Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 200

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 200
---
arrants”). The exercise price of the Extension Warrants is $.01 per share and the warrant term is five years.
The Company repaid the outstanding principal and accrued interest on the secured term loan on November 10, 2023, in the amount of
$3,064,897. In connection with the repayment, the lender’s liens were released and the Repayment Warrant expired.

Convertible Notes

In July 2023, the Company
issued a $3,000,000 convertible note to iFREE Group (HK) Limited (“iFree”). The interest rate on the note is 8%. The note
(“iFree Note”) matures September 30, 2024. The note is (i) optionally convertible at any time at the holder’s
election and (ii) automatically converts upon the closing of a qualified financing, defined to be the receipt by the Company of
at least $15,000,000 proceeds (including debt conversion) from the issuance of equity or equity-related securities. Upon the Company’s
receipt of $12,000,000 proceeds from the issuance and sale of shares of its Series A-2 Preferred Stock private placement, a qualified
financing under the iFree Note occurred and the note automatically converted into shares of Series A-2 Preferred Stock of the Company.
The aggregate amount of principal and interest equaled $3,076,274 and converted into 1,681,024 shares of Series A-2 Preferred Stock.

7 - INVESTMENTS

The Company accounts for
its private company investments without readily determinable fair values under the cost method. These investments, for which the Company
is not able to exercise significant influence over any one individual investee, is measured and accounted for using an alternative measurement
basis of a) the security’s carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price
changes.

<div align='center'>F-21

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

7 - INVESTMENTS (cont.)

Observable price changes
or impairments recognized on the Company’s private company investments would be classified as a Level 3 financial instrument within
the fair value hierarchy based on the nature of the fair value inputs. Any adjustments to the carrying values are recognized in other
income expense, net in the Company’s consolidated statements of operations and comprehensive loss. As of December 31