Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 120

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 120
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 the terms of a contract. Deferred revenue balances typically result from advance payments received from
customers for product contracts or from billings in excess of revenue recognized on services arrangements. Deferred revenue balances
were not significant as of September 30, 2024, December 31, 2023 and December 31, 2022.

Inventory Valuation

The Company values inventory
at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out
basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable
value if required, for estimated excess or obsolescence. Factors influencing these adjustments include changes in future demand forecasts,
market conditions, technological changes, product life cycle and development plans, component cost trends, product pricing, physical
deterioration, and quality issues. The write down for excess or obsolescence is charged to the provision for inventory, which is a component
of Cost of goods sold in the Company’s consolidated statements of operations and comprehensive loss. At the point of the loss recognition,
a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration
or increase in that newly established cost basis.

Due to the judgmental nature
of inventory valuation, we may from time to time be required to adjust our assumptions as processes change and as we gain better information.
Although we continue to refine the assumptions, described above, on which we base our estimates, we cannot be sure that our estimates
are accurate indicators of future events. Accordingly, future adjustments may result from refining these estimates. Such adjustments
may be significant.

Goodwill

Goodwill represents the
excess of the aggregate purchase consideration over the fair value of the net assets acquired. Goodwill is reviewed for impairment on
an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired.
In conducting its annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not
that the fair value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting
unit is less than its carrying amount, the Company performs a quantitative assessment, and the fair value of the reporting unit is determined
by analyzing the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair