Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 109

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 109
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 and services,
while maximizing observable inputs. In situations where pricing is highly variable, or a product is never sold on a stand-alone basis,
the Company estimates the SSP using the residual approach. Significant judgment is used to identify and account for each of the two performance
obligations.

3D Printer Sales

The Company bills its customers beginning
at the time of acceptance of the purchase order (which represents a deposit), with the second billing at the time of shipment and final
billing upon site acceptance test completion. The timeframe from order to completion of the site acceptance test occurs typically over
three to six months. Revenue for the 3D Printer is recognized at a point-in time, which occurs upon transfer of control to the customer
at shipment. Site installation, testing and customer training are incidental to customer acceptance with the portion of the transaction
price allocated to these services being deferred as part of Support Services and recognized over the period the services are provided.

Revenue - Variable Consideration -The
sales of 3D Printer systems under certain contracts may include variable consideration such that the Company is entitled to a rate per
print hour used on the 3D Printer systems. The Company makes certain estimates in calculating the variable consideration, including amount
of hours, the estimated life of the equipment and the discount rate. Although estimates may be made on a contract-by-contract basis,
whenever possible, the Company uses all available information including historical customer usage and collection patterns to estimate
variable consideration. Management reassesses the estimated variable consideration quarterly.

The Company estimates its variable consideration
on a quarterly basis based on the latest data available, and adjusts the transaction price accordingly by recording an adjustment to
net revenue and contract assets. The Company has recognized the estimate of variable consideration to the extent that it is probable
that a significant reversal will not occur as a result from a change in estimation. There was no revenue related to variable consideration during the three
months ended June 30, 2025 and 2024. There was no revenue related to variable consideration during the six months ended June 30, 2025
and 2024. Sales with variable consideration represented 0%
of revenue during the year ended December 31, 2024 and 3% of our revenue during year ended December 31, 2023. As of December 31, 2024,
the Company discontinued the Variable Consideration revenue model on a go-forward basis.

The Company has elected not to recognize shipping
to customers as a separate performance obligation. Revenue