Company: VEEAW
Filing Date: 2025-07-07
Form Type: DRS
Source: 0001213900-25-061586
Chunk: 275

Company: VEEA INC.
Filing Date: 2025-07-07
Form: DRS
Chunk 275
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 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”) in the Company’s
financial statements and the initial value of the Earn-out Share Lability is recorded as a transaction cost within operating expense
in the Company’s financial statements. For each subsequent reporting period, changes in the fair value of the Earn-out Share Liability
will be reported in the Company’s financial statements.

Veea Transaction related expenses

The below table represents the amount of Veea Inc. related transaction expenses included in operating expenses for the year ended December 31, 2024:

|                      |     | December 
 31,      
 2024     |           |
|:---------------------|:----|:---------|----------:|
| Legal expenses       |     | $        | 1,000,000 |
| Professional fees    |     |          |   413,544 |
| Listing fee - NASDAQ |     |          |    25,000 |
| Total                |     | $        | 1,438,544 |

5 - BALANCE SHEET COMPONENTS

Inventory, net

Inventory consists of the following:

|                     |     |   |  December 
       31, 
      2024 |   |     |   |   December 
        31, 
       2023 |   |
|:--------------------|:----|:--|----------:|:--|:----|:--|-----------:|:--|
| Inventory           |     | $ | 7,377,966 |   |     | $ |  7,392,919 |   |
| Inventory allowance |     |   |  (904,653 | ) |     |   | (1,145,548 | ) |
| Consigned parts     |     |   |   985,927 |   |     |   |  1,128,250 |   |
| Total               |     | $ | 7,459,240 |   |     | $ |  7,375,621 |   |

<div align='center'>F-42

Veea Inc. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Years ended December 31, 2024 and 2023</div>

Prepaid and other current assets

Prepaid and other current assets consists of the