Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 192

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 192
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. Specifically, the
Company did not design and maintain effective controls over verifying the existence of inventory, the accuracy of purchases,
manufacturing costs, and write-offs and the financial statement presentation of inventory and related accounts.

● The
Company did not design and maintain effective controls over the accounting for contract assets and liabilities. Specifically, the
Company did not design and maintain effective controls over the accuracy and the financial statement presentation of contract assets
and liabilities, including variable consideration.

● The
Company did not design and maintain effective controls over financial statement preparation, presentation and disclosure
commensurate with its financial reporting requirements. Specifically, the Company did not design and maintain effective controls
over the appropriate classification and presentation of accounts and disclosures in the consolidated financial statements.

● The
Company did not design and maintain effective controls over certain information technology (“IT”) general controls for
information systems that are relevant to the preparation of its consolidated financial statements. Specifically, the Company did not
design and maintain effective:

○ user access controls to ensure appropriate segregation of duties and that adequately restrict user and privileged access to
financial applications, programs, and data to appropriate company personnel; and

○
program change management controls to ensure that information technology program and data changes affecting certain financial IT applications
and underlying accounting records are identified, tested, authorized and implemented appropriately.

The Company provided
PwC with a copy of these disclosures and they have furnished a letter addressed to the SEC stating that it agrees with the statements
made herein, a copy of which is included as Exhibit 16.1.

On December 21, 2024,
with the approval of the Audit Committee of the Board of Directors of the Company, the Company engaged Frank, Rimerman + Co. LLP (“Frank,
Rimerman”) as the Company’s new independent registered public accounting firm.

During the Company’s
fiscal years ended December 31, 2023 and December 31, 2022 and the subsequent interim period through December 21, 2024, neither the Company
nor anyone on its behalf has consulted with Frank, Rimerman regarding: (i) the application of accounting principles to a specified transaction,
either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and neither
a written report nor oral advice was provided to the Company that Frank, Rimerman concluded was an important factor considered by the
Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii