Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 229

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 229
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     |                          |   6.79 | %  |     |      |  (1.86 | )% |
| Change in valuation allowance            |     |                          | (60.27 | )% |     |      | (18.15 | )% |
| Total tax benefit                        |     |                          |      - | %  |     |      |      - | %  |

As of December 31,
2023, the Company had federal net operating loss carryforwards of approximately $101,966,000 which will be carried forward indefinitely.
In addition, the Company has state net operating loss carryforwards of approximately $10,749,000 with varying expiration dates as determined
by each state.

As of December 31,
2023, The Company had foreign net operating loss carryforwards of approximately $22,182,000 and $16,200,000 as of December 31, 2023
and 2022, respectively, which have no expiration.

As of December 31,
2023, Company had federal R&D credit carryforwards of approximately $3,207,000 which will begin to expire in 2038 for federal tax
purposes.

At December 31, 2023
the Company had state R&D credit carryforwards of approximately $5,124,000 for state tax purposes which will not expire.

IRC Section 382 imposes
limitations on the use of net operating loss carryovers when the stock ownership of one or more 5% shareholders (shareholders owning
5% or more of the Company’s outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points. As
of December 31, 2023, the Company has not completed IRC Section 382 analysis. An IRC Section 382 limitation calculation
will be performed prior to the usage of tax attributes.

The Company’s effective
tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations,
and accounting principles.

The Company has evaluated
both positive and negative evidence and determined that all of its deferred tax assets for the UK & French subsidiaries will
not be realized within foreseeable future. As a result, the valuation allowance sets against both subsidiaries deferred tax assets.

Beginning January 1,
2022, the Tax Cuts and Jobs Act (the “Tax Act”) eliminated the option to deduct research and development expenditures in
the current year and requires taxpayers to capitalize such expenses