Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1935

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9A
Chunk 1935
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 generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash
flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Stock-Based
Compensation

The
Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation-Stock Compensation (“ASC
718”). The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values on the
date of the grant, recognized over the requisite service period. For awards that vest solely based on a service condition, the Company
recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The Company accounts for forfeitures
in the period in which they occur.

Income
Taxes

Effective
June 8, 2018, the Company converted from an S Corporation to a C Corporation for federal and state income tax purposes. Accordingly,
prior to the conversion to a C corporation, the Company did not record deferred tax assets or liabilities or have any net operating loss
carryforwards. The Company is required to file tax returns in the U.S. federal jurisdiction and various states and local municipalities.
The Companies non-US subsidiaries are required to files tax returns in the jurisdictions of their organization.

Significant
judgment is required in determining the Company’s uncertain tax positions. It is not expected that there will be a significant
change in uncertain tax positions for the years ended December 31, 2024 and December 31, 2023, respectively.

Foreign
Operations and Foreign Currency Translation

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. The
results of the Company’s non-U.S. subsidiaries, whose functional currency are the local currencies of the economic environment
in which they operate, are translated into USD in accordance with GAAP.

F-14

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

Assets
and liabilities are translated at year-end exchange rates, while revenues and expenses are translated at average exchange rates during
the year. Differences resulting from translation are presented in equity as accumulated other comprehensive loss. Transaction gains and
losses that arise from exchange rate fluctuations on transactions denominated in