# EDGAR Filing Document

**Accession Number:** 0001825079
**File Stem:** 0001193125-25-277471
**Filing Date:** 2025-11
**Character Count:** 246862
**Document Hash:** 8b42a5e23f1bd9ceaf50c16798137b5e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-277471.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001193125-25-277471

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 92

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Velo3D, Inc.
- **CENTRAL INDEX KEY:** 0001825079
- **STANDARD INDUSTRIAL CLASSIFICATION:** SPECIAL INDUSTRY MACHINERY, NEC [3559]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39757
- **FILM NUMBER:** 251472456

**BUSINESS ADDRESS:**
- **STREET 1:** 2710 LAKEVIEW CT
- **CITY:** FREMONT
- **STATE:** CA
- **ZIP:** 94538
- **BUSINESS PHONE:** (408) 610-3915

**MAIL ADDRESS:**
- **STREET 1:** 2710 LAKEVIEW CT
- **CITY:** FREMONT
- **STATE:** CA
- **ZIP:** 94538

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** JAWS Spitfire Acquisition Corp
- **DATE OF NAME CHANGE:** 20200921

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Spitfire Acquisition Corp
- **DATE OF NAME CHANGE:** 20200916

?xml version='1.0' encoding='ASCII'? 10-Q

------

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ____________________________

**FORM** 10-Q

_____________________________

---

| | |
|:---|:---|
| **(Mark One)** | **(Mark One)** |
| ☒ | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**For the quarterly period ended** **September 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ____ to ____**

**Commission File Number:** 001-39757

**______________________________**

Velo3D, Inc.

**______________________________**

**Exact name of registrant as specified in its charter**

---

| | |
|:---|:---|
| Delaware | 98-1556965 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 2710 Lakeview Court**,** Fremont**,** CA | 94538 |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**(**408**)** 610-3915

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.00001 par value per share | VELO | The Nasdaq Capital Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of November 3, 2025, the registrant had 20,912,172 shares of common stock, $0.00001 per share outstanding.

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [**<u>Part I. Financial Information</u>**](#part_i_financial_information) | [**<u>Part I. Financial Information</u>**](#part_i_financial_information) | [**<u>Part I. Financial Information</u>**](#part_i_financial_information) |
| Item 1. | [<u>Financial Statements (unaudited)</u>](#item_1_financial_statements) | 3 |
|  | [<u>Condensed Consolidated Balance Sheets (unaudited)</u>](#consolidated_balance_sheets) | 3 |
|  | [<u>Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)</u>](#operations_and_comprehensive_income) | 4 |
|  | [<u>Condensed Consolidated Statements of Cash Flows (unaudited)</u>](#condensed_consolidated_cash_flows) | 5 |
|  | [<u>Condensed Consolidated Statements of Stockholders' Equity (unaudited)</u>](#statements_of_stockholders_equity) | 7 |
|  | [<u>Notes to Condensed Consolidated Interim Financial Statements (unaudited)</u>](#notes_condensed_consolidated_financi) | 8 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | 34 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3_quantitative_and_qualitative_disc) | 51 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 51 |
| [**<u>Part II. Other Information</u>**](#part_ii_other_informatio) | [**<u>Part II. Other Information</u>**](#part_ii_other_informatio) | [**<u>Part II. Other Information</u>**](#part_ii_other_informatio) |
| Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 53 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 53 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_of_equity) | 57 |
| Item 3. | [<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 57 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 57 |
| Item 5. | [<u>Other Information</u>](#item_5_other_information) | 57 |
| Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 58 |
| [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | 59 |

---

------

**Explanatory Note** 

Unless otherwise stated in this Quarterly Report or the context otherwise requires, references to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•"*Legacy Velo3D*" refer to Velo3D, Inc., a Delaware corporation, prior to the closing of the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•"*Merger*" refer to the merger pursuant to that certain Business Combination Agreement, dated as of March 22, 2021, by and among JAWS Spitfire Acquisition Corporation, a Cayman Islands exempted company ("*JAWS Spitfire*"), Legacy Velo3D and Spitfire Merger Sub, Inc., a Delaware corporation ("*Merger Sub*"), as amended by Amendment No. 1 to the Business Combination Agreement, dated as of July 20, 2021 (the "*Business Combination Agreement*"), whereby Merger Sub merged with and into Legacy Velo3D, with Legacy Velo3D surviving the merger as a wholly-owned subsidiary of the Company, on September 29, 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•"*Velo3D*" refer to Velo3D, Inc., a Delaware corporation (f/k/a JAWS Spitfire Acquisition Corporation, prior to its domestication), and its consolidated subsidiaries following the closing of the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•"*we*," "*us*," and "*our*" or the "*Company*" refer to Velo3D following the closing of the Merger and to Legacy Velo3D prior to the closing of the Merger; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•"*2024 Form 10-K*" refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the "*SEC*") on March 31, 2025.

"*Velo*", "*Velo3D*", "*Sapphire*" and "*Intelligent Fusion*" are registered trademarks of Velo3D, Inc; and "*Without Compromise*", "*Flow*" and "*Assure*" are trademarks of Velo3D, Inc.

***Cautionary Note Regarding Forward-looking Statements***

Certain statements in this Quarterly Report may constitute "forward-looking statements" for purposes of the federal securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future, our strategic realignment and related initiatives, including reducing operating costs, our market opportunities, including selling and marketing expenses, our production plans and timing, uses of proceeds from offerings, our research and development plans, and our future financial performance. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "can," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this Quarterly Report involve significant risks and uncertainties, and a number of factors, both foreseen and unforeseen, could cause actual results to differ materially from our current expectations. The factors that may affect our results include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to generate positive cash flow and liquidity sufficient to meet our operating needs and satisfy our obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our market opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to execute our business plan, which may be affected by, among other things, competition and our ability to grow and manage growth profitably, raise financing in the near-term, fund our operating expenses, maintain relationships with customers and retain our key employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in applicable laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the inability to develop and maintain effective internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to service and comply with the terms of our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise financing in the near-term and in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our success in retaining or recruiting, or changes required in, our officers, key employees or directors;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•whether our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements and our ability to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential for our business development efforts to maximize the potential value of our portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory developments in the United States and foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully implement our strategic realignment and related initiatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our capital requirements and needs for additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•macroeconomic conditions, including economic downturns or recessions, inflation, interest rate fluctuations and supply chain shortages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential impacts of government shutdowns on our operations, supply chain, customer relationships, and ability to obtain regulatory approvals and export licenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other factors detailed under the section entitled "Risk Factors" herein and in Item 1A of our 2024 Form 10-K and Item 1A of each of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025.

The forward-looking statements contained in this Quarterly Report are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described herein under the section entitled "*Risk Factors*" and in Item 1A of our 2024 Form 10-K and Item 1A of each of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025.. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Some of these risks and uncertainties may in the future be amplified by the impact of other macroeconomic factors and there may be additional risks that we currently consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

------

**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**Velo3D, Inc.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(In thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $11842 | $1212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 6672 | 3723 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 35386 | 49953 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | 3438 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1829 | 2336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 59167 | 57724 |
| Property and equipment, net | 12419 | 14270 |
| Equipment subject to operating lease, net | 3020 | 3673 |
| Other assets | 19293 | 13513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $93899 | $89180 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $11341 | $18538 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 12684 | 3511 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt — current portion | 5314 | 5666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 8228 | 10285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 37567 | 38000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt — less current portion | 17702 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent earnout liabilities | 11 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrant liabilities | 13 | 2167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 8450 | 9338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 63743 | 49516 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| Common stock, $0.00001 par value — 500,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively, 20,912,172 and 12,993,962 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 5 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 511477 | 469994 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (481326) | (430334) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 30156 | 39664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $93899 | $89180 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

------

**Velo3D, Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Unaudited)**

**(In thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  |  | **As Revised** |  | **As Revised** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | $11993 | $1049 | $31598 | $17388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment |  | 192 | 70 | 954 |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 1351 | 2006 | 4500 | 5035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 296 | 5000 | 364 | 5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 13640 | 8247 | 36532 | 28377 |
| Cost of revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | 11855 | 2224 | 33389 | 22362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment |  | 195 | 12 | 742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 1352 | 1757 | 3589 | 6914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 13207 | 4176 | 36990 | 30018 |
| Gross profit (loss) | 433 | 4071 | (458) | (1641) |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 3042 | 4438 | 8162 | 14026 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 1984 | 3099 | 4815 | 12181 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 6037 | 15410 | 21205 | 32998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 11063 | 22947 | 34182 | 59205 |
| Loss from operations | (10630) | (18876) | (34640) | (60846) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1198) | (3560) | (3840) | (12920) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on fair value of warrants |  | 9221 | (1044) | 31911 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value of contingent earnout liabilities |  | 58 |  | 1445 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on warrant cancellation |  |  | (11357) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | (7525) |  | (7525) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (11) | (2443) | (28) | (3676) |
| Loss before income taxes | (11839) | (23125) | (50909) | (51611) |
| (Provision) benefit for income taxes | 14 |  | (83) |  |
| Net loss | $(11825) | $(23125) | $(50992) | $(51611) |
| Net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.69) | $(37.54) | $(3.43) | $(91.82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.69) | $(37.54) | $(3.43) | $(91.82) |
| Shares used in computing net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 17124361 | 616030 | 14868372 | 562087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 17124361 | 616030 | 14868372 | 562087 |
| Net loss | $(11825) | $(23125) | $(50992) | $(51611) |
| Net unrealized holding gain on available-for-sale investments |  | 2 |  | 96 |
| Total comprehensive loss | $(11825) | $(23123) | $(50992) | $(51515) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

------

**Velo3D, Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
|  |  | **As Revised** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(50992) | $(51611) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2492 | 3944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount and deferred financing costs | 3700 | 7283 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 9106 | 13041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on fair value of warrants | 1044 | (31910) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value of contingent earnout liabilities |  | (1445) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on warrant cancellation | 11357 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | 7525 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash cost of issuance of common stock warrants on BEPO Offering |  | 7951 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 37 | 6756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale/disposal of fixed assets | 24 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized loss on available for sale securities |  | 23 |
| Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (2986) | (7386) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 11333 | 1704 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (2938) | 3478 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 507 | 2226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (5890) | 3618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1762) | 1023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 8323 | (1133) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | (2057) | 6367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | (888) | (1919) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (19590) | (30465) |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (2112) | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of available-for-sale securities |  | 3172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturity of available-for-sale investments |  | 3500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (2112) | 6644 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from secured convertible notes | 15000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross proceeds from August 2025 Offering | 20125 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for issuance cost related to August 2025 Offering | (2303) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross proceeds from BEPO Offering |  | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for issuance cost related to the BEPO Offering |  | (1300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross proceeds from capital raise, August Warrant Inducement |  | 1693 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of secured notes | (499) | (11750) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock upon exercise of stock options |  | 315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 32323 | 958 |
| Effect of exchange rate changes on cash and cash equivalents | 4 | 6 |
| Net change in cash and cash equivalents | 10625 | (22857) |
| Cash and cash equivalents and restricted cash at beginning of period | 1840 | 25294 |
| Cash and cash equivalents and restricted cash at end of period | $12465 | $2437 |
| **Supplemental disclosure of cash flow information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $850 | $1181 |
| **Supplemental schedule of non-cash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unpaid liabilities related to property and equipment | 94 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer between inventory and property and equipment | 1645 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment for lease to customers returned to inventory | 653 | 2234 |

---

------

The following table provides a reconciliation of cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows (unaudited):

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Cash and cash equivalents | $11842 | $1637 |
| Restricted cash (Other assets) | 623 | 800 |
| Total cash and cash equivalents and restricted cash | $12465 | $2437 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

------

**Velo3D, Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

**(In thousands, except share data)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Other** |  | **Total** |
|  | **Shares** | **Amount** | **Paid-In<br>Capital** | **Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Stockholders'<br>Equity** |
| **Balance as of June 30, 2024** | **574081** | $**2** | $**437642** | $**(2)** | $**(385523)** | $**52119** |
| Issuance of common stock upon exercise of stock<br> options and release of restricted stock units | 19572 |  |  |  |  |  |
| Stock-based compensation |  |  | 3707 |  |  | 3707 |
| Issuance of common stock in connection with BEPO Offering, net | 49524 |  | 1717 |  |  | 1717 |
| Net loss |  |  |  |  | (23125) | (23125) |
| Other comprehensive income |  |  |  | 2 |  | 2 |
| **Balance as of September 30, 2024** | **643177** | $**2** | $**443066** | $**—** | $**(408648)** | $**34420** |
| **Balance as of June 30, 2025** | **14067416** | $**4** | $**491032** | $**—** | $**(469501)** | $**21535** |
| Issuance of common stock upon vesting of RSUs | 112153 |  |  |  |  |  |
| Stock-based compensation |  |  | 2623 |  |  | 2623 |
| Issuance of common stock in connection with August 2025 Offering, net | 6708333 | 1 | 17822 |  |  | 17823 |
| Reclassifications and adjustments due to rounding impact from reverse stock split for fractional shares | 24270 |  |  |  |  |  |
| Net loss |  |  |  |  | (11825) | (11825) |
| **Balance as of September 30, 2025** | **20912172** | $**5** | $**511477** | $**—** | $**(481326)** | $**30156** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional** | **Accumulated<br>Other** |  | **Total** |
|  | **Shares** | **Amount** | **Paid-In<br>Capital** | **Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Stockholders'<br>Equity** |
| **Balance as of December 31, 2023** | **492223** | $**2** | $**425471** | $**(96)** | $**(357037)** | $**68340** |
| Issuance of common stock upon exercise of stock<br> options and release of restricted stock units | 28181 |  | 315 |  |  | 315 |
| Stock-based compensation |  |  | 13041 |  |  | 13041 |
| Issuance of common stock in connection with BEPO Offering, net | 114831 |  | 4239 |  |  | 4239 |
| Net loss |  |  |  |  | (51611) | (51611) |
| Reclassifications and adjustments due to rounding impact from reverse stock split for fractional shares | 7942 |  |  |  |  |  |
| Other comprehensive income |  |  |  | 96 |  | 96 |
| **Balance as of September 30, 2024** | **643177** | $**2** | $**443066** | $**—** | $**(408648)** | $**34420** |
| **Balance as of December 31, 2024** | **12993962** | $**4** | $**469994** | $**—** | $**(430334)** | $**39664** |
| Issuance of common stock upon vesting of RSUs | 195448 |  |  |  |  |  |
| Stock-based compensation |  |  | 9106 |  |  | 9106 |
| Issuance of common stock in connection with August 2025 Offering, net | 6708333 | 1 | 17822 |  |  | 17823 |
| Issuance of common stock in connection with warrant cancellation | 990159 |  | 14555 |  |  | 14555 |
| Reclassifications and adjustments due to rounding impact from reverse stock split for fractional shares | 24270 |  |  |  |  |  |
| Net loss |  |  |  |  | (50992) | (50992) |
| **Balance as of September 30, 2025** | **20912172** | $**5** | $**511477** | $**—** | $**(481326)** | $**30156** |

---

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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**Velo3D, Inc.**

**Notes to Condensed Consolidated Interim Financial Statements**

**(Unaudited)** 

**Note 1. Description of Business and Basis of Presentation**

Velo3D, Inc., a Delaware corporation ("*Velo3D*"), formerly known as JAWS Spitfire Acquisition Corporation ("*JAWS Spitfire*"), produces metal additive three dimensional printers ("*3D Printers*") which enable the production of components for space rockets, jet engines, fuel delivery systems and other high value metal parts, which it sells or leases to customers for use in their businesses. The Company also provides support services ("*Support Services*") for an incremental fee.

