Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 2491

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 12
Chunk 2491
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 September 2024 Notes expressly agree to convert
all obligations under the September 2024 Notes or (iii) the our common stock trades with an average daily VWAP of at least $10.00 (subject
to equitable adjustment for stock splits, stock dividends and the like with respect to our common stock after the Financing Closing) for
ten (10) consecutive trading days. The obligations under each September 2024 Note will also automatically convert in connection with a
Brokerage Transfer, as described below.

The September 2024 Notes and the Conversion Shares are subject to a
lock-up for a period of 6 months after the Financing Closing (subject to early release for a liquidation, merger, share exchange or other
similar transaction that results in all of the Company’s stockholders having the right to exchange their equity holdings in the
Company for cash, securities or other property, and subject to customary permitted transfer exceptions). The Transferred Shares are not
be subject to any lock-up restrictions, but for a period of 6 months after the Closing they will be separately designated by the Transfer
Agent and kept as book entry shares on the Transfer Agent’s records and will not be eligible to be held by DTC without the Investor
first notifying the Company of its intent to transfer any such Transferred Shares to a brokerage account and/or to be held by DTC or another
nominee (a “Brokerage Transfer”). If the Investor provides such notice or otherwise has any Transferred Shares subject to
a Brokerage Transfer within 6 months after the Closing, a portion of the outstanding obligations under such Investor’s Note will
automatically convert into a number of Conversion Shares equal to the number of Transferred Shares subject to such Brokerage Transfer,
and the lock-up period for such Conversion Shares will be extended for an additional 6 months to 12 months after the Financing Closing.
As of December 31, 2024, $250,000 in aggregate principal amount of the September 2024 Notes, together with associated interest, had automatically
converted upon the occurrence of a Brokerage Transfer.

The
Company reviewed the conversion feature granted in the notes under ASC 815 and concluded that the conversion price was based on a variable
(enterprise value) that was not an input to the fair value of a “fixed-for-fixed” option as defined under FASB ASC Topic
No. 815 – 40 and is therefore considered a conversion option liability that should be bifurcated from the debt host. As the fair