Company: VEEAW
Filing Date: 2025-08-06
Form Type: S-1/A
Source: 0001213900-25-072342
Chunk: 272

Company: VEEA INC.
Filing Date: 2025-08-06
Form: S-1/A
Chunk 272
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 obligation to issue the earnout
shares is recorded as a contingent liability (the “Earn-Out Share Liability”) in the Company’s financial statements.
The initial value of the contingent earnout share liability of $ million is recorded as a transaction cost within operating expenses
for the year ended December 31, 2024. The fair value of the Earn-out Share Liabilities was estimated using Monte Carlo simulation utilizing
assumptions related to the contractual term of the instruments, estimated volatility, the price of our common stock, and the risk-free
rate. A significant driver of the value of the Earn-out Share Liability at the close of the Business Combination was our closing stock
price on September 13, 2024, which was $.

The following table presents the changes
in fair value of the earnout liabilities:

| Liability at January 1, 2024      |     | Year ended   
 December 31, 
 2024         |           - |   |
|:----------------------------------|:----|:-------------|------------:|:--|
| Initial value, September 13, 2024 |     |              |  53,600,000 |   |
| Change in fair value              |     |              | (38,040,000 | ) |
| Balance as of December 31, 2024   |     | $            |  15,560,000 |   |

The key inputs for the Earn-out Share Liability were as follows at September 13, 2024 initial value, and at December 31, 2024:

|                       |     |   | December 31, 
         2024 |   |     |   | September 13, 
          2024 |   |
|:----------------------|:----|:--|-------------:|:--|:----|:--|--------------:|:--|
| Stock Price           |     | $ |         6.50 |   |     | $ |         12.00 |   |
| Expected term (years) |     |   |           10 |   |     |   |            10 |   |
| Volatility            |     |   |         75.0 | % |     |   |          70.0 | % |
| Risk-Free Rate        |     |   |         3.81 | % |     |   |          3.66 | % |

15 - EARNINGS PER SHARE As described in Note