Company: VEEAW
Filing Date: 2025-08-06
Form Type: S-1/A
Source: 0001213900-25-072342
Chunk: 275

Company: VEEA INC.
Filing Date: 2025-08-06
Form: S-1/A
Chunk 275
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 |     |      |   0.27 | %  |     |      |  24.10 | %  |
| Return to Provision                      |     |      |  (0.01 | )% |     |      |   0.09 | %  |
| Other                                    |     |      |   0.69 | %  |     |      |   6.79 | %  |
| Change in valuation allowance            |     |      | (14.34 | )% |     |      | (60.27 | )% |
| Total tax benefit                        |     |      |      - | %  |     |      |      - | %  |

As of December 31, 2024, the Company had gross federal net operating loss carryforwards of approximately 109,644,085, resulting in a tax effected benefit of $ 23,025,258, which will be carried forward indefinitely. In addition, the Company has gross state net operating loss carryforwards of approximately $ 72,622,999with an expected net tax impact $ 4,984,749. The state NOLs have varying expiration dates as determined by each state.

The Company also has net operating losses in foreign
jurisdictions that can be utilized to offset future taxable income in the United Kingdom, France, or Mexico based on the jurisdiction
of generation. The gross value of these NOLs is with an anticipated future tax benefit of $. The expiration of the
foreign NOLs are also based on the law in each respective jurisdiction, with the earliest of these being 2034.

As of December 31, 2024, the Company has federal
R&D credit carryforwards of $, these credits will begin to expire in 2038. The Company has also reduced the anticipated future
benefit of these credits by recording an uncertain tax benefit equal to % of the credit claimed.

The Company’s effective tax rate could also fluctuate
due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, and accounting principles.

The Company has evaluated both positive and negative
evidences and determined that all of its worldwide deferred tax assets will not be realized for the foreseeable future. As a result, the
valuation allowance is recorded against all existing deferred tax assets. The current business operations and resulting need for a valuation
analysis will be considered annually.

Beginning on January 1, 2022,