Company: VEEAW
Filing Date: 2025-01-15
Form Type: 424B3
Source: 0001213900-25-003892
Chunk: 245

Company: VEEA INC.
Filing Date: 2025-01-15
Form: 424B3
Chunk 245
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one performance obligation.

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
were not significant as of September 30, 2024 and December 31, 2023.

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 three and nine months ended September 30, 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”)