Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002716
Chunk: 106

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 106
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4. For more information, see “Summary - Recent Developments.”

Note Purchase Agreement Termination

As previously disclosed, on September 13, 2024, the Company and and VeeaSystems Inc. entered into note purchase agreements with certain accredited investors for the sale of unsecured subordinated convertible promissory notes. Pursuant to the note purchase agreement with Harmonic Equity Partners LLC (“Harmonic”), Harmonic was to purchase a note in an aggregate principal amount of $13.55 million (the “Commitment Amount”) on or prior to October 15, 2024, which was subsequently extended to December 15, 2024. On December 31, 2024, the Company and Harmonic entered into a mutual Settlement and Release Agreement (the “Settlement Agreement”), pursuant to which the Company agreed to terminate Harmonic’s obligation to purchase a note in the principal amount of the Commitment Amount and a mutual release of claims, in exchange for a payment to the Company of $5,364,159, which includes amounts previously paid to the Company.

Director and Officer Compensation

On November 11, 2024, the Company issued 81,116 fully-vested restricted stock units (“RSUs”) to each non-employee director; and on December 30, 2024, a fully-vested stock option award to purchase 3,036,308 shares of Common Stock at an exercise price of $3.89 per share to Allen Salmasi, the Company’s Chief Executive Officer.

Components of Results of Operations

Revenue, 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 estimated relative
standalone selling price.

For licenses of technology