Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 189

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 189
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 the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and
minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered
observable and the last is considered unobservable:

| Level 1 - | Observable inputs obtained from independent sources,                                                                                        
 such as quoted market prices for identical assets and liabilities in active markets.                                                        |
| Level 2 - | Other inputs, which are observable directly or indirectly, such                                                                             
 as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets           
 or liabilities in markets that are not active, and inputs that are derived principally from or corroborated by observable market            
 data.                                                                                                                                       |
| Level 3 - | Unobservable inputs for which there is little or no market data                                                                             
 and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions 
 market participants would use in pricing the assets or liabilities.                                                                         |

The Company issued preferred stock warrants and common stock warrants classified as equity securities which do not require recurring fair value measurement. See Note 9 - Stock-Based Compensationfor the assumptions used in estimating the fair value of such common stock warrants.

<div align='center'>F-11

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Recurring Fair Value Measurements

The following methods and assumptions were used
to estimate the fair value of each class of financial assets and liabilities for which it is practicable to estimate fair value:

Money market funds - The carrying amount of money market funds approximates fair value and is classified within Level 1 because the fair value is determined through quoted market prices.

The Company’s remaining financial instruments
that are measured at fair value on a recurring basis consist primarily of cash, accounts receivable, accounts payable, accrued expenses,
and other current liabilities. The Company believes their carrying values are representative of their fair values due to their short-term
maturities.

Cash and Cash Equivalents

Cash balances are held in U.S. and European
banks. Cash balances held in the U.S. are insured by the Federal Deposit Insurance Corporation subject to certain limitations. The
Company maintains its cash balances in highly rated financial institutions. At times, cash balances may exceed federally insurable limits