Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 102

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 102
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 award to purchase 3,036,308 shares of Common Stock at an exercise price of $3.89 per share to Allen Salmasi, the Company’s Chief Executive Officer.

Components of Results of Operations

Revenue, net

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.

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