Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 198

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 198
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 meet all the criteria for equity classification, the warrants are required to
be recorded at their initial fair value on the date of issuance, and at their fair value on each balance sheet date thereafter. Changes
in the estimated fair value of the warrants are recognized as a non-cash gain or loss in the Company’s consolidated statements of
operations.

Reclassification of Prior Year Presentation

Certain prior year amounts have been reclassified
for consistency with the current period presentation. In 2022, amortization of debt issuance costs of approximately $ million
was show in depreciation and amortization. In accordance with ASC 835, Interest Expenses, this has been reclassified to Interest
Expense. These reclassifications had no effect on the reported results of operations.

Accounting Pronouncements Recently Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB’s guidance on the impairment of financial instruments. Topic 326 adds to GAAP an impairment model (known as the “current expected credit loss model”) that is based on expected losses rather than incurred losses. ASU 2016-13 is effective for the Company’s annual and interim periods beginning after December 15, 2022 with early adoption permitted. The Company adopted ASU 2016-13 beginning January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements.

<div align='center'>F-17

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

In October 2021, the FASB issued ASU 2021-08,
“Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,”
which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination
as if it had originated the contracts. The standard is effective for public companies for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2022. We adopted the ASU on January 1, 2023 and will apply the guidance
prospectively for future acquisitions.

In September 2022, the F