Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 277

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 277
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| Risk-Free Rate        |     |   |          3.82 | % |     |   |          3.79 | % |
| Interest rate         |     |   |          6.96 | % |     |   |          7.33 | % |

<div align='center'>F-63

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

|                                   |     | Three and nine months ended 
 September                   
 30, 2024                    |          |   |
|:----------------------------------|:----|:----------------------------|---------:|:--|
| Balance, beginning of period      |     | $                           |        - |   |
| Initial value, September 13, 2024 |     |                             |  900,933 |   |
| Change in fair value              |     |                             | (607,067 | ) |
| Balance, end of period            |     | $                           |  293,866 |   |

Earn-out Share Liability

Following the closing of the Business
Combination, holders of certain capital stock of Legacy Veea immediately prior to the closing will have the contingent right to receive
up to million additional shares of the Company’s Common Stock if certain trading-price based milestones of the Company’s
common stock are achieved or a change of control transaction occurs during the ten-year period following the Closing. The Company’s
obligation to issue the earn out shares is recorded as a contingent liability (the “Earn-Out Share Liability”) in the Company’s
financial statements. The initial value of the contingent earn-out share liability of $ million is recorded as a transaction cost
within operating expenses for the three and nine months ended September 30, 2024. The fair value of the Earn-out Share Liabilities was
estimated using Monte Carlo simulation utilizing assumptions related to the contractual term of the instruments, estimated volatility,
the and current interest rates. A significant driver of the value of the Earn-out Share Liabilities at the close of the Business Combination
was our closing stock price on September 13, 2024 which was $.

| Liability at January 1, 2024      |     | For the three and nine months 
 September 30,                 
 2024                          |           - |   |
|:----------------------------------|:----|:------------------------------|------------:|:--|