Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 112

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 112
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awards underlying stock options to employees, which is considered a compensatory award and accounted for under ASC 718, Share-Based Compensation, using the Monte-Carlo simulation model.The Monte-Carlo simulation model was selected as the valuation methodology
for the Earnout Shares due to the path-dependent nature of triggering events. Under ASC 718, the award is measured at fair value at the
grant date and expense is recognized over the time-based vesting period (the triggering event is a market condition and does not impact
expense recognition). The Monte-Carlo model requires the use of highly subjective and complex assumptions, including the current stock
price, volatility of the underlying stock, expected term, and the risk-free interest rate.

Application of these approaches involves the
use of estimates, judgment, and assumptions that are highly complex and subjective, such as those regarding our risk-free interest rates,
the selection of comparable companies, and the probability of possible future events. Changes in any or all of these estimates and assumptions
or the relationships between those assumptions impact our valuations as of each valuation date and may have a material impact on the
valuation of our common stock. An increase of 100-basis points in interest rates would not have a material impact on our stock-based
compensation.

Common Stock Warrants

Prior to the Merger, warrants to purchase
shares of common stock were classified as equity and recognized within additional paid-in capital with no subsequent remeasurement. The
amount recognized within additional paid-in capital was determined by allocating the proceeds received and issuance costs incurred between
the instruments issued based on their relative fair value. All common stock warrants outstanding prior to the Merger were converted into
common stock as part of the Merger.

Following the Merger, 16,429 publicly-traded
warrants (the “Public Warrants”) and 8,477 private placement warrants (the “Private Placement Warrants”), issued
to the Sponsor, all of which were issued in connection with the IPO), became exercisable for one share of the Company’s common
stock at an exercise price of $6,037.50 per share. During the year ended December 31, 2024, there were no Public Warrants or Private
Placement Warrants exercised. The Public Warrants are publicly traded and are exercisable for cash, unless certain conditions occur,
such as redemption by the Company under certain circumstances, at which time the Public Warrants may be exercised on a cashless basis.
The Private Placement Warrants are non-redeem