Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 43

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 they are subject to forfeiture based on the satisfaction of certain employment conditions. See
Note 11, Equity Incentive Plans & Stock Based Compensation, for further discussion.

See
Note 4, Fair Value Measurements, in this Report for the liability for contingent earnout liabilities carried at fair value for
the six months ended June 30, 2025 and 2024.

Fair
Value Assumptions – Contingent Earnout Liabilities

Assumptions
used in the fair value of the contingent earnout liabilities are described below.

 Schedule
of Fair Value Assumptions Contingent Earnout Liabilities

    As of 
June 30, 2025  
    As of 
December 31, 2024 
  
    Current stock price 
    $7.20  
    $10.20 
  
    Expected volatility 
     161.2% 
     161.2%
  
    Risk-free interest rate 
     4.2% 
     4.2%
  
    Dividend yield 
     —% 
     —%
  
    Business combination measurement input 
     —% 
     —%

    Expected Term (years) 
     1.25  
     1.75 

Expected
volatility: The expected volatility was derived from the implied volatility of the Company’s publicly traded common stock.

Risk-free
interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S.
Treasury notes with maturities corresponding to the expected term of the Earnout Shares.

    23

Expected
dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its
common stock.

Expected
term: The expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is determined
using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the Earnout Shares.

Note
11. Equity Incentive Plans and Stock-Based Compensation

As
of June 30, 2025, the Company had a remaining allocated reserve of 0 shares of its common
stock for issuance under its 2021 EIP, which provides for the granting of stock options, RSUs and stock appreciation rights to employees,
directors, and consultants of the Company. As of June 30,