Company: VLDXW
Filing Date: 2025-01-14
Form Type: 10-Q
Source: 0000950170-25-005443
Chunk: 100

Company: Velo3D, Inc.
Filing Date: 2025-01-14
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 covenant non-compliance. On July 9, 2024, we obtained a waiver from the Investors waiving this default, related defaults, and the payment of any accrued default interest in connection with these defaults.The Company incurred deferred financing costs of $0.5 million related to the Secured Notes, which were capitalized upon issuance and are being accreted over the term of the Secured Notes using the effective interest rate method with $0.1 million and $0.3 million amortized to interest expense for the three and nine months ended September 30, 2024, respectively. As of September 30, 2024, the remaining unamortized balance of deferred financing costs was $0.2 million and were included in Debt — current portion on the balance sheets.Additionally, the Company is accreting discounts of $17.8 million and capitalizing to the carrying value of the Secured Notes over the term of the Secured Notes using the effective interest rate method with $6.2 million and $14.2 million amortized to interest expense for the three and nine months ended September 30, 2024, respectively. As of September 30, 2024, the unamortized discount was $2.4 million, which includes the difference between the principal and the Repayment Price. For the three months ended September 30, 2024, the Company incurred and paid $0.5 million and $0 in interest expense, respectively, related to the Secured Notes. For the nine months ended September 30, 2024, the Company incurred and paid $1.5 million and $0.6 million in interest expense, respectively, related to the Secured Notes. The effective interest rate was 98.5% for the three and nine months ended September 30, 2024.The future minimum aggregate payments for the above borrowings are equal to the quarterly payments made using the Repayment Price, are as follows as of September 30, 2024: 

        (In thousands)

        2024
         
        $
        15,550

        2025
         
        $
        16,700

        $
        32,250

Note 10. Equity InstrumentsCommon stockOur authorized share capital consists of 500,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of preferred stock, par value $0