Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 669

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 669
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 purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by the holders
on the same basis as the Public Warrants.

F-29

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

The
Public Warrants were initially classified as a derivative liability instrument. Upon the closing of the Business Combination, the Public
Warrants in accordance with the guidance contained in ASC 815 are no longer precluded from equity classification. Equity-classified contracts
are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts
continue to be classified in equity.

The Company continues to recognize the Private Placement Warrants as
liabilities at fair value as of the Closing Date with an offsetting entry to additional paid-in capital and adjusts the carrying value
of the instruments to fair value through other income (expense) on the consolidated statement of operations at each reporting period until
they are exercised. As of December 31, 2024, the Private Placement Warrants are presented within warrant liabilities on the consolidated
balance sheet.

See Note 14, Fair Value Measurements, for additional information
on the Company’s measurements with respect to the warrants issued in connection with the foregoing transactions.

Private Veea Warrants 

Upon the closing of the Business Combination, the Related Party Common
Stock Warrants were exercised in whole, on a net basis, for 3,880,000 shares of common stock of Private Veea at a conversion price of
$0.01 per share for an aggregate purchase price of $38,800. A total of 21,798 shares of common stock were surrendered in payment of the
purchase price.

In connection with the Business Combination, the Company’s equity-classified
Preferred stock warrants were exchanged for common stock warrants of the Company (each an “Exchanged Warrant”) to purchase
a number of shares of common stock, after adjustment for anti-dilutive shares, equal to the product of (i) the number of shares of Private
Veea’s common stock subject to such Preferred Stock warrant immediately prior to the Business Combination and (ii) the Exchange
Ratio, at an exercise price per share equal to (A) the exercise price per share of such Preferred Stock warrant immediately prior to the
consummation of the Business Combination, divided by (B) the Exchange Ratio