Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 191

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 191
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 ended December 31, 2023 and 2022 did not contain an adverse opinion
or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the
reports on the financial statements of the Company for the fiscal year ended December 31, 2023 included an explanatory paragraph indicating
that there was substantial doubt as to the Company’s ability to continue as a going concern.

During the Company’s
fiscal years ended December 31, 2023 and 2022 and subsequent interim period through November 22, 2024, there (i) have been no disagreements
with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements,
if not resolved to the satisfaction of PwC, would have caused PwC to make reference to the subject matter of such disagreements in its
reports on the Company’s financial statements and (ii) were no reportable events within the meaning of Item 304(a)(1)(v) of Regulation
S-K, other than the material weaknesses in the Company’s internal control over financial reporting identified by management. These
material weaknesses identified were as follows:

● The
Company did not design and maintain an effective control environment commensurate with its financial reporting requirements.
Specifically, the Company did not maintain a sufficient complement of personnel with an appropriate degree of internal controls and
accounting knowledge, experience, and training commensurate with its accounting and financial reporting requirements. Additionally,
the lack of a sufficient complement of personnel resulted in an inability to consistently establish appropriate authorities and
responsibilities in pursuit of its financial reporting objectives, as demonstrated by, among other things, insufficient segregation
of duties in its finance and accounting functions. This material weakness contributed to the following additional material
weaknesses.

● The
Company did not design and maintain effective controls over the segregation of duties related to journal entries and account
reconciliations. Specifically, certain personnel have the ability to both (i) create and post journal entries within its general
ledger system and (ii) prepare and review account reconciliations.

● The
Company did not design and maintain effective controls over the accounting and disclosure for debt and equity instruments.
Specifically, the Company did not design and maintain effective controls over the accounting for the issuance and extinguishment of
convertible note arrangements, warrants and common stock.

● The
Company did not design and maintain effective controls over the accounting for inventory and related accounts