Velo3D's subsidiaries are Velo3D US, Inc., (formerly known as Velo3D, Inc. ("*Legacy Velo3D*"), founded in June 2014 as a Delaware corporation headquartered in Campbell, California), Velo3D, B.V., (a sales and marketing office located in the Netherlands) and Velo3D, GmbH, (a sales and marketing office located in Germany). The first commercially developed 3D Printer was delivered in the fourth quarter of 2018.

On September 29, 2021 (the "*Closing Date*" or the "*Reverse Recapitalization Date*"), JAWS Spitfire completed the previously announced merger with Legacy Velo3D, with Legacy Velo3D surviving as a wholly-owned subsidiary of JAWS Spitfire (the "*Merger*" or the "*Reverse Recapitalization*"). In connection with the Merger, JAWS Spitfire was renamed "Velo3D, Inc.", and Legacy Velo3D was renamed "Velo3D US, Inc."

The shares and net loss per share attributable to common stockholders, basic and diluted, prior to the Merger, have been retroactively restated as shares reflecting the exchange ratio (the "*Exchange Ratio*") established in the Merger (0.8149 shares of Velo3D common stock for 1 share of Legacy Velo3D common stock, par value $0.00001 (the "c*ommon stock*") before the 1-for-35 reverse stock split in 2024 and the 1-for-15 reverse stock split in 2025. All fractional shares were rounded.

Unless otherwise stated herein or unless the context otherwise requires, references in these notes to the "Company" refer to (i) Legacy Velo3D prior to the consummation of the Merger; and (ii) Velo3D and its consolidated subsidiaries following the consummation of the Merger.

***Basis of Presentation***

The unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the requirements of the U.S. Securities and Exchange Commission (the "SEC") for interim financial reporting. Intercompany balances and transactions have been eliminated in consolidation. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Form 10-K") and the related notes, which provide a more complete discussion of the Company's accounting policies and certain other information. The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements have been prepared on the same basis as the Company's annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company's consolidated financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ended December 31, 2025, or for any other interim period or for any other future year.

On June 10, 2024, the stockholders of the Company approved an amendment to the Company's Certificate of Incorporation to effect a reverse stock split of the issued and outstanding shares of the Company's common stock, par value $0.00001 per share, at a ratio ranging from 1-for-5 and 1-for-50, with the exact ratio to be set within that range by the Company's board of directors (the "Board"). On June 10, 2024, the Board approved the reverse stock split at a ratio of 1-for-35 (the "2024 Reverse Stock Split"). On June 12, 2024, the Company filed a Certificate of Amendment to the Company's Certificate of Incorporation with the Secretary of State of the State of Delaware to effect the 2024 Reverse Stock Split, effective as of June 13, 2024.

As a result of the 2024 Reverse Stock Split, every 35 shares of the Company's common stock were automatically reclassified and converted into one issued and outstanding share of common stock. No fractional shares were issued in connection with the Reverse Stock Split. Any fractional shares resulting from the 2024 Reverse Stock Split were rounded up to the nearest whole share. The par value of the Company's common stock was not adjusted as a result of the 2024 Reverse Stock Split. All of the Company's share numbers, per share amounts, and related stockholders' equity (deficit) balances presented herein have been retroactively adjusted to

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reflect the 2024 Reverse Stock Split. In addition, the exercise prices, conversion rates and other terms of the Company's securities that adjusted pursuant to their terms as a result of the 2024 Reverse Stock Split have been presented after giving effect to such adjustments.

On June 27, 2025, the stockholders of the Company, approved an amendment to the Company's Certificate of Incorporation, as amended, to effect a reverse stock split of the issued and outstanding shares of the Company's common stock, par value $0.00001 per share, at a ratio ranging from 1-for-5 and 1-for-50, with the exact ratio to be set within that range by the Company's Board. On July 18, 2025, the Board approved the reverse stock split at a ratio of 1-for-15 (the "2025 Reverse Stock Split"). On July 25, 2025, the Company filed a Certificate of Amendment to the Company's Certificate of Incorporation, as amended with the Secretary of State of the State of Delaware to effect the 2025 Reverse Stock Split, effective as of July 28, 2025.

As a result of the 2025 Reverse Stock Split, every 15 shares of the Company's common stock were automatically reclassified and converted into one issued and outstanding share of common stock. No fractional shares were issued in connection with the 2025 Reverse Stock Split. Any fractional shares resulting from the 2025 Reverse Stock Split were rounded up to the nearest whole share. The par value of the Company's common stock was not adjusted as a result of the 2025 Reverse Stock Split nor did it change the total number of the Company's authorized shares of common stock. All of the Company's share numbers, per share amounts, and related stockholders' equity (deficit) balances presented herein have been retroactively adjusted to reflect the 2025 Reverse Stock Split. In addition, the exercise prices, conversion rates and other terms of the Company's securities that adjusted pursuant to their terms as a result of the 2025 Reverse Stock Split have been presented after giving effect to such adjustments.

***Delisting from the New York Stock Exchange ("NYSE"), Trading on Over-the Counter ("OTC") and Listing on Nasdaq Capital Market ("Nasdaq")***

On September 10, 2024, the Company received written notice from the NYSE that the NYSE had determined to commence proceedings to delist the Company's common stock and publicly traded warrants and that trading in such securities would be suspended immediately. On September 11, 2024, the Company commenced the trading of its common stock and warrants on the OTCQX Best Market. On August 19, 2025, the Company commenced trading of its common stock on the Nasdaq Capital Market under the ticker symbol "VELO".

***Going Concern, Financial Condition and Liquidity and Capital Resources***

The unaudited condensed consolidated interim financial statements have been prepared on the basis of continuity of operations, the realization of assets and satisfaction of liabilities in the ordinary course of business. The Company has incurred losses from operations and negative cash flows from operations in every year since inception and expects this to continue for the foreseeable future. As of September 30, 2025, the Company had an accumulated deficit of ($481.3) million and cash and cash equivalents on hand of approximately $11.8 million.

Management believes that substantial doubt exists about the Company's ability to continue as a going concern. As of the date of the issuance of these unaudited condensed consolidated interim financial statements, the Company does not have sufficient liquidity to meet its operating needs and satisfy its obligations for at least 12 months from the date of issuance of these unaudited condensed consolidated interim financial statements.

The Senior Secured Notes due 2025 (the "Secured Notes") were originally issued to High Trail Investments ON LLC and HB SPV I Master Sub LLC in 2023. On December 9, 2024, Arrayed Notes Acquisition Corp. ("Arrayed"), a subsidiary of Arrayed Additive, Inc., purchased the Senior Secured Note due 2025 (the "Senior Notes") from the original holders. On December 24, 2024, the Company and Arrayed entered into a debt for equity exchange transaction (the "December 2024 Exchange") where the Company issued 12,343,423 shares of the Company's common stock, in exchange for the cancellation of $22.4 million in principal amount of the Company's Secured Notes plus $0.4 million of accrued interest on the Notes. Arrayed continues to hold $5.0 million in principal amount of the Secured Notes, and as a result of the December 2024 Exchange, became the owner of approximately 95% of the Company's issued and outstanding common stock.

In December 2023, the Board of Directors commenced a strategic business review process to explore alternatives in order to maximize stockholder value. The Company's strategic review was concluded on December 24, 2024, at the close of the debt for equity exchange transaction.

On January 7, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $5,000,000 (the "January Note") to Thieneman Properties, LLC, an Indiana limited liability company. The January Note bears interest at a rate of 60.0% per annum and was initially payable in full on April 7, 2025 in the amount of $5,750,000 and if not paid on or prior to such date, will continue to accrue interest at the same rate until paid. The January Note may be prepaid in whole or in part at any time without penalty or premium and is convertible in the event of default into shares of the Company's common stock, at a fixed

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conversion price of $1.56 per share. On April 7, 2025, the Company made a payment of $750,000, covering the first three months of interest on the January Note. The Company continues to accrue interest on the principal amount of the January Note until such time it will be repaid.

On February 10, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $10,000,000 (the "February Note") to Thieneman Construction, Inc, an Indiana corporation, to be funded in two tranches of $5,000,000. The February Note bears interest at a rate of 30.0% per annum, is payable in full on the date that is six months from the date each such tranche was funded, in the amount of $5,750,000 and if not paid on or prior to such date, will continue to accrue interest at the same rate until paid. The first tranche ("February Note 1st tranche") and second tranche ("February Note 2nd tranche") were received by the Company on February 10, 2025 and March 20, 2025, respectively, which became due on August 10, 2025 and September 20, 2025, respectively. The outstanding principal amount of the February Note is convertible, upon the occurrence of the Company's successful listing of shares of its common stock on a national securities exchange or the occurrence and during the continuation of an event of default, into shares of the Company's common stock at a fixed conversion price of $15.00 per share. The January Note and February Note are referred to herein collectively as the ("Secured Convertible Notes)".

On August 19, 2025, Velo3D, Inc. (the "Company") entered into an underwriting agreement (the "Underwriting Agreement") with Lake Street Capital Markets, LLC, as representative of the several underwriters named therein (the "Representative"), relating to the public offering of 5,833,333 shares (the "Shares") of the Company's common stock, par value $0.00001 per share, at a purchase price per share of $3.00 (the "Offering Price"). Pursuant to the Underwriting Agreement, the Company also granted the Representative a 30-day option to purchase up to an additional 875,000 shares of common stock at the Offering Price, less any underwriting discounts and commissions, which was exercised in full.

The "August 2025 Offering" closed on August 20, 2025. Gross proceeds of $20.1 million was received from the August 2025 Offering of 5,833,333 shares of the Company's common stock ($17.5 million) and the exercise of the Representative option to purchase 875,000 shares of common stock. Net proceeds from the offering were approximately $17.8 million after deducting $2.3 million in the underwriting discounts and commissions, and other offering expenses payable by the Company for legal and audit services. The Company intends to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes.

The Company will need to engage in additional financings to fund its operations and satisfy its obligations in the near-term. The Company is in discussions with multiple financing sources to attempt to secure additional financing. There are no assurances that the Company will be able to obtain financing on acceptable terms, or at all, to provide the necessary interim funding to continue its operations and satisfy its obligations for at least 12 months from the date of issuance of these unaudited condensed consolidated interim financial statements.

**Note 2. Summary of Significant Accounting Policies**

For a detailed discussion about the Company's significant accounting policies and for further information on significant accounting updates adopted in the prior year, see Note 2, *Summary of Significant Accounting Policies*, to the audited consolidated financial statements in the 2024 Form 10-K. During the nine months ended September 30, 2025, there were no significant updates to the Company's significant accounting policies other than as described below.

***Recently Adopted Accounting Pronouncements***

In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU No. 2023-07, Segment Reporting (ASC Topic 280): *Improvements to Reportable Segment Disclosures*, *which requires public entities to disclose information about their reportable segments' significant expenses and other segment items on an interim and annual basis*. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC Topic 280 on an interim and annual basis. The Company adopted ASU 2023-07 during the year ended December 31, 2024. The Company applied ASU 2023-07 retrospectively to the earliest period presented.

***Recently Issued Accounting Pronouncements***

In September 2025, the FASB issued ASU No. 2025-07, which (1) refines the scope of the guidance on derivatives in ASC Topic 815 and (2) clarifies the guidance on share-based payments from a customer in ASC Topic 606. The ASU is intended to address concerns about the application of derivative accounting to contracts that have features based on the operations or activities of one of the parties to the contract and to reduce diversity in the accounting for share-based payments in revenue contracts. ASU Topic 2025-07 is effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those

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annual reporting periods. Early adoption of the standard is permitted in an interim or annual reporting period for which financial statements have not been issued or made available for issuance. If an entity elects to early adopt the standard in an interim period, the entity must apply the standard as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of this accounting standard update on the Company's condensed consolidated interim financial statements and related disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Accounting for and Disclosure of Software Costs. The new standard modernizes the guidance to reflect the software development approaches currently being used by removing all references to "development stages" from ASC Topic 350-40 *Intangibles—Goodwill and Other - Internal-Use Software*. Under ASU 2025-06, only the following criteria in ASC Topic 350-40-25-12(b) and (c) must be met for entities to begin capitalizing software costs: (i) management, with the relevant authority, implicitly or explicitly authorizes and commits to funding a computer software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the "probable-to-complete recognition threshold"). This standard is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities may apply the guidance prospectively, retrospectively, or via a modified prospective transition method. The Company is currently evaluating the impact of this accounting standard update on the Company's condensed consolidated interim financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)*. This update contains amendments that require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments in this update are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The expected impact would only be to the financial statement disclosures. The Company is currently evaluating the impact of this accounting standard update on the Company's condensed consolidated interim financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (ASC Topic 740): *Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures*. Two primary enhancements related to this ASU include disaggregating existing income tax disclosures relating to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on the Company's condensed consolidated interim financial statements and related disclosures.

***3D Printer financial statement line item changed to "3D Printer and Parts"***

3D Printer revenue and 3D Printer Cost of revenues have historically included systems and printed parts, and consumables. The name change from Revenue - 3D Printer to "3D Printer and parts" and Cost of Revenue - 3D Printer to "3D Printer and parts" clarifies where the Rapid Production Solutions printed parts revenue and cost of revenue are presented.

***Licensing Revenue***

Our revenue is partially derived from the licensing of computer software products and from their related maintenance contracts. We enter into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns.

Revenue from perpetual licenses is classified as software license revenue. Software license revenue is recognized up front upon delivery of the licensed product and/or the utility that enables the customer to access authorization keys, provided that an enforceable contract has been received. Typically, our perpetual licenses are sold with post-contract support ("PCS"), which includes unspecified technical enhancements and customer support. We allocate value in bundled perpetual and PCS arrangements based on the standalone selling prices of the perpetual license and PCS. Revenue from PCS is classified as maintenance revenue and is recognized either (i) ratably over the term of the contract or (ii) as the customer support is used at a specified hourly rate, as we satisfy the PCS performance obligation.

