Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 24

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 24
---
 Unvested Private Veea options
did not accelerate nor vest on the consummation of the Business Combination. All stock option activity was retroactively restated to reflect
the effect of the Exchange Ratio. Generally, stock options vest 25% on the first anniversary of the vesting commencement date and then
quarterly thereafter for 12 quarters, or pursuant to another vesting schedule as approved by the Board and set forth in the option agreement.
Stock options have a maximum term of ten years from the date of grant. The aggregate intrinsic value is the fair market value on the reporting
date less the exercise price for each option. The fair value of each stock option award is estimated on the date of the grant using the
Black-Scholes option-pricing model. For options granted during the three months ended March 31, 2025 and 2024, respectively, the weighted
average estimated fair value using the Black-Scholes option pricing model was $1.16 and $0.55 per option, respectively.

Stock Options

Stock option activity under
the Plan was as follows:

     Number of Options   Weighted- Average  Exercise Price  per Share   Weighted- Average  Remaining  Contractual Term  (years)   Outstanding at December 31, 2024   3,790,702   $1.04    5.98   Granted   30,000    1.82    -   Exercised   (24,420)   -    -   Forfeited   (12,245)   2.78    -   Outstanding at March 31, 2025   3,784,037   $1.64    8.50   Exercisable at March 31, 2025   3,744,271            

14

The fair value of each stock option
granted is estimated using the Black-Scholes option-pricing model using the single-option award approach. The assumptions used to calculate
the fair value of the options granted during the three months ended March 31, 2025, were as follows:

     March 31, 2025   Stock Price  $1.82   Expected term (years)   5.0   Volatility   75.0%  Risk-Free Rate