Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1932

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9A
Chunk 1932
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 recognized on services arrangements.
Deferred revenue balances were not significant as of December 31, 2024 and 2023.

Disaggregation
of Revenue

The following tables summarize revenue from contracts with customers
for the years ended December 31, 2024 and 2023, respectively:

    For
    the year ended December 31, 

    2024  
    2023 
  
    Hardware, net 
    $110,529  
    $22,612 
  
    License 
     11,920  
     9,006,716 
  
    Subscription 
     1,116  
     243 
  
    Others 
     18,195  
     42,559 
  
    Total
    Revenue 
    $141,760  
    $9,072,130 

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 years ended December 31, 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. The allowance for credit losses were not significant as
of December 31, 2024 and 2023.

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