Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 52

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 be delivered over the term of the MSA. Each share of Momentus Series A Convertible
Preferred Stock is convertible into ten shares of Class A Common Stock, subject to the limitations in the Momentus Certificate of
Designations of Preferences, Rights and Limitations of Momentus Series A Convertible Preferred Stock, including that Velo3D hold no
more than 9.99%
of the outstanding shares of Momentus’ Common Stock at any time.

Furthermore,
pursuant to the Momentus Certificate of Designations, the Momentus Series A Convertible Preferred Stock may not be converted into
shares of Momentus’ Class A Common Stock if conversion would result in the issuance, in the aggregate with all previous
issuances of shares of Momentus’ Common Stock, of greater than 19.9%
of the amount of Momentus’ Class A Common Stock outstanding immediately preceding the date of the MSA without first obtaining
stockholder approval in compliance with the rules of the Nasdaq Stock Market.

Under
the MSA, Velo3D promised to use commercially reasonable efforts to sell shares of Momentus Class A Common Stock to establish a prepaid reserve (“Prepaid Reserve”) to hold the net proceeds derived from the sale of
Momentus Class A Common Stock. Unless otherwise provided in the Statement of Work, Service Fees will be deducted from the amount of
Prepaid Reserve.

The
MSA includes a refund provision (“Refund Provision”) pursuant to which during the period beginning on the Effective Date
and ending on each one year anniversary of the Effective Date, Momentus shall receive 20%
of $3,000,000
less Service Fees for Services performed during such period, and for each one year period beginning on the one year anniversary of
the Effective Date for the term of the MSA, Momentus shall receive 50%
of $3,000,000
less Service Fees for Services performed during each such period. The amount in the Prepaid Reserve shall be reduced by the same
amounts paid to Momentus.  Such payments shall be made quarterly throughout the term of the MSA within 30 days following
the end of each such quarter; provided however that if the Prepaid Reserve is not sufficient to settle the full amount of such
payments when due, such amounts will be paid as soon as funds are deposited into the Prepaid Reserve.  Velo3D shall use
commercially reasonable efforts to sell a sufficient number of shares of Momentus Common Stock such that the Prepaid