Company: VLDXW
Filing Date: 2025-08-07
Form Type: S-1
Source: 0001641172-25-022475
Chunk: 99

Company: Velo3D, Inc.
Filing Date: 2025-08-07
Form: S-1
Chunk 99
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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 cash, cash equivalents and short-term investments, respectively, and an accumulated deficit of $430.3 million
and $357.0 million, respectively. Our business requires substantial amounts of cash for operating activities, including salaries and
wages paid to our employees, component and sub-assembly purchases, general and administrative expenses, and others.

Our purchase commitments per terms and conditions
with suppliers and vendors are cancellable in whole or in part prior to shipment. Purchase commitments (purchase orders) of $4.4 million
for parts and assemblies are due upon receipt and will primarily be delivered throughout the remainder of 2025. If inventory is shipped,
we will accrue a liability under accrued expenses. We have no other commitments and contingencies, except for the operating leases and
the Secured Notes, the January Note, and the February Note. See Note 8, Leases, in the unaudited condensed consolidated interim financial
statements included elsewhere in this prospectus for further discussion.

During the six months ended June 30, 2025,
we experienced less revenue growth than expected due to our focus on high-value customers, resulting in a small decrease in system sales
as compared to the first quarter in 2025. As of June 30, 2025, we do not have sufficient working capital to meet our financial needs
for the twelve-month period following the filing date of these unaudited condensed consolidated interim financial statements. As such,
we believe that there is substantial doubt about our ability to continue as a going concern for the twelve-month period following the
issuance of these unaudited condensed consolidated interim financial statements. See Note 1 Description of Business and Basis of Presentation—Going Concern, Financial Condition and Liquidity and Capital Resources in the unaudited condensed consolidated interim financial statements