Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 246

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 246
---
 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.

<div align='center'>F-46

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

Revenue from hardware sales is recognized
at a point-in-time, which is generally at the point in time when products have been shipped, right to payment has been obtained and risk
of loss has been transferred. Certain of the Company’s product performance obligations include proprietary operating system software,
which typically is not considered separately identifiable. Therefore, sales of these products and the related software are considered
one performance obligation.

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 bill