Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 98

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 98
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 we reduce our general and administrative expenses through reducing our reliance on outside consultants, managing facility costs and
negotiating with vendors for improved pricing.

Interest Expense

Interest expense was $16.0 million and $9.7
million, for the years ended December 31, 2024 and 2023, respectively. In the year ended December 31, 2024, there was an increase of
$6.3 million attributable to increases in outstanding debt balances, attributable to the Notes.

We expect our interest expense will decrease
as a result of reduced debt (for further information, see “—Liquidity and Capital Resources” and Note 9, Long-Term Debt, in the notes to the audited consolidated financial statements included elsewhere in this prospectus).

Gain on Fair Value of Warrants

The change in fair value of warrants resulted
in a gain of $32.1 million, and $2.3 million for the years ended December 31, 2024 and 2023, respectively, and were related to the non-cash
fair value change of the warrant liabilities.

Gain on Fair value of Contingent Earnout Liabilities

The change in fair value of the contingent
earnout liability was a gain of $1.4 million and $16.0 million for the year ended December 31, 2024 and 2023, respectively, and were
related to the non-cash fair value change of the contingent earnout liabilities.

Loss on Debt Extinguishment

The loss on debt extinguishment was $4.9 million
and $19.5 million for the years ended December 31, 2024 and 2023, respectively, and was related to a third note amendment to the Secured
Notes entered into in July 2024 in connetion with the warrant issuance, slightly offset by a gain recorded on the December 2024 Exchange.

Other Income (Expense), Net

Other income (expense), net was $(3.6) million
and $0.5 million for the years ended December 31, 2024 and 2023, respectively.

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Income Taxes

No provision for federal and state income
taxes was recorded because we incurred income tax losses for the years ended December 31, 2024 and 2023 and maintained a full valuation
allowance on the deferred tax assets as of December 31, 2024 and 2023.

We will continue to review our conclusions