Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 117

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 117
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 which we base our estimates, we cannot be sure that our estimates
are accurate indicators of future events. Accordingly, future adjustments may result from refining these estimates. Such adjustments
may be significant.

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, the Company first reviews qualitative factors to determine whether it is more likely than not
that the fair value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting
unit is less than its carrying amount, the Company performs a quantitative assessment, and the fair value of the reporting unit is determined
by analyzing the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair
value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The
Company’s goodwill was recorded in connection with an acquisition consummated in June 2018. The Company considers goodwill to have
an indefinite life and is not amortized.

Impairment of Long-Lived Assets

Long-lived assets with finite
lives consist primarily of property and equipment, operating lease right-of-use assets, and intangible assets which are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows
expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment
charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Stock-Based Compensation

The Company accounts for
stock-based compensation expense in accordance with ASC 718, Compensation-StockCompensation (“ASC 718”). The Company
measures and recognizes compensation expense for all stock-based awards based on estimated fair values on the date of the grant, recognized
over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation
expense on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur.

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