Company: VEEAW
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078177
Chunk: 35

Company: VEEA INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 the Private Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants.

The Public Warrants were initially classified
as a derivative liability instrument. Upon the closing of the Business Combination, the Public Warrants in accordance with the guidance
contained in ASC 815 are no longer precluded from equity classification. Equity-classified contracts are initially measured at fair value
(or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

The Company continues to recognize the
Private Placement Warrants as liabilities at fair value as of the Closing Date, with an offsetting entry to additional paid-in capital
and adjusts the carrying value of the instruments to fair value through other income (expense) on the condensed consolidated statement
of operations and comprehensive income (loss) at each reporting period until they are exercised. As of June 30, 2025, the Private Placement
Warrants are presented within warrants on the condensed consolidated balance sheet.

Private Veea Warrants 

Upon the closing of the Business Combination,
the Related Party Common Stock Warrants were exercised in whole, on a net basis, for 3,880,000 shares of common stock of Private Veea
at a conversion price of $0.01 per share for an aggregate purchase price of $38,800. A total of 21,798 shares of common stock were surrendered
in payment of the purchase price.

18

In connection with the Business Combination, Private
Veea’s outstanding equity-classified Preferred stock warrants were exchanged for common stock warrants of the Company (each an “Exchanged
Warrant”) to purchase a number of shares of Common Stock, after adjustment for anti-dilutive shares, equal to the product of (i)
the number of shares of Private Veea’s common stock subject to such Preferred Stock warrant immediately prior to the Business Combination
and (ii) the Exchange Ratio, at an exercise price per share equal to (A) the exercise price per share of such Preferred Stock warrant
immediately prior to the consummation of the Business Combination, divided by (B) the Exchange Ratio. On November 6, 2024, the warrant
holder exercised warrants to purchase 79,654 shares of Common Stock at an exercise price of $0.05 per share for an aggregate purchase
price of $3,983. The outstanding Exchanged Warrants are exercisable at the option of the holder until September 28, 202