Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 121

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 121
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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 in June 2018. The Company considers goodwill to have
an indefinite life and is not amortized.

Impairment of Long-Lived Assets

Long-lived assets with finite
lives consist primarily of property and equipment, operating lease right-of-use assets, and intangible assets which are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows
expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment
charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Stock-Based Compensation

The Company accounts for
stock-based compensation expense in accordance with ASC 718, Compensation-StockCompensation (“ASC 718”). The Company
measures and recognizes compensation expense for all stock-based awards based on estimated fair values on the date of the grant, recognized
over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation
expense on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur.

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Convertible Note Payable

When the Company issues
convertible debt, it first evaluates the balance sheet classification of the convertible instrument in its entirety to determine (1)
whether the instrument should be classified as a liability under ASC 480, Distinguishing Liabilities from Equity, and (2) whether the
conversion feature should be accounted for separately from the host instrument. A conversion feature of a convertible debt instrument
would be separated from the convertible instrument and classified as a derivative liability if the conversion feature, were it a standalone
instrument, meets the definition of a “derivative” in ASC 815, Derivatives and Hedging. When a conversion feature meets the
definition of an embedded derivative, it would be separated from the host instrument and classified as a derivative liability carried
on the consolidated balance sheet at fair value, with any changes in its fair value recognized currently in the consolidated statements
of operations.

Contingent Financing Asset

The Company recorded