Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 240

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 240
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icable to estimate fair value:

Money market funds - The carrying amount of money market funds approximates fair value and is classified within Level 1 because the fair value is determined through quoted market prices.

Private Warrants - The carrying
value of the warrants is classified within Level 2 because the fair value is determined through quoted market prices, which are valued
using the closing market price of the public warrants as the private placement warrants have terms and provisions that are identical to
those of the public warrants.

Contingent Financing Asset - The
initial measurement of the Contingent Financing Asset is classified within Level 1 because the fair value is determined through quoted
market prices.

Convertible Note Option Liability -
The initial measurement and carrying value of the conversion option is classified within Level 3 because the fair value is determined
through an option pricing model.

Earn-Out - The initial measurement and
carrying value is classified within Level 3 because the fair value is determined through Monte Carlo simulation.

The Company’s remaining financial
instruments that are measured at fair value on a recurring basis consist primarily of cash, accounts receivable, accounts payable, accrued
expenses, and other current liabilities. The Company believes their carrying values are representative of their fair values due to their
short-term maturities.

Business Combinations

The Company evaluates whether acquired
net assets should be accounted for as a business combination or an asset acquisition by first applying a screen test to determine whether
substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable
assets. If so, the transaction is accounted for as an asset acquisition. If not, the Company applies its judgement to determine whether
the acquired net assets meets the definition of a business by considering if the set includes an acquired input, process, and the ability
to create outputs.

<div align='center'>F-45

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

The Company accounts for business combinations
using the acquisition method when it has obtained control. The Company measures goodwill as the fair value of the consideration transferred
including the fair value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets acquired
and liabilities assumed, all measured at their fair value as of the acquisition date. Transaction costs, other than those associated with
the issuance of debt or equity securities, that