Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 195

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 195
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 Company has made no indemnity payments. In addition,
the Company has entered into indemnification agreements with its officers and directors, and its Amended and Restated Bylaws contain
similar indemnification obligations to its agents.

F-34

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

Litigation

In
the normal course of business, the Company may become involved in various lawsuits and legal proceedings. While the ultimate results
of these matters cannot be predicted with certainty, management does not expect them to have a material adverse effect on the financial
position or results of operations of the Company.

Other
Commitments

In connection with the Business Combination transaction, Veea agreed
to pay certain legal expenses contingent upon the closing of the Business Combination, certain of which expenses were mutually agreed
to be deferred to periods after the Closing. As of December 31, 2024, the amount of the deferred fees totaled approximately $1,750,000.

14
- FAIR VALUE MEASUREMENTS

Recurring
Fair Value Measurements

The
Company’s initial value of the warrant liability was based on a valuation model utilizing management judgment and pricing inputs
from observable and unobservable markets with less volume and transaction frequency than active markets and classified as level 3. The
subsequent measurement of the Private Warrants is classified as Level 2 because these warrants are economically equivalent to the Public
Warrants, based on the terms of the Private Warrant agreement, and as such their value is principally derived by the value of the Public
Warrants. Significant deviations from these estimates and inputs could result in a material change in fair value. For the year ended
December 31, 2024, there were no transfers amongst level 1, 2, and 3 values during the period.

The conversion feature of the September 2024 Notes is measured at fair
value using a Monte Carlo model that fair values the conversion option.

The following table presents fair value information as of December
31, 2024 and 2023 of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis and
indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

    December
    31, 2024 
    Total  
    Level
    1  
    Level
    2  
    Level