Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 782

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 782
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 its annual impairment test, the
Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is
less than its carrying amount. If factors indicate that the fair value of the reporting unit is less than its carrying amount, the Company
performs a quantitative assessment, and the fair value of the reporting unit is determined by analyzing the expected present value of
future cash flows. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting unit’s
goodwill is calculated and an impairment loss equal to the excess is recorded. The Company’s goodwill was recorded in connection
with an acquisition consummated in June 2018. For each of the years ended December 31, 2024 and 2023, there were no events or indicators
that goodwill was impaired.

Impairment
of Long-Lived Assets

Long-lived
assets with finite lives consist primarily of property and equipment, operating lease right-of-use assets, and intangible assets which
are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future
net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash
flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Stock-Based
Compensation

The
Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation-Stock Compensation (“ASC
718”). The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values on the
date of the grant, recognized over the requisite service period. For awards that vest solely based on a service condition, the Company
recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The Company accounts for forfeitures
in the period in which they occur.

Income
Taxes

Effective
June 8, 2018, the Company converted from an S Corporation to a C Corporation for federal and state income tax purposes. Accordingly,
prior to the conversion to a C corporation, the Company did not record deferred tax assets or liabilities or have any net operating loss
carryforwards. The Company is required to file tax returns in the U.S. federal jurisdiction and various states