Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 76

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 76
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 information technology costs, insurance, bad debt expenses and an
allocated portion of overhead costs, including equipment and depreciation and other general and administrative expenses.

Interest Expense

Interest expense primarily consists of interest
incurred under our outstanding debt and finance leases.

Gain (Loss) on Fair Value of Warrants

Gain (loss) on valuation of warrant liabilities
relates to the changes in the fair value of warrant liabilities which are subject to remeasurement at each balance sheet date.

Gain (Loss) on Fair value of Contingent Earnout Liabilities

Gain (loss) on valuation of contingent earnout
liabilities relates to the changes in fair value of the contingent earnout liabilities in connection with the earnout shares, which are
subject to remeasurement at each balance sheet date.

Loss on warrant cancellation

Loss on warrant cancellation relates to the
loss recognized in conjunction with the February 2025 Warrant Exchange Agreements.

Other Income (Expense), Net

Other income (expense), net includes interest
earned on our bank sweep account, gains and losses on disposals of fixed assets, transaction costs related to the warrant inducement
transaction and other miscellaneous income/expenses.

Income Taxes

No provision for federal and state income
taxes was recorded for any periods presented due to projected losses, and we maintained a full valuation allowance on the deferred tax
assets as of June 30, 2025 and 2024.

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, 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.

| 50 |

Results of Operations

Comparison of the Three Months Ended June 30, 2025 and 2024:

The following table summarizes our historical
results of operations for the periods presented:

| Revenue                                              |     | Three Months Ended June 30,            
 2025                                   
 (In thousands, except for percentages) |         |   |     | 2024 |         |   |     | Change |         |   |     | % |         |    |
|:-----------------------------------------------------|:----|:---------------------------------------|--------:|:--|:----|:-----|--------:|:--|:----|:-------|--------:|:--|:----|:--|