Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 249

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 249
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 the periods incurred. Upon retirement or sale, costs and related accumulated depreciation or amortization
are removed from the balance sheets and the resulting gain or loss is included in operating expense in the Company’s consolidated
statements of operations and comprehensive loss.

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 in June 2018. The Company considers goodwill to have an indefinite
life and is not amortized. As of September 30, 2024 and December 31, 2023, no events have occurred that would require impairment of goodwill.

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-Stock Compensation (“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