Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 87

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 87
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 automated controls
that address the risk of material misstatement to one or more assertions, along with the IT controls and underlying data that support
the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all consolidated financial
statement accounts and disclosures that would not be prevented or detected. Accordingly, management has determined these deficiencies
in the aggregate constitute a material weakness.

Remediation
Measures for Remaining Material Weaknesses in Internal Control over Financial Reporting

We
have taken measures to remediate the material weaknesses remaining as of June 30, 2025, including the following: hired additional accounting
and IT personnel to bolster our reporting, technical accounting and IT capabilities; provided ongoing training for our personnel on accounting,
financial reporting and internal control over financial reporting; engaged a third-party to assist in designing and implementing controls,
including controls related to segregation of duties and IT general controls; designing and implementing controls to formalize roles and
review responsibilities to align with our team’s skills and experience and designing and implementing controls over segregation
of duties; and designing and implementing controls over the preparation and review of journal entries and account reconciliations. Additionally,
we will need to hire and train additional accounting and IT personnel to further bolster our technical accounting and IT capabilities.
We have also begun planning for measures to remediate the material weaknesses related to designing and implementing controls over accounting
and disclosure for debt and equity instruments, the accounting for the issuance and extinguishment of convertible note arrangements,
warrants and common stock; designing and implementing controls over the accounting for inventory and related accounts, the accuracy of
inventory, purchases, manufacturing costs, and write-offs and the financial statement presentation of inventory and related accounts;
designing and implementing controls over the accounting for contract assets and liabilities, the accuracy and the financial statement
presentation and disclosure of contract assets and liabilities, including variable consideration; designing and implementing controls
over controls over financial statement preparation, presentation and disclosure commensurate with our financial reporting requirements,
the appropriate classification and presentation of accounts and disclosures in the consolidated financial statements; and designing and
implementing IT general controls, including controls over the review and update of user access rights and privileges and program change
management controls.

We
believe we are making progress toward the effectiveness of our internal control over financial reporting and disclosure controls and
procedures. The measures that we are taking are subject to continued testing, ongoing senior management review, as well as audit
committee oversight. We will not be able to conclude whether the measures we are taking will