Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 116

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 116
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circumstances, customers may not cancel or modify purchase orders placed under the terms of such master purchase agreements. Each purchase
order is therefore a contract with the customer, i.e., the purchase of a quantity of any given, single product; further, purchase orders
do not commit the customer to purchase any further volumes over time. Contract modifications do not carry revenue recognition implications
as no revenue is recognized until control over products, or intellectual property, as applicable, has transferred to the customer.

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. Deferred revenue balances
were not significant as of September 30, 2024, December 31, 2023 and December 31, 2022.

Inventory Valuation

The Company values inventory
at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out
basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable
value if required, for estimated excess or obsolescence. Factors influencing these adjustments include changes in future demand forecasts,
market conditions, technological changes, product life cycle and development plans, component cost trends, product pricing, physical
deterioration, and quality issues. The write down for excess or obsolescence is charged to the provision for inventory, which is a component
of Cost of goods sold in the Company’s consolidated statements of operations and comprehensive loss. At the point of the loss recognition,
a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration
or increase in that newly established cost basis.

Due to the judgmental nature
of inventory valuation, we may from time to time be required to adjust our assumptions as processes change and as we gain better information.
Although we continue to refine the assumptions, described above, on