Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 276

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 276
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 the perpetual sales, the license component is classified as software license revenue and recognized as revenue up front upon delivery of the licensed product and/or utility that enables the customer to access authorization keys. The PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as we satisfy the PCS performance obligation.

Product Warranties

Our 3D printers are sold with a warranty period of typically one year from installation. After the warranty period, we generally offer service contracts that enable our customers to continue service and maintenance coverage. These service contracts are offered with various levels of support and options and are priced accordingly. One entitlement of our service contracts is our service engineers provide periodic preventive maintenance visits to customer sites. Additionally, we provide training to our partners to enable them to also perform these services. Another contract entitlement on certain printer models is proactive remote troubleshooting capability through the Company’s integrated platform. From time to time, we also offer upgrade kits for certain of our printers that enable our existing customers to take advantage of new or enhanced printer capabilities. In some cases, we have discontinued upgrade support and maintenance agreements for certain of our older legacy printers.

Printers and certain other products include a warranty that covers workmanship, software, and hardware components under which we provide maintenance for periods up to one year. For these initial product warranties, estimated costs are accrued at the time of the sale of the product. These cost estimates are established using historical information regarding the nature, frequency and average cost of claims for each type of printer or other product, as well as assumptions about future activity and events. Revisions to expense accruals are made as necessary based on changes in these historical and future factors.

Information by Segment and Geography

The Company manages its
operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financial
results as a single reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief
Executive Officer, who reviews financial information presented on an entity wide basis for purposes of making operating decisions,
assessing financial performance, and allocating resources.

Specifically, our CODM uses consolidated net
income to measure segment profit or loss, allocate resources of the Company as a whole, including investing in future development efforts,
customer retention and acquisition, and assessing performance. Further, the CODM reviews and utilizes functional expenses (cost of revenues,
sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s
operations. Other