Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 79

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 79
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 months ended June 30, 2025 and 2024, respectively. This decrease of $0.2 million was primarily due to a decrease
in depreciation of the equipment subject to operating lease and allocable Cost of Support Services as a result of fewer 3D Printers in
service in the three months ended June 30, 2025, compared to the three months June 30, 2024.

Cost of Support Services was $1.2 million
and $2.3 million for the three months ended June 30, 2025 and 2024, respectively. Cost of Support Services decreased by $1.1 million,
due to reliability improvement efforts that the Company undertook in 2024 leading to lower field service engineering labor and overhead
in June 30, 2025, compared to June 30, 2024. We expect this to decrease on a per unit basis as the Sapphire XC, Sapphire 1MZ and Sapphire
XC 1MZ system reliability improves. We also expect our Cost of Support Services will increase with the delivery of more 3D Printer systems
to customers.

Cost of revenue as a percentage of revenue
was 111.7% and 128.0% for the three months ended June 30, 2025 and 2024, respectively. The decrease in the cost of revenue as a percentage
of revenue was primarily driven by product mix and improvements in the average selling price of 3D Printers.

We may experience increasing component costs
from our suppliers due to international tariffs and our current financial situation. We are currently unable to secure credit terms and
volume discounts with our suppliers, causing us to pay a premium, in advance, or source from alternate suppliers at unfavorable terms
for our products. This has negatively impacted our cost of revenue and will continue to negatively impact our cost of revenue until our
financial conditions improve and costs associated with tariffs ease.

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Gross Profit and Gross Margin

Total gross profit (loss) was $(1.6) million
and $(2.9) million for the three months ended June 30, 2025 and 2024, respectively. As a percentage of revenue, the gross margin was
(11.7)% and (28.0)% for the three months ended June 30, 2025 and 2024, respectively. The increase in gross profit for the three months
ended June 30, 2025 was primarily attributable to product mix and improvements