Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 779

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 779
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 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 revenue is not 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.

F-11

Veea
Inc. and Subsidiaries
Notes to the Consolidated Financial Statements 
For the Years ended December 31, 2024 and 2023

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 billings in excess of revenue recognized on services arrangements.
Deferred revenue balances were not significant as of December 31, 2024 and 2023.

Disaggregation
of Revenue

The following tables summarize revenue from contracts with customers
for the years ended December 31, 2024 and 2023, respectively:

    For
    the year ended December 31, 

    2024  
    2023 
  
    Hardware, net 
    $110,529  
    $22,612 
  
    License 
     11,920  
     9,006,716 
  
    Subscription 
     1,116  
     243 
  
    Others 
     18,195  
     42,559 
  
    Total
    Revenue 
    $141,760  
    $9,072,130 

Warranties

The Company accrues the estimated cost of product warranties at the
time of recognizing 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