In addition to perpetual licenses, we sell time-based subscription licenses. Subscription licenses may be sold as a bundled arrangement that includes the rights to a term software license and PCS. Utilizing observable inputs, we determine a certain percentage of the estimated standalone selling price of the subscription lease license is attributable to the term license and the remainder is attributable to the PCS, based on factors pursuant to each arrangement. This determination considered the value relationship for our products between PCS and time-based subscription lease licenses, the value relationship between PCS and perpetual licenses, the average economic life of our products, software renewal rates and the price of the bundled arrangement in

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relation to the perpetual licensing approach. Consistent with the perpetual sales, the license component is classified as software license revenue and recognized as revenue up front upon delivery of the licensed product and/or utility that enables the customer to access authorization keys. The PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as we satisfy the PCS performance obligation.

***Product Warranties***

Our 3D printers are sold with a warranty period of typically one year from installation. After the warranty period, we generally offer service contracts that enable our customers to continue service and maintenance coverage. These service contracts are offered with various levels 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 performance, 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, the related note disclosure has been revised to separately present (i) "Equipment on Lease", and (ii) "Equipment available on lease". These changes are intended to improve clarity and more accurately represent the composition and status of our equipment subject to operating lease.

For more information, see Note 7, *Equipment Subject to Operating Lease, Net*, in the notes of the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report.

Our 3D printers subject to operating leases are classified using the following criteria:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Equipment on Lease** | **Equipment on Lease** | **Equipment Available for Lease** | **Equipment Available for Lease** |
| Revenue generation –under contract or not under contract but held for potential redeployment to existing or new customers |  | Yes (lease income active) |  | No (not on active lease) |
| Physical location – remains in a condition, location, and business context rendering it suitable for future lease arrangements |  | At customer site<br>|  | At customer site, idle, or warehouse |
| Intended use – for third party customers and not for internal usage<br>|  | On Lease<br>|  | Available for Lease |
| Depreciation – the lesser of the useful life of the equipment or the contract period and annually tested for impairment |  | Yes, per original schedule |  | Yes, may accelerate if impaired |

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If the 3D printers does not meet the above criteria, the equipment is classified under property and equipment, net.

***Revision of Previously Filed Financial Statements***

The unaudited condensed consolidated interim financial statements as of and for the three and nine months ended September 30, 2024, have been revised to reflect corrections to previously issued financial statements as presented in the Company's Form 10-K filed with the SEC on March 31, 2025.

Certain prior period balances in the statements of cash flows have been reclassified to conform to the current year presentation. Such reclassifications had no impact on net income, cash flows from operating, investing or financing activities or equity previously reported.

**Note 3. Basic and Diluted Net Loss per Share**

The following table sets forth the computation of the Company's basic and diluted net loss per share attributable to common stockholders:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands, except share and per share data)** | **(In thousands, except share and per share data)** | **(In thousands, except share and per share data)** | **(In thousands, except share and per share data)** |
| **Numerator:** |  |  |  |  |
| Net loss | $(11825) | $(23125) | $(50992) | $(51611) |
| **Denominator:** |  |  |  |  |
| Basic weighted average shares outstanding | 17124361 | 616030 | 14868372 | 562087 |
| Diluted weighted average shares outstanding | 17124361 | 616030 | 14868372 | 562087 |
| Net loss per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.69) | $(37.54) | $(3.43) | $(91.82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.69) | $(37.54) | $(3.43) | $(91.82) |

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The following potentially dilutive shares of common stock equivalents "on an as-converted basis" were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect:

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| | | |
|:---|:---|:---|
|  | **For the Three and Nine Months Ended September 30,** | **For the Three and Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Common stock warrants | 36892 | 366946 |
| Common stock options | 8060 | 18332 |
| Restricted stock units | 502419 | 28750 |
| Total potentially dilutive common share equivalents | 547371 | 414028 |

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Total potentially dilutive common share equivalents for the three and nine months ended September 30, 2025 and 2024 excludes 41,444 shares related to the earnout liability as these shares are contingently issuable upon meeting certain triggering events.

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**Note 4. Fair Value Measurements**

The Company's assets and liabilities that were measured at fair value on a recurring basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measured as of September 30, 2025** | **Fair Value Measured as of September 30, 2025** | **Fair Value Measured as of September 30, 2025** | **Fair Value Measured as of September 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds (i) | $10664 | $— | $— | $10664 |
| Total financial assets | $10664 | $— | $— | $10664 |
| Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (Placement Agent<br> Warrants) (ii) | $— | $— | $3 | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (BEPO<br> Warrants) (ii) |  |  | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (BEPO Agent<br> Warrants) (ii) |  |  | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent earnout liabilities |  |  | 11 | 11 |
| Total financial liabilities | $— | $— | $24 | $24 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds (i) | $215 | $— | $— | $215 |
| Total financial assets | $215 | $— | $— | $215 |
| Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (2022 Private Warrant) (ii) | $— | $— | $1 | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (RDO Warrants) (ii) |  |  | 90 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (Placement Agent<br> Warrants) (ii) |  |  | 16 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (2024 Private<br> Warrants) (ii) |  |  | 378 | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (BEPO<br> Warrants) (ii) |  |  | 18 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (BEPO Agent<br> Warrants) (ii) |  |  | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (July 2024 Private Warrants) (ii) |  |  | 865 | 865 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrant liabilities (August Inducement Warrants) (ii) |  |  | 796 | 796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent earnout liabilities |  |  | 11 | 11 |
| Total financial liabilities | $— | $— | $2177 | $2177 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Included in warrant liabilities on the unaudited condensed consolidated balance sheets.

For more information regarding the Public Warrants, the Private Placement Warrants, the 2022 Private Warrant, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO Warrants, and the BEPO Agent Warrants, July 2024 Private Warrants, August Inducement Warrants and the Contingent earnout liabilities, see Note 10, *Equity Instruments*.

The aggregate fair value of the Company's money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of September 30, 2025 and December 31, 2024. Realized gains and losses, net of tax, were not material for any of the periods presented.

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The following table presents a summary of the changes in the fair value of the Company's Level 3 financial instruments:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Private<br>placement<br>warrant<br>liabilities** | **2022<br>Private<br>Warrant** | **Contingent<br>earnout<br>liabilities** | **RDO<br>Warrants** | **Placement<br>Agent<br>Warrants** | **2024 Private Warrants** | **BEPO Warrants** | **BEPO Agent Warrants** | **July 2024 Private Warrants** | **August Inducement Warrants** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **Fair value as of January 1, 2025** | $— | $1 | $11 | $90 | $16 | $2 | $378 | $18 | $865 | $796 |
| Change in fair value |  | (1) |  | 55 | (13) | (1) | 176 | (14) | 441 | 402 |
| Change due to exchange |  |  |  | (145) |  | (1) | (548) |  | (1306) | (1198) |
| **Fair value as of March 31, 2025** | $— | $— | $11 | $— | $3 | $— | $6 | $4 | $— | $— |
| Issuance of instruments |  |  |  |  |  |  |  |  |  |  |
| Change in fair value |  |  |  |  |  |  |  |  |  |  |
| **Fair value as of June 30, 2025** | $— | $— | $11 | $— | $3 | $— | $6 | $4 | $— | $— |
| Issuance of instruments |  |  |  |  |  |  |  |  |  |  |
| Change in fair value |  |  |  |  |  |  |  |  |  |  |
| **Fair value as of September 30, 2025** | $— | $— | $11 | $— | $3 | $— | $6 | $4 | $— | $— |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Private<br>placement<br>warrant<br>liabilities** | **2022<br>Private<br>Warrant** | **Contingent<br>earnout<br>liabilities** | **RDO<br>Warrants** | **Placement<br>Agent<br>Warrants** | **2024 Private Warrants** | **BEPO Warrants** | **BEPO Agent Warrants** | **July 2024 Private Warrants** | **August Inducement Warrants** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **Fair value as of January 1, 2024** | $127 | $23 | $1456 | $10891 | $536 | $— | $— | $— | $— | $— |
| Change in fair value | 114 | 5 | 437 | 2162 | 108 |  |  |  |  |  |
| **Fair value as of March 31, 2024** | $241 | $28 | $1893 | $13053 | $644 | $— | $— | $— | $— | $— |
| Issuance of instruments |  |  |  |  |  | 6321 | 9020 | 446 |  |  |
| Change in fair value | (217) | (23) | (1824) | (11016) | (544) | (5948) | (6784) | (336) |  |  |
| **Fair value as of June 30, 2024** | $24 | $5 | $69 | $2037 | $100 | $373 | $2236 | $110 | $— | $— |
| Issuance of instruments |  |  |  |  |  |  |  |  | 4200 | 2437 |
| Change in fair value | (24) | (4) | (58) | (1935) | (82) | (352) | (1818) | (90) | (3290) | (1577) |
| **Fair value as of September 30, 2024** | $— | $1 | $11 | $102 | $18 | $21 | $418 | $20 | $910 | $860 |

---

The fair value of the private placement warrant liabilities, the 2022 Private Warrant, the contingent earnout liabilities, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO Warrants, the BEPO Agent Warrants, the July 2024 Private Warrants and the August Inducement Warrants are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

In determining the fair value of the Private Placement Warrant liabilities, contingent earnout liabilities, and 2024 Private Warrants, the Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods that assumes optimal exercise of the Company's redemption option at the earliest possible date (see Note 10, *Equity Instruments).*

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In determining the fair value of the 2022 Private Warrant, RDO Warrants, Placement Agent Warrants, BEPO Warrants, BEPO Agent Warrants, July 2024 Private Warrants and August Inducement Warrants the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10, *Equity Instruments*).

**Note 5. Investments**

***Available-for-sale ("AFS") Investments***

There were no AFS investments as of September 30, 2025 and December 31, 2024.

There were no material realized gains or losses on AFS investments during the three and nine months ended September 30, 2025 and 2024 .

**Note 6. Balance Sheet Components**

**Accounts Receivable, Net**

Accounts receivable, net consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Trade receivables | $7519 | $7130 |
| Less: Allowances for credit losses | (847) | (3407) |
| Total | $6672 | $3723 |

---

**Inventories**

Inventories consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Raw materials | $26649 | $29386 |
| Work-in-progress | 5796 | 9660 |
| Finished goods | 2941 | 10907 |
| Total | $35386 | $49953 |

---

The Company recorded $22.3 million and $27.1 million in inventory reserves related to the valuation of inventory as of September 30, 2025 and December 31, 2024, respectively.

**Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Prepaid insurance and other | $966 | $1724 |
| Vendor prepayments | 863 | 612 |
| Total | $1829 | $2336 |

---

------

**Property and Equipment, Net**

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Computers and software | $2210 | $2525 |
| Lab equipment and other equipment | 11080 | 11011 |
| Furniture and fixtures | 157 | 206 |
| Leasehold improvements | 13404 | 13312 |
| Construction in progress | 94 |  |
| Total property, plant and equipment | 26945 | 27054 |
| Less accumulated depreciation and amortization | (14526) | (12784) |
| Property, plant and equipment, net | $12419 | $14270 |

---

Depreciation expense for the three months ended September 30, 2025 and 2024 was $0.7 million and $1.1 million, respectively. Depreciation expense for the nine months ended September 30, 2025 and 2024 was $2.4 million and $3.3 million, respectively.

**Other Assets**

Other assets consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Right of use assets | $7946 | $8774 |
| Net Investment in sales type lease | 1975 | 2712 |
| Customer deposit - noncash consideration | 6812 |  |
| Non-current prepaid expenses and other assets | 2560 | 2027 |
| Total Other assets | $19293 | $13513 |

---

For a full description of the customer deposit - noncash consideration, see Note 16, *Momentus Master Service Agreement*.

**Accrued Expenses and Other Current Liabilities**

Accrued expenses and other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Accrued expenses | $1795 | $1173 |
| Accrued salaries and benefits | 1194 | 560 |
| Customer liabilities — prepaid reserve | 809 |  |
| Customer liabilities — noncash consideration | 6812 |  |
| Lease liability — current portion | 2074 | 1778 |
| Total Accrued expenses and other current liabilities | $12684 | $3511 |

---

For a full description of the customer liabilities - prepaid reserve, and customer liabilities - noncash consideration, see Note 16, *Momentus Master Service Agreement*. On August 14, 2025, an amendment to the Momentus Master Service Agreement triggered changes to the accounting treatment, which required an independent valuation appraisal. The customer deposit - prepaid reserve are net cash proceeds after fees from the sale of the customer noncash consideration, and the customer deposit - noncash consideration was based on an independent valuation appraisal for the initial measurement date and as of September 30, 2025, respectively. The valuation was based on a Black-Scholes model including inputs from the current stock price, volatility, remaining term and risk-free

------

rate. A discount for lack of marketability was applied and certain restrictions on trading activity limitations were considered in the model.

The fair value assumptions used in the Black-Scholes model for the valuation of the liability was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of August 14, 2025** | **As of August 14, 2025** |
| Current stock price | $| 1.32 | $| 1.56 |
| Expected volatility | 112% - 165% | 112% - 165% | 119% - 171% | 119% - 171% |
| Risk-free interest rate | 3.54% - 3.94% | 3.54% - 3.94% | 3.67% - 4.12% | 3.67% - 4.12% |
| Dividend rate |  |  |  |  |
| Expected term (years) | 0.25 - 2.00 | 0.25 - 2.00 | 0.38 - 2.13 | 0.38 - 2.13 |

---

**Other Noncurrent Liabilities**

Other noncurrent liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Lease liabilities — noncurrent portion | $7450 | $8475 |
| Other noncurrent liabilities | 1000 | 863 |
| Total other noncurrent liabilities | $8450 | $9338 |

---

**Note 7. Equipment Subject to Operating Lease, Net**

The equipment subject to operating leases to customers had a cost basis of $3.6 million and accumulated depreciation of $0.5 million as of September 30, 2025. The equipment leased to customers had a cost basis of $4.6 million and accumulated depreciation of $0.9 million as of December 31, 2024.

The equipment subject to operating lease consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Equipment on Lease | $— | $— |
| Equipment Available for Lease | 3566 | 4622 |
| Total Equipment Subject to Operating Lease | $3566 | $4622 |
| Accumulated Depreciation | (546) | (949) |
| Total Equipment Subject to Operating Lease, Net | $3020 | $3673 |

---

The total depreciation expense was $0.0 and $0.1 million included in cost of revenue for the three months ended September 30, 2025 and 2024, respectively. The total depreciation expense was $0.0 and $0.6 million included in cost of revenue for the nine months ended September 30, 2025 and 2024, respectively.

Lease payments from customers consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Equipment on lease payments | $— | $192 | $70 | $954 |

---

------

**Note 8. Leases**

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire between 2025 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.

