Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 191

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 191
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 are considered one performance
obligation.

<div align='center'>F-12

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

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 agreements under certain 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 December 31,
2023 and December 31, 2022.

Disaggregation of Revenue

|               |     | Years Ended December 31, |      2023 |     |   |    2022 |
|:--------------|:----|:-------------------------|----------:|:----|:--|--------:|
| Hardware, net |     | $                        |    22,612 |     | $ | 188,244 |
| License       |     |                          | 9,006,716 |     |   |