Company: VLDXW
Filing Date: 2025-08-20
Form Type: 424B4
Source: 0001641172-25-024892
Chunk: 98

Company: Velo3D, Inc.
Filing Date: 2025-08-20
Form: 424B4
Chunk 98
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 audited consolidated financial statements included elsewhere in this prospectus).

Gain on Fair Value of Warrants

The change in fair value of warrants resulted
in a gain of $32.1 million, and $2.3 million for the years ended December 31, 2024 and 2023, respectively, and were related to the non-cash
fair value change of the warrant liabilities.

Gain on Fair value of Contingent Earnout Liabilities

The change in fair value of the contingent
earnout liability was a gain of $1.4 million and $16.0 million for the year ended December 31, 2024 and 2023, respectively, and were
related to the non-cash fair value change of the contingent earnout liabilities.

Loss on Debt Extinguishment

The loss on debt extinguishment was $4.9 million
and $19.5 million for the years ended December 31, 2024 and 2023, respectively, and was related to a third note amendment to the Secured
Notes entered into in July 2024 in connetion with the warrant issuance, slightly offset by a gain recorded on the December 2024 Exchange.

Other Income (Expense), Net

Other income (expense), net was $(3.6) million
and $0.5 million for the years ended December 31, 2024 and 2023, respectively.

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Income Taxes

No provision for federal and state income
taxes was recorded because we incurred income tax losses for the years ended December 31, 2024 and 2023 and maintained a full valuation
allowance on the deferred tax assets as of December 31, 2024 and 2023.

We will continue to review our conclusions
about the appropriate amount of the valuation allowance on a quarterly basis. If we were to generate profits in 2024 and beyond, the
U.S. valuation allowance position could be reversed in the foreseeable future. We expect a benefit to be recorded in the period the valuation
allowance reversal is recorded and a higher effective tax rate in periods following the valuation allowance reversal.

Liquidity and Capital Resources

As of June 30, 2025, we had approximately
$0.9 million in cash and short-term investments and $5.4 million in accounts receivable. As of December 31, 2024 and 2023, we had $1.2
million and $31.1 million in