Company: VEEAW
Filing Date: 2025-08-14
Form Type: 424B4
Source: 0001213900-25-076086
Chunk: 136

Company: VEEA INC.
Filing Date: 2025-08-14
Form: 424B4
Chunk 136
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 the Company’s common stock reaches or exceeds either $12.50 or $15.00, in each case, for any twenty trading days within
a thirty trading day period or (ii) a change of control occurs resulting in the shareholders receiving a per share price, or an implied
value per share equal to or in excess of $12.50 or $15.00 per share. As the issuance of the earnout shares is contingent solely on meeting
the earnout milestones, the Company’s obligation to issue the earnout shares is recorded as a contingent liability on the Company’s
consolidated balance sheet. The Earn-out Share Liability was initially measured at fair value at the closing of the Business Combination
and subsequently remeasured at the end of each reporting period. The change in fair value of the Earn-out Share Liability is recorded
as part of “Other income and (expense)” in the consolidated statement of operations. The estimated fair value of the Earn-out
Share Liability was determined using a Monte Carlo analysis of 30,000 simulations of the future path of the Company’s stock price
over the earnout period. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones including
projected stock price, volatility, and the risk-free rate. See additional information on valuation methodologies and significant assumptions
used in Note 3, Summary of Significant Accounting Policies and Note 4, Reverse Recapitalization, to the accompanying consolidated
financial statements included elsewhere in this prospectus.

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 by Private Veea in June 2018.