Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 244

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 244
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 an option pricing model.

Earn-Out - The initial measurement
and carrying value is classified within Level 3 because the fair value is determined through Monte Carlo simulation.

The Company’s remaining financial
instruments that are measured at fair value on a recurring basis consist primarily of cash, accounts receivable, accounts payable, accrued
expenses, and other current liabilities. The Company believes their carrying values are representative of their fair values due to their
short-term maturities.

Business Combinations

The Company evaluates whether acquired
net assets should be accounted for as a business combination or an asset acquisition by first applying a screen test to determine whether
substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable
assets. If so, the transaction is accounted for as an asset acquisition. If not, the Company applies its judgement to determine whether
the acquired net assets meets the definition of a business by considering if the set includes an acquired input, process, and the ability
to create outputs.

<div align='center'>F-45

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

The Company accounts for business
combinations using the acquisition method when it has obtained control. The Company measures goodwill as the fair value of the consideration
transferred including the fair value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets
acquired and liabilities assumed, all measured at their fair value as of the acquisition date. Transaction costs, other than those associated
with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration (i.e.,
Earn-out liabilities) is measured at fair value at the acquisition date. For contingent consideration that do not meet all the criteria
for equity classification, such contingent consideration are required to be recorded at their initial fair value at the acquisition date,
and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent consideration are recognized
on the consolidated statements of operations in the period of change.

When the initial accounting for a
business combination has not been finalized by the end of the reporting period in which the transaction occurs, the Company reports provisional
amounts. Provisional amounts are adjusted during the measurement period, which does not exceed one year from the acquisition date. These