Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 215

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 215
---
 | 6.98 |     | $         |   318,041 |

The aggregate intrinsic
value is the fair market value on the reporting date less the exercise price for each option.

The fair value of each stock
option award is estimated on the date of the grant using the Black-Scholes option-pricing model. For options granted during the years
ended December 31, 2023 and 2022, respectively, the weighted average estimated fair value using the Black-Scholes option pricing
model was $ and $ per option, respectively.

Stock compensation expense
related to the 2018 Plan common stock options for the years ended December 31, 2023 and 2022 was $ and $, respectively,
which is included in general and administrative in the Company’s consolidated statements of operations and comprehensive loss.
Total unrecognized expense related to unvested options outstanding as of December 31, 2023 was $ which will be recognized
over a weighted average period of years.

The Company estimates the
fair value of each stock award on the grant date using the Black-Scholes option-pricing model.

|                            |     |             2023 |     |            2022 |
| Expected volatility        |     | 87.70% - 108.44% |     | 84.24% - 87.55% |
| Expected term in years     |     |      6.06 - 6.11 |     |     5.27 - 6.11 |
| Expected dividend yield    |     |            0.00% |     |           0.00% |
| Risk-free interest rate    |     |    3.39% - 4.24% |     |   2.86% - 3.85% |
| Fair value of common stock |     |            $1.78 |     |           $0.72 |

<div align='center'>F-26

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

9 - STOCK-BASED COMPENSATION(cont.)

The fair value of each stock
option granted is estimated using the Black-Scholes option-pricing model using the single-option award approach. The following assumptions
are used in the Black-Scholes option-pricing model:

Risk-Free Interest Rate -The risk-free interest rate is based on the implied yield available on