Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 92

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 92
---
 On June 10, 2025, the U.S. Department of Justice issued new enforcement guidelines which set forth an approach to
FCPA enforcement that is explicitly aimed at promoting U.S. economic interests and national security. It is unclear how these new
guidelines may affect our industry as a whole or our business in particular.

Notwithstanding these new guidelines, as part of our business, we may deal with state-owned
business enterprises, the employees of which are considered foreign officials for purposes of the FCPA’s prohibition on providing
anything of value to foreign officials for the purposes of obtaining or retaining business or securing any improper business advantage.
In addition, the provisions of the Bribery Act extend beyond bribery of foreign public officials and also apply to transactions with
individuals that a government does not employ. Some of the international locations in which we operate lack a developed legal system
and have higher than normal levels of corruption. Our continued expansion outside the U.S., primarily in Europe, South-East Asia and
Oceania, and our development of new partnerships worldwide, could increase the risk of FCPA, OFAC or Bribery Act violations in the future.

As
an exporter, we must comply with various laws and regulations relating to the export of products and technology from the U.S. and other
countries having jurisdiction over our operations. In the United States, these laws include the International Traffic in Arms Regulations
(“ITAR”) administered by the DDTC, the Export Administration Regulations (“EAR”) administered by the BIS and
trade sanctions against embargoed countries and destinations administered by OFAC. The EAR governs products, parts, technology and software
which present military or weapons proliferation concerns, so-called “dual use” items, and ITAR governs military items listed
on the United States Munitions List. Prior to shipping certain items, we must obtain an export license or verify that license exemptions
are available. Any failures to comply with these laws and regulations could result in fines, adverse publicity and restrictions on our
ability to export our products, and repeat failures could carry more significant penalties.

49

Violations
of anti-corruption and trade control laws and sanctions regulations are punishable by civil penalties, including fines, denial of export
privileges, injunctions, asset seizures, debarment from government contracts and revocations or restrictions of licenses, as well as
criminal fines and imprisonment and could harm our reputation, create negative shareholder sentiment and affect the value of our securities.
We have established policies and procedures