Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 45

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 given purchase date.

The Company controls the
timing and amount of any sales to White Lion, which depends on a variety of factors including, among other things, market conditions,
the trading price of the Company’s common stock, and determinations by the Company as to appropriate sources of funding for its
business and operations. However, White Lion’s obligation to purchase shares is subject to certain conditions, including the daily
trading volume of the Company’s common stock. In all instances, the Company may not sell shares of its common stock under the Purchase
Agreement if it would result in White Lion and its affiliate beneficially owning more than 4.99% of its outstanding voting power or shares
of common stock at any one point in time, or the aggregate number of shares of common stock would not exceed 19.99% of the voting power
of the issued and outstanding common.

During the three months ended
March 31, 2025, the Company issued 27,498 shares of Common Stock to White Lion in payment of its commitment fee and sold 240,500 shares
to White Lion under the ELOC Program for aggregate proceeds of $604,426, with the stock price of shares purchased by the White Lion ranging
from $1.79 per share to $3.31 per share. The Company agreed to issue to White Lion 27,498 shares of Common Stock as a commitment fee (the
“Commitment Shares”). The fair value of the Commitment Shares was $25,000, which pursuant to ASC 815, was recorded in transaction
costs in the condensed consolidated statement of operations and comprehensive income (loss) of the Company for the three months ended
March 31, 2025. The Common Stock Purchaser has agreed that during the term of the Common Stock Purchase Agreement, neither it nor any
of its affiliates will engage in any short sales or hedging transactions involving the Common Stock.

26

Components of Results of Operations

Sales, net

The Company recognizes revenue
based on the satisfaction 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