Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 73

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 73
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 condition, and results of
operations, including: (1) material past and/or future capital expenditures for climate-related projects, (2) material indirect consequences
of climate-related regulation or business trends, such as the following: decreased/increased demand for goods or services that produce
significant greenhouse gas emissions or are related to carbon-based energy sources; increased competition to develop innovative new products
that result in lower emissions; increased demand for generation and transmission of energy from alternative energy sources; and any anticipated
reputational risks resulting from operations or products that produce material greenhouse gas emissions and (3) material increased compliance
costs related to climate change. In addition, extreme weather and other natural disasters may become more intense or more 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