Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 194

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 194
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F-14

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

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 and other administrative expenses.

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 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. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting
unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The Company’s goodwill was recorded
in connection with an acquisition consummated in June 2018. The Company considers goodwill to have an indefinite life and is not
amortized. As of December 31, 2023 and 2022, no events have occurred that would require impairment of goodwill.

Impairment of Long-Lived Assets

Long-lived assets with finite lives consist primarily
of property and equipment, operating lease right-of-use assets, and int