Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 31

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 the United Kingdom, France, and Mexico under short-term arrangements of
twelve months or less.

Indemnifications

In the normal course of business,
the Company has indemnification obligations to other parties, including customers, lessors, and parties to other transactions with us,
with respect to certain matters. The Company has agreed to indemnify against losses arising from a breach of representations or covenants
or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time or circumstances
within which an indemnification claim can be made and the amount of the claim.

It is not possible to determine the
maximum potential amount for claims made under the indemnification obligations due to uncertainties in the litigation process, coordination
with and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in
each particular case and agreement. To date, the Company has made no indemnity payments. In addition, the Company has entered into indemnification
agreements with its officers and directors, and its Amended and Restated Bylaws contain similar indemnification obligations to its agents.

18

Litigation

In the normal course of business,
the Company may become involved in various lawsuits and legal proceedings. The Company accrues contingent liabilities when it is probable
that future expenditures will be made, and such expenditures can be reasonably estimated. While the ultimate results of these matters
cannot be predicted with certainty, management does not expect them to have a material adverse effect on the financial position or results
of operations of the Company.

Other Commitments

In connection with the Business Combination,
the Company agreed to pay certain legal expenses contingent upon the closing of the Business Combination, certain of which expenses were
mutually agreed to be deferred to periods after the Closing. As of March 31, 2025, the amount of the deferred fees totaled $2.2 million,
recorded in deferred payables, current in the condensed consolidated balance sheet.

14 - FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

Warrant liability

The Company’s initial value
of the warrant liability was based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable
markets with less volume and transaction frequency than active markets and classified as level 3. The subsequent measurement of the Private
Warrants is classified as Level 2 because these warrants are economically equivalent to the Public Warrants, based on the terms of the
Private Warrant agreement, and as such their value is principally