Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 360

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 360
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 for inventory.

F-12

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

Cost
of Goods Sold

Cost
of goods sold consists primarily of the cost of finished goods, components purchased for manufacturing, and freight. Cost of goods sold
also includes third-party vendor costs related to cloud hosting fees.

Shipping
and Handling

The
Company considers shipping and handling to customers to represent activities performed in fulfilling the contract with the customer.
When shipping is charged to the customer, the Company nets such charges against actual shipping costs incurred.

Tax
Collected from Customers

Taxes
imposed by governmental authorities on the Company’s revenue producing activities, such as sales taxes, are excluded from net sales.

Research
and Development

Research
and development (“R&D”) costs that do not meet the criteria for capitalization are expensed as incurred. R&D costs
primarily consist of employee compensation, employee benefits, stock-based compensation related to technology developers and product
management employees, as well as fees paid for outside services and materials.

Sales
and Marketing

Sales
and marketing costs consist of compensation and other employee related costs for personnel engaged in selling and marketing, and sales
support functions. Selling expenses also include marketing, and the costs associated with customer evaluations. The Company does not
incur advertising costs.

General
and Administrative Expense

General
and administrative expense consists of compensation expense (including stock-based compensation expense), executive management, finance,
legal, tax, and human resources. General and administrative expense also include transaction costs, expenses associated with facilities,
information technology, external professional services, legal costs and settlement of legal claims, unrealized foreign currency transaction
gain/loss and other administrative expenses.

F-13

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

Property
and Equipment, net

Property
and equipment, net is stated at cost and depreciated on a straight-line basis of five to seven years for furniture and fixtures and five
years for computer equipment. Leasehold improvements are capitalized and amortized over the shorter of their useful lives or remaining
lease term. Repair and maintenance costs are charged to operations in the periods incurred. Upon retirement or sale, costs and related
accumulated depreciation or amortization are removed from the balance sheets and the resulting gain