Company: VEEAW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032215
Chunk: 1193

Company: VEEA INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1193
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 $141,760
 and $9,072,130 during the years ended December 31, 2024 and 2023, respectively. 2023 revenue was generated from the license of
AdEdge™. 2024 revenue for all periods presented was generated principally from paid pilots.

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’s 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.

Revenue
from all sales 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 revenue is not 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,