Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1191

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1191
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 and assumptions were used to estimate the fair value of each class of financial assets and liabilities for which it
is practicable 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.

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
Share Liability - 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.

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 the Company incurs in connection with a business
combination are expensed as incurred.

Any
contingent consideration (i.e., earnout liabilities) is measured at fair value at the acquisition date. For contingent consideration
that do not meet all the criteria for