “Public Warrants”), and warrants issued in connection with private placement at
the time of Plum’s initial public offering (the “Private Placement Warrants”) remain outstanding and are now outstanding
warrants for the Company.

9

Earn-out Share Liability

Following the Closing, stockholders
who previously held certain capital stock of Private Veea have the contingent right to receive up to 4.5 million additional shares of
the common stock, par value $0.0001 per share, of the Company (“Common Stock”) if certain trading-price based milestones of
the Company’s Common Stock are achieved or