Company: VLDXW
Filing Date: 2025-06-25
Form Type: DRS
Source: 0001641172-25-016496
Chunk: 115

Company: Velo3D, Inc.
Filing Date: 2025-06-25
Form: DRS
Chunk 115
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 need for support structures.                                                                |
| ● | Sapphire                                                                                    
 metal AM printers produce the part using our proprietary L-PBF technology. Our technology   
 produces metal parts by fusing many thousands of very thin layers of metal powder with a    
 precisely controlled laser beam in a sophisticated software defined sequence (or “recipe”)  
 prescribed by our Flow software.                                                            |
| ● | Assure                                                                                      
 quality control software validates the product made by Sapphire printers to confirm that    
 each layer is made to the specifications required by the original design.                   |
| ● | Intelligent                                                                                 
 Fusion is the underlying manufacturing process that binds software and hardware together    
 into a complete manufacturing solution that produces repeatable outcomes across different   
 family of Sapphire systems.                                                                 |

Legacy AM technologies often rely on internal supports to prevent deformation of the metal part during the 3D printing process. These supports inhibit the production of parts with complex internal geometries, which are often required in high-performance applications, because there is limited or no access to remove them after production. Our technological advances enable our Sapphire family of systems to print metal parts that significantly reduce and often eliminate the need for internal supports, which enables our customers to produce designs that would otherwise be infeasible to make with conventional AM technology.

We sell our fully integrated hardware and software AM solutions through two types of transaction models: 3D Printer sale transactions and Recurring Payment transactions. Support services are included with both a 3D Printer sale transaction and a Recurring Payment transaction. A subsequent Extended Support Agreement is available for renewal after the initial contract period based on the then-fair value of the service, which is paid for separately.

Recurring Payment transactions are our leased 3D printer transactions. Under the Recurring Payment 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 certain cases the lease term is longer. The variable payments are recognized when the event determining the amount of variable consideration to be paid occurs.

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<div align='center'>Confidential Treatment Requested by Velo3D, Inc.

Pursuant to 17 CFR 200.83</div>

We shipped our first Sapphire XC 1MZ system at the end of 2022, one year after the Sapphire XC launch at the end of 2021, and we shipped our first Sapphire system at the end of 2018