Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 196

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 196
---
”). Accordingly, the Company
and all of its U.S. subsidiaries use USD as their functional currency. The results of the Company’s non-U.S. subsidiaries,
whose functional currency are the local currencies of the economic environment in which they operate, are translated into USD in accordance
with GAAP.

Assets and liabilities are translated at year-end
exchange rates, while revenues and expenses are translated at average exchange rates during the year. Differences resulting from translation
are presented in equity as accumulated other comprehensive loss. Transaction gains and losses that arise from exchange rate fluctuations
on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign
currency transaction gain (loss), mainly related to intercompany transactions, is included in the consolidated statements of operations.
For the years ended December 31, 2023 and December 31, 2022 such amounts were $ and $(), respectively.

Comprehensive Loss

Comprehensive loss consists of two components, net
loss and other comprehensive income (loss), net. Other comprehensive income (loss), net is defined as revenue, expenses, gains, and losses
that under GAAP are recorded as an element of stockholders’ deficit but are excluded from net loss. The Company’s other comprehensive
loss consists of foreign currency translation adjustments that result from the consolidation of its foreign subsidiaries and is reported
net of tax effects.

Investments

The Company holds non-marketable equity and other
investments (“privately held investments”) which are included in noncurrent assets in the Company’s consolidated balance
sheet. The Company monitors these investments for impairments and makes adjustments in carrying values if management determines that an
impairment charge is required based primarily on the financial condition and near-term prospects of these investments.

Concentration of Risks

Financial instruments that potentially subject the
Company to a significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Cash balances
may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $. The Company has not experienced
any losses in such accounts.

<div align='center'>F-16

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

For the year ended December 31, 2023 one customer
accounted for % of the Company’s revenue. For the year ended December 31, 202