Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 194

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 194
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 training commensurate with its accounting and financial reporting requirements. Additionally,
the lack of a sufficient complement of personnel resulted in an inability to consistently establish appropriate authorities and
responsibilities in pursuit of its financial reporting objectives, as demonstrated by, among other things, insufficient segregation
of duties in its finance and accounting functions. This material weakness contributed to the following additional material
weaknesses.

● The
Company did not design and maintain effective controls over the segregation of duties related to journal entries and account
reconciliations. Specifically, certain personnel have the ability to both (i) create and post journal entries within its general
ledger system and (ii) prepare and review account reconciliations.

● The
Company did not design and maintain effective controls over the accounting and disclosure for debt and equity instruments.
Specifically, the Company did not design and maintain effective controls over the accounting for the issuance and extinguishment of
convertible note arrangements, warrants and common stock.

● The
Company did not design and maintain effective controls over the accounting for inventory and related accounts. 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