Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 55

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 shorter lead times. However, many of our customers have found that other
legacy AM technologies failed to produce the required designs for the high-value metal parts and assemblies that our customers wanted
to produce with AM. As a result, other AM solutions often require that parts be redesigned so that they can be produced and frequently
incur performance losses for high-value applications.

In
contrast, our technology can deliver complex high value metal parts with the design advantages, lower costs and faster lead times associated
with AM, and generally avoids the need to redesign the parts. As a result, our customers have increasingly adopted our technology into
their design and production processes. We believe our value is reflected in our sales patterns, as most of our customers initially purchased
a single machine to validate our technology and have purchased additional systems over time as they have embedded our technology in their
product roadmap and manufacturing infrastructure. We consider this approach a “land and expand” strategy, oriented around
a demonstration of our value proposition followed by increasing penetration with key customers.

Recent
Developments

Recent
Debt and Equity Transactions and Change in Majority Ownership

On
December 24, 2024, the Company and Arrayed Note Acquisition Corp., a subsidiary of Arrayed Additive, Inc. (“Arrayed”), entered
into a debt for equity exchange transaction where the Company issued 12,343,423 shares of the Company’s common stock, in exchange
for the cancellation of $22.4 million in principal amount of the Company’s Secured Notes (the “Notes”) plus $0.4 million
of accrued interest on the Notes. Arrayed continues to hold $5.0 million in principal amount of the Secured Notes, and as a result of the December
2024 Exchange, became, at the time of the transaction, the owner of approximately 95% of our issued and outstanding common stock.

29

On
February 24, 2025, the Company entered into February Warrant Exchange Agreements with each of: (i) Highbridge Tactical Credit Master
Fund, L.P. (“HM”); (ii) Highbridge Tactical Credit Institutional Fund, Ltd. (collectively with HM, the “Highbridge
Holders”); (iii) Anson Investments Master Fund LP (“AMF”); (iv) Anson East Master Fund LP (collectively with AMF,
the “Anson Holders”); (v) High Trail Investments ON LLC (“HTI”), and (vi) HB SPV I Master