Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 208

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 208
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 (i.e., the warrants underlying the number of our common shares actually received by the U.S. Holder pursuant to
the cashless exercise). The U.S. Holder would recognize capital gain or loss in an amount equal to the difference between the value of
the warrants deemed surrendered and the U.S. Holder’s tax basis in such warrants. Such gain or loss would be long-term or short-term,
depending on the U.S. Holder’s holding period in the warrants deemed surrendered. In this case, a U.S. Holder’s tax basis
in our common shares received would equal the sum of the U.S. Holder’s tax basis in the warrants exercised and the exercise price
of such warrants. It is unclear whether a U.S. Holder’s holding period for the common shares would commence on the date following
the date of exercise or on the date of exercise of the warrant; in either case, the holding period would not include the period during
which the U.S. Holder held the warrant.

Alternative characterizations
are also possible (including as a taxable exchange of all of the warrants surrendered by the U.S. Holder for our common shares received
upon exercise). Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, including when a U.S.
Holder’s holding period would commence with respect to the common shares received, there can be no assurance which, if any, of the
alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders
should consult their tax advisors regarding the tax consequences of a cashless exercise.

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Depending on the circumstances,
certain adjustments to the warrants may be treated as constructive distributions. An adjustment which has the effect of preventing dilution
pursuant to a bona fide reasonable adjustment formula generally is not taxable. The U.S. Holders of the warrants would, however, be treated
as receiving a constructive distribution from us if, for example, the adjustment increases the warrant holders’ proportionate interest
in our assets or earnings and profits (e.g., through an increase in the number of our common shares that would be obtained upon exercise
or through a decrease to the exercise price) as a result of a taxable distribution of cash or other property to the holders of our common
shares. Any such constructive distribution would generally be subject to tax as described under “U.S. Holders—Taxation of
Distributions” above