Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 125

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 125
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 Change in fair value of conversion note option liability |     |                      |    (607,067 | ) |     |               |         - |   |     |                     |    (607,067 | ) |     |               |          - |   |
| Change in fair value of warrant liabilities              |     |                      |     220,373 |   |     |               |         - |   |     |                     |     220,373 |   |     |               |          - |   |
| Change in fair value of earn out shares liability        |     |                      | (24,750,000 | ) |     |               |         - |   |     |                     | (24,750,000 | ) |     |               |          - |   |
| Transaction costs incurred with contingent               
 earn-out share liability                                 |     |                      |  55,038,544 |   |     |               |         - |   |     |                     |  55,038,544 |   |     |               |          - |   |
| Share-based compensation                                 |     |                      |      59,385 |   |     |               |    76,431 |   |     |                     |     394,234 |   |     |               |    404,761 |   |
| ADJUSTED EBITDA                                          |     | $                    |  (2,331,722 | ) |     | $             | 3,505,189 |   |     | $                   | (14,258,963 | ) |     | $             | (4,071,705 | ) |

Quantitative and Qualitative Disclosures About Market Risks

Foreign Exchange Risk

The currency of the primary
economic environment in which the operations of the Company and its U.S. subsidiaries are conducted is the United States dollar (“USD”).
Accordingly, the Company and all of its U.S. subsidiaries use USD as their functional currency.

Transaction gains and losses
that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included
in the results of operations as incurred. Foreign currency transaction gain (loss), mainly related to intercompany loans to the UK denominated
in British Pound Sterling and intercompany agreements with our French subsidiary denominated in Euros, are included in other comprehensive
gain (loss).

Our financial results could
be affected by changes in foreign currency exchange rates, although foreign exchange risks have not been material to our