Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 114

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 114
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 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 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 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.

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Revenue from all sale 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.

The Company contracts with
customers under non-cancellable arrangements. While customers, including resellers, may cancel master purchase