Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 98

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 98
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 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.

Cost of Goods Sold

Cost of goods sold consists
primarily of the cost of finished goods, components purchased for manufacturing and freight. Cost of goods sold also includes third-party
vendor costs related to cloud hosting fees.

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Operating Expenses

We classify our operating
expenses into the following categories:

| ● | Product development                                                                                                            
 expenses. Product development expenses primarily consist of employee compensation, employee benefits, stock-based compensation 
 related to technology developers and product management employees, as well as fees paid for outside services and materials.    |

| ● | Sales and marketing                                                                                                                
 expenses. Sales and marketing expenses consist of compensation and other employee-related costs for personnel engaged in selling,  
 marketing and sales support functions. Selling expenses also include marketing and the costs associated with customer evaluations. 
 The Company does not currently incur advertising costs.                                                                            |

| ● | General and administrative                                                                                                              
 expenses. General and administrative expenses consist of compensation expense (including stock-based compensation expense) for          
 employees and executive management, and expenses associated with finance, tax, and human resources. General and administrative expenses 
 also includes transaction costs, expenses associated with facilities, information technology, external professional services, legal     
 costs and settlement of legal claims and other administrative expenses.                                                                 |

| ● | Depreciation and amortization:                                                                                             
 Depreciation and amortization expense consists of depreciation of Veea’s property and equipment and amortization of Veea’s 
 patents and other intellectual property.                                                                                   |

| ● | Impairment: Impairment                                                                       
 consists of impairment charges related to our in-process research and development (“IPR&D”). |

Results of Operations

The following tables set
forth the results of our operations for the periods presented, as well as the changes between periods. The period-to-period comparison
of financial results is not necessarily indicative of future results.

For the three months ended September 30, 2024 compared to year ended September 30, 2023

The following table sets
forth Veea’s unaudited statements of operations data for the three and nine months ended September 30, 2024 and 2023, respectively.
Veea has prepared the three and nine-month data on a consistent basis with the audited consolidated financial statements as of and for
the years ended December 31,