Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 104

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 104
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4.9 million, warrant issuance in connection with the August warrant inducement of
$2.4 million, and cost of issuance of common stock warrants in the BEPO Offering (defined herein) of $1.3 million, partially offset by
the fair value related to the warrants of $32.1 million, gain on exchange of debt for common stock of $2.6 million and the change in
fair value related to the contingent earnout liabilities of $1.4 million.

Net cash used in operating activities for
the year ended December 31, 2023 was $105.6 million, consisting primarily of a net loss of $135.1 million, cash used from net operating
assets of $1.2 million, and noncash charges of $28.3 million. The cash used from operating assets was primarily comprised of contract
liabilities of $10.1 million, accrued expenses and other current liabilities of $9.0 million, and contract assets of $7.2 million, partially
offset by a decrease in inventories of $13.7 million for Sapphire and Sapphire XC system production, other assets of $10.2 million, prepaid
expenses and other current assets of $2.8 million related to insurance and vendor prepayments, and accounts payable of $2.2 million.
The noncash charges primarily consisted of stock-based compensation of $24.9 million, the change in loss on debt extinguishment of $19.5
million, depreciation and amortization of $9.3 million, cost of issuance of common stock warrants of $1.4 million, and realized loss
on available for sale securities, partially offset by the change in fair value related to the contingent earnout liabilities of $16.0
million, the change in fair value of debt derivatives of $8.5 million, and fair value related to the warrants of $2.3 million.

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We expect our cash used in operating activities
to increase, driven by investments in our RPS model in anticipation of increased demand for production level components and in R&D
to maintain technology leadership. Our continued efforts in increasing operational efficiency, reducing overhead and expense reduction
would offset operating cash needs.

Investing Activities

Net cash provided by investing activities
during the year ended December 31, 2024 was $7.8 million, consisting of $3.5 million of proceeds from maturity of available for sale
investments and $3.2 million in sales of available for