Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 727

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 727
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 value related to the accrued interest components is also included within the
single line of change in fair value of September 2024 Notes on the consolidated statements of operations. See additional information on
valuation methodologies and significant assumptions used in Note 7, Debt and Note 11, Fair Value Measurement to the accompanying
consolidated financial statements included elsewhere in this Annual Report.

The Earn-out Share Liability

Certain shareholders of the Company are eligible to
receive up to 4.5 million earnout shares of the Company's common stock, contingent upon the fulfillment of certain milestones. Each earnout
is deemed achieved if, at any time within ten years following the Business Combination, (i) the volume-weighted average price of the Company's
common stock reaches or exceeds either $12.50 or $15.00, in each case, for any twenty trading days within a thirty trading day period
or (ii) a change of control occurs resulting in the shareholders receiving a per share price, or an implied value per share equal to or
in excess of $12.50 or $15.00 per share. As the issuance of the earnout shares is contingent solely on meeting the earnout milestones,
the Company’s obligation to issue the earnout shares is recorded as a contingent liability on the Company’s consolidated balance
sheet. The Earn-out Share Liability was initially measured at fair value at the closing of the Business Combination and subsequently remeasured
at the end of each reporting period. The change in fair value of the Earn-out Share Liability is recorded as part of “Other income
and (expense)” in the consolidated statement of operations. The estimated fair value of the Earn-out Share Liability was determined
using a Monte Carlo analysis of 30,000 simulations of the future path of the Company’s stock price over the earnout period. The
assumptions utilized in the calculation are based on the achievement of certain stock price milestones including projected stock price,
volatility, and the risk-free rate. See additional information on valuation methodologies and significant assumptions used in Note 3,
Summary of Significant Accounting Policies and Note 4, Reverse Recapatialization, to the accompanying consolidated financial
statements included elsewhere in this Annual Report.

Goodwill

Goodwill represents the excess of the aggregate purchase
consideration over the fair value of the net assets acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently
if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. In conducting its annual impairment
test