Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 648

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 648
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03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40):Disaggregation of Income Statement Expenses" ("ASU 2024-03"). The standard requires additional disclosure
of certain costs and expenses within the notes to the financial statements. The provisions of the standard are effective for annual reporting
periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.
This accounting standards update may be applied either prospectively or retrospectively. The Company is currently evaluating the impact
this standard will have on its consolidated financial statements.

4
- REVERSE RECAPITALIZATION

As discussed in Note 1, “Organization and Business Operations”,
the Business Combination was consummated on September 13, 2024, which, for accounting purposes, was treated as the equivalent of Private
Veea issuing stock for the net assets of Plum, accompanied by an equity recapitalization of Private Veea. Under this method of accounting,
Plum was treated as the acquired company for financial accounting and reporting purposes under GAAP. This determination was primarily
based on the assumption that:

●Private Veea’s current shareholders will hold a majority of the
voting power of New Plum (“New Plum”) post Business Combination

●effective upon the Business Combination, the post-combination Board
will consist of seven (7) directors, including five (5) directors designated by Private Veea, one (1) director designated by Plum and
one (1) director mutually agreed upon by Plum and Private Veea;

F-17

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

●Private Veea’s operations will substantially comprise the ongoing operations of New Plum; and

●Private Veea’s senior management will comprise the senior management of New Plum.

Another
determining factor was that Plum does not meet the definition of a “business” pursuant to ASC 805-10-55, Business Combinations
 (“ASC 805”), and thus, for accounting purposes, the Business Combination will be accounted for as a reverse recapitalization,
within the scope of ASC 805. The net assets of Plum will be stated at historical cost, with no goodwill or other intangible assets recorded.
Any excess of the fair value of shares issued to Plum over