Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003888
Chunk: 238

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 238
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 maximize their utilization of deployed systems.

A contract liability for deferred
revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or
services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from
customers for product contracts or from billings in excess of revenue recognized on services arrangements. Deferred revenue balances
were not significant as of September 30, 2024 and December 31, 2023.

Warranties

The Company accrues the estimated cost of product warranties at the time of recognizing revenue. The Company’s standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. The Company actively monitors and evaluates the quality of its component suppliers. The estimated warranty obligation is based on contractual warranty terms, repair costs, and the Company’s baseline experience. The Company’s standard warranty terms are twelve months. Warranty expense was not significant for the three and nine months ended September 30, 2024 and 2023.

Accounts Receivable

Trade accounts receivable are recognized
and carried at billed amounts less an allowance for credit losses. The Company adopted the Current Expected Credit Losses (“CECL”)
guidance effective January 1, 2023. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s
customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining
duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate
is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses,
and future expectations. Credit loss expense and allowance for credit losses were not significant as of September 30, 2024 and December
31, 2023, and for the three and nine months ended September 30, 2024 and 2023.

<div align='center'>F-47

Veea Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2024 and 2023</div>

Inventory

The Company values inventory at the
lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis.
At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory