Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 921

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 921
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, 2024 and December 31, 2023, respectively.

Foreign
Operations and Foreign Currency Translation

The
currency of the primary economic environment in which the operations of the Company and its U.S. subsidiaries are conducted is the United
States dollar (“USD”). 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.

F-14

Veea
Inc. and Subsidiaries
Notes to the Consolidated Financial Statements 
For the Years ended December 31, 2024 and 2023

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, 2024 and 2023, transactions losses were $1,231,954 and
$1,433,388, 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”)