Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 498

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 498
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 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 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 revenues of $141,760
 and $9,072,130 during the years ended December 31, 2024 and 2023, respectively. 2023 revenue was generated from the license of
AdEdge™. 2024 revenue for all periods presented was generated principally from paid pilots.

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’s 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.

Revenue
from all sales 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