Total right-of-use ("ROU") assets and lease liabilities are as follows:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| Right-of-use assets: |  |  |
| Net book value (Other assets) | $7946 | $8774 |
| Operating lease liabilities: |  |  |
| Current (Accrued expense and other current liabilities) | $1930 | $1612 |
| Noncurrent (Other noncurrent liabilities) | 7444 | 8361 |
| Total operating lease liabilities | 9374 | 9973 |
| Financing lease liabilities: |  |  |
| Current (Accrued expense and other current liabilities) | $144 | $142 |
| Noncurrent (Other noncurrent liabilities) | 6 | 114 |
| Total financing lease liabilities | $150 | $256 |
| Total lease liabilities | $9524 | $10229 |

---

There were no impairments recorded related to these assets as of September 30, 2025 and December 31, 2024.

Information about lease-related balances were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands, except years and percentages)** | **(In thousands, except years and percentages)** | **(In thousands, except years and percentages)** | **(In thousands, except years and percentages)** |
| Operating lease expense | $739 | $687 | $1895 | $2179 |
| Financing lease expense | 39 | 42 | 119 | 134 |
| Short-term lease expense | 39 | 40 | 125 | 148 |
| Total lease expense | $817 | $769 | $2139 | $2461 |
| Cash paid for leases | $700 | $691 | $1890 | $2189 |
| Weighted — average remaining lease term — operating<br> leases (years) | 6.1 | 7.2 | 6.1 | 7.2 |
| Weighted — average discount rate — operating leases | 8.9% | 8.9% | 8.9% | 8.9% |

---

Maturity of operating lease liabilities as of September 30, 2025 are as follows:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **(In thousands)** |
| Remainder of 2025 | $709 |
| 2026 | 2850 |
| 2027 | 2540 |
| 2028 | 2490 |
| 2029 | 2585 |
| Thereafter | 6195 |
| Total operating lease payments | $17369 |
| Less portion representing imputed interest | (7995) |
| Total operating lease liabilities | $9374 |
| Less current portion | 1930 |
| Long-term portion | $7444 |

---

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**Note 9. Debt**

Debt consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** |
| January Note | $6161 | $— |
| February Note 1st Tranche | 5844 |  |
| February Note 2nd Tranche | 5696 |  |
| Secured Notes | 5315 | 5666 |
| Total | $23016 | $5666 |
| Debt — current portion | 5314 | 5666 |
| Long-term debt – less current portion | $17702 | $— |

---

As of September 30, 2025, the Company's debt consists of the Secured Notes, the January Note, and the February Note. The Company and Arrayed entered into a forbearance agreement where Arrayed forbore from taking any enforcement action as a result of the occurrences and/or continuation of any specified events of default. For a full description of these debt arrangements, see Note 9, *Long-Term Debt*, in the audited consolidated financial statements included in the 2024 Form 10-K.

***Convertible Secured Note***

On January 7, 2025, the Company issued the January Note, a Senior Secured Convertible Promissory Note in the principal amount of $5,000,000 to Thieneman Properties, LLC, an Indiana limited liability company. The January Note bears interest at a rate of 60.0% per annum, was initially payable in full on April 7, 2025 in the amount of $5,750,000 and if not paid on or prior to such date, continues to accrue interest at the same rate until paid. The January Note may be prepaid in whole or in part at any time without penalty or premium and is convertible in the event of default into shares of the Company's common stock, at a fixed conversion price of $1.56 per share. On April 7, 2025, the Company made a payment of $750,000, which fulfilled its obligations of interest owed through such date. The Company continues to accrue interest on the principal amount of the January Note until such time as it will be repaid. During the three and nine months ended September 30, 2025, the Company incurred total interest expense of $0.5 million and $2.0 million, respectively, which is included in the carrying value of the January Note in the above table.

On February 10, 2025, the Company issued a Senior Secured Convertible Promissory Note (the "February Note") in the principal amount of $10,000,000 to Thieneman Construction, Inc, an Indiana corporation, to be funded in two tranches of $5,000,000. This Note bears interest at a rate of 30.0% per annum, was payable in full on the date that is six months from the time the amounts were received by the Company. The first tranche ("February Note 1st tranche") and second tranche ("February Note 2nd tranche") were received by the Company on February 10, 2025 and March 20, 2025, respectively, which amounts became due on August 10, 2025 and September 20, 2025, respectively. Given the February Notes was not paid on or prior to the aforementioned dates, the February Note will continue to accrue interest at the same rate until paid. The outstanding principal amount of the February Note is convertible at the option of the holder upon the occurrence of the Company's successful listing of shares of its common stock on a national securities exchange or the occurrence and during the continuation of an Event of Default, into shares of the Company's common stock, at a fixed conversion price of $1.00 per share. During the three months ended September 30, 2025, the Company incurred total interest expense related to the February Note 1st tranche and February Note 2nd tranche of $0.2 million and $0.3 million, respectively, which is included in the carrying value in the above table. During the nine months ended September 30, 2025, the Company incurred total interest expense related to the February Note 1st tranche and February Note 2nd tranche of $0.8 million and $0.7 million, respectively, which is included in the carrying value in the above table.

On August 14, 2025, the Company amended the January Note (the "January Note Amendment"), which amended certain provisions of the January Note, including: an extension of the maturity date under the January Note to February 14, 2027; a reduction of the interest rate under the January Note to 12%; and an adjustment of the fixed conversion price to $16.38 per share. On August 14, 2025, the Company also amended the February Note (the "February Note Amendment") which, amended certain provisions of the February Note, including: an extension of the maturity dates for each tranche under the February Note to February 14, 2027; a reduction of the interest rate under the February Note to 12%; and an adjustment of the fixed conversion price to $10.50 per share. The Company has evaluated that the note amendments are both treated as a debt modification under ASC Topic 470, *Debt*.

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***Secured Notes***

The Secured Notes bear interest at 6.00% per annum, payable quarterly in cash on January 1, April 1, July 1 and October 1 of each year, and will mature on August 1, 2026. When the Company repays principal on the Secured Notes pursuant to the terms of the Secured Notes, it will be required to pay 120% of the principal amount repaid (the "Repayment Price") plus accrued and unpaid interest.

The Secured Notes include terms that provide Arrayed seniority over other unsecured obligations in any settlement negotiations in the event of liquidation. Additionally, the Secured Notes contain redemption features in the event of default or a fundamental change in control that would make the Secured Notes immediately callable at a predetermined rate as described in the Secured Notes. The redemption features are settled in cash.

As of September 30, 2025, the unamortized discount was $0.2 million, which includes the difference between the principal and the Repayment Price. For the three and nine months ended September 30, 2025, the Company incurred $0.3 million and $0.4 million in interest expense, respectively, related to the Secured Notes. The individual notes bear effective interest rates of 8.7% and 12.0%, respectively. The weighted-average effective interest rate across all outstanding debt instruments was approximately 11.2% for the three and nine months ended September 30, 2025.

The future minimum aggregate payments for the above borrowings are equal to the quarterly payments made using the Repayment Price, and are as follows as of September 30, 2025:

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| | |
|:---|:---|
| **Year Ending December 31,** | **(In thousands)** |
| Remainder of 2025 | $— |
| 2026 | 5493 |
| 2027 | 20572 |
| Total | $26065 |
| Less: Amount of debt discount to be amortized subsequent to September 30, 2025 | (180) |
| Less: Amount of interest to be accrued subsequent to September 30, 2025 | (2869) |
| Debt as of September 30, 2025 | $23016 |

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**Note 10. Equity Instruments**

***Common stock***

Our authorized share capital consists of 500,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of preferred stock, par value $0.00001 per share. As of September 30, 2025, we had 20,912,172 shares of common stock outstanding. The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders but are not entitled to cumulative voting rights, are entitled to receive ratably such dividends as may be declared by the Company's Board of Directors out of funds legally available therefor subject to preferences that may be applicable to any shares of redeemable convertible preferred stock currently outstanding or issued in the future, are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preference of any then outstanding redeemable convertible preferred stock in the event of the Company's liquidation, dissolution, or winding up, have no preemptive rights and no right to convert their common stock into any other securities, and have no redemption or sinking fund provisions applicable to the common stock.

*April 2024 Securities Purchase Agreement* 

On April 10, 2024, the Company entered into securities purchase agreements (the "BEPO Purchase Agreements") with certain investors (collectively, the "Purchasers"). The BEPO Purchase Agreements relate to the sale and issuance, on a reasonable best efforts basis (collectively, the "BEPO Offering"), by the Company of an aggregate of: (i) 65,307 shares of the Company's common stock and (ii) warrants to purchase up to 65,307 shares of common stock (the "BEPO Warrants"). The offering price per share of common stock and the exercise price of the accompanying BEPO Warrants is $183.75.

On April 12, 2024, the Company completed the BEPO Offering, resulting in gross proceeds to the Company of approximately $12 million. The Company used the net proceeds from the BEPO Offering primarily for funding working capital and capital expenditures and other general corporate purposes, including repayment of a portion of the Company's Secured Notes.

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In connection with the BEPO Offering, on April 10, 2024, the Company also entered into a placement agency agreement (the "BEPO Placement Agency Agreement") with A.G.P./Alliance Global Partners (the "BEPO Placement Agent"). Pursuant to the terms of the BEPO Placement Agency Agreement, the BEPO Placement Agent agreed to arrange for the sale of the shares of common stock and the warrants. The Company paid the BEPO Placement Agent a cash fee equal to 7.0% of the aggregate purchase price paid by the Purchasers in connection with sales and reimbursed the BEPO Placement Agent for certain of its expenses in an aggregate amount of $150,000. In addition, the Company issued Placement Agent warrants (the "BEPO Agent Warrants") to purchase such number of shares of common stock equal to 5.0% of the aggregate number of shares of common stock sold in the BEPO Offering, or an aggregate of 3,266 shares of common stock. The BEPO Agent warrants are exercisable immediately upon issuance and have substantially the same terms as the BEPO Warrants, except that the BEPO Agent Warrants have an exercise price of $202.125 per share (representing 110% of the offering price per share of common stock and accompanying warrant) and will expire five years from the commencement of the sales pursuant to the BEPO Offering.

*February 2025 Securities Purchase Agreement* 

On February 24, 2025, the Company entered into Warrant Exchange Agreements (the "February Warrant Exchange Agreements") with each of: (i) Highbridge Tactical Credit Master Fund, L.P. ("HM"); (ii) Highbridge Tactical Credit Institutional Fund, Ltd. (collectively with HM, the "Highbridge Holders"); (iii) Anson Investments Master Fund LP ("AMF"); (iv) Anson East Master Fund LP (collectively with AMF, the "Anson Holders"); (v) High Trail Investments ON LLC ("HTI"), and (vi) HB SPV I Master LLC (together with HTI, the "High Trail Holders"), pursuant to which: (a) the Highbridge Holders and the Anson Holders agreed to exchange an aggregate of 60,150 registered warrants issued in April 2024 and an aggregate of 99,048 registered warrants issued in August 2024, and (b) the High Trail Holders agreed to exchange an aggregate of 151,808 unregistered warrants issued in April 2024 and July 2024, and an aggregate of 19,048 registered warrants issued in December 2023, for an aggregate of 990,159 shares (the "Acquired Shares") of Company's common stock, respectively, equating in each case to an exchange ratio of three Acquired Shares for each warrant.

*August 2025 Offering*

On August 19, 2025, the Company entered into an underwriting agreement (the "Underwriting Agreement") with Lake Street Capital Markets, LLC, as representative of the several underwriters named therein (the "Representative"), relating to the public offering of 5,833,333 shares (the "Shares") of the Company's common stock, par value $0.00001 per share, at a purchase price per share of $3.00 (the "Offering Price"). Pursuant to the Underwriting Agreement, the Company also granted the Representative a 30-day option to purchase up to an additional 875,000 shares of common stock at the Offering Price, less any underwriting discounts and commissions, which was exercised in full.

The offering closed on August 20, 2025. Net proceeds from the offering were approximately $17.8 million after deducting the underwriting discounts and commissions, other estimated offering expenses payable by the Company, and the exercise of the Representative option. The Company intends to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes.

***Common Stock Reserved for Future Issuance***

Shares of common stock reserved for future issuance on an "as if converted" basis were as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(share data)** | **(share data)** |
| Common stock warrants | 36892 | 366946 |
| Shares available for future grant under 2021 Equity Incentive Plan |  | 46456 |
| Reserved for At-the-Market offering | 5383 | 5383 |
| Reserved for employee stock purchase plan | 148897 | 18958 |
| Total shares of common stock reserved | 191172 | 437743 |

---

------

In February 2023, the Company entered into a sales agreement (the "ATM Sales Agreement") with Needham & Company, LLC ("Needham"), as agent, pursuant to which the Company may offer and sell, from time to time through Needham, up to $40.0 million shares of its common stock pursuant to a shelf registration statement on Form S-3 (the "Shelf Registration Statement") and the related prospectus supplement and accompanying base prospectus, and in connection therewith, the Company reserved 38,096 shares of common stock for issuance under the ATM Sales Agreement. On January 31, 2024, the Company filed an amendment to the prospectus supplement increasing the aggregate dollar amount of shares available to be sold from time to time pursuant to the ATM Sales Agreement to $75 million. The Company is currently ineligible to utilize the shelf registration statement on Form S-3. During the nine months ended September 30, 2025, the Company sold no shares pursuant to the ATM sales agreement.

In April 2024, pursuant to the evergreen provisions of the Company's 2021 Equity Incentive Plan (the "2021 EIP"), the Company added an additional 24,612 shares of common stock for issuance under the 2021 EIP and 4,917 shares of common stock for issuance under the 2021 ESPP.

The shares available for future grant under the 2021 EIP are net of any un-exercised stock options (vested and unvested) and unvested restricted stock units ("RSUs") outstanding that may convert to common stock in the future upon exercise or vesting as of September 30, 2025 and December 31, 2024.

***Common Stock Warrant Liabilities***

In connection with the BEPO Offering, the Company issued BEPO Warrants to purchase up to an aggregate of 65,307 shares of common stock. The BEPO Warrants are immediately exercisable at an exercise price of $183.75 per share and will expire on the five year anniversary of the date of issuance. In connection with the BEPO Placement Agency Agreement, we also issued BEPO Agent Warrants to purchase up to 3,266 shares of common stock. The BEPO Agent Warrants are exercisable at an exercise price of $202.125 per share and will expire on the five year anniversary of the date of issuance.

In connection with the Second Note Amendment, on April 1, 2024, the Company also entered into a letter agreement (the "Letter Agreement") with the Investors pursuant to which the Company issued to the Investors warrants (the "2024 Private Warrants") to purchase up to an aggregate of 41,808 shares of Common Stock. The 2024 Private Warrants became exercisable 45 days after the original issuance date (the "Initial Exercise Date"), are exercisable at an exercise price of $199.35 per share and will expire on the one year anniversary of the later of (i) the Initial Exercise Date and (ii) the date on which the Resale Registration Statement (as defined in the Letter Agreement) is declared effective by the SEC. The Investors may exercise the 2024 Private Warrants by paying the exercise price in cash or by reducing the outstanding principal amount under the Secured Notes by an amount equal to the quotient of (A) the amount of the exercise price divided by (B) 1.20. The 2024 Private Warrants may also be exercised on a cashless basis under certain circumstances.

