Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 215

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 215
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     |   2.86% - 3.85% |
| Fair value of common stock |     |            $1.78 |     |           $0.72 |

<div align='center'>F-26

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

9 - STOCK-BASED COMPENSATION(cont.)

The fair value of each stock option granted is estimated
using the Black-Scholes option-pricing model using the single-option award approach. The following assumptions are used in the Black-Scholes
option-pricing model:

Risk-Free Interest Rate- The risk-free interest rate is based on the implied yield available on the date of grant on U.S. Treasury zero-coupon securities issued with a term that is equal to the option’s expected term at the grant date.

Expected Volatility- The Company estimates the volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the option’s expected term.

Expected Term- The expected term represents the period over which options granted are expected to be outstanding using the simplified method, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The simplified method deems the term to be the average of the time-to-vesting and contractual life of the stock-based awards.

Dividend Yield- The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero.

Warrants

|                                |     | Number of      
 Common Stock - 
 Warrant        
 Shares         |           |     | Weighted 
 Average  
 Exercise 
 Price    |      |     | Number of 
 Preferred 
 Stock -   
 Warrant   
 Shares    |            |   |     | Weighted 
 Average  
 Exercise 
 Price    |       |   |
|:-------------------------------|:----|:---------------|----------:|:----|:---------|-----:|:----|:----------|-----------:|:--|:----|:---------|------:|:--|
| Outstanding, December 31, 2021 |     |                | 3,560,000 |     | $        | 0.01 |     |           |          - |   |     |          |     - |   |
| Granted                        |