Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 195

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 195
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angible assets which are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows expected to be generated
by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized
by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Stock-Based Compensation

The Company accounts for stock-based compensation
expense in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company measures and
recognizes compensation expense for all stock-based awards based on estimated fair values on the date of the grant, recognized over the
requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation expense
on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur.

<div align='center'>F-15

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Income Taxes

Effective June 8, 2018, the Company converted
from an S Corporation to a C Corporation for federal and state income tax purposes. Accordingly, prior to the conversion to a C corporation,
the Company did not record deferred tax assets or liabilities or have any net operating loss carryforwards. The Company is required to
file tax returns in the U.S. federal jurisdiction and various states and local municipalities. Veea Systems Ltd. is governed by,
and is required to file tax returns under, the Income Tax Law of the U.K. with a statutory income tax rate of %. In 2021, the Company
established Veea SAS, a French entity with a statutory income tax rate of %.

Significant judgment is required in determining
the Company’s uncertain tax positions. For any period presented, it is not expected that there will be a significant change in uncertain
tax positions for the years ended December 31, 2023 and December 31, 2022, respectively.

Foreign Operations and Foreign Currency Translation

The currency of the primary economic environment in which the operations
of the Company and its U.S. subsidiaries are conducted is the United States dollar (“USD