In connection with the Third Note Amendment, on July 1, 2024, the Company also entered into a letter agreement with the Investors pursuant to which the Company issued to the Investors warrants (the "July 2024 Private Warrants") to purchase up to an aggregate of 110,000 shares of Common Stock. The July 2024 Private Warrants became exercisable 45 days after the original issuance date, are exercisable at an exercise price of $37.50 per share and will expire on the five year anniversary of the issuance date. The Investors may exercise the 2024 Private Warrants by paying the exercise price in cash or by reducing the outstanding principal amount under the Secured Notes by an amount equal to the quotient of (A) the amount of the exercise price divided by (B) 1.20. The July 2024 Private Warrants may also be exercised on a cashless basis under certain circumstances.

On August 12, 2024, the Company entered into a warrant inducement with certain warrant holders (the "Inducement Agreement"). Pursuant to the Inducement Agreement, the holders of the existing warrants agreed to reduce the exercise price of their existing warrants, totaling 49,524, from $296.70 per share to $34.20 per share. Additionally, the Company agreed to issue registered warrants with an exercise price of $34.20 per share to purchase 99,048 shares of Common Stock (the "August Inducement Warrants"), which will expire on the five year anniversary of the issuance date. The August Inducement Warrants may also be exercised on a cashless basis under certain circumstances.

Warrants to purchase an equal number of shares of common stock of 36,892 and 366,946 were exercisable as of September 30, 2025 and December 31, 2024, respectively. The Private Placement Warrants, the Public Warrants, the 2022 Private Warrant, the RDO Warrants, the Placement Agent Warrants, 2024 Private Warrants, BEPO Warrants, BEPO Agent Warrants, July 2024 Private Warrants and August Inducement Warrants to purchase shares of common stock are liability classified and recorded at fair value on the issue date with periodic remeasurement. Warrants for shares of common stock consisted of the following:

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Issue Date** | **Expiration<br>Date** | **Number of<br>Warrants** | **Exercise<br>Price per <br>warrant** |
| Private Placement Warrants — Common Stock | 12/02/2020 | 09/29/2026 | 8477 | $6037.50 |
| Public Warrants — Common Stock | 12/02/2020 | 09/29/2026 | 16429 | $6037.50 |
| 2022 Private Warrant — Common Stock | 07/25/2022 | 07/24/2034 | 134 | $1344.00 |
| Placement Agent Warrants — Common Stock | 12/29/2023 | 12/29/2028 | 3429 | $326.29 |
| BEPO Warrants — Common Stock | 4/12/2024 | 4/12/2029 | 5157 | $183.75 |
| BEPO Agent Warrants — Common Stock | 4/12/2024 | 4/12/2029 | 3266 | $202.13 |
|  |  |  | 36892 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Issue Date** | **Expiration<br>Date** | **Number of<br>Warrants** | **Exercise<br>Price per <br>warrant** |
| Private placement warrants — Common Stock | 12/02/2020 | 09/29/2026 | 8477 | $6037.50 |
| Public warrants – Common Stock | 12/02/2020 | 09/29/2026 | 16429 | $6037.50 |
| 2022 Private Warrant — Common Stock | 07/25/2022 | 07/24/2034 | 134 | $1344.00 |
| RDO Warrants — Common Stock | 12/29/2023 | 12/29/2028 | 19048 | $299.25 |
| 2023 Placement Agent Warrants — Common Stock | 12/29/2023 | 12/29/2028 | 3429 | $326.29 |
| 2024 Private Warrants — Common Stock | 4/1/2024 | 5/16/2025 | 41808 | $199.35 |
| BEPO Warrants — Common Stock | 4/12/2024 | 4/12/2029 | 65307 | $183.75 |
| BEPO Agent Warrants — Common Stock | 4/12/2024 | 4/12/2029 | 3266 | $202.13 |
| July 2024 Private Warrants — Common Stock | 7/01/2024 | 7/01/2029 | 110000 | $37.50 |
| August Inducement Warrants — Common Stock | 8/13/2024 | 08/12/2029 | 99048 | $34.20 |
|  |  |  | 366946 |  |

---

*Warrant Liabilities* – *Fair Value*

The issuance of the Private Placement Warrant and Public Warrant liabilities were accounted for as a reverse recapitalization. The 2022 Private Warrant was issued in connection with the Company's entry into the joinder and fourth loan modification with Silicon Valley Bank. See Note 9, *Long-Term Debt,* and Note 10, *Equity Instruments,* in the notes to consolidated financial statements included in the 2024 Form 10-K.

The liabilities associated with the Private Placement Warrants, 2022 Private Warrants, RDO Warrants, Placement Agent Warrants, 2024 Private Warrants, BEPO Warrants, BEPO Agent Warrants, July 2024 Private Warrants and August Inducement Warrants were subject to remeasurement at each balance sheet date using the Level 3 fair value inputs and the Public Warrants were subject to remeasurement at each balance sheet date using Level 1 fair value inputs for the three and nine months ended September 30, 2025 and 2024, see Note 4, *Fair Value Measurements*, in this Quarterly Report for liability classified warrants recorded at fair value.

Each Private Placement Warrant is exercisable to purchase one share of common stock at a price of $6,037.50 per share. Subject to certain exceptions, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants. The 2022 Private Warrant is exercisable to purchase one share of common stock at a price of $1,344.00 per share and allows cashless exercise in whole or part. The Public Warrants may only be exercised for a whole number of shares. The Public Warrants became exercisable on December 7, 2021. The RDO Warrants are exercisable to purchase one share of common stock at a price of $299.25 per warrant share. The Placement Agent Warrants are exercisable to purchase one share of common stock at a price of $326.25 per warrant share. The RDO Warrants and 2023 Placement Agent Warrants are exercisable until December 29, 2028 and allow cashless exercise in whole or part.

*Private Placement Warrants* – *Fair Value Assumptions*

The fair value of the private placement common stock warrant liability was $0.0 as of September 30, 2025 and December 31, 2024, as the publicly traded price was $0.0 as of September 30, 2025 and December 31, 2024.

*2022 Private Warrants, RDO Warrants, 2023 Placement Agent Warrants - Fair Value Assumptions*

------

The fair value assumptions used in the Black-Scholes simulation model for the recurring valuation of the 2022 Private Warrants, the RDO Warrants, and the 2023 Placement Agent Warrants liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2025** | **As of December 31, 2024** |
| Current stock price | $3.07 | $10.20 |
| Expected volatility | 154.6% | 139.9% |
| Risk-free interest rate | 3.6% | 4.3% |
| Dividend rate | —% | —% |
| Expected Term (years) | 3.25 | 4.00 |

---

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the warrant.

*2024 Private Warrants, - Fair Value Assumptions*

The fair value of the 2024 Private Warrant Liability was $0.0 and less than $0.1 million as of September 30, 2025 and December 31, 2024, respectively, as the warrants expired on May 16, 2025. The fair value assumptions used in the Monte Carlo simulation model for the valuation of the 2024 Private Warrants liability was as follows:

---

| | |
|:---|:---|
|  | **As of December 31, 2024** |
| Current stock price | $10.20 |
| Expected volatility | 191.6% |
| Risk-free interest rate | 4.2% |
| Dividend yield | —% |
| Expected Term (years) | 0.37 |

---

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the warrant.

*BEPO Warrants, BEPO Agent Warrant - Fair Value Assumptions*

The fair value assumptions used in the Black-Scholes simulation model for the valuation of the BEPO Warrant and the BEPO Agent Warrant liabilities were as follows:

------

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2025** | **As of December 31, 2024** |
| Current stock price | $3.07 | $10.20 |
| Expected volatility | 154.6% | 139.9% |
| Risk-free interest rate | 3.7% | 4.4% |
| Dividend yield | —% | —% |
| Expected Term (years) | 3.53 | 4.28 |

---

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the warrant.

*August Inducement Warrants - Fair Value Assumptions*

The fair value assumptions used in the Black-Scholes simulation model for the valuation of the August Inducement Warrant liabilities were as follows:

---

| | |
|:---|:---|
|  | **As of December 31, 2024** |
| Current stock price | $10.20 |
| Expected volatility | 139.9% |
| Risk-free interest rate | 4.4% |
| Dividend yield | —% |
| Expected Term (years) | 4.62 |

---

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the warrant.

*July 2024 Private Warrants - Fair Value Assumptions*

The fair value assumptions used in the Black-Scholes simulation model for the valuation of the July 2024 Private Warrant liabilities were as follows:

---

| | |
|:---|:---|
|  | **As of December 31, 2024** |
| Current stock price | $10.20 |
| Expected volatility | 139.9% |
| Risk-free interest rate | 4.4% |
| Dividend yield | —% |
| Expected Term (years) | 4.50 |

---

------

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the common stock warrants.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the warrant is expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the warrant.

**Contingent Earnout Liabilities**

The contingent earnout liability is for Earnout Shares (as defined below) for pre-closing Legacy Velo3D equity holders ("Eligible Legacy Velo3D Equityholders"). During the time period between September 29, 2021 (the "Closing Date") and the five-year anniversary of the Closing Date, Eligible Legacy Velo3D Equityholders may receive up to 41,444 shares of common stock (the "Earnout Shares"), which is based on two tranches of 20,722 shares per tranche. The Earnout Shares issuable to holders of employee stock options are accounted for as stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions. See Note 11, *Equity Incentive Plans & Stock-Based Compensation*, for further discussion.

See Note 4, *Fair Value Measurements*, in this Quarterly Report for the liability for contingent earnout liabilities carried at fair value for the nine months ended September 30, 2025 and 2024.

*Fair Value Assumptions* – *Contingent Earnout Liabilities*

Assumptions used in the fair value of the contingent earnout liabilities are described below.

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2025** | **As of December 31, 2024** |
| Current stock price | $3.07 | $10.20 |
| Expected volatility | 161.2% | 161.2% |
| Risk-free interest rate | 3.7% | 4.2% |
| Dividend yield | —% | —% |
| Expected Term (years) | 1.00 | 1.75 |

---

Expected volatility: The expected volatility was derived from the implied volatility of the Company's publicly traded common stock.

Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the Earnout Shares.

Expected dividend yield: The expected dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.

Expected term: The expected term represents the period that the Company's stock-based awards are expected to be outstanding and is determined using the simplified method, which deems the term to be the average of the time to vesting and the contractual life of the Earnout Shares.

**Note 11. Equity Incentive Plans and Stock-Based Compensation**

As of September 30, 2025, the Company had a remaining allocated reserve of 0 shares of its common stock for issuance under its 2021 EIP, which provides for the granting of stock options, RSUs and stock appreciation rights to employees, directors, and consultants of the Company. As of September 30, 2025, the Company had an allocated reserve of 148,897 shares of its common stock for issuance under its 2021 Employee Stock Purchase Plan ("2021 ESPP"). As of September 30, 2025, the Company had not begun any offering periods for the 2021 ESPP.

------

***Stock options***

Activity under the 2021 EIP is set forth below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term<br>in years** |
|  | **(In thousands)** | **(Per share data)** | **(Years)** |
| **Outstanding as of December 31, 2023** | 25 | $320.25 | 6.2 |
| Granted |  | $— |  |
| Exercised | (3) | $94.50 |  |
| Forfeited or expired | (4) | $178.95 |  |
| **Outstanding as of September 30, 2024** | 18 | $388.65 | 5.3 |
| Options vested and expected to vest as of September 30, 2024 | 18 | $388.65 |  |
| Vested and exercisable as of September 30, 2024 | 18 | $390.00 |  |
| **Outstanding as of December 31, 2024** | 18 | $380.70 | 5.0 |
| Granted |  | $— |  |
| Exercised |  | $— |  |
| Forfeited or expired | (14) | $167.96 |  |
| **Outstanding as of September 30, 2025** | 4 | $1028.92 | 4.6 |
| Options vested and expected to vest as of September 30, 2025 | 4 | $1028.92 |  |
| Vested and exercisable as of September 30, 2025 | 4 | $1028.92 |  |

---

As of September 30, 2025and December 31, 2024, there is no aggregate intrinsic value of options outstanding.

As of September 30, 2025, total unrecognized compensation cost related to options was immaterial and is expected to be recognized over a weighted-average period of less than a year.

For the nine months ended September 30, 2025, there were no options granted.

***Restricted Stock Units***

The fair value of RSUs under the Company's 2021 EIP is estimated using the value of the Company's common stock on the date of grant.

------

The following table summarizes outstanding and expected to vest RSUs as of September 30, 2025 and 2024 and their activity during the nine months ended September 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number<br>of Shares** | **Weighted-<br>Average<br>Grant Date<br>Fair Value** | **Aggregate<br>Intrinsic<br>Value** |
|  | **(In thousands)** | **(Per share data)** | **(In thousands)** |
| **Balance as of December 31, 2023** | 38 | $1020.00 | $7940 |
| Granted | 28 | 53.10 |  |
| Released | (26) | 342.90 |  |
| Cancelled | (11) | 878.70 |  |
| **Balance as of September 30, 2024** | 28 | $742.95 | $310 |
| Expected to vest as of September 30, 2024 | 28 | $742.95 | $310 |
| **Balance as of December 31, 2024** | 13 | $714.30 | $132 |
| Granted | 1237 | 18.81 |  |
| Released | (220) | 26.88 |  |
| Cancelled | (66) | 24.92 |  |
| **Balance as of September 30, 2025** | 964 | $25.01 | $2961 |
| Expected to vest as of September 30, 2025 | 964 | $25.01 | $2961 |

---

The aggregate intrinsic value of outstanding RSUs is calculated based on the closing price of the Company's common stock as of the date outstanding. As of September 30, 2025, there was $22.9 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of approximately 3.4 years. As of September 30, 2024, there was $17.8 million of unrecognized compensation cost, which was expected to be recognized over a weighted average period of approximately 2.5 years.

***Earnout Shares–****–****Employees***

The Earnout Shares issuable to holders of employee stock options are accounted for as stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions. The estimated fair values of the Earnout Shares associated with vested stock options are recognized as an expense and determined by the Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the five-year earnout period. The portion of the Earnout Shares associated with unvested stock options are recognized as an expense and consider the vesting continuing employment requirements.

