Company: VEEAW
Filing Date: 2025-08-14
Form Type: 424B4
Source: 0001213900-25-076086
Chunk: 133

Company: VEEA INC.
Filing Date: 2025-08-14
Form: 424B4
Chunk 133
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 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. 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.

Revenue from all sales types
is recognized at the transaction price - the amount management expects to be entitled to in exchange for transferring goods or providing
services. Transaction price is calculated as selling price net of variable consideration which may include estimates for future returns,
price protection, warranties, and other customer incentive programs based upon the Company’s expectation and historical experience.

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 is generated through sales of monthly subscriptions. Customers pay
in advance for the licenses and subscriptions. Revenue is initially deferred and is recognized using the straight-line method over the
term of the applicable subscription period.

Revenue from hardware sales
is recognized at a point-in-time, which is generally at the point in time when products have been shipped, right to payment has been
obtained and risk of loss has been transferred. Certain of the Company’s product’s performance obligations include proprietary
operating system software, which typically is not considered separately identifiable. Therefore, sales of these products and the related
software are considered one performance obligation.

The Company has service arrangements
where net sales are recognized over time. These arrangements include a variety of post-contract support service offerings, which are
generally recognized over time as the services are provided, including maintenance and support services, and professional services to
help customers maximize their utilization of deployed systems. A contract liability for deferred revenue is recorded when consideration
is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under 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.

Inventory

The Company values inventory