Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 243

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 243
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<div align='center'>F-45

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

The Company accounts for business
combinations using the acquisition method when it has obtained control. The Company measures goodwill as the fair value of the consideration
transferred including the fair value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets
acquired and liabilities assumed, all measured at their fair value as of the acquisition date. Transaction costs, other than those associated
with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration (i.e.,
Earn-out liabilities) is measured at fair value at the acquisition date. For contingent consideration that do not meet all the criteria
for equity classification, such contingent consideration are required to be recorded at their initial fair value at the acquisition date,
and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent consideration are recognized
on the consolidated statements of operations in the period of change.

When the initial accounting for a
business combination has not been finalized by the end of the reporting period in which the transaction occurs, the Company reports provisional
amounts. Provisional amounts are adjusted during the measurement period, which does not exceed one year from the acquisition date. These
adjustments, or recognition of additional assets or liabilities, reflect new information obtained about facts and circumstances that
existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

Cash and Cash Equivalents

Cash balances are held in U.S. and
European banks. Cash balances held in the U.S. are insured by the Federal Deposit Insurance Corporation subject to certain limitations.
The Company maintains its cash balances in highly rated financial institutions. At times, cash balances may exceed federally insurable
limits.

Restricted Cash

The Company is not subject to any
contractual agreement that contains restrictions on the Company’s use or withdrawal of its cash or cash equivalents.

Revenue Recognition

The Company recognizes revenue based
on the satisfaction of distinct obligations to transfer goods and services to customers. The Company generates revenue from hardware
sales and the sale of licenses and subscriptions. The Company applies a five-step approach as defined in ASC 606, Revenue from Contracts
with Customers, in determining the amount and timing of revenue to