Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 189

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 189
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 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 performance obligations include proprietary operating
system software, which typically is not considered separately identifiable. Therefore, sales of these products and the related software
are considered one performance obligation.

<div align='center'>F-12

Veea Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended December 31, 2023 and 2022</div>

3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Revenue from all sale 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.

The Company contracts with
customers under non-cancellable arrangements. While customers, including resellers, may cancel master purchase agreements under certain
circumstances, customers may not cancel or modify purchase orders placed under the terms of such master purchase agreements. Each purchase
order is therefore a contract with the customer, i.e., the purchase of a quantity of any given, single product; further, purchase orders
do not commit the customer to purchase any further volumes over time. Contract modifications do not carry revenue recognition implications
as no revenue is recognized until control over products, or intellectual property, as applicable, has transferred to the customer.

The Company has service
arrangements where net sales are recognized over time. These arrangements include a variety of post-contract support service offerings,
which are generally recognized over time as the services are provided, including maintenance and support services, and professional services
to help customers 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