Company: VEEAW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111013
Chunk: 44

Company: VEEA INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in
each particular case and agreement. To date, the Company has made no indemnity payments. In addition, the Company has entered into indemnification
agreements with its officers and directors, and its Amended and Restated Bylaws contain similar indemnification obligations to its agents.

Litigation

In the normal course of business, the
Company may become involved in various lawsuits and legal proceedings. The Company accrues contingent liabilities when it is probable
that future expenditures will be made, and such expenditures can be reasonably estimated. While the ultimate results of these matters
cannot be predicted with certainty, management does not expect them to have a material adverse effect on the financial position or results
of operations of the Company.

Other Commitments

In connection with the Business Combination,
the Company agreed to pay certain legal expenses contingent upon the closing of the Business Combination, certain of which expenses were
mutually agreed to be deferred to periods after the Closing. As of September 30, 2025, the amount of the deferred fees totaled $2,257,457,
recorded in deferred payables, current in the condensed consolidated balance sheet.

23

15 - FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

The following table presents fair value information as of September
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. During the
nine months ended September 30, 2025, there were no transfers amongst level 1, 2, and 3 values during the period.

    September 30, 2025 
    Total  
    Level 1  
    Level 2  
    Level 3 
  
    SPAC Private Placement Warrant liability 
    $367,935  
            -  
    $367,935  
    $  - 
  
    2025 Investor Warrant liability 
     2,958,889  

     2,958,889 
  
    Convertible note option liability 
     -  
     -  
     -  
     - 
  
    Earn-out share liability 
     2,040,000  
     -  
     -