Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 398

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 398
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) 
     (473,427)
  
    Other 
     (15,411) 
     - 
  
    Total gross deferred tax liabilities 
     (41,485) 
    $(472,288)

    Net deferred tax liabilities 
    $-  
    $- 

In assessing the realizability of deferred tax
assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible. Due to the uncertainty of the Company’s ability to realize the benefit of the deferred
tax assets, the net deferred tax assets are fully offset by a valuation allowance at December 31, 2024 and 2023. The valuation allowance
for the year ending December 31, 2024 and 2023 was $47,011,175 and $35,566,934, respectively.

F-38

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

The
reconciliation of federal statutory income tax rate to our effective income tax rate is as follows for the years ended December 31: 

    2024  
    2023 
  
    Federal income tax at the Statutory Rate 
     21.00% 
     21.00%
  
    Earnout-Share Liability   
     (6.87)% 

    Permanent Items 
     (1.26)% 
     (0.21)%
  
    Foreign 
     0.52% 
     7.80%
  
    State Taxes 
     0.27% 
     24.10%
  
    Return to Provision 
     (0.01)% 
     0.09%
  
    Other 
     0.69% 
     6.79%
  
    Change in valuation allowance 
     (14.34)% 
     (60.27)%
  
    Total tax benefit 
     -% 
     -%

As of December 31, 2024, the Company had gross federal net operating
loss carryforwards of approximately 109,644,085, resulting in a tax effected benefit of $23,025,258, which will be carried forward indefinitely.
In addition,