Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 198

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 198
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 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.

<div align='center'>F-15

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Income Taxes

Effective June 8, 2018,
the Company converted from an S Corporation to a C Corporation for federal and state income tax purposes. Accordingly, prior to the conversion
to a C corporation, the Company did not record deferred tax assets or liabilities or have any net operating loss carryforwards. The Company
is required to file tax returns in the U.S. federal jurisdiction and various states and local municipalities. Veea Systems Ltd.
is governed by, and is required to file tax returns under, the Income Tax Law of the U.K. with a statutory income tax rate of %. In
2021, the Company established Veea SAS, a French entity with a statutory income tax rate of %.

Significant judgment is
required in determining the Company’s uncertain tax positions. For any period presented, it is not expected that there will be
a significant change in uncertain tax positions for the years ended December 31, 2023 and December 31, 2022, respectively.

Foreign Operations and Foreign Currency Translation

The currency of the primary
economic environment in which the operations of the Company and its U.S. subsidiaries are conducted is the United States dollar
(“USD”). Accordingly, the Company and all of its U.S. subsidiaries use USD as their functional currency. The results
of the Company’s non-U.S. subsidiaries, whose functional currency are the local currencies of the economic environment in
which they operate, are translated into USD in accordance with GAAP.

Assets and liabilities are
translated at year-end exchange rates, while revenues and expenses are translated at average exchange rates during the year. Differences
resulting from translation are presented in equity as accumulated other comprehensive loss. Transaction gains and losses that arise from
exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of
operations as incurred. Foreign currency transaction gain (loss), mainly