Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 222

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 222
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IRC Section 382 imposes
limitations on the use of net operating loss carryovers when the stock ownership of one or more 5% shareholders (shareholders owning
5% or more of the Company’s outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points. As
of December 31, 2023, the Company has not completed IRC Section 382 analysis. An IRC Section 382 limitation calculation
will be performed prior to the usage of tax attributes.

The Company’s effective
tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations,
and accounting principles.

The Company has evaluated
both positive and negative evidence and determined that all of its deferred tax assets for the UK & French subsidiaries will
not be realized within foreseeable future. As a result, the valuation allowance sets against both subsidiaries deferred tax assets.

Beginning January 1,
2022, the Tax Cuts and Jobs Act (the “Tax Act”) eliminated the option to deduct research and development expenditures in
the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code (“IRC”) Section 174.
The capitalized expenses are amortized over a five-year period for domestic expenses. As a result of this provision of the Tax Act, deferred
tax assets related to capitalized research expenses increased by $663,935 in 2023, partially offset by amortization on research expenses.

<div align='center'>F-35

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

16 - EMPLOYEE 401(k) PLAN

The Company sponsors a 401(k) plan
(the “Plan”) to provide retirement benefits for its employees.

As allowed under Section 401(k) of
the Internal Revenue Code, the Plan provides for tax-deferred salary contributions and after-tax contributions for eligible employees.
The Plan provides for tax-deferred salary contributions and after-tax contributions for eligible employees. Employee contributions are
limited to a maximum annual amount as set periodically by the Internal Revenue Code. The Company matches pretax and Roth employee contributions
up to 4% of eligible earnings that are contributed by employees. All matching contributions vest immediately. The Company’s matching
contributions to the Plan for the years ended December 31, 2023 and December 31, 2022 totaled approximately $158,000 and
$184,000,