***Stock-based Compensation Expense***

The following sets forth the total stock-based compensation expense by type of award included in operating expenses on the statements of operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Restricted stock units | $1905 | $2445 | $7228 | $9375 |
| Stock options |  | 16 | 5 | 115 |
| Earnout shares—employees | 718 | 1246 | 1873 | 3551 |
|  | $2623 | $3707 | $9106 | $13041 |

---

------

The following sets forth the total stock-based compensation expense for the stock options, RSUs, and earnout shares - employees included in cost of revenue and operating expenses on the statements of operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Cost of 3D Printer and parts | $441 | $228 | $1054 | $886 |
| Cost of Support services | 154 | 249 | 348 | 582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation recorded in cost of revenue | 595 | 477 | 1402 | 1468 |
| Research and development | 965 | 1199 | 2220 | 3879 |
| Selling and marketing | 510 | 643 | 1117 | 2559 |
| General and administrative | 553 | 1388 | 4367 | 5135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation recorded in operating expense | 2028 | 3230 | 7704 | 11573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $2623 | $3707 | $9106 | $13041 |

---

**Note 12. Income Taxes**

The income tax provision is calculated for an interim period by distinguishing between elements recognized in the income tax provision through applying an estimated annual effective tax rate (the "ETR") to a measure of year-to-date operating results referred to as "ordinary income (or loss)," and discretely recognizing specific events referred to as "discrete items" as they occur. The income tax provision or benefit for each interim period is the difference between the year-to-date amount for the current period and the year-to-date amount for the period prior. Under ASC Topic 740-270-30-36, entities subject to income taxes in multiple jurisdictions should apply one overall ERT instead of separate ETRs for each jurisdiction when calculating the interim-period income tax or benefit related to ordinary income (or loss) for the year-to-date interim period, except in certain circumstances. The Company's effective tax rates for the three and nine months ended September 30, 2025 and 2024, may differ from the federal statutory rate of 21% principally as a result of valuation allowances expected to be applied to net operating loss carry-forwards which will not meet the threshold for recognition as deferred tax assets.

**Note 13. Commitments and Contingencies**

The Company may be involved in various lawsuits, claims, and proceedings, including intellectual property, commercial, securities, and employment matters that arise in the normal course of business. The Company accrues a liability when management believes information available prior to the issuance of the unaudited condensed consolidated interim financial statements indicates it is probable a loss has been incurred as of the date of the unaudited condensed consolidated interim financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Legal costs are expensed as incurred. As of September 30, 2025, the Company is not aware of any litigation, claim or assessment in which the outcome, individually or in the aggregate, would have a material adverse effect on its consolidated financial positions, results of operations, cash flows or future earnings.

The Company's purchase obligations per terms and conditions with suppliers and vendors are cancellable in whole or in part prior to shipment. Non-cancellable purchase commitments (purchase orders) of $5.3 million for parts and assemblies are due upon receipt and are expected to be delivered throughout the remainder of 2025. If inventory is shipped, the Company will accrue a liability under accrued expenses. The Company has no other commitments and contingencies, except for the operating leases. See Note 8, *Leases*, for further discussion.

**Note 14. Employee Defined-Contribution Plans**

The Company has a defined-contribution plan intended to qualify under Section 401 of the Internal Revenue Code (the "401(k) Plan"). The Company contracted with a third-party provider to act as a custodian and trustee, and to process and maintain the records of participant data. Substantially all of the expenses incurred for administering the 401(k) Plan are paid by the Company. Accrued salaries and benefits included accruals related to the 401(k) plans the Company offers to its employees. In order to qualify for these plans, employees must meet the minimum age requirement (21 years) and begin participating on their entry date which is the first paycheck date in the month following the month of eligibility described above. Employee and employer contributions are immediately 100% fully vested. The plans offer employer contributions of 3.0% of an employee's eligible compensation following safe-harbor rules. The Company's contribution to the 401(k) Plan was $0.2 million and $0.2 million for the three months ended September 30,

------

2025 and 2024 respectively, and $0.4 million and $0.8 million for the nine months ended September 30, 2025 and 2024, respectively. The Company has paid all matching contributions as of September 30, 2025.

**Note 15. Revenue**

**Customer Concentration**

The customer concentration for balances greater than 10% of revenues and 10% of accounts receivables, net, respectively, are presented below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Total Revenue** | **Total Revenue** | **Total Revenue** | **Total Revenue** | **Accounts Receivable, Net** | **Accounts Receivable, Net** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **September 30,** | **December 31,** |
|  | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
|  | **(as a percentage)** | **(as a percentage)** | **(as a percentage)** | **(as a percentage)** | **(as a percentage)** | **(as a percentage)** |
| Customer 1 | 29.8% | —% | 11.3% | <10% | 21.3% | <10% |
| Customer 2 | 10.8% | —% | <10% | —% | —% | —% |
| Customer 3 | 10.3% | —% | <10% | —% | <10% | <10% |
| Customer 4 | <10% | <10% | 13.0% | 16.4% | <10% | <10% |
| Customer 5 | <10% | —% | 12.4% | <10% | <10% | —% |
| Customer 6 | <10% | 50.7% | <10% | 21.0% | <10% | <10% |
| Customer 7 | <10% | 27.5% | <10% | 13.6% | <10% | <10% |
| Customer 8 | <10% | <10% | 11.0% | <10% | <10% | <10% |
| Customer 9 | <10% | <10% | <10% | 14.4% | <10% | <10% |
| Customer 10 | —% | —% | —% | <10% | —% | 18.2% |
| Customer 11 | —% | —% | —% | —% | 12.3% | 12.9% |
| Customer 12 | —% | —% | —% | —% | <10% | 10.8% |

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**Revenue by Geographic Area**

The Company currently sells its products in the geographic regions as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Americas | $11905 | $8031 | $30924 | $27507 |
| Europe | 465 | 205 | 4149 | 706 |
| Other | 1270 | 11 | 1459 | 164 |
| Total | $13640 | $8247 | $36532 | $28377 |

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**Contract Assets and Liabilities**

There was $0.4 million and $1.3 million of revenue recognized during the three and nine months ended September 30, 2025, respectively, included in contract liabilities as of December 31, 2024. The amount of revenue recognized during the three and nine months ended September 30, 2024 included in contract liabilities as of December 31, 2023 was $0.5 million and $2.1 million, respectively. The change in contract assets reflects the difference in timing between the Company's satisfaction of remaining performance obligations and the Company's contractual right to bill its customers. The Company had no material asset impairment charges related to contract assets in the periods presented.

**Variable Consideration**

The Company estimates its variable consideration on a quarterly basis based on the latest data available, and adjusts the transaction price accordingly by recording an adjustment to net revenue and contract assets. The Company has recognized the estimate of variable consideration to the extent that it is probable that a significant reversal will not occur as a result of a change in estimation. There was no revenue related to variable consideration during the three months ended September 30, 2025 and 2024. There was no revenue related to variable consideration during the nine months ended September 30, 2025 and 2024.

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**Note 16. Momentus Master Service Agreement**

On April 12, 2025, the Company entered into a Master Service Agreement ("MSA") with Momentus, Inc. ("Momentus"). Under the terms of the MSA, for a period of five years, Velo3D will provide consulting and parts production through Velo3D's Rapid Production Solutions ("RPS") offering. Momentus is entitled to services equal to the equivalent capacity of two Velo3D Sapphire XC 3D metal printers (or successor or comparable printers) (the "Equivalent Capacity"). Momentus will have first priority to utilize the Equivalent Capacity, and Velo3D will ensure the Equivalent Capacity is available for use as and when required by Momentus. If and when the Equivalent Capacity is not utilized by Momentus, Velo3D may use the Equivalent Capacity to provide services to other customers. Services to be provided under the MSA will be detailed in individual Statements of Work issued by Momentus and accepted by the Company from time to time, specifying the scope, pricing, and delivery schedule for the applicable goods and services.

On April 14, 2025, Momentus issued to Velo3D an aggregate of 477,455 shares of Class A Common Stock and 673,408 shares of non-voting Momentus Series A Convertible Preferred Stock, par value $0.00001 per share for goods and services that will be delivered over the term of the MSA. Each share of Momentus Series A Convertible Preferred Stock is convertible into ten shares of Class A Common Stock, subject to the limitations in the Momentus Certificate of Designations of Preferences, Rights and Limitations of Momentus Series A Convertible Preferred Stock, including that Velo3D hold no more than 9.99% of the outstanding shares of Momentus' Common Stock at any time.

Furthermore, pursuant to the Momentus Certificate of Designations, the Momentus Series A Convertible Preferred Stock may not be converted into shares of Momentus' Class A Common Stock if conversion would result in the issuance, in the aggregate with all previous issuances of shares of Momentus' Common Stock, of greater than 19.9% of the amount of Momentus' Class A Common Stock outstanding immediately preceding the date of the MSA without first obtaining stockholder approval in compliance with the rules of the Nasdaq Stock Market.

Under the MSA, Velo3D promised to use commercially reasonable efforts to sell shares of Momentus Class A Common Stock to establish a prepaid reserve ("Prepaid Reserve") to hold the net proceeds derived from the sale of Momentus Class A Common Stock. Unless otherwise provided in the Statement of Work, Service Fees will be deducted from the amount of Prepaid Reserve.

The MSA includes a refund provision ("Refund Provision") pursuant to which during the period beginning on the Effective Date and ending on each one year anniversary of the Effective Date, Momentus shall receive 20% of $3,000,000 less Service Fees for Services performed during such period, and for each one year period beginning on the one year anniversary of the Effective Date for the term of the MSA, Momentus shall receive 50% of $3,000,000 less Service Fees for Services performed during each such period. The amount in the Prepaid Reserve shall be reduced by the same amounts paid to Momentus. Such payments shall be made quarterly throughout the term of the MSA within 30 days following the end of each such quarter; provided however that if the Prepaid Reserve is not sufficient to settle the full amount of such payments when due, such amounts will be paid as soon as funds are deposited into the Prepaid Reserve. Velo3D shall use commercially reasonable efforts to sell a sufficient number of shares of Momentus Common Stock such that the Prepaid Reserve has sufficient funds to make payments required by this MSA and to cover the Service Fees for the Services requested by Momentus under the MSA.

The Company has evaluated the accounting treatment to record the customer liabilities, and for the equity received under the MSA with Momentus, has determined that the arrangement does not currently meet the criteria to be accounted for under ASC Topic 606, *Revenue*, as the Company cannot identify the specific goods and services to be transferred or the related payment terms. The Company will reassess the accounting for the MSA upon the execution of a Statement of Work.

The Company evaluated the MSA to determine whether any embedded feature of the MSA potentially qualifies as a derivative required to be separately accounted for in accordance with ASC Topic 815, Derivatives and Hedging. The Refund Provision clause requires the Company to refund a portion of the share-based consideration received if services are not rendered, with the refund amount limited to the lesser of a specified threshold or the net proceeds from the sale of Momentus shares. Management determined that the Refund Provision is required to be bifurcated from the MSA and accounted for separately as a derivative liability. However, based on a valuation analysis as of September 30, 2025, the fair value of the embedded derivative was determined to be de minimis. Accordingly, no separate recognition of the embedded derivative was made in the unaudited condensed consolidated interim financial statements.

On August 14, 2025, Momentus executed a waiver of its rights under the MSA to cancel or require forfeiture of any unsold shares upon expiration or termination of the agreement. As a result, the Company obtained an unconditional right to retain the shares and a corresponding obligation to sell them, both of which are measured at fair value. In the event the MSA is terminated or expired, the number of shares that remain unsold by Velo3D shall continue to be held by Velo3D as outlined in the terms of the MSA amendment

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dated August 14, 2025. In the event the MSA is terminated or expired, remaining funds in the Prepaid Reserve related to the Refund Provision and work product shall be returned to the respective parties.

The August 14, 2025 amendment to the Momentus Master Service Agreement triggered changes to the accounting treatment, which required an independent valuation appraisal.

As of September 30, 2025, the Momentus liabilities are recorded under accrued expenses and other current liabilities as Customer liabilities - prepaid reserve of $0.8 million and Customer liabilities - noncash consideration of $6.8 million. See Note 6, *Balance Sheet Components - Accrued Expenses and Other Current liabilities.* For the three and nine months ended September 30, 2025, no revenue related to this MSA has been recognized.

On October 17, 2025, the Company completed the conversion of 126,000 preferred shares into 1,260,000 of common stock. As of the November 5, 2025, the Company sold 69,860 of Momentus common shares for net proceeds of less than $0.1 million.

**Note 17. Subsequent Events**

Subsequent events were evaluated through the filing date of this Form 10-Q, and no events requiring adjustment or disclosure were identified, other than items disclosed above in Note 16, *Momentus Master Service Agreement*.***

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**Item 2. Management's Discussion and A** **nalysis of Financial Condition and Results of Operations**

*The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our results of operations and financial condition. This discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report. This discussion contains forward-looking statements based upon our current expectations, estimates and projections, and involves numerous risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements due to, among other considerations, the matters discussed in the sections titled "Risk Factors" and "Cautionary Note Regarding Forward-looking Statements" herein. During the fiscal year ended December 31, 2024, we identified immaterial errors in our previously issued financial statements. We have corrected the amounts as presented in this Item 2 accordingly. Refer to Notes 2 and 16 to the unaudited condensed consolidated interim financial statements included in Part I of this Quarterly Report on Form 10-Q for additional information.*

**Overview**

We seek to fulfill the promise of additive manufacturing, also referred to as 3D printing ("AM"), to deliver breakthroughs in performance, cost, and lead time in the production of high-value metal parts.

We produce a fully integrated hardware and software solution based on our proprietary laser powder bed fusion ("L-PBF") technology, which greatly reduces and often eliminates the need for support structures. Our technology enables the production of highly complex, mission-critical parts that existing AM solutions cannot produce without the need for redesign or additional assembly.

Our Sapphire Family of Printers gives our customers who are in space, aviation, defense, automotive, energy and industrial markets the freedom to design and produce metal parts with complex internal features and geometries that had previously been considered impossible for AM. We believe our technology is years ahead of competitors.

Our technology is novel compared to other AM technologies because of its ability to deliver high-value metal parts that have complex internal channels, structures, and geometries. This affords a wide breadth of design freedom for creating new metal parts and it enables replication of existing parts without the need to redesign the part to be manufacturable with AM. Because of these features, we believe our technology and product capabilities are highly valued by our customers. Our customers are primarily original equipment manufacturers ("OEMs") and contract manufacturers ("CMs") who look to AM to solve issues with traditional metal parts manufacturing technologies. Those traditional manufacturing technologies rely on processes, including casting, stamping and forging, that typically require high volumes to drive competitive costs and have long lead times for production. Our customers look to AM solutions to produce assemblies that are lighter, stronger, and more reliable than those manufactured with traditional technologies. Our customers also expect AM solutions to drive lower costs for low-volume parts and substantially shorter lead times. However, many of our customers have found that other legacy AM technologies failed to produce the required designs for the high-value metal parts and assemblies that our customers wanted to produce with AM. As a result, other AM solutions often require that parts be redesigned so that they can be produced and frequently incur performance losses for high-value applications.

