Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 242

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 242
---
 Level 3 - | Unobservable                                                                              
 inputs for which there is little or no market data and require the Company to develop its 
 own assumptions, based on the best information available in the circumstances, about the  
 assumptions market participants would use in pricing the assets or liabilities.           |

The Company issued preferred stock warrants and common stock warrants classified as equity securities which do not require recurring fair value measurement. Refer to Note 9 - Incentive Plansfor the assumptions used in estimating the fair value of such common stock warrants .

Recurring Fair Value Measurements

The following methods and assumptions
were used to estimate the fair value of each class of financial assets and liabilities for which it is practicable to estimate fair value:

Money market funds - The carrying
amount of money market funds approximates fair value and is classified within Level 1 because the fair value is determined through quoted
market prices.

Private Warrants - The carrying value
of the warrants is classified within Level 2 because the fair value is determined through quoted market prices, which are valued using
the closing market price of the public warrants as the private placement warrants have terms and provisions that are identical to those
of the public warrants.

Contingent Financing Asset - The initial
measurement of the Contingent Financing Asset is classified within Level 1 because the fair value is determined through quoted market
prices.

Convertible Note Option Liability
- The initial measurement and carrying value of the conversion option is classified within Level 3 because the fair value is determined
through 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