Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 228

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 228
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 discounts of $ 24.4million against the carrying value of the Secured Convertible Notes and amortizing the discounts over the term of the Secured Convertible Notes using the effective interest rate method. The $ 24.4million discount included $ 13.9million related to debt derivatives, $ 10.5million related to the Secured Convertible Notes maturity balance, with $ 4.7million amortized interest expense for the year ended December 31, 2023. The unamortized discount was $ 19.7million and was expensed within “Loss on debt extinguishment” upon the extinguishment and termination of the Secured Convertible Notes.

As of December 31, 2023, the Company had nooutstanding balance, nounamortized discount, or unamortized deferred loan fees due to the cancellation of the Secured Convertible Notes in connection with the issuance of the Secured Notes. During the year ended December 31, 2023, the Company had paid $ 1.9million in interest and incurred a total of $ 7.2million in interest expense related to the Secured Convertible Notes. The effective interest rate was 41.1%for the year ended December 31, 2023.

Secured Notes— On November 27, 2023, the Company entered into the Securities Exchange Agreement (the “Exchange Agreement”) with the Investors, pursuant to which the Company made a cash payment to the Investors of $ 16.3million to repay $ 12.5million of aggregate principal amount of the Secured Convertible Notes, together with $ 1.3million of accrued and unpaid interest. The remaining Secured Convertible Notes were exchanged for $ 57.5million aggregate principal amount of new senior secured notes due 2026 (the “Secured Notes”) and 666,667shares of Common Stock with a fair market value of $ 9.4million at issuance. The remaining Secured Convertible Notes maturity balance of $ 8.0million was recognized as a gain within “Loss on debt extinguishment” and was partially offset by $ 0.2million of financing costs paid to the Investors. The Secured Notes bore interest at 6.00%per annum, payable quarterly in cash on January 1, April 1, July 1 and October 1 of each year, commencing on January 1, 2024, and would mature on August 1,