Company: VEEAW
Filing Date: 2025-08-12
Form Type: S-1/A
Source: 0001213900-25-074676
Chunk: 242

Company: VEEA INC.
Filing Date: 2025-08-12
Form: S-1/A
Chunk 242
---
 accompanied by an equity recapitalization of Private Veea. Under this method of accounting, Plum was treated as the acquired company for financial accounting and reporting purposes under GAAP. This determination was primarily based on the assumption that:

| ● | Private Veea’s current shareholders will hold a majority of the 
 voting power of New Plum (“New Plum”) post Business Combination |

| ● | effective upon the Business Combination, the post-combination Board                                                                   
 will consist of seven (7) directors, including five (5) directors designated by Private Veea, one (1) director designated by Plum and 
 one (1) director mutually agreed upon by Plum and Private Veea;                                                                       |

F-40 Veea Inc. and Subsidiaries Notes to the Consolidated Financial Statements For the Years ended December 31, 2024 and 2023

| ● | Private Veea’s operations will substantially comprise the ongoing operations of New Plum; and |

| ● | Private Veea’s senior management will comprise the senior management of New Plum. |

Another determining factor was that Plum does not meet the definition of a “business” pursuant to ASC 805-10-55, Business Combinations (“ASC 805”), and thus, for accounting purposes, the Business Combination will be accounted for as a reverse recapitalization, within the scope of ASC 805. The net assets of Plum will be stated at historical cost, with no goodwill or other intangible assets recorded. Any excess of the fair value of shares issued to Plum over the fair value of Plum’s identifiable net assets acquired represents compensation for the service of a stock exchange listing for its shares and is expensed as incurred.

Transaction Proceeds

Upon closing of the Business Combination, the Company received net proceeds of $ 1.1million from the Business Combination, offset by total transaction costs of $ 5.3million. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows and the consolidated statement of changes in stockholders’ equity (deficit) for the year ended December 31, 2024:

| Cash-trust and cash, net of redemptions     |     | $ |  6,448,862 |   |
| Less: transaction costs                     
 and professional fees, paid                 |     |   | (5,345,222 | ) |
| Net proceeds from the Business Combination  |     |   |  1,103,640 |   |
| Less: private placement warrant liabilities |