Company: VEEAW
Filing Date: 2025-08-12
Form Type: S-1/A
Source: 0001213900-25-074676
Chunk: 271

Company: VEEA INC.
Filing Date: 2025-08-12
Form: S-1/A
Chunk 271
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 of approximately $ 72,622,999with an expected net tax impact $ 4,984,749. The state NOLs have varying expiration dates as determined by each state.

The Company also has net operating losses in foreign
jurisdictions that can be utilized to offset future taxable income in the United Kingdom, France, or Mexico based on the jurisdiction
of generation. The gross value of these NOLs is with an anticipated future tax benefit of $. The expiration of the
foreign NOLs are also based on the law in each respective jurisdiction, with the earliest of these being 2034.

As of December 31, 2024, the Company has federal
R&D credit carryforwards of $, these credits will begin to expire in 2038. The Company has also reduced the anticipated future
benefit of these credits by recording an uncertain tax benefit equal to % of the credit claimed.

The Company’s effective tax rate could also fluctuate
due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, and accounting principles.

The Company has evaluated both positive and negative
evidences and determined that all of its worldwide deferred tax assets will not be realized for the foreseeable future. As a result, the
valuation allowance is recorded against all existing deferred tax assets. The current business operations and resulting need for a valuation
analysis will be considered annually.

Beginning on January 1, 2022, the Tax Cuts and Jobs Act (the “Tax Act”) eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code (“IRC”) Section 174. The capitalized expenses are amortized over a five-year period for domestic expenses. As a result of this provision of the Tax Act, deferred tax assets related to capitalized research expenses increased by $ 6,114,653in 2024, partially offset by amortization on research expenses.

F-62 Veea Inc. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Years ended December 31, 2024 and 2023

17 - SEGMENTATION

ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which
it may recognize revenues and incur expenses, and for which separate