Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 113

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 113
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 in FASB Accounting Standards Codification 480, DistinguishingLiabilities from Equity (“ASC
480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding
financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all
of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary
shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s
control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted
at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants
that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in
capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants
are required to be recorded at their initial fair value on the date of issuance, and at their fair value on each balance sheet date thereafter.
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss in the Company’s consolidated statements
of operations.

Recent Accounting Pronouncements

A discussion of recent accounting
pronouncements applicable to Veea is described in Note 3, Summary of Significant Accounting Policies, which are described in Note 3 to
the unaudited financial statements of Veea as of September 30, 2024 and for the nine months then ended included with this prospectus.

Emerging Growth Company Status

Veea is an emerging growth
company as defined in the JOBS Act. The JOBS Act permits companies with emerging growth company status to take advantage of an extended
transition period to comply with new or revised accounting standards, delaying the adoption of these accounting standards until they
would apply to private companies. Veea has elected to use this extended transition period to enable it to comply with new or revised
accounting standards that have different effective dates for public and private companies until the earlier of the date it (i) is no
longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS
Act. As a result, Veea’s financial statements may not be comparable to companies