Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 85

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 an effective control environment commensurate with our financial reporting requirements. Specifically,
    we did not maintain a sufficient complement of personnel with an appropriate degree of internal controls and accounting knowledge,
    experience, and training commensurate with our 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 our financial reporting objectives, as demonstrated by, among other things, insufficient segregation of duties in our finance
    and accounting functions. This material weakness contributed to the following additional material weaknesses.

    ●
    We
    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 our general ledger system and
    (ii) prepare and review account reconciliations.

45

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

    ●
    We
    did not design and maintain effective controls over the accounting for inventory and related accounts. Specifically, we 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.

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

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

These
material weaknesses resulted in adjustments to accounts receivable, inventory, other current assets, current and non-current contract
liabilities, accrued expenses and other current liabilities which were recorded prior to the issuance of the consolidated financial statements
as of and for the years ended December 31, 2019, 2020 and 2021 and as of and for the interim periods ended September 30,