Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 2378

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 11
Chunk 2378
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, and the Company’s baseline experience.
The Company’s standard warranty terms are twelve months. Warranty expense was not significant for the years ended December 31, 2024
and 2023.

Accounts
Receivable

Trade
accounts receivable are recognized and carried at billed amounts less an allowance for credit losses. The Company adopted the Current
Expected Credit Losses (“CECL”) 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. The allowance for credit losses were not significant as
of December 31, 2024 and 2023.

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, 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. For the
year ended December 31, 2024, the Company recorded $551,492 as a provision for inventory.

F-12

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

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