Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 494

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 494
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The
Company’s consolidated financial statement include the accounts of the Company and its wholly owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation. We consolidate any variable interest entity (“VIE”)
where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct
the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses
or receive benefits of the entity that could potentially be significant to the VIE. During 2024, the Company had one VIE, VeeaSystems
MX. Transactions with VeeaSystems MX were immaterial during all periods presented and are not separately disclosed.

Basis
of Presentation and Significant Accounting Policies 

The
accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S.
GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding annual financial
reporting. Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative U.S. GAAP included in
the Accounting Standards Codification (“ASC”), and Accounting Standards Update (“ASU”) issued by the Financial
Accounting Standards Board (“FASB”). 

Use
of Estimates

Management
of the Company is required to make certain estimates, judgments, and assumptions during the preparation of its consolidated financial
statements in accordance with GAAP. The Company believes that these estimates, judgments and assumptions are reasonable under the circumstances.
These estimates, judgments, and assumptions impact the reported amounts of assets, liabilities, revenue, and expenses, and the related
disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Changes in such estimates could affect
amounts reported in future periods. On an ongoing basis, the Company evaluates its estimates and judgments including those related to:
liquidity and going concern, the useful lives and recoverability of property and equipment and definite-lived intangible assets; the
recoverability of goodwill and indefinite-lived intangible assets; the carrying value of accounts receivable, including the determination
of the allowance for credit losses; inventory, including the determination of allowances for estimated excess or obsolescence; the fair
value of warrants; the fair value of acquisition- related contingent consideration arrangements; unrecognized tax benefits; legal contingencies;
the incremental borrowing rate for the Company’s leases; and the valuation of stock-based compensation, among others.

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