Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 102

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 102
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 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.

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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.

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 associated with customer evaluations. 
 The Company does not currently incur advertising costs.                                                                            |

| ● | General and administrative                                                                                                              
 expenses. General and administrative expenses consist of compensation expense (including stock-based compensation expense) for          
 employees and executive