Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 101

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 101
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 will have the contingent right
to receive up to 4.5 million additional shares of the Company’s common stock if certain trading-price based milestones of the Company’s
common stock are achieved or a change of control transaction occurs during the ten-year period following the Closing. The initial value
of the contingent earn-out share liability of $53.6 million for the three and nine months ended September 30, 2024 is recorded as a transaction
cost within operating expenses. The fair value of the earn-out liabilities was estimated using Monte Carlo simulation utilizing assumptions
related to the contractual term of the instruments, estimated volatility, the price of the Common Stock and current interest rates. A
significant driver of the value of the earn-out at the close of the Business Combination was our closing stock price on September 13,
2024 which was $12.00. Additionally, the Company incurred approximately $1.4 million of professional fees relating to the Business Combination.

Depreciation and Amortization

Depreciation and amortization
decreased by $7,588, or 10%, in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Depreciation
and amortization decreased by $529,195, or 72%, in the nine months ended September 30, 2024 compared to the nine months ended September
30, 2023. The decrease was due to certain intangibles reaching the end of their useful lives.

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Other income, net

Other income, net relates
to immaterial non-operating transactions incurred during the period. These amounts were immaterial for the three and nine months ended
September 30, 2024 and 2023.

UK R&D Tax Credit

The increase is related
to the receipt of an R&D tax credit of $1.2 million received by the Company’s UK subsidiary.

Loss on initial issuance of convertible note

The loss on initial measurement
of the convertible note was $1,770,993 for the three and nine months ended September 30, 2024. The Convertible Note Payable was entered
into in September 2024.

Change in fair value of derivative liabilities

Change in fair value of
derivative liabilities comprised of the fair value adjustment to the conversion option, Private Warrants, and earn-out shares at balance
sheet date. The gain on the change in fair value of conversion note option liability was $