Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 63

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 the changes in the fair value of warrant liabilities which are subject to remeasurement
at each balance sheet date.

Gain
(Loss) on Fair value of Contingent Earnout Liabilities

Gain
(loss) on valuation of contingent earnout liabilities relates to the changes in fair value of the contingent earnout liabilities in connection
with the earnout shares, which are subject to remeasurement at each balance sheet date.

Loss
on warrant cancellation

Loss
on warrant cancellation relates to the loss recognized in conjunction with the February 2025 Warrant Exchange Agreements.

Other
Income (Expense), Net

Other
income (expense), net includes interest earned on our bank sweep account, gains and losses on disposals of fixed assets, transaction
costs related to the warrant inducement transaction and other miscellaneous income/expenses.

33

Income
Taxes

No
provision for federal and state income taxes was recorded for any periods presented due to projected losses, and we maintained a full
valuation allowance on the deferred tax assets as of June 30, 2025 and 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, 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.

Results
of Operations

Comparison
of the Three Months Ended June 30, 2025 and 2024: 

The
following table summarizes our historical results of operations for the periods presented:

    Three Months Ended June 30,  

    2025  
    2024  
    Change  
    % 

    (In thousands, except for percentages) 
  
    Revenue 

    3D Printer 
    $12,082  
    $8,679  
    $3,403  
     39.2%
  
    Recurring payment 
     70  
     292  
     (222) 
     (76.0)%
  
    Support services 
     1,359  
     1,373  
     (14) 
     (1.0)%
  
    Other 
     61  
     —  
     61  
     100.0%
  
    Total Revenue