Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 69

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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5 due to the maturation of our Sapphire family
of systems and certain investments in improvements current product line and to increase in the long term as we continue to invest in
enhancing and advancing our portfolio of AM solutions.

Selling
and Marketing Expenses 

Selling
and marketing expenses were $1.6 million and $4.3 million for the three months ended June 30, 2025 and 2024, respectively, a decrease
of $2.7 million. The decrease was attributable to a decrease of $2.2 million in headcount, salaries and employee-related expenses, and
a $0.5 million decrease in stock-based compensation. Marketing costs and initiatives spending remained consistent for three months ended
June 30, 2025 and 2024.

We
expect selling and marketing expenses to increase for the remainder of 2025 as we re-engage with key customers and drive RPS traction.
During the remainder of 2025, we intend to continue our focus on certain markets that show strong attendance at additive manufacturing
conferences to build product awareness.

36

General
and Administrative Expenses

General
and administrative expenses were $6.0 million and $8.8 million for the three months ended June 30, 2025 and 2024, respectively, a decrease
of $2.8 million. The decrease was attributable to a decrease of $0.6 million in headcount, salaries and employee-related expenses, a
$1.0 million decrease in stock-based compensation, and a decrease of $1.2 million in legal, professional fees and general and administrative
expenses.

We
expect general and administrative expenses to decrease as a result of savings from our reduction in force implemented in late 2024. We
continue to focus on our company-wide initiatives to reduce operating costs for the remainder of 2025 as we continue to reducing our
general and administrative expenses through reducing our reliance on outside consultants, managing facility costs, negotiating with vendors
for improved pricing and enterprise level efficiency improvements.

Interest
Expense

Interest
expense was $1.6 million and $5.5 million for the three months ended June 30, 2025 and 2024, respectively, due to the reduction in Senior
Secured Notes and offset by the issuance of the Secured Convertible Notes.

We
expect our interest expense will continue to decrease as a result of our reduced debt.

Gain
(loss) on Fair Value of Warrants

The
gain on fair value