Company: VEEAW
Filing Date: 2025-08-06
Form Type: S-1/A
Source: 0001213900-25-072342
Chunk: 120

Company: VEEA INC.
Filing Date: 2025-08-06
Form: S-1/A
Chunk 120
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 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 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. 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. Operating Expenses We classify our operating expenses into the following categories:

| ● | Product                                                                                        
 development expenses. Product development expenses primarily consist of employee compensation, 
 employee benefits, stock-based compensation related to technology developers and product       
 management employees, as well as fees paid for outside services and materials.                 |

| ● | Sales                                                                                                   
 and marketing expenses. Sales and marketing expenses consist of compensation and other employee-related 
 costs for personnel engaged in selling, marketing and sales support functions. Selling expenses         
 also include marketing and the costs associated with customer evaluations. The Company does             
 not currently incur advertising costs.                                                                  |

| ● | General                                                                                      
 and administrative expenses. General and administrative expenses consist of compensation     
 expense (including stock-based compensation expense) for employees and executive management, 
 and expenses associated with finance, tax, and human resources. General and administrative   
 expenses also includes transaction costs, expenses associated with facilities, information   
 technology, external professional services, legal costs and settlement of legal claims and   
 other administrative expenses.                                                               |

| ● | Depreciation                                                                               
 and amortization: Depreciation and amortization expense consists of depreciation of Veea’s 
 property and equipment and amortization of Veea’s patents and other intellectual property. |

| ● | Impairment:                                                                                  
 Impairment consists of impairment charges related to our in-process research and development 
 (“IPR&D”)                                                                                    |

Results of Operations The following tables set forth the results of our operations for the periods presented, as well as the changes