Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 73

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 73
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 frequent, which
may disrupt our operations or the operations of our suppliers and customers.

Components of Results of Operations

Revenue

Our revenue is primarily derived from our
AM fully integrated hardware and software solution based on our proprietary L-PBF technology. Our products include Sapphire, Sapphire
1MZ, Sapphire XC and Sapphire XC 1MZ metal AM printer using our L-PBF technology and Assure quality validation software (collectively
referred to as the “3D Printer”). Contracts for 3D Printers also include post-sale customer support services (“Support
Services”), except for our distributor partners, which are qualified to perform support services.

We sell our fully integrated hardware and
software AM solutions through two types of transaction models: a 3D Printer sale transaction and a recurring payment transaction (“Recurring
Payment”). Support services are included with a 3D Printer sale transaction and a Recurring Payment transaction. For 3D Printer
sale transactions where the support service period has expired, customers may purchase extended support service contracts.

3D Printer sale transactions -fixed
purchase price model. The timeframe from order to completion of the site acceptance test usually occurs over three to nine months. As
we scale our production, we expect to reduce this timeframe. Contract consideration allocated to the 3D Printer is recognized at a point
in time, which occurs upon transfer of control to the customer at shipment.

The initial sales of 3D Printers and Support
Services are included in one contract and are invoiced together. Contract consideration is allocated between the two performance obligations
based on relative fair value. This allocation involves judgment and is periodically updated as new relevant information becomes available.

Other revenue included under 3D Printer sales
includes parts and consumables, such as filters, powder or build plates, that are sold to customers and recognized upon transfer of control
to the customer at shipment.

Recurring Payment transactions - are
our leased 3D Printer transactions. We define our Recurring Payment transactions as operating leases. Under the leased 3D Printer transaction,
the customer typically pays an amount for a lease which entitles the customer to a base number of hours of usage. For usage above that
level, the customer typically pays an hourly usage fee. Most of our leases have a 12-month term, though in some instances the lease term
is longer.

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Under this model, the customer typically pays
a base rent and variable payments based on usage in excess of a defined threshold. Most of our leases have a