Company: VLDXW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047760
Chunk: 272

Company: Velo3D, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 272
---
 and other tax attributes recorded.  The net operating loss and other tax attributes recorded as deferred tax asset are fully offset with valuation allowance. Accordingly the state and federal net operating loss carryforwards and credits which have expiring provisions are reduced to the expected available amount. The annual IRC 382 limit for pre ownership change attributes 

 124

Velo3D, Inc.Notes to Consolidated Financial Statements 

that can be utilized each year is approximately $0.8 million.  The total tax effected attributes expected to be unable to be utilized due to expiration is approximately $31.9 million. As a result of the ownership change federal net operating losses of $35.2 million and California net operating loss of $250.0 million are expected to expire before they will be able to be utilized.  Federal R&D credits of $7.1 million are also expected to expire before they can be utilized due to IRC Section 382 limitations.A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 

        December 31,

        2024

        2023

        (In thousands)

        Balance at beginning of year
         
        $
        6,060

        $
        4,750

        Additions based on tax positions related to the current year

        (3,301
        )

        1,310

        Balance at end of year
         
        $
        2,759

        $
        6,060

       For the years ended December 31, 2024 the amount of unrecognized tax benefits decreased by  $3.3 million due to a reduction in R&D credits that are available for use due to IRC Section 382 limitations. During the year ended December 31, 2023 the amount of unrecognized tax benefits increased by $1.3 million due to additional R&D credits claimed during the year. The reversal of the uncertain tax benefits would not affect the Company's effective tax rate to the extent that it continues  to maintain a full valuation allowance against its deferred tax assets.The Company is subject to U.S. federal, state and foreign income taxes. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations, and require significant judgment to apply. The Company is subject to U.S federal, state, foreign and local examinations by tax authorities for all prior years since incorporation. The Company does not anticipate significant changes to its current uncertain tax positions within the next twelve months.The Company recognizes any interest