Company: VEEAW
Filing Date: 2025-07-23
Form Type: S-1
Source: 0001213900-25-066815
Chunk: 267

Company: VEEA INC.
Filing Date: 2025-07-23
Form: S-1
Chunk 267
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 them to have a material adverse effect on the financial position or results of operations of the Company. Other Commitments In connection with the Business Combination transaction, Veea agreed to pay certain legal expenses contingent upon the closing of the Business Combination, certain of which expenses were mutually agreed to be deferred to periods after the Closing. As of December 31, 2024, the amount of the deferred fees totaled approximately $ 1,750,000.

14 - FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

The Company’s initial value of the warrant liability was based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets and classified as level 3. The subsequent measurement of the Private Warrants is classified as Level 2 because these warrants are economically equivalent to the Public Warrants, based on the terms of the Private Warrant agreement, and as such their value is principally derived by the value of the Public Warrants. Significant deviations from these estimates and inputs could result in a material change in fair value. For the year ended December 31, 2024, there were no transfers amongst level 1, 2, and 3 values during the period.

The conversion feature of the September 2024 Notes is measured at fair value using a Monte Carlo model that fair values the conversion option.

The following table presents fair value information as of December 31, 2024 and 2023 of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

| December                 
 31, 2024                 |     | Total |            |     | Level 
 1     |   |     | Level 
 2     |         |     | Level 
 3     |            |
|:-------------------------|:----|:------|-----------:|:----|:------|:--|:----|:------|--------:|:----|:------|-----------:|
| Assets                   |     |       |            |     |       |   |     |       |         |     |       |            |
| Money                    
 Market Funds             |     | $     |          - |     | $     | - |     | $     |       - |     | $     |          - |
| Liabilities              |     |       |            |     |       |   |     |       |