Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 179

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 179
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 the effectiveness of the Company’s internal control
over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

<div align='center'>F-2</div>

Critical Audit Matter

The critical audit matter communicated below is
a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated
to those charged with governance and that: (1) relate to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the
critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they
relate.

Valuation of Inventory

As described in Note 4, to the financial statements,
the Company’s inventory, net at December 31, 2023, was $7.4 million. Inventory consists primarily of finished goods and
is valued at the lower of cost and net realizable value. The Company records a provision for aged, obsolete, or unsellable inventory,
which can involve a high degree of judgment. The Company annually reviews its inventory and identifies factors which may include future
demand, market conditions, technological changes, product life cycle and development plans, component cost trends, product pricing, physical
deterioration and quality issues.

The valuation of inventory was identified as a critical
audit matter because of the significant assumptions management makes with regards to its valuation of inventory and the increased extent
of effort required performing audit procedures to evaluate the reasonableness of management’s assumptions and estimates.

The primary procedures we performed to address this
critical audit matter included:

| ● | Performed independent test counts of the Company’s 
 physical inventory.                                |

| ● | Obtained an understanding of management’s process over 
 the valuation of inventory.                            |

| ● | Evaluated the