Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 39

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 39
---
 Measurements

Warrant liability

The Company’s initial value of
the warrant liability was based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable
markets with less volume and transaction frequency than active markets and classified as level 3. The subsequent measurement of the Private
Warrants is classified as Level 2 because these warrants are economically equivalent to the Public Warrants, based on the terms of the
Private Warrant agreement, and as such their value is principally derived by the value of the Public Warrants. Significant deviations
from these estimates and inputs could result in a material change in fair value. During the six months ended June 30, 2025, there were
no transfers amongst level 1, 2, and 3 values during the period.

The conversion feature of the Convertible
Promissory Notes is measured at fair value using a Monte Carlo model that fair values the conversion option.

20

The following table presents fair value
information as of June 30, 2025 and December 31, 2024, of the Company’s financial assets and liabilities that were accounted for
at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine
such fair value.

    June 30, 2025 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Private warrant liability 
    $735,870  
    $      -  
    $735,870  
    $- 
  
    Convertible note option liability 
     270  
     -  
     -  
     270 
  
    Earn-out share liability 
     6,760,000  
     -  
     -  
     6,760,000 
  
    Total 
    $7,496,140  
     -  
     735,870  
     6,760,270 

    December 31, 2024 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Assets 

    Money Market Funds 
    $-  
    $    -  
    $-  
    $- 
  
    Liabilities 

    Private warrant liability 
     840,994  
     -