Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 246

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 246
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to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows expected
to be 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 as 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. Veea Systems Ltd. is governed
by, and is required to file tax returns under, the Income Tax Law of the U.K. with a statutory income tax rate of %. In 2021, the Company
established Veea SAS, a French entity with a statutory income tax rate of %.

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 nine months ended September 30, 2024 and for the year ended 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.

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Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated