Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 93

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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420,497

    Convertible note option liability

    1,000

    1,000

    Earn-out share liability

    5,030,000

    5,030,000

    Total
     
    $
    5,451,497

    $

    $
    420,497

    $
    5,031,000

    December 31, 2024 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Assets 

    Money Market Funds 
    $-  
    $-  
    $-  
    $- 
  
    Liabilities 

    Private warrant liability 
     840,995  
     -  
     840,995  
     - 
  
    Convertible note option liability 
     60,000  
     -  
     -  
     60,000 
  
    Earn-out Share Liability 
     15,560,000  
     -  
     -  
     15,560,000 
  
    Total 
    $16,460,995  
    $-  
    $840,995  
    $15,620,000 

Convertible Note Option
Liability

The Company established the initial
fair value for the convertible note option liability as of September 13, 2024, which was the date the Convertible Note was executed. As
of March 31, 2025, the fair value was remeasured using an option pricing model. The option pricing model was used to value the convertible
note option liability for the initial periods and subsequent measurement periods.

19

The convertible note option liability
was classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. The key inputs into the option pricing
model for the convertible note option liability were as follows:

    March 31,  2025  
    December 31, 2024 
  
    Stock Price 
    $1.49  
    $3.81 
  
    Expected term (years) 
     0.95  
     1.2 
  
    Volatility 
     80.0% 
     75.0%
  
    Risk-Free Rate 
     4.05% 
     4.18%
  
    Interest rate 
     6