Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 42

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 determined using the simplified method,
which deems the term to be the average of the time to vesting and the contractual life of the warrant.

July
2024 Private Warrants - Fair Value Assumptions

The
fair value assumptions used in the Black-Scholes simulation model for the valuation of the July 2024 Private Warrant liabilities were
as follows:

    As of 
June 30, 2025  
    As of 
December 31, 2024 
  
    Current stock price 
    $7.20  
    $10.20 
  
    Expected volatility 
     154.6% 
     139.9%
  
    Risk-free interest rate 
     3.9% 
     4.4%
  
    Dividend yield 
     —% 
     —%
  
    Warrants and right outstanding 
     —% 
     —%

    Expected Term (years) 
     4.00  
     4.50 

Expected
volatility: The expected volatility was derived from the implied volatility of the Company’s publicly traded common stock.

Risk-free
interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S.
Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected
dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its
common stock.

Expected
term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method,
which deems the term to be the average of the time to vesting and the contractual life of the warrant.

Contingent
Earnout Liabilities

The
contingent earnout liability is for Earnout Shares (as defined below) for pre-closing Legacy Velo3D equity holders (“Eligible Legacy
Velo3D Equityholders”). During the time period between September 29, 2021 (the “Closing Date”) and the five5-year anniversary
of the Closing Date, Eligible Legacy Velo3D Equityholders may receive up to 41,444 shares of common stock (the “Earnout Shares”),
which is based on two tranches of 20,722 per tranche. The Earnout Shares issuable to holders of employee stock options are accounted
as stock-based compensation expense as