Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 111

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 111
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 inventory
at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out
basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable
value if required, for estimated excess or obsolescence. Factors influencing these adjustments include changes in future demand forecasts,
market conditions, technological changes, product life cycle and development plans, component cost trends, product pricing, physical
deterioration, and quality issues. The write down for excess or obsolescence is charged to the provision for inventory, which is a component
of Cost of goods sold in the Company’s consolidated statements of operations and comprehensive loss. At the point of the loss recognition,
a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration
or increase in that newly established cost basis.

Due to the judgmental nature
of inventory valuation, we may from time to time be required to adjust our assumptions as processes change and as we gain better information.
Although we continue to refine the assumptions, described above, on which we base our estimates, we cannot be sure that our estimates
are accurate indicators of future events. Accordingly, future adjustments may result from refining these estimates. Such adjustments
may be significant.

Goodwill

Goodwill represents the
excess of the aggregate purchase consideration over the fair value of the net assets acquired. Goodwill is reviewed for impairment on
an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired.
In conducting its annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not
that the fair value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting
unit is less than its carrying amount, the Company performs a quantitative assessment, and the fair value of the reporting unit is determined
by analyzing the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair
value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The
Company’s goodwill was recorded in connection with an acquisition consummated in June 2018. The Company considers goodwill to have
an indefinite life and is not amortized.

Impairment of Long-Lived Assets

Long-lived assets with