Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 215

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 215
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 |     |             2023 |     |            2022 |
| Expected volatility        |     | 87.70% - 108.44% |     | 84.24% - 87.55% |
| Expected term in years     |     |      6.06 - 6.11 |     |     5.27 - 6.11 |
| Expected dividend yield    |     |            0.00% |     |           0.00% |
| Risk-free interest rate    |     |    3.39% - 4.24% |     |   2.86% - 3.85% |
| Fair value of common stock |     |            $1.78 |     |           $0.72 |

<div align='center'>F-26

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

9 - STOCK-BASED COMPENSATION (cont.)

The fair value of each stock
option granted is estimated using the Black-Scholes option-pricing model using the single-option award approach. The following assumptions
are used in the Black-Scholes option-pricing model:

Risk-Free Interest Rate -The risk-free interest rate is based on the implied yield available on the date of grant on U.S. Treasury zero-coupon securities
issued with a term that is equal to the option’s expected term at the grant date.

Expected Volatility -The Company estimates the volatility for option grants by evaluating the average historical volatility of a peer group of companies
for the period immediately preceding the option grant for a term that is approximately equal to the option’s expected term.

Expected Term - The expected term represents the period over which options granted are expected to be outstanding using the simplified method, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The simplified method deems the term to be the average of the time-to-vesting and contractual life of the stock-based awards.

Dividend Yield - The
Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been
estimated to be zero.

Warrants

The table below represents
the activity related to the Company’s equity-classified warrants during the years ended December 31, 2023 and 2022:

|                                |     | Number of