Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 192

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 192
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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 are expensed as incurred. R&D costs 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

Sales and marketing costs
consist of compensation and other employee related costs for personnel engage in selling and marketing, and sales support functions.
Selling expenses also include marketing, and the costs associated with customer evaluations. The Company does not incur advertising costs.

<div align='center'>F-14

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

General and Administrative Expense

General and administrative
expense consists of compensation expense (including stock-based compensation expense), executive management, finance, legal, tax, and
human resources. General and administrative expense also include transaction costs, expenses associated with facilities, information
technology, external professional services, legal costs and settlement of legal claims and other administrative expenses.

Property and Equipment, net

Property and equipment,
net is stated at cost and depreciated on a straight-line basis of five to seven years for furniture and fixtures and five years
for computer equipment. Leasehold improvements are capitalized and amortized over the shorter of their useful lives or remaining lease
term. Repair and maintenance costs are charged to operations in the periods incurred. Upon retirement or sale, costs and related accumulated
depreciation or amortization are removed from the balance sheets and the resulting gain or loss is included in operating expense in the
Company’s consolidated statements of operations and comprehensive loss.

Goodwill

Goodwill represents the excess
of the aggregate purchase consideration over net assets acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently
if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. In conducting its annual impairment
test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting
unit is less than its carrying amount. If factors indicate that the fair value of the reporting unit is less than its carrying amount,
the Company performs a quantitative assessment