Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 226

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 226
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 Total tax benefit                        |     |                          |      - | %  |     |      |      - | %  |

As of December 31, 2023, the Company had federal
net operating loss carryforwards of approximately $ which will be carried forward indefinitely. In addition, the Company has
state net operating loss carryforwards of approximately $ with varying expiration dates as determined by each state.

As of December 31, 2023, The Company had foreign
net operating loss carryforwards of approximately $ and $ as of December 31, 2023 and 2022, respectively, which
have no expiration.

As of December 31, 2023, Company had federal
R&D credit carryforwards of approximately $ which will begin to expire in 2038 for federal tax purposes.

At December 31, 2023 the Company had state
R&D credit carryforwards of approximately $ for state tax purposes which will not expire.

IRC Section 382 imposes limitations on the
use of net operating loss carryovers when the stock ownership of or more % shareholders (shareholders owning % or more of the Company’s
outstanding capital stock) has increased on a cumulative basis by more than 50 percentage points. As of December 31, 2023, the Company
has not completed IRC Section 382 analysis. An IRC Section 382 limitation calculation will be performed prior to the usage of
tax attributes.

The Company’s effective tax rate could also
fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, and accounting
principles.

The Company has evaluated both positive and negative
evidence and determined that all of its deferred tax assets for the UK & French subsidiaries will not be realized within foreseeable
future. As a result, the valuation allowance sets against both subsidiaries deferred tax assets.

Beginning January 1, 2022, the Tax Cuts and
Jobs Act (the “Tax Act”) eliminated the option to deduct research and development expenditures in the current year and requires
taxpayers to capitalize such expenses pursuant to Internal Revenue Code (“IRC”) Section 174. The capitalized expenses
are amortized over a five-year period for domestic expenses. As a result of this provision of the Tax Act, deferred tax assets related
to capitalized research expenses increased by $ in 2023, partially offset by amortization on research expenses.

<div align='center'>F-35

Veea Inc.