Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 196

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 196
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 terms
and applicable authoritative guidance in FASB Accounting Standards Codification 480, Distinguishing Liabilities from Equity (“ASC 480”)
and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding
financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants
meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s
own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside
of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional
judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants
that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in
capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants
are required to be recorded at their initial fair value on the date of issuance, and at their fair value on each balance sheet date thereafter.
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss in the Company’s consolidated statements
of operations.

Reclassification of Prior Year Presentation

Certain prior year amounts
have been reclassified for consistency with the current period presentation. In 2022, amortization of debt issuance costs of approximately
$0.8 million was show in depreciation and amortization. In accordance with ASC 835, Interest Expenses, this has been reclassified
to Interest Expense. These reclassifications had no effect on the reported results of operations.

Accounting Pronouncements Recently Adopted

In June 2016, the FASB
issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, which amends the FASB’s guidance on the impairment of financial instruments. Topic 326 adds to GAAP an impairment
model (known as the “current expected credit loss model”) that is based on expected losses rather than incurred losses. ASU 2016-13
is effective for the Company’s annual and interim periods beginning after December 15, 2022 with early adoption permitted.
The Company adopted ASU