Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 241

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 241
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 the Company incurs in connection with a business combination are expensed as incurred.

Any contingent consideration (i.e., Earn-out liabilities) is measured at fair value at the acquisition date. For contingent consideration that do not meet all the criteria
for equity classification, such contingent consideration are required to be recorded at their initial fair value at the acquisition date,
and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent consideration are recognized
on the consolidated statements of operations in the period of change.

When the initial accounting for a business
combination has not been finalized by the end of the reporting period in which the transaction occurs, the Company reports provisional
amounts. Provisional amounts are adjusted during the measurement period, which does not exceed one year from the acquisition date. These
adjustments, or recognition of additional assets or liabilities, reflect new information obtained about facts and circumstances that existed
at the acquisition date that, if known, would have affected the amounts recognized at that date.

Cash and Cash Equivalents

Cash balances are held in U.S. and
European banks. Cash balances held in the U.S. are insured by the Federal Deposit Insurance Corporation subject to certain limitations.
The Company maintains its cash balances in highly rated financial institutions. At times, cash balances may exceed federally insurable
limits.

Restricted Cash

The Company is not subject to any
contractual agreement that contains restrictions on the Company’s use or withdrawal of its cash or cash equivalents.

Revenue Recognition

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.

The Company earns revenue from the
sale of its VeeaHub devices, licenses and subscriptions. The Company generated revenue