Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 46

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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    August 14, 2025 
  
    Stock Price 
    $0.62  
    $0.60 
  
    Expected term (years) 
     4.9  
     5.0 
  
    Volatility 
     75.0% 
     75.0%
  
    Risk-Free Rate 
     4.20% 
     4.16%

    Nine Months Ended September 30,  2025 
  
    Balance, beginning of period 
    $- 
  
    Initial value, August 14, 2025 
     3,130,352 
  
    Change in fair value 
     (171,463)
  
    Balance, end of period 
    $2,958,889 

24

Convertible Note Option
Liability

The Company established the initial
fair value for the convertible note option liability as of September 13, 2024, which was the date the Convertible Note was executed. As
of September 30, 2025, the fair value was remeasured using an option pricing model. The option pricing model was used to value the convertible
note option liability for the initial periods and subsequent measurement periods.

The conversion feature of the Convertible
Promissory Notes is measured at fair value using a Monte Carlo model that fair values the conversion option.

The convertible note option liability
was classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. The key inputs into the option pricing
model for the convertible note option liability were as follows:

     September 30,  2025   December 31, 2024   Stock Price  $1.83   $3.81   Expected term (years)   0.45    1.2   Volatility   75.0%   75.0%  Risk-Free Rate   4.16%   4.18%  Interest rate   6.24%   6.49% 

    Nine Months Ended September 30,  2025 
  
    Balance, beginning of period, December 31, 2024 
    $60,000 
  
    Change in fair value 
     (60,000)
  
    Balance, end of period 
    $- 

Earn-out Share Liability

Following the closing of the Business
Combination,