Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 265

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 265
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 described above. |

The Private Placement Warrants were
initially issued in the same form as the Public Warrants with the exception that the Private Warrants: (i) would not be redeemable by
the Company and (ii) may be exercised for cash or on a cashless baseless so long as they are held by the initial purchasers or their permitted
transferees, the Private Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants.

The Public Warrants were initially classified
as a derivative liability instrument. Upon the closing of the Business Combination, the Public Warrants in accordance with the guidance
contained in ASC 815 are no longer precluded from equity classification. Equity-classified contracts are initially measured at fair value
(or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

The Company continues to recognize the
Private Placement Warrants as liabilities at fair value as of the Closing Date, with an offsetting entry to additional paid-in capital
and adjusts the carrying value of the instruments to fair value through other income (expense) on the condensed consolidated statement
of operations at each reporting period until they are exercised. As of September 30, 2024, the Private Placement Warrants are presented
within warrants sheet.

Legacy Veea Warrants

Upon the closing of the Business Combination
the Company’s equity-classified Common stock warrants were recasted and fully exercised.

Upon the closing of the Business Combination the Company’s equity-classified
Preferred stock warrants were recasted and adjusted for the anti-dilutive shares leaving the Company with shares in the money.
The Public Warrants were initially classified as a derivative liability instrument

<div align='center'>F-59

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

11 - RELATED PARTY TRANSACTIONS

Lease Arrangements

On March 1, 2014, the Company entered into
a sublease agreement with NLabs Inc., an affiliate of the CEO and that holds approximately % of the Company’s outstanding capital
stock (“NLabs”) for office space for an initial term of years. In 2018, the Company renewed the sublease for an additional
-year term with all other terms and conditions of the sublease remaining the same. The renewal term extended