Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 394

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 394
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 at fair
value using a Monte Carlo model that fair values the conversion option.

The following table presents fair value information as of December
31, 2024 and 2023 of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis and
indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

    December
    31, 2024 
    Total  
    Level
    1  
    Level
    2  
    Level
    3 
  
    Assets 

    Money
    Market Funds 
    $-  
    $-  
    $-  
    $- 
  
    Liabilities 

    Private
    warrant liability 
     840,995  
     -  
     840,955  
     - 
  
    Convertible
    note option liability 
     60,000  
     -  
     -  
     60,000 
  
    Earn-out Share Liability 
     15,560,000  
           -  
     -  
     15,560,000 
  
    Total 
    $16,460,995  
    $-  
    $840,995  
    $15,620,000 

    December 31, 2023 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Assets 

    Money Market Funds 
    $120,000  
    $120,000  
    $                  -  
    $                  - 

F-35

Veea
Inc. and Subsidiaries
Notes to the Consolidated Financial Statements 
For the Years ended December 31, 2024 and 2023

Convertible
Note Option Liability

The Company established the initial fair value for the Convertible
Note Option Liability as of September 13, 2024, which was the date of the Financing Closing . On December 31, 2024, the fair value was
remeasured using an option pricing model. The option pricing model was used to value the Convertible Note Option liability for the initial
period and subsequent measurement periods.

The
Convertible Note Option liability was classified within Level 3 of the fair value hierarchy at the initial measurement date and as of
and December 31,