Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 247

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 247
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 are excluded from net sales.

Research and Development

Research and development (“R&D”)
costs that do not meet the criteria for capitalization are expensed as incurred. R&D costs primarily consist of employee compensation,
employee benefits, stock-based compensation related to technology developers and product management employees, as well as fees paid for
outside services and materials.

Sales and Marketing

Sales and marketing costs consist
of compensation and other employee related costs for personnel engage in selling and marketing, and sales support functions. Selling
expenses also include marketing, and the costs associated with customer evaluations. The Company does not incur advertising costs.

General and Administrative Expense

General and administrative expense consists of compensation expense (including stock-based compensation expense), executive management, finance, legal, tax, and human resources. General and administrative expense also include transaction costs, expenses associated with facilities, information technology, external professional services, legal costs and settlement of legal claims, unrealized foreign currency transaction gain/loss and other administrative expenses.

<div align='center'>F-48

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

Property and Equipment, net

Property and equipment, net is stated
at cost and depreciated on a straight-line basis of five to seven years for furniture and fixtures and five years for computer equipment.
Leasehold improvements are capitalized and amortized over the shorter of their useful lives or remaining lease term. Repair and maintenance
costs are charged to operations in the periods incurred. Upon retirement or sale, costs and related accumulated depreciation or amortization
are removed from the balance sheets and the resulting gain or loss is included in operating expense in the Company’s consolidated
statements of operations and comprehensive loss.

Goodwill

Goodwill represents the excess of
the aggregate purchase consideration over the fair value of the net assets acquired. Goodwill is reviewed for impairment on an annual
basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. In conducting
its annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair
value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting unit is less than
its carrying amount, the Company performs a quantitative assessment, and the fair value of the reporting unit is determined by analyzing
the expected present value of future cash flows.