Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 96

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 96
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 and Sapphire XC 1MZ systems;                   |
| ● | Average selling prices for our systems;                                                           |
| ● | Trends in materials and shipping costs;                                                           |
| ● | Production volumes that may impact factory overhead absorption;                                   |
| ● | System reliability performance; and                                                               |
| ● | Impact of product mix changes, including new product introductions, and other factors on our Cost 
 of Support Services                                                                               |

We expect to accelerate production cycle times
and to further improve efficiencies on the production floor to lower our cost of revenue, which we expect will improve our gross profit
and gross margins in the second half of 2025.

Research and Development Expenses

Research and development expenses were $17.1
million and $42.0 million for the years ended December 31, 2024 and 2023, respectively. In the year ended December 31, 2024, there was
a decrease of $24.9 million in research and development expenses primarily due to the completion of the development of the Sapphire 1MZ,
Sapphire XC, and Sapphire XC 1MZ systems in 2023 and reduction of new research and development projects in 2024 due to our Strategic
Realignment.

The decrease in research and development expenses
in 2024 were related to a $8.2 million decrease for headcount, salaries and employee-related expenses, a $7.1 million decrease in stock-based
compensation, a $5.0 million decrease in product development expenses for the Sapphire family of systems, and a $1.3 million decrease
in components design and engineering testing and validation for the Sapphire XC and development expenses for the product development
of the 1MZ larger build volumes for our Sapphire systems, a $1.2 million decrease in professional fees and a $2.1 million decrease in
other miscellaneous expenses.

We expect research and development costs to
increase in 2025 and beyond due to a refreshed technology roadmap to meet our customers’ demand in rapidly bring and scale parts
in production and to enhance and advance our portfolio of AM solutions.

| 61 |

Selling and Marketing Expenses

Selling and marketing expenses were $13.8
million and $23.2 million for the years ended December 31, 2024 and 2023, respectively. There was a decrease of $9.4 million for the
year ended December 31, 2024 as compared to 2023.

The decrease in selling and marketing expenses
for the year ended