Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 62

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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. The headcount-related costs are directly associated with the engineers dedicated to remote and on-site support, training, travel
costs and other services costs.

32

Gross
Profit and Gross Margin

Our
gross profit is revenue less cost of revenue and our gross margin is gross profit as a percentage of revenue. The gross profit and gross
margin for our products are varied and are expected to continue to vary from period to period due to the mix of products and services
sold through a 3D Printer sale transaction, a Recurring Payment transaction, RPS offerings, services contracts, new product introductions
and efforts to optimize our operational costs. Other factors affecting our gross profit include changes to our material costs, assembly
costs that are themselves dependent upon improvements to yield, and any increase in assembly overhead to support a greater number of
3D Printers sold and markets served.

Research
and Development Expenses

Our
research and development expenses represent costs incurred to support activities that advance the development of innovative AM technologies,
new product platforms and consumables, as well as activities that enhance the capabilities of our existing product platforms. Our research
and development expenses consist primarily of salaries and related personnel costs for individuals working in our research and development
departments, including stock-based compensation, prototypes, design expenses, information technology costs and software license amortization,
consulting and contractor costs, and an allocated portion of overhead costs, including depreciation of property and equipment used in
research and development activities.

Selling
and Marketing Expenses

Sales
and marketing expenses consist primarily of salaries and related personnel costs for individuals working in our sales and marketing departments,
including stock-based compensation, costs related to trade shows and events, advertising, marketing promotions, travel costs and an allocated
portion of overhead costs, including information technology costs and costs for customer validation.

General
and Administrative Expenses

General
and administrative expenses consist primarily of salaries and related personnel costs for individuals associated with our executive,
administrative, finance, legal, information technology and human resources functions, including stock-based compensation, professional
fees for legal, audit and compliance, accounting and consulting services, general corporate costs, facilities, rent, information technology
costs, insurance, bad debt expenses and an allocated portion of overhead costs, including equipment and depreciation and other general
and administrative expenses.

Interest
Expense

Interest
expense primarily consists of interest incurred under our outstanding debt and finance leases.

Gain
(Loss) on Fair Value of Warrants

Gain
(loss) on valuation of warrant liabilities relates to