Company: VLDXW
Filing Date: 2025-06-25
Form Type: DRS
Source: 0001641172-25-016496
Chunk: 247

Company: Velo3D, Inc.
Filing Date: 2025-06-25
Form: DRS
Chunk 247
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 employment conditions. See Note 11, Equity Incentive Plans & Stock Based Compensation, for further discussion.

The estimated fair value of the contingent earnout liabilities at the Closing Date was $120.8 million based on a Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the Earnout Period using the most reliable information available. The change in fair value of contingent earnout liabilities are recognized in the consolidated statement of operations and comprehensive income (loss).

The rollforward for the contingent earnout liabilities was as follows:

|                                |     | December       
 31,            
 2024           
 (In thousands) |        |   |     | 2023 |         |   |
|:-------------------------------|:----|:---------------|-------:|:--|:----|:-----|--------:|:--|
| Beginning Balance              |     | $              |  1,456 |   |     | $    |  17,414 |   |
| Change in fair value of        
 contingent earnout liabilities |     |                | (1,445 | ) |     |      | (15,958 | ) |
| Ending Balance                 |     | $              |     11 |   |     | $    |   1,456 |   |

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

|                         |     |   |       As 
       of 
 December 
 31, 2024 |   |     |   |       As 
       of 
 December 
 31, 2023 |   |
|:------------------------|:----|:--|---------:|:--|:----|:--|---------:|:--|
| Current stock price     |     | $ |     0.68 |   |     | $ |    14.00 |   |
| Expected volatility     |     |   |    161.2 | % |     |   |    105.0 | % |
| Risk-free interest rate |     |   |      4.2 | % |     |   |      4.1 | % |
| Dividend yield          |     |   |        — | % |     |   |        — | % |
| Expected Term (years)   |     |   |     1.75 |   |     |   |     2.75 |   |

Expected volatility: The expected volatility was derived from