Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 192

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 192
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 | Unobservable inputs for which there is little or no market data                                                                             
 and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions 
 market participants would use in pricing the assets or liabilities.                                                                         |

The Company issued preferred stock warrants and common stock warrants classified as equity securities which do not require recurring fair value measurement. See Note 9 - Stock-Based Compensationfor the assumptions used in estimating the fair value of such common stock warrants.

<div align='center'>F-11

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Recurring Fair Value Measurements

The following methods and
assumptions were used to estimate the fair value of each class of financial assets and liabilities for which it is practicable to estimate
fair value:

Money market funds - The carrying amount of money market funds approximates fair value and is classified within Level 1 because the fair value is determined through quoted market prices.

The Company’s remaining
financial instruments that are measured at fair value on a recurring basis consist primarily of cash, accounts receivable, 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