Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 205

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 205
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 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 $3,076,274 and converted into 1,681,024 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 $174,000 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 $451,874 and $625,940, 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 its newly designated Series A-2 Preferred
Stock, par value $.00001 per share (the “Series A-2 Preferred Stock”). The Series A-2 Preferred Stock ranks pari
passu with the Series A-1 Preferred Stock in the event of a liquidation