In contrast, our technology can deliver complex high value metal parts with the design advantages, lower costs and faster lead times associated with AM, and generally avoids the need to redesign the parts. As a result, our customers have increasingly adopted our technology into their design and production processes. We believe our value is reflected in our sales patterns, as most of our customers initially purchased a single machine to validate our technology and have purchased additional systems over time as they have embedded our technology in their product roadmap and manufacturing infrastructure. We consider this approach a "land and expand" strategy, oriented around a demonstration of our value proposition followed by increasing penetration with key customers.

**Recent Developments** 

***Recent Debt and Equity Transactions and Change in Majority Ownership***

On December 24, 2024, the Company and Arrayed Note Acquisition Corp., a subsidiary of Arrayed Additive, Inc. ("Arrayed"), entered into a debt for equity exchange transaction where the Company issued 12,343,423 shares of the Company's common stock, in exchange for the cancellation of $22.4 million in principal amount of the Company's Secured Notes (the "Notes") plus $0.4 million of accrued interest on the Notes. Arrayed continues to hold $5.0 million in principal amount of the Secured Notes, and as a result of the December 2024 Exchange, became, at the time of the transaction, the owner of approximately 95% of our issued and outstanding common stock.

On February 24, 2025, the Company entered into February Warrant Exchange Agreements with each of: (i) Highbridge Tactical Credit Master Fund, L.P. ("HM"); (ii) Highbridge Tactical Credit Institutional Fund, Ltd. (collectively with HM, the "Highbridge

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Holders"); (iii) Anson Investments Master Fund LP ("AMF"); (iv) Anson East Master Fund LP (collectively with AMF, the "Anson Holders"); (v) High Trail Investments ON LLC ("HTI"), and (vi) HB SPV I Master LLC (together with HTI, the "High Trail Holders"), pursuant to which: (a) the Highbridge Holders and the Anson Holders agreed to exchange an aggregate of 60,150 registered warrants issued in April 2024 and an aggregate of 99,048 registered warrants issued in August 2024, and (b) the High Trail Holders agreed to exchange an aggregate of 151,808 unregistered warrants issued in April 2024 and July 2024, and an aggregate of 19,048 registered warrants issued in December 2023, for an aggregate of 990,159 shares (the "Acquired Shares") of Company's common stock, respectively, equating in each case to an exchange ratio of three Acquired Shares for each warrant.

On January 7, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $5,000,000 (the "January Note") to Thieneman Properties, LLC, an Indiana limited liability company. The January Note bears interest at a rate of 60.0% per annum, was payable in full on April 7, 2025 in the amount of $5,750,000 and given it was not paid on or prior to such date, continues to accrue interest at the same rate until paid. The January Note may be prepaid in whole or in part at any time without penalty or premium and is convertible in the event of default into shares of the Company's common stock, at a fixed conversion price of $23.40 per share. On April 7, 2025, the Company made a payment of $750,000, covering the first three months of interest on the January Note.

On February 10, 2025, the Company issued a Senior Secured Convertible Promissory Note in the principal amount of $10,000,000 (the "February Note") to Thieneman Construction, Inc., an Indiana corporation, to be funded in two tranches of $5,000,000. The February Note bears interest at a rate of 30.0% per annum, is payable in full on the date that is six months from the date such tranche was funded, (the first tranche and second tranche were received by the Company on February 10, 2025 and March 20, 2025, respectively), in the amount of $5,750,000 and given it was not paid on or prior to such date, will continue to accrue interest at the same rate until paid. The outstanding principal amount of the February Note is convertible into shares of the Company's common stock upon the occurrence of the Company's successful listing of shares of its common stock on a national securities exchange or the occurrence and during the continuation of an event of default, into common stock at a fixed conversion price of $15.00 per share.

On August 14, 2025, the Company amended the January Note (the "January Note Amendment"), which amended certain provisions of the January Note, including: an extension of the maturity date under the January Note to February 14, 2027; a reductions of the interest rate under the January Note to 12%; and an adjustment of the fixed conversion price to 16.38 per share. On August 14, 2025, the Company also amended the February Note (the "February Note Amendment") which, amended certain provisions of the February Note, including: an extension of the maturity dates for each tranche under the February Note to February 14, 2027; a reduction of the interest rate under the February Note to 12%; and an adjustment of the fixed conversion price to 10.50 per share. The Company has evaluated that the note amendments are both treated as a debt modification under ASC Topic 470, *Debt*.

***2025 Reverse Stock Split***

Effective July 28, 2025, we implemented a 1-for-15 reverse stock split of our issued and outstanding common stock. The reverse stock split was effected by the filing of a certificate of amendment (the "Amendment") to our Certificate of Incorporation with the Secretary of State of the State of Delaware, without any change to par value or the number of authorized shares of common stock. The Amendment became effective upon such filing. No fractional shares were issued in connection with the reverse stock split as all fractional shares were rounded up to the next whole share. All share and per share amounts of our common stock listed in this Quarterly Report have been adjusted, as applicable, to give effect to the reverse stock split.

See Note 1, *Description of Business and Basis of Presentation,* for additional information on the 2025 reverse stock split in the notes to our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report.

***August 2025 Offering***

On August 19, 2025, Velo3D, Inc. entered into an underwriting agreement (the "Underwriting Agreement") with Lake Street Capital Markets, LLC, as representative of the several underwriters named therein (the "Representative"), relating to the public offering of 5,833,333 shares (the "Shares") of the Company's common stock, par value $0.00001 per share, at a purchase price per share of $3.00 (the "Offering Price"). Pursuant to the Underwriting Agreement, the Company also granted the Representative a 30-day option to purchase up to an additional 875,000 shares of common stock at the Offering Price, less any underwriting discounts and commissions, which was exercised in full.

The August 2025 Offering closed on August 20, 2025. Gross proceeds of $20.1 million was received from the August 2025 Offering of 5,833,333 shares of the Company's common stock ($17.5 million) and the exercise of the Representative option to purchase 875,000 shares of common stock. Net proceeds from the offering were approximately $17.8 million after deducting $2.3 million in the underwriting discounts and commissions, and other estimated offering expenses payable by the Company for legal and

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audit services. The Company intends to use the net proceeds of this offering for working capital, capital expenditures and general corporate purposes.

Notwithstanding the recent debt and equity transactions, as described in "*—Liquidity and Capital Resources*" and in Note 1 *Description of Business and Basis of Presentation—Going Concern, Financial Condition and Liquidity and Capital Resources* in the notes to the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report, management believes that substantial doubt exists about the Company's ability to continue as a going concern. We do not have sufficient liquidity to meet our operating needs and satisfy our debt obligations for at least the next 12 months. The Company will need to engage in additional financings to fund our operations, continue to fund payroll for employees, and satisfy our obligations in the near term. Without such additional funding, we will not be able to continue operations and may be required to sell assets, liquidate and/or file for bankruptcy.

***Amendment to Company's Certificate of Incorporation allowing stockholders to act by written consent***

On June 27, 2025, the stockholders of the Company, approved an amendment ("the Written Consent Amendment") to the Company's Certificate of Incorporation, as amended (the "Certificate of Incorporation'), to remove Section 1 of Article VIII of the Certificate of Incorporation, which prohibited stockholder action by written consent without a stockholder meeting. On July 1, 2025, the Written Consent Amendment was filed with the Secretary of State of the State of Delaware. As a result of the Written Consent Amendment, stockholders are now permitted to act by written consent to the extent permitted under the Delaware General Corporation Law.

**Key Financial and Operational Metrics**

We believe that our performance and future success depend on many factors that present significant opportunities for us but also pose risks and challenges, including those discussed herein and in the section of the 2024 Form 10-K titled "*Risk Factors*."

We regularly evaluate several metrics, including the metrics presented in the table below, to measure our performance, identify trends affecting our business, prepare financial projections, make strategic decisions, and establish performance goals for compensation and we periodically review and revise these metrics to reflect changes in our business.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the Three Months Ended** | **As of and for the Three Months Ended** | **As of and for the Nine Months Ended** | **As of and for the Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue ($ in millions) | $14 | $8 | $37 | $28 |
| Bookings ($ in millions) | $18 | $6 | $38 | $28 |
| Backlog ($ in millions) | $21 | $21 | $21 | $21 |

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*Bookings ($ in millions):* Bookings ($ in millions) are defined as a confirmed order for a 3D printer system and printed parts in contracted dollars.

*Backlog ($ in millions):* Backlog ($ in millions) is defined as the unfulfilled 3D printer systems and printed parts to be delivered to customers in contracted dollars as of period end.

*Customer Concentration*

Our operating results for the foreseeable future will continue to depend on sales to a small group of customers. For the three months ended September 30, 2025 and 2024, sales to the top three customers accounted for 50.9% and 82.0%, respectively, of our revenue. Of the top three customers for the three months ended September 30, 2025, two customers were different from the top three customers for the comparable period in 2024. For the nine months ended September 30, 2025 and 2024, sales to the top three customers accounted for 36.7% and 51.7%, respectively, of our revenue. Of the top three customers for the nine months ended September 30, 2025, two customers were different from the top three customers for the comparable period in 2024.

While our objective is to diversify our customer base, we continue to be susceptible to risks associated with customer concentration.

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*Continued Investment and Innovation*

We continue to be a customer-focused company working to develop innovative solutions to address customers' needs and focus on our customers to identify the most impactful areas for research and development as we seek to further improve the capabilities of our AM solutions. We believe this process has contributed significantly to our development of the most advanced metal AM systems in the world. We believe that continued investments in our products are important to our future growth and, as a result, we will invest in enhancing our portfolio of AM solutions through certain research and development projects based on customer demand.

**Macroeconomic Conditions and Other World Events**

General economic and political conditions such as recessions, interest rates, fuel prices, inflation, foreign currency fluctuations, international tariffs, social, political and economic risks and acts of war or terrorism (including, for example, the ongoing military conflicts in Israel and in Ukraine and the economic sanctions related thereto), have added uncertainty in timing of customer orders and supply chain constraints. In 2024, we implemented a number of supply chain and manufacturing improvements in response and intend to continue to focus on driving further operational improvements during 2025 to reduce operating costs.

**Climate Change**

Material pending or existing climate change-related legislation, regulations, and international accords could have an adverse effect on our business, financial condition, and results of operations, including: (1) material past and/or future capital expenditures for climate-related projects, (2) material indirect consequences of climate-related regulation or business trends, such as the following: decreased/increased demand for goods or services that produce significant greenhouse gas emissions or are related to carbon-based energy sources; increased competition to develop innovative new products that result in lower emissions; increased demand for generation and transmission of energy from alternative energy sources; and any anticipated reputational risks resulting from operations or products that produce material greenhouse gas emissions and (3) material increased compliance costs related to climate change. In addition, extreme weather and other natural disasters may become more intense or more frequent, which may disrupt our operations or the operations of our suppliers and customers.

**Components of Results of Operations**

*Revenue*

Our revenue is primarily derived from our AM fully integrated hardware and software solution based on our proprietary L-PBF technology. Our products include Sapphire, Sapphire 1MZ, Sapphire XC and Sapphire XC 1MZ metal AM printer using our L-PBF technology and Assure quality validation software (collectively referred to as the "3D Printer"). Contracts for 3D Printers also include post-sale customer support services ("Support Services"), except for our distributor partners, which are qualified to perform support services.

We sell our fully integrated hardware and software AM solutions through two types of transaction models: a 3D Printer sale transaction and a recurring payment transaction ("Recurring Payment"). Support services are included with a 3D Printer sale transaction and a Recurring Payment transaction. For 3D Printer sale transactions where the support service period has expired, customers may purchase extended support service contracts.

***3D Printer financial statement line item changed to "3D Printer and Parts"***

3D Printer revenue and 3D Printer Cost of revenues have historically included systems and printed parts, and consumables. The name change from Revenue - 3D Printer to "3D Printer and parts" and Cost of Revenue - 3D Printer to "3D Printer and parts" clarifies where the Rapid Production Solutions printed parts revenue and cost of revenue are presented.

**3D Printer and parts sale transactions -** fixed purchase price model. The timeframe from order to completion of the site acceptance test usually occurs over three to nine months. As we scale our production, we expect to reduce this timeframe. Contract consideration allocated to the 3D Printer is recognized at a point in time, which occurs upon transfer of control to the customer at shipment.

The initial sales of 3D Printers and Support Services are included in one contract and are invoiced together. Contract consideration is allocated between the two performance obligations based on relative fair value. This allocation involves judgment and is periodically updated as new relevant information becomes available.

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Other revenue included under 3D Printer and parts sales includes parts and consumables, such as filters, powder or build plates, that are sold to customers and recognized upon transfer of control to the customer at shipment.

**Rapid Production Solutions ("RPS") -** RPS utilizes our deep engineering expertise, cutting-edge technology and a fleet of Sapphire XC large-format metal 3D printers to manufacture custom metal components in order to accelerate the path to production for our customers. RPS revenue is included under 3D Printer and parts revenue.

**Recurring Payment transactions -** our leased 3D Printer transactions. We define our Recurring Payment transactions as operating leases. Under the leased 3D Printer transaction, the customer typically pays an amount for a lease which entitles the customer to a base number of hours of usage. For usage above that level, the customer typically pays an hourly usage fee. Most of our leases have a 12-month term, though in some instances the lease term is longer.

**Support Services** - are included with most 3D Printer sale transactions and Recurring Payment transactions. Support services consist of field service engineering, phone and email support, preventative maintenance, and limited on and off-site consulting support. A subsequent Extended Support Agreement is available for renewal after the initial contract period based on the then-fair value of the service, which is paid for separately. Support Service revenue is recognized over the contract period beginning with customer performance test acceptance.

*Cost of Revenue*

Our cost of revenue includes the "*Cost of 3D Printer and Parts*," "*Cost of Recurring Payment*" and "*Cost of Support Services*."

Cost of 3D Printer and parts includes the manufacturing cost of our components and subassemblies purchased from vendors for the assembly, as well as raw materials and assemblies, shipping costs, cost of RPS solutions, and other directly associated costs. Cost of 3D Printers also includes allocated overhead costs from headcount-related costs, such as salaries, stock-based compensation, depreciation of manufacturing related equipment and facilities, and information technology costs.

Cost of RPS includes cost of raw materials, typically metal powder feedstock, direct and indirect labor, depreciation of 3D printers and other related equipment and facilities, utilities such as electricity and specialty gases, shipping costs and other directly associated costs. Cost of RPS is included under 3D Printer and parts cost of revenue.

Cost of Recurring Payment includes depreciation of the leased equipment over the useful life of five years less the residual value, and an allocated portion of Cost of Support Services.

Cost of Support Services includes the cost of spare or replacement parts for preventive maintenance, installation costs, headcount-related costs such as salaries, stock-based compensation, depreciation of manufacturing related equipment and facilities, and information technology costs. The headcount-related costs are directly associated with the engineers dedicated to remote and on-site support, training, travel costs and other services costs.

