Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 38

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 Company leases office space in
the U.S., including office space from related parties as disclosed in Note 13. These leases expire at various dates through 2025. Under
the terms of the various lease agreements, the Company may bear certain costs such as maintenance, insurance and taxes. Lease agreements
may provide for increasing rental payments at fixed intervals. The Company’s CEO has guaranteed the obligations under the office
space leased in New Jersey. The Company also leases offices in the United Kingdom, France, and Mexico under short-term arrangements of
twelve months or less.

Indemnifications

In the normal course of business, the
Company has indemnification obligations to other parties, including customers, lessors, and parties to other transactions with us, with
respect to certain matters. The Company has agreed to indemnify against losses arising from a breach of representations or covenants or
out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time or circumstances
within which an indemnification claim can be made and the amount of the claim.

It is not possible to determine the
maximum potential amount for claims made under the indemnification obligations due to uncertainties in the litigation process, coordination
with and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in
each particular case and agreement. To date, the Company has made 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.

Litigation

In the normal course of business, the
Company may become involved in various lawsuits and legal proceedings. The Company accrues contingent liabilities when it is probable
that future expenditures will be made, and such expenditures can be reasonably estimated. 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,
the Company agreed to pay certain legal expenses contingent upon the closing of the Business Combination, certain of which expenses were
mutually agreed to be deferred to periods after the Closing. As of June 30, 2025, the amount of the deferred fees totaled $2,257,457,
recorded in deferred payables, current in the condensed consolidated balance sheet.

15 - FAIR VALUE MEASUREMENTS

Recurring Fair Value