Company: VEEAW
Filing Date: 2025-08-12
Form Type: S-1/A
Source: 0001213900-25-074676
Chunk: 235

Company: VEEA INC.
Filing Date: 2025-08-12
Form: S-1/A
Chunk 235
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 revenue. The Company’s standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. The Company actively monitors and evaluates the quality of its component suppliers. The estimated warranty obligation is based on contractual warranty terms, repair costs, and the Company’s baseline experience. The Company’s standard warranty terms are twelve months. Warranty expense was not significant for the years ended December 31, 2024 and 2023.

Accounts Receivable

Trade accounts receivable are recognized and carried at billed amounts less an allowance for credit losses. The Company adopted the Current Expected Credit Losses (“CECL”) guidance effective January 1, 2023. The Company maintains the allowance for estimated 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 $ as a provision for inventory.

F-35 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