Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 577

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 577
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 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.

55

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 between periods. The period-to-period
comparison of financial results is not necessarily indicative of future results.

56

For
the year ended