Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 78

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 78
---
 30, 2025, the Company had approximately $0.9 million in cash and short-term investments and $5.4 million in accounts receivable.
Our business requires substantial amounts of cash for operating activities, including salaries and wages paid to our employees, component
and sub-assembly purchases, general and administrative expenses, and others.

Our
purchase commitments per terms and conditions with suppliers and vendors are cancellable in whole or in part prior to shipment. Purchase
commitments (purchase orders) of $4.4 million for parts and assemblies are due upon receipt and will primarily be delivered throughout
the remainder of 2025. If inventory is shipped, we will accrue a liability under accrued expenses. We have no other commitments and contingencies,
except for the operating leases and the Secured Notes, the January Note, and the February Note. See Note 8, Leases, in the unaudited
condensed consolidated interim financial statements included elsewhere in this Quarterly Report for further discussion.

During
the six months ended June 30, 2025, we experienced less revenue growth than expected due to our focus on high-value customers, resulting
in a small decrease in system sales as compared to the first quarter in 2025. As of June 30, 2025, we do not have sufficient working
capital to meet our financial needs for the twelve-month period following the filing date of these unaudited condensed consolidated interim
financial statements. As such, we believe that there is substantial doubt about our ability to continue as a going concern for the twelve-month
period following the issuance of these unaudited condensed consolidated interim financial statements. See Note 1, Description of Business
and Basis of Presentation—Going Concern, Financial Condition and Liquidity and Capital Resources, in the unaudited condensed
consolidated interim financial statements included elsewhere in this Quarterly Report.

41

We
will need to engage in additional financings to fund our operations and satisfy our debt obligations in the near-term as well as to respond
to business challenges and opportunities, including the need to repay the Secured Notes, provide working capital, continue to fund payroll
for employees, improve our operating infrastructure, and continue to sustain operations. Accordingly, subject to our compliance with
the covenants in the Secured Notes, to fund our operations, we will need to engage in equity or debt financings to secure additional
funds, including seeking additional capital from public or private offerings of our equity or debt securities, electing to