Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 207

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 207
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.S. Holder generally will not recognize gain or loss upon the acquisition of a common
share on the exercise of a warrant for cash. A U.S. Holder’s initial tax basis in a common share received upon exercise of the warrant
generally will equal the sum of the U.S. Holder’s initial investment in the warrant (that is, the portion of the U.S. Holder’s
purchase price that is allocated to the warrant, as described above under “—U.S. Federal Income Tax Consequences of the Acquisition
of a Combination of Common Share or Pre-Funded Warrant and Common Warrant”) and the exercise price of such warrant. It is unclear
whether a U.S. Holder’s holding period for a warrant share received upon exercise of the warrants will commence on the date of exercise
of the warrant or the day following the date of exercise of the warrant; in either case, the holding period will not include the period
during which the U.S. Holder held the warrant. If a warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a
capital loss equal to such holder’s tax basis in the warrant.

The tax consequences of a cashless
exercise of a warrant are not clear under current law. A cashless exercise may not be taxable, either because the exercise is not a realization
event or because the exercise is treated as a “recapitalization” for U.S. federal income tax purposes. In either situation,
a U.S. Holder’s tax basis in our common shares received generally would equal the U.S. Holder’s tax basis in the warrants
exercised therefor. If the cashless exercise were not a realization event, it is unclear whether a U.S. Holder’s holding period
for our common shares will commence on the date of exercise of the warrant or the day following the date of exercise of the warrant. If
the cashless exercise were treated as a recapitalization, the holding period of our common shares would include the holding period of
the warrants exercised therefor.

It is also possible that a
cashless exercise could be treated in whole or in part as a taxable exchange in which gain or loss would be recognized. In such event,
a U.S. Holder could be deemed to have surrendered a number of warrants having an aggregate value (as measured by the excess of the fair
market value of our common shares over the exercise price of the warrants) equal to the exercise price for the total number of warrants
to be exercised