Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 244

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 244
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 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.

The Company accounts for the Public
and Private warrants in accordance with guidance contained in ASC 815-40. Such guidance provides that because the Public warrants meet
the criteria for equity treatment. Such guidance provides that because the Private warrants do not meet the criteria for equity treatment
thereunder, each warrant must be recorded as a liability See Note 10 “Warrants” for further information.

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 2016-13 beginning
January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

In October 2021, the FASB issued ASU
2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,”
which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination
as if it had originated the contracts. The standard is effective for public companies for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2022. We adopted the ASU on January 1, 2023 and will apply the guidance prospectively for
future acquisitions.

In September 2022, the FASB issued ASU 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose sufficient information about the program. The amendments do