Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 77

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 and $9.4 million for the six months ended June 30, 2025 and 2024, respectively, due to the reduction in Senior
Secured Notes and offset by the issuance of the Secured Convertible Notes.

We
expect our interest expense will continue to decrease as a result of our reduced debt.

Gain
(loss) on Fair Value of Warrants

The
change in fair value of warrants resulted in a gain (loss) of $(1.0) and $22.7 million for the six months ended June 30, 2025 and 2024,
respectively, and was related to the non-cash fair value change of the warrant liabilities driven by the relative change in our stock
price.

Gain
(loss) on Fair value of Contingent Earnout Liabilities

The
change in fair value of the contingent earnout liability was $0.0 and $1.4 million for the six months ended June 30, 2025 and 2024, respectively,
and was related to the non-cash fair value change of the earnout liabilities driven by the relative change in our stock price.

Loss
on Warrant Cancellation

Loss
on warrant cancellation was $11.4 million and $0.0 for the six months ended June 30, 2025 and 2024 and related to the loss recognized
in conjunction with the February 2025 Warrant Exchange transaction.

Other
Income (Expense), Net

Other
(expense) and income, net was less than $(0.1) million and $(1.2) million for the six months ended June 30, 2025 and 2024, respectively.

Income
Taxes 

No
provision for federal and state income taxes was recorded for both the six months ended June 30, 2025 and 2024 due to projected losses,
and we maintained a full valuation allowance on the deferred tax assets as of June 30, 2025 and December 31, 2024.

We
will continue to review our conclusions about the appropriate amount of the valuation allowance on a quarterly basis. If we were to generate
profits in the remainder of 2025 and beyond, the U.S. valuation allowance position could be reversed in the foreseeable future. We expect
a benefit to be recorded in the period the valuation allowance reversal is recorded and a higher effective tax rate in periods following
the valuation allowance reversal.

Liquidity
and Capital Resources

As
of June