Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1057

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1057
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 compensation, employee benefits, stock-based compensation related to technology developers and product
management employees, as well as fees paid for outside services and materials.

Sales
and Marketing

Sales
and marketing costs consist of compensation and other employee related costs for personnel engaged in selling and marketing, and sales
support functions. Selling expenses also include marketing, and the costs associated with customer evaluations. The Company does not
incur advertising costs.

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, unrealized foreign currency transaction
gain/loss and other administrative expenses.

F-13

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

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 the fair value of the 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