Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 193

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 193
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 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.

The Company earns revenue
from the sale of its VeeaHub devices, licenses and subscriptions. The Company generated revenue of $ and $
for the years ended December 31, 2023 and 2022, respectively. Other than $ million of revenue generated from the license
of AdEdge in 2023, revenue has been immaterial for all periods presented and represented revenue earned from paid
pilots for our VeeaHubdevices.

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.

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.

<div align='center'>F-12

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

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

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,