Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 205

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 205
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 optionally convertible at any time at the holder’s election and (ii) automatically
converts upon the closing of a qualified financing, defined to be the receipt by the Company of at least $ proceeds (including
debt conversion) from the issuance of equity or equity-related securities. Upon the Company’s receipt of $ proceeds from
the issuance and sale of shares of its Series A-2 Preferred Stock private placement, a qualified financing under the iFree Note occurred
and the note automatically converted into shares of Series A-2 Preferred Stock of the Company. The aggregate amount of principal
and interest equaled $ and converted into shares of Series A-2 Preferred Stock.

7 - INVESTMENTS

The Company accounts for its private company investments
without readily determinable fair values under the cost method. These investments, for which the Company is not able to exercise significant
influence over any one individual investee, is measured and accounted for using an alternative measurement basis of a) the security’s
carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price changes.

<div align='center'>F-21

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

7 - INVESTMENTS(cont.)

Observable price changes or impairments recognized on the Company’s
private company investments would be classified as a Level 3 financial instrument within the fair value hierarchy based on the nature
of the fair value inputs. Any adjustments to the carrying values are recognized in other income expense, net in the Company’s consolidated
statements of operations and comprehensive loss. As of December 31, 2023, the Company performed the qualitative assessment for impairment
of its investments. Based on this qualitative assessment, impairment indicators were present for one of its investments therefore the
company performed an analysis to estimate its fair value and recognized an impairment loss of $ due to a change in the fair value.
As of December 31, 2023 and 2022, the carrying value of the Company’s private company investments, including impairment, for
the years ended was $ and $, respectively, and was classified as Investments on the Company’s consolidated balance
sheet as these investments did not have a stated contractual maturity date.

8 - STOCKHOLDERS’ EQUITY

Authorized and Outstanding Capital Stock

In October 2023, the Company commenced a private
placement (the “Series A-2 Private Placement”) of