Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 80

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 the Company
recorded the conversion option liability at fair value with the excess of the fair value over the net proceeds received recognized as
a loss in earnings. See Note 14 for further information.

8 - INVESTMENTS

The Company accounts for its private
company investments without readily determinable fair values under the cost method. These investments, for which the Company is not able
to exercise significant influence over any one individual investee, is measured and accounted for using an alternative measurement basis
of a) the security’s carrying value at cost, b) less any impairment and c) plus or minus any qualifying observable price changes.
Observable price changes or impairments recognized on the Company’s private company investments would be classified as a Level
3 financial instrument within the fair value hierarchy based on the nature of the fair value inputs. Any adjustments to the carrying
values are recognized in other income, net in the Company’s consolidated statements of operations and comprehensive loss. As of
December 31, 2024, the Company performed the qualitative assessment for impairment of its investments. Based on this qualitative assessment,
impairment indicators were present for one of its investments; therefore, the company performed an analysis to estimate its fair value
and recognized an impairment loss of $216,278. As of March 31, 2025, there were no indicators of impairment. The carrying value of the
Company’s private company investments as of March 31, 2025 and December 31, 2024, was $235,666 and $235,596, respectively, which
were classified as Investments on the Company’s consolidated balance sheets, as these investments do not have a stated contractual
maturity date.

9 – STOCKHOLDERS’ EQUITY

On September 13, 2024, the Company
consummated the Business Combination which was accounted for as a reverse recapitalization.  In connection with the consummation
of the Business Combination (i) the Company de-registered from the Register of Companies in the Cayman Islands by way of continuation
out of the Cayman Islands and into the State of Delaware, migrating to and domesticating as a Delaware corporation (the “Domestication”)
and (ii) restated our certificate of incorporation (“Restated Certificate of Incorporation”). In connection with the Domestication,
each share of outstanding Class A ordinary shares were converted by operation of law into shares of Common Stock, on a one-for-one basis.
Upon filing of the Restated Certificate of Incorporation