Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 188

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 188
---
ivable, accounts payable,
accrued expenses, and other current liabilities. The Company believes their carrying values are representative of their fair values due
to their short-term maturities.

Cash and Cash Equivalents

Cash balances are held in
U.S. and European banks. Cash balances held in the U.S. are insured by the Federal Deposit Insurance Corporation subject to
certain limitations. The Company maintains its cash balances in highly rated financial institutions. At times, cash balances may exceed
federally insurable limits.

Restricted Cash

The Company is not subject
to any contractual agreement that contains restrictions on the Company’s use or withdrawal of its cash or cash equivalents.

Revenue Recognition

The Company recognizes revenue
based on the satisfaction of distinct obligations to transfer goods and services to customers. The Company generates revenue from hardware
sales and the sale of licenses and subscriptions. The Company applies a five-step approach as defined in ASC 606, Revenue from Contracts
with Customers, in determining the amount and timing of revenue to be recognized: (1) identify the contract with a customer; (2) identify
the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the
performance obligations in the contract; and (5) recognize revenue when a corresponding performance obligation is satisfied. Most
contracts with customers are to provide distinct products or services within a single contract. However, if a contract is separated into
more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the
estimated relative standalone selling price.

The Company earns revenue
from the sale of its VeeaHub devices, licenses and subscriptions. The Company generated revenue of $9,072,130 and $224,052
for the years ended December 31, 2023 and 2022, respectively. Other than $9 million of revenue generated from the license
of AdEdge in 2023, revenue has been immaterial for all periods presented and represented revenue earned from paid
pilots for our VeeaHubdevices.

For licenses of technology,
recognition of revenue is dependent upon whether the Company has delivered rights to the technology, and whether there are future performance
obligations under the contract. Revenue from non-refundable upfront payments is recognized when the license is transferred to the customer
and the Company has no other performance obligations. Revenue for licenses delivered under a subscription model having terms between
one and twelve-months are recognized over-time. Subscription revenue