Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 248

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 248
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 The option pricing model was used to value the convertible
note option liability for the initial periods and subsequent measurement periods.

<div align='center'>F-20</div>

The convertible note option liability
was classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. The key inputs into the option pricing
model for the convertible note option liability were as follows:

|                       |     |   | March 31, 
      2025 |   |     |   | December 31, 
         2024 |   |
|:----------------------|:----|:--|----------:|:--|:----|:--|-------------:|:--|
| Stock Price           |     | $ |      1.49 |   |     | $ |         3.81 |   |
| Expected term (years) |     |   |      0.95 |   |     |   |          1.2 |   |
| Volatility            |     |   |      80.0 | % |     |   |         75.0 | % |
| Risk-Free Rate        |     |   |      4.05 | % |     |   |         4.18 | % |
| Interest rate         |     |   |      6.41 | % |     |   |         6.49 | % |

|                              |     | Three months 
 ended        
 March 31,    
 2025         |         |   |
|:-----------------------------|:----|:-------------|--------:|:--|
| Balance, beginning of period |     | $            |  60,000 |   |
| Change in fair value         |     |              | (59,000 | ) |
| Balance, end of period       |     | $            |   1,000 |   |

Earn-out Share Liability

Following the closing of the Business
Combination, holders of certain capital stock of Private Veea immediately prior to the closing have the contingent right to receive up
to 4.5 million additional shares of Common Stock if certain trading-price based milestones of the Common Stock are achieved or a change
of control transaction occurs during the ten-year period following the Closing. The Company’s obligation to issue the earn out shares
is recorded as a contingent liability (the “Earn-out Share Liability”) in the Company’s financial statements. The initial
value of the contingent Earn-out Share Liability of