Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 27

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 ending on the third trading day prior to the date on which the Company
sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted for adjustments to the number of shares
issuable upon exercise or the exercise price of a warrant), the Private Placement Warrants must also be concurrently called for redemption
on the same terms as the outstanding Public Warrants, as described above.

The Private Placement Warrants were
initially issued in the same form as the Public Warrants with the exception that the Private Warrants: (i) would not be redeemable by
the Company and (ii) may be exercised for cash or on a cashless baseless so long as they are held by the initial 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.

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 condensed consolidated statement
of operations and comprehensive income (loss) at each reporting period until they are exercised. As of March 31, 2025, the Private Placement
Warrants are presented within warrants on the condensed consolidated balance sheet.

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.

16

In connection with the Business Combination,
Private Veea’s outstanding 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