Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 19

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 include certain amounts that are already required to be disclosed under
current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements, (3) disclose
a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively,
and (4) disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.
The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its condensed
consolidated financial statements.

9

4 - ACQUISITION

On May 13, 2025, the Company entered
into an Asset Purchase Agreement with Crowdkeep, Inc., a Delaware corporation (the “Seller”), pursuant to which the Company
acquired certain assets of Seller relating to Seller’s IoT technology platform business, free and clear of any liens other than
certain specified liabilities of Seller that were assumed. In consideration for the acquisition, the Company issued 4,065,689 shares of
its Common Stock (the “Purchase Price”).

The transaction was accounted for as
an asset acquisition, as the Company determined that substantially all of the fair value was concentrated in a single identifiable intangible
asset, proprietary technology, and therefore applied a model consistent with asset acquisition accounting. The total purchase consideration
of $6,957,456 was comprised of equity consideration of $6,830,358 based on the number of shares issued at the closing share price, and
direct acquisition-related costs for legal and advisory fees of $127,098, the total of which was allocated to the acquired assets on a
relative fair value basis. Because this was not a business combination, no goodwill was recognized.

The transaction was considered a related
party transaction due to the involvement of a Company board member who was also the CEO and shareholder of Crowdkeep. The Company established
a special committee of the Board comprised of independent members of the Board, that evaluated and approved the transaction, concluding
that the terms were commercially reasonable and negotiated at arm’s length.

The patented technology, which is recorded
as part of intangible assets, net in the condensed consolidated balance sheet, will be amortized over its estimated useful life of 10
years.

5 - REVERSE RECAPITALIZATION

As discussed in Note 1