Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 30

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 interest
at the same rate until paid. The outstanding principal amount of the February Note is convertible at the option of the holder upon the
occurrence of the Company’s successful listing of shares of its common stock on a national securities exchange or the occurrence
and during the continuation of an Event of Default, into shares of the Company’s common stock, at a fixed conversion price of $1.00 per
share. During the three months ended June 30, 2025, the Company incurred total interest expense related to the February Note 1st tranche
and February Note 2nd tranche of $0.4 million and $0.4 million, respectively, which is included in the carrying value in the above table.
During the six months ended June 30, 2025, the Company incurred total interest expense related to the February Note 1st tranche and February
Note 2nd tranche of $0.6 million and $0.4 million, respectively, which is included in the carrying value in the above table.

    16

Secured
Notes

The
Secured Notes bear interest at 6.00% per annum, payable quarterly in cash on January 1, April 1, July 1 and October 1 of each year, and
will mature on August 1, 2026. When the Company repays principal on the Secured Notes pursuant to the terms of the Secured Notes, it
will be required to pay 120% of the principal amount repaid (the “Repayment Price”) plus accrued and unpaid interest.

The
Secured Notes include terms that provide Arrayed seniority over other unsecured obligations in any settlement negotiations in the
event of liquidation. Additionally, the Secured Notes contain redemption features in the event of default or a fundamental change in
control that would make the Secured Notes immediately callable at a predetermined rate as described in the Secured Notes. The redemption
features are settled in cash.

As
of June 30, 2025, the unamortized discount was $0.2 million, which includes the difference between the principal and the Repayment Price.
For the three and six months ended June 30, 2025, the Company incurred less than $0.1 million and $0.1 million in interest expense, respectively,
related to the Secured Notes. The effective interest rate was 8.7% for the three and six months ended June 30, 2025