Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1819

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9
Chunk 1819
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 losses
resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate
of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions
and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer
creditworthiness, historical levels of credit losses, and future expectations. The allowance for credit losses were not significant as
of December 31, 2024 and 2023.

Inventory

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, 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. For the
year ended December 31, 2024, the Company recorded $551,492 as a provision for inventory.

F-12

Veea
                                            Inc. and Subsidiaries
                                            Notes to the Consolidated Financial Statements 
                                            For the Years ended December 31, 2024 and 2023

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.

Shipping
and Handling

The
Company considers shipping and handling to customers to represent activities performed in fulfilling the contract with the customer.
When shipping is charged to the customer, the Company nets such charges against actual shipping costs incurred.

Tax
Collected from Customers

Taxes
imposed by governmental authorities on the Company’s revenue producing activities, such as sales taxes, are excluded from net sales.

Research
and Development

Research
and development (“R&D”) costs that do not meet the criteria for capitalization