Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 246

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 246
---
guidance effective January 1, 2023. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s
customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining
duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate
is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses,
and future expectations. Credit loss expense and allowance for credit losses were not significant as of September 30, 2024 and December
31, 2023, and for the three and nine months ended September 30, 2024 and 2023.

<div align='center'>F-47

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

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

Inventory

The Company values inventory at the
lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis.
At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable
value if required, for estimated excess or obsolescence. Factors influencing these adjustments include changes in future demand forecasts,
market conditions, technological changes, product life cycle and development plans, component cost trends, product pricing, physical
deterioration, and quality issues. The write down for excess or obsolescence is charged to the provision for inventory, which is a component
of Cost of Goods Sold in the Company’s consolidated statements of operations and comprehensive loss. At the point of the loss recognition,
a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration
or increase in that newly established cost basis.

Cost of Goods Sold

Cost of goods sold consists primarily
of the cost of finished goods, components purchased for manufacturing and freight. Cost of goods sold also includes third-party vendor
costs related to cloud hosting fees.

Shipping and Handling

The Company considers shipping and
handling to customers to represent activities performed in fulfilling the contract with the customer. When shipping is charged to the
customer, the Company nets such charges against actual shipping costs incurred.

Tax Collected from Customers

Taxes imposed by governmental authorities
on the Company’s revenue producing activities, such as sales taxes,