Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 75

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 75
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 specialty gases, shipping costs and other directly associated costs. Cost of RPS is included under
3D Printer cost of revenue.

Cost of Support Services includes the cost
of spare or replacement parts for preventive maintenance, installation costs, headcount-related costs such as salaries, stock-based compensation,
depreciation of manufacturing related equipment and facilities, and information technology costs. The headcount-related costs are directly
associated with the engineers dedicated to remote and on-site support, training, travel costs and other services costs.

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.

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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,