Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 115

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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AC Private Placement Warrants
were initially issued in the same form as the Public Warrants with the exception that the SPAC Private Placement Warrants: (i) would not
be redeemable by the Company and (ii) may be exercised for cash or on a cashless baseless so long as they are held by the initial purchasers
or their permitted transferees, the SPAC Private Placement Warrants will be redeemable by the Company and exercisable by the holders on
the same basis as the Public Warrants.

The Public Warrants were initially
classified as a derivative liability instrument. Upon the closing of the Business Combination, the Public Warrants in accordance with
the guidance contained in ASC 815 are no longer precluded from equity classification. Equity-classified contracts are initially measured
at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified
in equity.

The Company continues to recognize the SPAC Private Placement Warrants
as liabilities at fair value as of the Closing Date, with an offsetting entry to additional paid-in capital and adjusts the carrying value
of the instruments to fair value through other income (expense) on the condensed consolidated statement of operations and comprehensive
income (loss) at each reporting period until they are exercised. As of September 30, 2025, the SPAC Private Placement Warrants are presented
within warrant liabilities on the condensed consolidated balance sheet.

20

Private Veea Warrants 

Upon the closing of the Business Combination,
the Related Party Common Stock Warrants were exercised in whole, on a net basis, for 3,880,000 shares of common stock of Private Veea
at a conversion price of $0.01 per share for an aggregate purchase price of $38,800. A total of 21,798 shares of common stock were surrendered
in payment of the purchase price.

In connection with the Business Combination, Private Veea’s outstanding
equity-classified Preferred stock warrants were exchanged for common stock warrants of the Company (each an “Exchanged Warrant”)
to purchase a number of shares of Common Stock, after adjustment for anti-dilutive shares, equal to the product of (i) the number of shares
of Private Veea’s common stock subject to such Preferred Stock warrant immediately prior to the Business Combination and (ii) the
Exchange Ratio, at an exercise price per share equal to (A) the exercise price per share of such Preferred Stock warrant immediately prior
to