Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 115

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 115
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 the Company agreed to issue registered warrants with an exercise price of $34.20 per share to
purchase 99,048 shares of common stock (the “August Inducement Warrants”) and will expire on the five year anniversary of
the issuance date. The August Inducement Warrants may also be exercised on a cashless basis under certain circumstances.

The Company evaluated the Common Stock Warrants
and concluded that they all do not meet the criteria to be classified within stockholders’ equity. The warrant agreement governing
the Public Warrants and Private Placement Warrants includes a provision, the application of which could result in a different settlement
value for the Common Stock Warrants depending on their holder. Because the holder of an instrument is not an input into the pricing of
a fixed-for-fixed option on the common stock, the Private Placement Warrants are not considered to be “indexed to the Company’s
own stock.” In addition, the warrant agreement includes a provision that provides that in the event of a tender or exchange offer
accepted by holders of more than 50.0% of the outstanding shares of the common stock, all holders of the Public Warrants and the Private
Placement Warrants would be entitled to receive cash for all of their Public Warrants and Private Placement Warrants. Specifically, in
the event of a qualifying cash tender offer (which could be outside of the Company’s control), all Public Warrant and Private Placement
Warrant holders would be entitled to cash, while only certain of the holders of the common stock may be entitled to cash. These provisions
preclude us from classifying the Public Warrants and Private Placement Warrants in stockholders’ equity. The 2022 Private Warrant,
the RDO Warrants, and Placement Agent Warrants also contain similar provisions on the treatment in the event of a qualifying cash tender
offer that preclude us from classifying the 2022 Private Warrants, the RDO Warrants, and the Placement Agent Warrants in stockholders’
equity.

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We classify the Common Stock Warrants as liabilities
in accordance with ASC Topic 815 “Derivatives and Hedging–Contracts in Entity’s Own Equity.” As these meet the
definition of a derivative, we recorded these warrants within Warrant liabilities on the consolidated balance sheet at fair value, with
subsequent changes in their respective fair values recognized in the consolidated statements of operations and comprehensive loss at
each reporting date.

Contingent Earnout Liability

In connection with