Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 271

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 271
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, and reports its financial
results as a single reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief
Executive Officer, who reviews financial information presented on an entity wide basis for purposes of making operating decisions,
assessing financial performance, and allocating resources.

Specifically, our CODM uses consolidated net
income to measure segment profit or loss, allocate resources of the Company as a whole, including investing in future development efforts,
customer retention and acquisition, and assessing performance. Further, the CODM reviews and utilizes functional expenses (cost of revenues,
sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s
operations. Other segment items included in condensed consolidated net income are interest income, other expense, net and the provision
for (benefit from) income taxes, which are reflected in the unaudited condensed consolidated statements of comprehensive income (loss).

Equipment Subject to Operating Lease

We
have updated certain naming conventions within our condensed consolidated interim financial statement descriptions to better reflect
the nature of our leases. The line item previously labeled “Equipment on lease, net” has been renamed to “Equipment
subject to operating lease, net”. Additionally, the related note disclosure has been revised to separately present (i) “Equipment
on Lease”, and (ii) “Equipment available on lease”. These changes are intended to improve clarity and more accurately
represent the composition and status of our equipment subject to operating lease.

For
more information, see Note 7, Equipment Subject to Operating Lease, Net, in the notes of the unaudited condensed consolidated
interim financial statements included elsewhere in this Quarterly Report.

Our
3D printers subject to operating leases are classified using the following criteria:

|                                                                                                   |     | Equipment on Lease         |     | Equipment Available for Lease        |
| Revenue generation – under contract or not under contract but held for potential                  
 redeployment to existing or new customers                                                         |     | Yes (lease income active)  |     | No (not on active lease)             |
| Physical location – remains in a condition, location, and business context rendering it suitable  
 for future lease arrangements                                                                     |     | At customer site           |     | At customer site, idle, or warehouse |
| Intended use – for third party customers and not for internal usage                               |     | On Lease                   |     | Available for Lease                  |
| Depreciation – the lesser of the useful life of the equipment or the contract period and annually