Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 724

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 724
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 estimates, assumptions, and judgments are necessary because future
events and their effects on our results of operations and the value of our assets cannot be determined with certainty and are made
based on our historical experience and on other assumptions that we believe to be reasonable under the circumstances. These estimates
may change as new events occur or additional information is obtained, and we may periodically be faced with uncertainties, the outcomes
of which are not within our control and may not be known for a prolonged period of time. Because the use of estimates is inherent in the
financial reporting process, actual results could differ from those estimates.

We believe that the assumptions and estimates
associated with the following critical accounting policies involve significant judgment and thus have the most significant potential
impact on our Consolidated Financial Statements.

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. 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.

Revenue from all sales types is recognized at
the transaction price - the amount management expects to be entitled to in exchange for transferring goods or providing services. Transaction
price is calculated as selling price net of variable consideration which may include estimates for future returns, price protection, warranties,
and other customer incentive programs based upon the Company’s expectation and historical experience.

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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.

Revenue from hardware sales is recognized at a
point-in-time, which is generally at the point in time when products have been shipped, right to payment has been obtained and risk of
loss has been transferred. Certain of the Company’s product’s performance obligations include proprietary operating system
software, which typically is not considered separately identifiable