Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 32

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 derived by the value of the Public Warrants. Significant deviations
from these estimates and inputs could result in a material change in fair value. During the three months ended March 31, 2025, there
were no transfers amongst level 1, 2, and 3 values during the period.

The conversion feature of the Convertible
Promissory Notes is measured at fair value using a Monte Carlo model that fair values the conversion option.

The following table presents fair value
information as of March 31, 2025 and December 31, 2024, of the Company’s financial assets and liabilities that were accounted for
at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine
such fair value.

    March 31, 2025
     
    Total

    Level 1

    Level 2

    Level 3

    Private warrant liability
     
    $
    420,497

    $
    420,497

    Convertible note option liability

    1,000

    1,000

    Earn-out share liability

    5,030,000

    5,030,000

    Total
     
    $
    5,451,497

    $

    $
    420,497

    $
    5,031,000

    December 31, 2024 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Assets 

    Money Market Funds 
    $-  
    $-  
    $-  
    $- 
  
    Liabilities 

    Private warrant liability 
     840,995  
     -  
     840,995  
     - 
  
    Convertible note option liability 
     60,000  
     -  
     -  
     60,000 
  
    Earn-out Share Liability 
     15,560,000  
     -  
     -  
     15,560,000 
  
    Total 
    $16,460,995  
    $-  
    $840,995  
    $15,620,000 

Convertible Note Option
Liability

The Company established the initial
fair value for the convertible note option liability as of September 13, 2024, which was the date