Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 266

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 266
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 lower of the fair market value per share of the Company’s common stock on either the offering date or
on the purchase date.

The aggregate intrinsic value is the
fair market value on the reporting date less the exercise price for each option.

<div align='center'>F-57

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

The fair value of each stock option
award is estimated on the date of the grant using the Black-Scholes option-pricing model. For options granted during the nine months
ended September 30, 2024 and 2023, respectively, the weighted average estimated fair value using the Black-Scholes option pricing model
was $ and $ per option, respectively.

Stock compensation expense related
to the 2018 Plan common stock options for the three months ended September 30, 2024 and 2023 was $ and $, respectively and
for the nine months ended September 30, 2024 and 2023 was $ and $ respectively, which is included in general and administrative
in the Company’s consolidated statements of operations and comprehensive loss. Total unrecognized expense related to unvested options
outstanding as of September 30, 2024 was $ which will be recognized over a weighted average period of years.

The fair value of each stock option
granted is estimated using the Black-Scholes option-pricing model using the single-option award approach.

The following assumptions are used
in the Black-Scholes option-pricing model:

Risk-Free Interest Rate - The
risk-free interest rate is based on the implied yield available on the date of grant on U.S. Treasury zero-coupon securities issued with
a term that is equal to the option’s expected term at the grant date.

Expected Volatility - The Company
estimates the volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period
immediately preceding the option grant for a term that is approximately equal to the option’s expected term.

Expected Term - The expected
term represents the period over which options granted are expected to be outstanding using the simplified method, as the Company’s
historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The simplified
method deems the term to be the average of the time-to-vesting and contractual life of the stock-based awards