Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 250

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 250
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 and makes adjustments in carrying values if management determines
that an impairment charge is required based primarily on the financial condition and near-term prospects of these investments.

Concentration of Risks

Financial instruments that potentially
subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable.
Cash balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000. The Company has
not experienced any losses in such accounts.

Earnings per Share, recasted

Basic net loss per share is calculated
by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during
the year. Diluted net loss per share is based upon the diluted weighted-average number of shares outstanding during the year. Diluted
net loss per share gives effect to all potentially dilutive common share equivalents, including stock options, and warrants, to the extent
they are dilutive. Refer to Note 14 - Earnings Per Share.

Convertible Note Payable

When the Company issues convertible
debt, it first evaluates the balance sheet classification of the convertible instrument in its entirety to determine (1) whether the
instrument should be classified as a liability under ASC 480, Distinguishing Liabilities from Equity, and (2) whether the conversion
feature should be accounted for separately from the host instrument. A conversion feature of a convertible debt instrument would be separated
from the convertible instrument and classified as a derivative liability if the conversion feature, were it a standalone instrument,
meets the definition of a “derivative” in ASC 815, Derivatives and Hedging. When a conversion feature meets the
definition of an embedded derivative, it would be separated from the host instrument and classified as a derivative liability carried
on the consolidated balance sheet at fair value, with any changes in its fair value recognized currently in the consolidated statements
of operations. See Note 7 “Debt” for further information.

Contingent Financing Asset

The Company recorded a contingent financing asset on the condensed consolidated balance sheets for the fair value of the Transferred Shares issued to Investors for the unfunded portion of the Convertible Notes Payable. See Note 7 “Debt” for further information.

Warrants

The Company accounts for warrants
as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable
authoritative guidance in FASB Accounting Standards Codification 480, Distinguishing Liabilities from Equity (“ASC