Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 581

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 581
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 instruments,
estimated volatility, and current interest rates and the price of our Common Stock on the Closing Date and at December 31, 2024. A
significant driver of the value of the earnout  at the close of the Business Combination was our closing stock price on
September 13, 2024 which was $12.00 per share and our closing stock price on December 31, 2024 was $3.81 per share. Additionally,
the Company incurred approximately $1.4 million of professional fees relating to the Business Combination.

Depreciation
and Amortization

Depreciation
and amortization decreased by $544,431, or 67%, in the year ended December 31, 2024 compared to the year ended December 31, 2023. The
decrease was due to certain intangibles reaching the end of their useful lives.

UK
R&D Tax Credit

The
increase is related to the receipt of an R&D tax credit of $1.3 million received by the Company’s UK subsidiary.

Loss
on initial issuance of September 2024 Notes

The
loss on initial measurement of the September 2024 Notes was $1,770,993 is recorded as a transaction cost within operating expenses.

Change
in fair value of derivative liabilities

Change in fair value of
derivative liabilities comprised of the fair value adjustment to the conversion option, Private Warrants, and earnout shares at balance
sheet date. The gain on the change in fair value of conversion note option liability was $840,933 for the year ended December 31, 2024
was determined using a Black-Scholes option pricing model. The loss on the change in fair value of warrant liabilities was $200,124 for
the year ended December 31, 2024 was determined based on the trading value of the public warrants. The loss on the change in fair value
of the Earn-out Share Liability was $38.0 million for the year ended December 31, 2024 was determined using a Monte Carlo simulation.
A significant driver of the value of the earnout at the close of the Business Combination was our closing stock price on December 31,
2024 which was $3.81. These derivative instruments were entered into in 2024 related to the Business Combination.

Other
expense

Other
expenses relate to immaterial non-operating expenses incurred during the period. These amounts were immaterial for the years ended December
31, 2024