Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 23

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 earnout liabilities, the RDO Warrants,
the Placement Agent Warrants, the 2024 Private Warrants, the BEPO Warrants, the BEPO Agent Warrants, the July 2024 Private Warrants and
the August Inducement Warrants are based on significant unobservable inputs, which represent Level 3 measurements within the fair value
hierarchy.

In
determining the fair value of the Private Placement Warrant liabilities, contingent earnout liabilities, and 2024 Private Warrants, the
Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods
that assumes optimal exercise of the Company’s redemption option at the earliest possible date (see Note 10, Equity Instruments).

In
determining the fair value of the 2022 Private Warrant, RDO Warrants, Placement Agent Warrants, BEPO Warrants, BEPO Agent Warrants, July
2024 Private Warrants and August Inducement Warrants the Company used the Black-Scholes option pricing model to estimate the fair value
using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10,
Equity Instruments).

Note
5. Investments

Available-for-sale
(“AFS”) Investments

There
were no AFS investments as of June 30, 2025 and December 31, 2024.

There
were no material realized gains or losses on AFS investments during the three and six months ended June 30, 2025 and June 30, 2024.

    12

Note
6. Balance Sheet Components

Accounts
Receivable, Net

Accounts
receivable, net consisted of the following:

 Schedule
of Accounts Receivable, Net

    June 30,  
    December 31, 

    2025  
    2024 

    (In thousands) 
  
    Trade receivables 
    $7,216  
    $7,130 
  
    Less: Allowances for credit losses 
     (1,822) 
     (3,407)
  
    Total 
    $5,394  
    $3,723 

Inventories,
Net

Inventories
consisted of the following:

 Schedule
of Inventories

    June 30,  
    December 31, 

    2025  
    2024