Company: VLDXW
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001641172-25-022448
Chunk: 17

Company: Velo3D, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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of support and options and are priced accordingly. One entitlement of our service contracts is our service engineers provide periodic
preventive maintenance visits to customer sites. Additionally, we provide training to our partners to enable them to also perform these
services. Another contract entitlement on certain printer models is proactive remote troubleshooting capability through the Company’s
integrated platform. From time to time, we also offer upgrade kits for certain of our printers that enable our existing customers to
take advantage of new or enhanced printer capabilities. In some cases, we have discontinued upgrade support and maintenance agreements
for certain of our older legacy printers.

Printers
and certain other products include a warranty that covers workmanship, software, and hardware components under which we provide maintenance
for periods up to one year. For these initial product warranties, estimated costs are accrued at the time of the sale of the product.
These cost estimates are established using historical information regarding the nature, frequency and average cost of claims for each
type of printer or other product, as well as assumptions about future activity and events. Revisions to expense accruals are made as
necessary based on changes in these historical and future factors.

Information by Segment and Geography

The Company manages its
operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financial
results as a single reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief
Executive Officer, who reviews financial information presented on an entity wide basis for purposes of making operating decisions,
assessing financial performance, and allocating resources.

Specifically, our CODM uses consolidated net
income to measure segment profit or loss, allocate resources of the Company as a whole, including investing in future development efforts,
customer retention and acquisition, and assessing performance. Further, the CODM reviews and utilizes functional expenses (cost of revenues,
sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s
operations. Other segment items included in condensed consolidated net income are interest income, other expense, net and the provision
for (benefit from) income taxes, which are reflected in the unaudited condensed consolidated statements of comprehensive income (loss).

Equipment
Subject to Operating Lease

We
have updated certain naming conventions within our condensed consolidated interim financial statement descriptions to better reflect
the nature of our leases. The line item previously labeled “Equipment on lease, net” has been renamed to “Equipment
subject to operating lease, net”. Additionally