Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 190

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 190
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Restricted Cash

The Company is not subject to any contractual agreement
that contains restrictions on the Company’s use or withdrawal of its cash or cash equivalents.

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. 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 estimated relative
standalone selling price.

The Company earns revenue
from the sale of its VeeaHub devices, licenses and subscriptions. The Company generated revenue of $ and $
for the years ended December 31, 2023 and 2022, respectively. Other than $ million of revenue generated from the license
of AdEdge in 2023, revenue has been immaterial for all periods presented and represented revenue earned from paid
pilots for our VeeaHubdevices.

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 performance obligations include proprietary operating system software, which typically
is not considered separately identifiable. Therefore, sales of these products and the related software