Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 97

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 97
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 principal amount of $13.55 million (the “Commitment
Amount”) on or prior to October 15, 2024, which was subsequently extended to December 15, 2024. On December 31, 2024, the Company
and Harmonic entered into a mutual Settlement and Release Agreement (the “Settlement Agreement”), pursuant to which the Company
agreed to terminate Harmonic’s obligation to purchase a note in the principal amount of the Commitment Amount and a mutual release
of claims, in exchange for a payment to the Company of $5,364,159, which includes amounts previously paid to the Company.

Director and Officer Compensation

On November 11, 2024, the
Company issued 81,116 fully-vested restricted stock units (“RSUs”) to each non-employee director; and on December 30, 2024,
and a fully-vested stock option award to purchase 3,036,308 shares of Common Stock at an exercise price of $3.89 per share to Allen Salmasi,
the Company’s Chief Executive Officer.

Components of Results of Operations

Revenue, net

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 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.

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