Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 109

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 109
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notes that was offset by an increase in the issuance of third-party debt.

Off-Balance Sheet Arrangements

We have not had any over
the past three fiscal years, and we currently do not have, any off-balance sheet arrangements as defined in the rules and regulations
of the SEC. To the extent we have any contingent assets or liabilities, these have been captured and audited within the accompanying
consolidated financial statements.

Critical Accounting Estimates

The preparation of financial
statements in conformity with GAAP requires Veea’s management to make estimates and assumptions that affect the reported amount
of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during
the reported periods. Other than valuation of inventory, Veea does not currently have any critical accounting estimates that could have
a material impact on their financial statements. Veea has other key accounting policies, which involve the use of estimates, judgments
and assumptions that are significant to understanding its results, which are described in Note 3 to Veea’s consolidated financial
statements as of and for the years ended December 31, 2023 and 2022 included in this Registration Statement beginning at page F-10.

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.

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