Company: VEEAW
Filing Date: 2025-08-14
Form Type: 424B4
Source: 0001213900-25-076086
Chunk: 128

Company: VEEA INC.
Filing Date: 2025-08-14
Form: 424B4
Chunk 128
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 third-party marketing firm during the period.

General and Administrative Expense

General and administrative
expense increase by $9.4 million, or 55%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase
is primarily related to a $6.3 million increase to share based compensation, $1.2 million for employee benefits and other office related
expenditures, $0.7 million increase related to professional fees, a the foreign exchange gain of $0.7 million and a $0.5 million increase
in our inventory reserve for the year ended December 31, 2024 The year-to-date overall increase was primarily due to an increase in net
foreign exchange losses, as well as an increase in professional and consulting fees relating to the Business Combination.

Transaction costs including those incurred with Earn-Out Share Liability

Following the closing of
the Business Combination, holders of certain capital stock of Private Veea immediately prior to the closing will have the contingent
right to receive up to 4.5 million additional shares of the Company’s common stock if certain trading-price based milestones of
the Company’s common stock are achieved or a change of control transaction occurs during the ten-year period following the Closing.
Under accounting principles, the Company’s obligation to issue the earnout shares is recorded as a contingent liability (the “Earn-Out Share Liability”). The initial value of the Earn-out Share Liability of approximately $55 million is recorded as a transaction
cost within operating expenses. The fair value of the Earn-out Share Liability was estimated using Monte Carlo simulation utilizing assumptions
related to the contractual term of the instruments, estimated volatility, and current interest rates and the price of our common stock
on the Closing Date of the Business Combination and at December 31, 2024. A significant driver of the value of the earnout at the Close
of the Business Combination was our closing stock price on September 13, 2024 which was $12.00 per share and our closing stock price
on December 31, 2024 was $3.81 per share. Additionally, the Company incurred approximately $1.4 million of professional fees relating
to the Business Combination.

Depreciation and Amortization

Depreciation and amortization
decreased by $544,431, or 67%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was due
to