Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 194

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 194
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 local municipalities. Veea Systems Ltd.
is governed by, and is required to file tax returns under, the Income Tax Law of the U.K. with a statutory income tax rate of 19%. In
2021, the Company established Veea SAS, a French entity with a statutory income tax rate of 25%.

Significant judgment is
required in determining the Company’s uncertain tax positions. For any period presented, it is not expected that there will be
a significant change in uncertain tax positions for the years ended December 31, 2023 and December 31, 2022, respectively.

Foreign Operations and Foreign Currency Translation

The currency of the primary
economic environment in which the operations of the Company and its U.S. subsidiaries are conducted is the United States dollar
(“USD”). Accordingly, the Company and all of its U.S. subsidiaries use USD as their functional currency. The results
of the Company’s non-U.S. subsidiaries, whose functional currency are the local currencies of the economic environment in
which they operate, are translated into USD in accordance with GAAP.

Assets and liabilities are
translated at year-end exchange rates, while revenues and expenses are translated at average exchange rates during the year. Differences
resulting from translation are presented in equity as accumulated other comprehensive loss. Transaction gains and losses that arise from
exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of
operations as incurred. Foreign currency transaction gain (loss), mainly related to intercompany transactions, is included in the consolidated
statements of operations. For the years ended December 31, 2023 and December 31, 2022 such amounts were $1,284,846 and
$(2,193,685), respectively.

Comprehensive Loss

Comprehensive loss consists
of two components, net loss and other comprehensive income (loss), net. Other comprehensive income (loss), net is defined as revenue,
expenses, gains, and losses that under GAAP are recorded as an element of stockholders’ deficit but are excluded from net loss.
The Company’s other comprehensive loss consists of foreign currency translation adjustments that result from the consolidation
of its foreign subsidiaries and is reported net of tax effects.

Investments

The Company holds non-marketable
equity and other investments (“privately held investments”) which are included in noncurrent assets in the Company’s
consolidated balance sheet. The Company monitors these investments for impairments and makes adjustments in carrying values if management
determin