Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 72

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 72
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filled 3D printer systems and printed parts to be delivered to customers in contracted
dollars as of period end.

Customer Concentration

Our operating results for the foreseeable
future will continue to depend on sales to a small group of customers. For the three months ended June 30, 2025 and 2024, sales to the
top three customers accounted for 65.2% and 66.4%, respectively, of our revenue. Of the top three customers for the three months ended
June 30, 2025, two customers were different from the top three customers for the comparable period in 2024. For the six months ended
June 30, 2025 and 2024, sales to the top three customers accounted for 54.6% and 53.7%, respectively, of our revenue. Of the top three
customers for the six months ended June 31, 2025, two customers were different from the top three customers for the comparable period
in 2024.

While our objective is to diversify our customer
base, we continue to be susceptible to risks associated with customer concentration.

Continued Investment and Innovation

We continue to be a customer-focused company
working to develop innovative solutions to address customers’ needs and focus on our customers to identify the most impactful areas
for research and development as we seek to further improve the capabilities of our AM solutions. We believe this process has contributed
significantly to our development of the most advanced metal AM systems in the world. We believe that continued investments in our products
are important to our future growth and, as a result, we will invest in enhancing our portfolio of AM solutions through certain research
and development projects based on customer demand.

| 47 |

Macroeconomic Conditions and Other World Events

General economic and political conditions
such as recessions, interest rates, fuel prices, inflation, foreign currency fluctuations, international tariffs, social, political and
economic risks and acts of war or terrorism (including, for example, the ongoing military conflicts in Israel and in Ukraine and the
economic sanctions related thereto), have added uncertainty in timing of customer orders and supply chain constraints. In 2024, we implemented
a number of supply chain and manufacturing improvements in response and intend to continue to focus on driving further operational improvements
during 2025 to reduce operating costs.

Climate Change

Material pending or existing climate change-related
legislation, regulations, and international accords could have an adverse effect on our business, financial