Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1329

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1329
---
 there is little or no market data and require the Company to develop its
                                            own assumptions, based on the best information available in the circumstances, about the
                                            assumptions market participants would use in pricing the assets or liabilities.

The
Company issued common stock warrants classified as equity securities which do not require recurring fair value measurement. See Note
11 – Warrants for the assumptions used in estimating the fair value of such common stock warrants.

F-9

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

Recurring
Fair Value Measurements

The
following methods and assumptions were used to estimate the fair value of each class of financial assets and liabilities for which it
is practicable to estimate fair value:

Money
market funds - The carrying amount of money market funds approximates fair value and is classified within Level 1 because the fair value
is determined through quoted market prices.

Private
Warrants - The carrying value of the warrants is classified within Level 2 because   the fair value is determined through quoted
market prices, which are valued using the closing market price of the public warrants as the private placement warrants have terms and
provisions that are identical to those of the public warrants.

Convertible
Note Option Liability - The initial measurement and carrying value of the conversion option is classified within Level 3 because the
fair value is determined through an option pricing model.

Earn-Out
Share Liability - The initial measurement and carrying value is classified within Level 3 because the fair value is determined through
Monte Carlo simulation.

The
Company’s remaining financial instruments that are measured at fair value on a recurring basis consist primarily of cash, accounts
receivable, accounts payable, accrued expenses, and other current liabilities. The Company believes their carrying values are representative
of their fair values due to their short-term maturities.

Business
Combinations

The
Company evaluates whether acquired net assets should be accounted for as a business combination or an asset acquisition by first applying
a screen test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable
asset or group of similar identifiable assets. If so, the transaction is accounted for as an asset acquisition. If not, the Company applies
its judgement to determine whether the acquired net assets meets the definition of a business by considering if the set includes an acquired
input, process, and the ability to create outputs.

The
Company