Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 281

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 281
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 options have a maximum term of ten years from the date of grant. The aggregate intrinsic value is the fair market value on the reporting
date less the exercise price for each option. The fair value of each stock option award is estimated on the date of the grant using the
Black-Scholes option-pricing model. For options granted during the six months ended June 30, 2025 and 2024, respectively, the weighted
average estimated fair value using the Black-Scholes option pricing model was $1.04 and $0.55 per option, respectively.

Stock Options

Stock option activity under
the Plan was as follows:

     Number of Options   Weighted- Average  Exercise Price  per Share   Weighted- Average  Remaining  Contractual Term  (years)   Outstanding at December 31, 2024   3,790,702   $1.04    5.98   Granted   178,937    1.64    -   Exercised   (477)   -    -   Forfeited / Expired   (33,055)   1.80    -   Outstanding at June 30, 2025   3,936,107   $3.60    8.5   Exercisable at June 30, 2025   3,806,983    3.66    8.46  

16

The fair value of each stock option
granted is estimated using the Black-Scholes option-pricing model using the single-option award approach. The assumptions used to calculate
the fair value of the options granted during the six months ended June 30, 2025, were as follows:

     June 30, 2025   Stock Price  $1.64   Expected term (years)   5.0   Volatility   75%  Risk-Free Rate   3.86% 

Stock compensation expense related
to the common stock options outstanding for the six months ended June 30, 2025 and 2024, was $158,257 and $334,774, respectively, which
is included in general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive
income (loss). Total unrecognized expense related to unvested options outstanding as of