Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 275

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 275
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 no indemnity payments. In addition, the Company has entered into indemnification
agreements with its officers and directors, and its Amended and Restated Bylaws contain similar indemnification obligations to its agents.

<div align='center'>F-62

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

Litigation

In the normal course of business,
the Company may become involved in various lawsuits and legal proceedings. While the ultimate results of these matters cannot be predicted
with certainty, management does not expect them to have a material adverse effect on the financial position or results of operations
of the Company.

Other Commitments

In connection with the Business Combination
transaction, Veea agreed to pay certain legal expenses contingent upon the closing of the Business Combination. As of September 30, 2024,
the amount of the deferred fees totaled approximately $1,750,000.

13
- FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

The Company’s initial value
of the warrant liability was based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable
markets with less volume and transaction frequency than active markets and classified as level 3. The subsequent measurement of the Private
Warrants is classified as Level 2 because these warrants are economically equivalent to the Public warrants, based on the terms
of the Private Warrant agreement, and as such their value is principally derived by the value of the Public Warrants. Significant deviations
from these estimates and inputs could result in a material change in fair value. For the three and nine months ended September 30, 2024,
there were no transfers amongst level 1, 2, and 3 values during the period.

The conversion feature of the Convertible
Promissory Notes is measured at fair value using a Monte Carlo model that fair values the conversion option.

The following table presents fair
value information as of September 30, 2024 and December 31, 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.

| September 30, 2024                |     | Total |            |     | Level 1 |       |     | Level 2 |           |     | Level 3 |            |