Company: VEEAW
Filing Date: 2025-05-21
Form Type: 10-Q
Source: 0001213900-25-046124
Chunk: 134

Company: VEEA INC.
Filing Date: 2025-05-21
Form: 10-Q
Item: Part I, Item 2
Chunk 134
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 shares is subject to certain conditions, including the daily
trading volume of the Company’s common stock. In all instances, the Company may not sell shares of its common stock under the Purchase
Agreement if it would result in White Lion and its affiliate beneficially owning more than 4.99% of its outstanding voting power or shares
of common stock at any one point in time, or the aggregate number of shares of common stock would not exceed 19.99% of the voting power
of the issued and outstanding common.

During the three months ended
March 31, 2025, the Company issued 27,498 shares of Common Stock to White Lion in payment of its commitment fee and sold 240,500 shares
to White Lion under the ELOC Program for aggregate proceeds of $604,426, with the stock price of shares purchased by the White Lion ranging
from $1.79 per share to $3.31 per share. The Company agreed to issue to White Lion 27,498 shares of Common Stock as a commitment fee (the
“Commitment Shares”). The fair value of the Commitment Shares was $25,000, which pursuant to ASC 815, was recorded in transaction
costs in the condensed consolidated statement of operations and comprehensive income (loss) of the Company for the three months ended
March 31, 2025. The Common Stock Purchaser has agreed that during the term of the Common Stock Purchase Agreement, neither it nor any
of its affiliates will engage in any short sales or hedging transactions involving the Common Stock.

26

Components of Results of Operations

Sales, net

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