Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 261

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 261
---

shares of the Company’s common stock outstanding immediately after the Closing and is subject to increase each year over a
ten-year period. The ESPP provides eligible employees with an opportunity to purchase common stock from the Company at a discount
through accumulated payroll deductions. The ESPP will be implemented through a series of offerings of purchase rights to eligible
employees. Under the ESPP, the Company’s Board of Directors may specify offerings but generally provides for a duration of 12
months. The first purchase period has not begun as of September 30, 2024. The purchase price will be specified pursuant to the
offering, but cannot, under the terms of the ESPP, be less than 85% of the lower of the fair market value per share of the
Company’s common stock on either the offering date or on the purchase date.

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

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