Company: VEEAW
Filing Date: 2025-08-06
Form Type: S-1/A
Source: 0001213900-25-072342
Chunk: 271

Company: VEEA INC.
Filing Date: 2025-08-06
Form: S-1/A
Chunk 271
---
 value hierarchy at the initial measurement date and as of and December 31, 2024, due to the use of unobservable inputs. The key inputs into the option pricing model for the Convertible Note Option liability were as follows at September 13, 2024 initial value and at December 31, 2024:

|                       |     |   | December 31, 
         2024 |   |     |   | September 13, 
          2023 |   |
|:----------------------|:----|:--|-------------:|:--|:----|:--|--------------:|:--|
| Stock Price           |     | $ |         3.81 |   |     | $ |         12.00 |   |
| Expected term (years) |     |   |          1.2 |   |     |   |           1.5 |   |
| Volatility            |     |   |         75.0 | % |     |   |          70.0 | % |
| Risk-Free Rate        |     |   |         4.18 | % |     |   |          3.79 | % |
| Interest rate         |     |   |         6.49 | % |     |   |          7.33 | % |

| Balance at January 1, 2024   |     | Year         
 ended        
 December 31, 
 2024         |        - |   |
|:-----------------------------|:----|:-------------|---------:|:--|
| Initial value, September 13, 
 2024                         |     |              |  900,933 |   |
| Change in fair value         |     |              | (607,067 | ) |
| Balance at December 31, 2024 |     | $            |  293,866 |   |

F-59 Veea Inc. and Subsidiaries Notes to the Consolidated Financial Statements For the Years ended December 31, 2024 and 2023

Earn-out Share Liability

Following the closing of the Business Combination, holders of certain capital
stock of Private Veea immediately prior to the closing will have the contingent right to receive up to million additional shares of
the Company’s common stock if certain trading-price based milestones of the Company’s common stock are achieved or a
change of control transaction occurs during the ten-year period following the Closing. The Company’s