Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1095

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1095
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F-38

Veea
Inc. and Subsidiaries
Notes to the Consolidated Financial Statements 
For the Years ended December 31, 2024 and 2023

The
reconciliation of federal statutory income tax rate to our effective income tax rate is as follows for the years ended December 31: 

    2024  
    2023 
  
    Federal income tax at the Statutory Rate 
     21.00% 
     21.00%
  
    Earnout-Share Liability   
     (6.87)% 

    Permanent Items 
     (1.26)% 
     (0.21)%
  
    Foreign 
     0.52% 
     7.80%
  
    State Taxes 
     0.27% 
     24.10%
  
    Return to Provision 
     (0.01)% 
     0.09%
  
    Other 
     0.69% 
     6.79%
  
    Change in valuation allowance 
     (14.34)% 
     (60.27)%
  
    Total tax benefit 
     -% 
     -%

As of December 31, 2024, the Company had gross federal net operating
loss carryforwards of approximately 109,644,085, resulting in a tax effected benefit of $23,025,258, which will be carried forward indefinitely.
In addition, the Company has gross state net operating loss carryforwards of approximately $72,622,999 with an expected net tax impact
$4,984,749. The state NOLs have varying expiration dates as determined by each state.

The Company also has net operating losses in foreign
jurisdictions that can be utilized to offset future taxable income in the United Kingdom, France, or Mexico based on the jurisdiction
of generation. The gross value of these NOLs is 28,276,145 with an anticipated future tax benefit of $7,069,870. The expiration of the
foreign NOLs are also based on the law in each respective jurisdiction, with the earliest of these being 2034.

As of December 31, 2024, the Company has federal
R&D credit carryforwards of $4,092,749, these credits will begin to expire in 2038. The Company has also reduced the anticipated future
benefit of these credits by recording an uncertain tax benefit equal