Company: VLDXW
Filing Date: 2025-06-25
Form Type: DRS
Source: 0001641172-25-016496
Chunk: 84

Company: Velo3D, Inc.
Filing Date: 2025-06-25
Form: DRS
Chunk 84
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2025 was primarily attributable to the lower cost associated with system revenue during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Our gross profit and gross margin are influenced by a number of factors, including:

| ● | Product                                                                                     
 mix of Sapphire, and Sapphire XC systems;                                                   |
| ● | Average                                                                                     
 selling prices for our systems;                                                             |
| ● | Trends                                                                                      
 in materials and shipping costs;                                                            |
| ● | Production                                                                                  
 volumes that may impact factory overhead absorption;                                        |
| ● | System                                                                                      
 reliability performance; and                                                                |
| ● | Impact                                                                                      
 of product mix changes, including new product introductions, and other factors, on our Cost 
 of Support Services.                                                                        |

Due to the aforementioned trends in customer orders and component costs, our gross profit and gross margin have been and will continue to be negatively impacted until our financial conditions improve.

Research and Development Expenses

Research and development expenses were $1.2 million and $5.0 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $3.8 million. The decrease in research and development expenses was driven by a $2.8 million decrease in headcount, salaries and employee-related expenses, a decrease of $0.8 million in stock-based compensation, a decrease of $0.2 million in miscellaneous expenses.

We expect research and development costs to remain at similar levels for the remainder of 2025 due to the maturation of our Sapphire family of systems and certain investments in improvements current product line and to increase in the long term as we continue to invest in enhancing and advancing our portfolio of AM solutions.

Selling and Marketing Expenses

Selling and marketing expenses were $2.3 million and $4.8 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $2.5 million. The decrease was attributable to a decrease of $1.5 million in headcount, salaries and employee-related expenses, a $0.9 million decrease in stock-based compensation, and a $0.4 million decrease in marketing costs and initiatives.

We expect selling and marketing expenses to increase for the remainder of 2025 as we re-engage with key customers and drive RPS traction. During the remainder of 2025, we intend to continue our focus on certain markets that show strong attendance at additive manufacturing conferences to build product awareness