Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 915

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 915
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 and liabilities assumed, all measured at their fair value as of the acquisition date. Transaction
costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business
combination are expensed as incurred.

Any
contingent consideration (i.e., earnout liabilities) is measured at fair value at the acquisition date. For contingent consideration
that do not meet all the criteria for equity classification, such contingent consideration are required to be recorded at their initial
fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified
contingent consideration are recognized on the consolidated statements of operations in the period of change.

F-10

Veea
Inc. and Subsidiaries

Notes
to the Consolidated Financial Statements 

For
the Years ended December 31, 2024 and 2023

When
the initial accounting for a business combination has not been finalized by the end of the reporting period in which the transaction
occurs, the Company reports provisional amounts. Provisional amounts are adjusted during the measurement period, which does not exceed
one year from the acquisition date. These adjustments, or recognition of additional assets or liabilities, reflect new information obtained
about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that
date.

Cash
and Cash Equivalents

Cash
balances are held in U.S. and European banks. Cash balances held in the U.S. are insured by the Federal Deposit Insurance Corporation
subject to certain limitations. The Company maintains its cash balances in highly rated financial institutions. At times, cash balances
may exceed federally insurable limits.

Restricted
Cash

The
Company is not subject to any contractual agreement that contains restrictions on the Company’s use or withdrawal of its cash or
cash equivalents.

Revenue
Recognition

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 price to the performance obligations in the contract; and (5) recognize revenue