Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 183

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 183
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 that: (1) relate to accounts or disclosures that are material
to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication
of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are
not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts
or disclosures to which they relate.

Valuation of Inventory

As described in Note 4,
to the financial statements, the Company’s inventory, net at December 31, 2023, was $7.4 million. Inventory consists
primarily of finished goods and is valued at the lower of cost and net realizable value. The Company records a provision for aged, obsolete,
or unsellable inventory, which can involve a high degree of judgment. The Company annually reviews its inventory and identifies factors
which may include future demand, market conditions, technological changes, product life cycle and development plans, component cost trends,
product pricing, physical deterioration and quality issues.

The valuation of inventory
was identified as a critical audit matter because of the significant assumptions management makes with regards to its valuation of inventory
and the increased extent of effort required performing audit procedures to evaluate the reasonableness of management’s assumptions
and estimates.

The primary procedures we
performed to address this critical audit matter included:

| ● | Performed independent                            
 test counts of the Company’s physical inventory. |

| ● | Obtained an understanding                                
 of management’s process over the valuation of inventory. |

| ● | Evaluated the                                                                                
 reasonableness of the significant assumptions by testing inventory costs based on historical 
 third-party purchases.                                                                       |

| ● | Evaluated the                                                                                     
 appropriateness of management’s methodologies used, as well as the significant assumptions        
 and inputs, in developing their assessment of net realizable value and their estimated reserve    
 for inventory, by comparing significant assumptions used by management to historical information, 
 independent calculations, evidence obtained in other areas of the audit, recent selling prices    
 and costs.                                                                                        |

| ● | Tested the mathematical                                                                   
 accuracy of the calculations performed along with assessing the completeness and accuracy 
 of the information used in the calculations.                                              |

/s/ PKF O’Connor Davies, LLP

New York, New York
April 2, 2024, except for Note 17, as to which the date is May 8, 2024.

We have served as the Company