Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 86

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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2021 and December
31, 2021. These material weaknesses also resulted in the revision of our consolidated financial statements for the year ended December
31, 2022 and as of and for the interim periods ended March 31, 2022, June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023,
and September 30, 2023. Also, these material weaknesses resulted in an uncorrected misstatement to inventories and cost of revenue and
adjustments to debt – current portion and long-term debt, other income, additional paid in capital, gain on fair
value of warrants, interest expense, revenue and contract assets, and loss on debt extinguishment which were recorded prior to the issuance
of the consolidated financial statements as of and for the year ended December 31, 2023 and accounts receivable and contract assets as
of and for the interim period ended June 30, 2025. These material weaknesses also resulted in adjustments to interest expense, debt – current
portion, additional paid-in capital, warrant liabilities, contingent earnout liabilities and gain (loss) on fair value of contingent
earnout liabilities, which were recorded prior to the issuance of the unaudited condensed consolidated interim financial statements as
of and for the interim period ended June 30, 2025. Additionally, these material weaknesses could result in a misstatement of substantially
all of our accounts or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements
that would not be prevented or detected.

    ●
    We
    did not design and maintain effective controls over certain information technology (“IT”) general controls for information
    systems that are relevant to the preparation of our consolidated financial statements. Specifically, we did not design and maintain
    effective:

  ■
  user access controls to
  ensure appropriate segregation of duties and that adequately restrict user and privileged access to financial applications,
  programs, and data to appropriate company personnel; and

  ■
  program change management controls to ensure that information
technology program and data changes affecting certain financial IT applications and underlying accounting records are identified, tested,
authorized and implemented appropriately.

These
IT deficiencies did not result in a misstatement to the consolidated financial statements, however, the deficiencies, when aggregated,
could impact maintaining effective segregation of duties, as well as the effectiveness of IT dependent controls (such as