Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 53

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 Reserve has
sufficient funds to make payments required by this MSA and to cover the Service Fees for the Services requested by Momentus
under the MSA.

In
the event the MSA is terminated, the number of shares that remain unsold by Velo3D shall be forfeited by Velo3D and cancelled by
Momentus. Any funds in the Prepaid Reserve and work product shall be returned to the respective parties.

The
Company evaluated the MSA to determine whether any embedded feature of the MSA potentially qualifies as a derivative required to be separately
accounted for in accordance with FASB ASC Topic 815, Derivatives and Hedging. The Refund Provision
clause requires the Company to refund a portion of the share-based consideration received if services are not rendered, with the refund
amount limited to the lesser of a specified threshold or the net proceeds from the sale of Momentus shares. Management determined that
the Refund Provision is required to be bifurcated from the MSA and accounted for separately as a derivative liability. However, based on a valuation
analysis as of June 30, 2025, the fair value of the embedded derivative was determined to be de minimis. Accordingly, no separate recognition
of the embedded derivative was made in the unaudited condensed consolidated interim financial statements.

The Company has evaluated the accounting treatment for the equity received
under the MSA with Momentus and determined that the arrangement does not currently meet the criteria to be accounted for under ASC 606
as the Company cannot identify the specific goods and services to be transferred or the related payment terms. The Company will reassess
the accounting for the MSA upon the execution of a Statement of Work. For the three and six months ended June 30, 2025, no revenue related
to this MSA has been recognized.

Note
17. Subsequent Events 

Subsequent
events were evaluated through the filing date of this Form 10-Q, and no events requiring adjustment or disclosure were identified.

28

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The
following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of
our results of operations and financial condition. This discussion should be read in conjunction with our Annual Report on Form 10-K
for the fiscal year ended December 31, 2024 and our unaudited condensed consolidated interim financial statements included elsewhere
in this Quarterly Report. This discussion contains