Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 136

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 136
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 - |   |
| Change in fair value of warrant liabilities               |     |                    |    (200,124 | ) |     |              |           - |   |
| Change in fair value of Earn-out Shares Liability         |     |                    | (38,040,000 | ) |     |              |           - |   |
| Transaction costs incurred with contingent Earn-out Share 
 Liability                                                 |     |                    |  55,038,544 |   |     |              |           - |   |
| Share-based compensation expense                          |     |                    |   6,699,040 |   |     |              |      76,431 |   |
| ADJUSTED EBITDA                                           |     | $                  | (22,066,194 | ) |     | $            |  (9,463,263 | ) |

Critical Accounting Policies and Estimates

Our management's discussion
and analysis of financial condition and results of operations is based on our consolidated financial statements which have been prepared
in accordance with GAAP. In preparing our financial statements, we make estimates, assumptions, and judgments that can have a significant
impact on our reported revenue, results of operations, and net income or loss, as well as on the value of certain assets and liabilities
on our balance sheet during and as of the reporting periods. These estimates, assumptions, and judgments are necessary because future
events and their effects on our results of operations and the value of our assets cannot be determined with certainty and are made based
on our historical experience and on other assumptions that we believe to be reasonable under the circumstances. These estimates may change
as new events occur or additional information is obtained, and we may periodically be faced with uncertainties, the outcomes of which
are not within our control and may not be known for a prolonged period of time. Because the use of estimates is inherent in the financial
reporting process, actual results could differ from those estimates.

We believe that the assumptions
and estimates associated with the following critical accounting policies involve significant judgment and thus have the most significant
potential impact on our Consolidated Financial Statements.

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Revenue Recognition

The Company recognizes revenue
based on the satisfaction of distinct obligations to transfer goods and services to customers. The Company generates revenue from hardware
sales and the sale of licenses and subscriptions. Most contracts with customers are to provide distinct products or services within a
single contract. However, if a contract is separated into more than one performance obligation, the