Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 248

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 248
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 If the carrying value of the reporting unit continues to exceed its fair value, the
fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The Company’s
goodwill was recorded in connection with an acquisition consummated in June 2018. The Company considers goodwill to have an indefinite
life and is not amortized. As of September 30, 2024 and December 31, 2023, no events have occurred that would require impairment of goodwill.

Impairment of Long-Lived Assets

Long-lived assets with finite lives
consist primarily of property and equipment, operating lease right-of-use assets, and intangible assets which are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
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 19%. In 2021, the Company
established Veea SAS, a French entity with a statutory income tax rate of 25%.

Significant judgment is required in determining the