*Gross Profit and Gross Margin*

Our gross profit is revenue less cost of revenue and our gross margin is gross profit as a percentage of revenue. The gross profit and gross margin for our products are varied and are expected to continue to vary from period to period due to the mix of products and services sold through a 3D Printer sale transaction, a Recurring Payment transaction, RPS offerings, services contracts, new product introductions and efforts to optimize our operational costs. Other factors affecting our gross profit include changes to our material costs, assembly costs that are themselves dependent upon improvements to yield, and any increase in assembly overhead to support a greater number of 3D Printers sold and markets served.

*Research and Development Expenses*

Our research and development expenses represent costs incurred to support activities that advance the development of innovative AM technologies, new product platforms and consumables, as well as activities that enhance the capabilities of our existing product platforms. Our research and development expenses consist primarily of salaries and related personnel costs for individuals working in our research and development departments, including stock-based compensation, prototypes, design expenses, information technology costs and software license amortization, consulting and contractor costs, and an allocated portion of overhead costs, including depreciation of property and equipment used in research and development activities.

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*Selling and Marketing Expenses*

Sales and marketing expenses consist primarily of salaries and related personnel costs for individuals working in our sales and marketing departments, including stock-based compensation, costs related to trade shows and events, advertising, marketing promotions, travel costs and an allocated portion of overhead costs, including information technology costs and costs for customer validation.

*General and Administrative Expenses*

General and administrative expenses consist primarily of salaries and related personnel costs for individuals associated with our executive, administrative, finance, legal, information technology and human resources functions, including stock-based compensation, professional fees for legal, audit and compliance, accounting and consulting services, general corporate costs, facilities, rent, 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.

*Gain (loss) on debt extinguishment* 

Gain (loss) on debt extinguishment relates to the loss recorded in accordance with the Third Note Amendment in July 2024.

*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 September 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.

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**Results of Operations**

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

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** |  |  |
|  | **2025** | **2024** | **Change** | **%** |
|  | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | $11993 | $1049 | $10944 | 1043.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment |  | 192 | (192) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 1351 | 2006 | (655) | (32.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 296 | 5000 | (4704) | (94.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 13640 | 8247 | 5393 | 65.4% |
| Cost of revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | 11855 | 2224 | 9631 | 433.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment |  | 195 | (195) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 1352 | 1757 | (405) | (23.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 13207 | 4176 | 9031 | 216.3% |
| Gross profit (loss) | 433 | 4071 | (3638) | (89.4)% |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 3042 | 4438 | (1396) | (31.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 1984 | 3099 | (1115) | (36.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 6037 | 15410 | (9373) | (60.8)% |
| Total operating expenses | 11063 | 22947 | (11884) | (51.8)% |
| Loss from operations | (10630) | (18876) | 8246 | (43.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1198) | (3560) | 2362 | (66.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value of warrants |  | 9221 | (9221) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value of contingent earnout liabilities |  | 58 | (58) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | (7525) | 7525 | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (11) | (2443) | 2432 | (99.5)% |
| Loss before benefit for income taxes | (11839) | (23125) | 11286 | (48.8)% |
| Benefit for income taxes | 14 |  | 14 |  |
| Net loss | $(11825) | $(23125) | $11300 | (48.9)% |

---

*Revenue* 

The following table presents the revenue disaggregated by products and service type, as well as the percentage of total revenue.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **Change** | **%** |
|  | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** |
| *Revenue* |  |  |  |  |  |  |
| &nbsp;&nbsp;3D Printer and parts sales | $11993 | 87.9% | $1049 | 12.7% | $10944 | 1043.3% |
| &nbsp;&nbsp;Recurring payment |  |  | 192 | 2.3% | (192) | (100.0)% |
| &nbsp;&nbsp;Support services | 1351 | 9.9% | 2006 | 24.3% | (655) | (32.7)% |
| &nbsp;&nbsp;Other | 296 | 2.2% | 5000 | 60.6% | (4704) | (94.1)% |
| Total Revenue | $13640 | 100.0% | $8247 | 100.0% | $5393 | 65.4% |

---

------

Total revenue for the three months ended September 30, 2025 and 2024 was $13.6 million and $8.2 million, respectively, an increase of $5.4 million, or 65.4%.

3D Printer and parts sales were $12.0 million and $1.0 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $10.9 million. The increase in revenue was primarily attributed to the product mix and the number of systems sold. The 3D Printer and parts sales also included printed parts and consumables revenue.

Recurring Payment revenue, structured as an operating lease, was $0.0 million for the three months ended September 30, 2025 and $0.2 million for the three months ended September 30, 2024. The decrease was primarily attributable to a revenue reduction related to fewer operating lease transactions in 2025 compared to 2024.

Our Support Services revenue was $1.4 million and $2.0 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $0.7 million. Support Services revenue is primarily due to services provided to customers based on the installed base requiring preventive maintenance and other support services.

Other revenue was $0.3 million and $5.0 for the three months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2024, the Company granted license rights in our IP technology in exchange for $5.0 million non-recurring revenue with a customer.

*Cost of Revenue*

The following table presents the Cost of Revenue disaggregated by product and service type, as well as the percentage of total cost of revenue.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **Change** | **%** |
|  | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** |
| *Cost of Revenue* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of 3D Printers and parts | $11855 | 89.8% | $2224 | 53.3% | $9631 | 433.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Recurring Payment |  |  | 195 | 4.7% | (195) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Support Services | 1352 | 10.2% | 1757 | 42.1% | (405) | (23.1)% |
| Total Cost of Revenue | $13207 | 100.0% | $4176 | 100.0% | $9031 | 216.3% |

---

Total cost of revenue for the three months ended September 30, 2025 and 2024 was $13.2 million and $4.2 million, respectively, an increase of $9.0 million, or 216.3%.

Cost of 3D Printer and parts was $11.9 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively. The increase of $9.6 million was due to the increased number of systems sold for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The Cost of 3D Printer and parts also included cost for printed parts and consumables. We expect the cost to manufacture new systems in 2025 to improve as a result of overhead and fixed cost reduction efforts implement in late 2024.

Cost of Recurring Payment was $0.0 and $0.2 million for the three months ended September 30, 2025 and 2024, respectively. This decrease of $0.2 million was primarily due to a decrease in depreciation of the equipment subject to operating lease and allocable Cost of Support Services as a result of fewer 3D Printers in service in the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Cost of Support Services was $1.4 million and $1.8 million for the three months ended September 30, 2025 and 2024, respectively. Cost of Support Services decreased by $0.4 million, due to reliability improvement efforts that the Company undertook in 2024 leading to lower field service engineering labor and overhead for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. We expect this to decrease on a per unit basis as the Sapphire XC, Sapphire 1MZ and Sapphire XC 1MZ system reliability improves. We also expect our Cost of Support Services will increase with the delivery of more 3D Printer systems to customers.

Cost of revenue as a percentage of revenue was 96.8% and 50.6% for the three months ended September 30, 2025 and 2024, respectively. The increase in the cost of revenue as a percentage of revenue was primarily driven by the increased number of systems sold for the three months ended September 30, 2025, compared to the three months ended September 30, 2025.

------

We may experience increasing component costs from our suppliers due to international tariffs and our current financial situation. We are currently unable to secure credit terms and volume discounts with our suppliers, causing us to pay a premium, in advance, or source from alternate suppliers at unfavorable terms for our products. This has negatively impacted our cost of revenue and will continue to negatively impact our cost of revenue until our financial condition improves and costs associated with tariffs ease.

*Gross Profit (Loss) and Gross Margin*

Total gross profit was $0.4 million and $4.1 million for the three months ended September 30, 2025 and 2024, respectively. As a percentage of revenue, the gross margin was 3.2% and 49.4% for the three months ended September 30, 2025 and 2024, respectively. The decrease in gross profit for the three months ended September 30, 2025 was primarily attributable to the other revenue non-recurring license fee during the three months ended September 30, 2024, as compared to the three months ended September 30, 2025.

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 condition improves.

*Research and Development Expenses* 

Research and development expenses were $3.0 million and $4.4 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $1.4 million. The decrease in research and development expenses was driven by a $0.6 million decrease in headcount, salaries and employee-related expenses, a decrease of $0.4 million in stock-based compensation, and a decrease of $0.4 million in research and development 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 in our 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 $2.0 million and $3.1 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $1.1 million. The decrease was attributable to a decrease of $1.0 million in headcount, salaries and employee-related expenses, and a $0.1 million decrease in stock-based compensation. Marketing costs and initiatives spending remained consistent for three months ended September 30, 2025 and 2024.

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.

*General and Administrative Expenses*

General and administrative expenses were $6.0 million and $15.4 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $9.4 million. The decrease was attributable to a decrease of $0.1 million in headcount, salaries and employee-related expenses, a $0.7 million decrease in stock-based compensation, a decrease of $1.9 million in legal, professional fees and general and administrative expenses, and a non-recurring bad debt write down of $6.7 million in the three months ended September 30, 2024.

------

We expect general and administrative expenses to decrease as a result of savings from our reduction in force implemented in late 2024. We continue to focus on our company-wide initiatives to reduce operating costs for the remainder of 2025 as we continue to reduce our general and administrative expenses through reducing our reliance on outside consultants, managing facility costs, negotiating with vendors for improved pricing and enterprise level efficiency improvements.

*Interest Expense*

Interest expense was $1.2 million and $3.6 million for the three months ended September 30, 2025 and 2024, respectively, due to the reduction in Senior Secured Notes, which was offset by the issuance of the Secured Convertible Notes.

We expect our interest expense will continue to decrease as a result of our amendments to the interest rates.

*Gain (loss) on Fair Value of Warrants*

The gain on fair value of warrants was $0.0 million and $9.2 million for the three months ended September 30, 2025 and 2024, respectively, and was related to the non-cash fair value change of the warrant liabilities driven by the relative change in our stock price.

*Gain (loss) on Fair value of Contingent Earnout Liabilities*

The change in fair value of the contingent earnout liability was $0.0 and less than $0.1 million for the three months ended September 30, 2025 and 2024, respectively, and was related to the non-cash fair value change of the earnout liabilities driven by the relative change in our stock price.

*Gain (loss) on debt extinguishment*

The gain (loss) on debt extinguishment was $0.0 million and ($7.5) million for the three months ended September 30, 2025 and 2024, respectively, and was related to the Third Note Amendment ("Third Note Amendment") related to the Secured Notes with High Trail Investments On LLC and an affiliated institutional investor on July 1, 2024, in accordance with the warrant issuance. The Third Note Amendment and concurrent issuance of warrants constituted a substantial change to the Secured Notes resulting in a debt extinguishment.

*Other Income (Expense), Net*

Other expense, net was less than $0.1 million and $2.4 million for the three months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2024, $2.4 million loss was related to the initial measurement of the August 2024 inducement warrants.

*Income Taxes* 

No provision for federal and state income taxes was recorded for both the three months ended September 30, 2025 and 2024 due to projected losses, and we maintained a full valuation allowance on the deferred tax assets as of September 30, 2025 and December 31, 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 in the remainder of 2025and 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.

------

**Comparison of the Nine Months Ended September 30, 2025 and 2024:** 

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |  |
|  | **2025** | **2024** | **Change** | **%** |
|  | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | $31598 | $17388 | $14210 | 81.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment | 70 | 954 | (884) | (92.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 4500 | 5035 | (535) | (10.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 364 | 5000 | (4636) | (92.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 36532 | 28377 | 8155 | 28.7% |
| Cost of revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts | 33389 | 22362 | 11027 | 49.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment | 12 | 742 | (730) | (98.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 3589 | 6914 | (3325) | (48.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 36990 | 30018 | 6972 | 23.2% |
| Gross loss | (458) | (1641) | 1183 | (72.1)% |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 8162 | 14026 | (5864) | (41.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 4815 | 12181 | (7366) | (60.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 21205 | 32998 | (11793) | (35.7)% |
| Total operating expenses | 34182 | 59205 | (25023) | (42.3)% |
| Loss from operations | (34640) | (60846) | 26206 | (43.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (3840) | (12920) | 9080 | (70.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on fair value of warrants | (1044) | 31911 | (32955) | (103.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value of contingent earnout liabilities |  | 1445 | (1445) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on warrant cancellation | (11357) |  | (11357) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  | (7525) | 7525 | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (28) | (3676) | 3648 | (99.2)% |
| Loss before (provision) benefit for income taxes | (50909) | (51611) | 702 | (1.4)% |
| (Provision) benefit for income taxes | (83) |  | (83) |  |
| Net loss | $(50992) | $(51611) | $619 | (1.2)% |

---

*Revenue* 

The following table presents the revenue disaggregated by products and service type, as well as the percentage of total revenue.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **Change** | **%** |
|  | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** | **(In thousands, except for percentages)** |
| *Revenue* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3D Printer and parts sales | $31598 | 86.5% | $17388 | 61.3% | $14210 | 81.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring payment | 70 | 0.2% | 954 | 3.4% | (884) | (92.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Support services | 4500 | 12.3% | 5035 | 17.7% | (535) | (10.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Revenue | 364 | 1.0% | 5000 | 17.6% | (4636) | (92.7)% |
| Total Revenue | $36532 | 100.0% | $28377 | 100.0% | $8155 | 28.7% |

---

------

Total revenue for the nine months ended September 30, 2025 and 2024 was $36.5 million and $28.4 million, respectively, an increase of $8.2 million, or 28.7%.

3D Printer and parts sales were $31.6 million and $17.4 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of $14.2 million. The increase in revenue was primarily attributed to product mix and the number of systems sold. The 3D Printer and parts sales also included printed parts and consumables revenue.

Recurring Payment revenue, structured as an operating lease, was less than $0.1 million for the nine months ended September 30, 2025 and $1.0 million for the nine months ended September 30, 2024. The decrease was primarily attributable to a revenue reduction related to fewer operating lease transactions.

Our Support Services revenue was $4.5 million and $5.0 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $0.5 million. The decrease in Support Services revenue was primarily due to services provided to customers based on the installed base requiring preventive maintenance and other support services.

Other revenue was $0.4 million and $5.0 for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2024, the Company granted license rights in our IP technology in exchange for $5.0 million non-recurring revenue with a customer.

*Cost of Revenue*

The following table presents the Cost of Revenue disaggregated by product and service type, as well as the percentage of total cost of revenue.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |  |  |
|  | **2025** | **2025** | **2024** | **2024** | **Change** | **%** |
| *Cost of Revenue* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of 3D Printers and parts | $33389 | 90.3% | $22362 | 74.5% | $11027 | 49.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Recurring Payment | 12 | 0.0% | 742 | 2.5% | (730) | (98.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Support Services | 3589 | 9.7% | 6914 | 23.0% | (3325) | (48.1)% |
| Total Cost of Revenue | $36990 | 100.0% | $30018 | 100.0% | $6972 | 23.2% |

---

Total cost of revenue for the nine months ended September 30, 2025 and 2024 was $37.0 million and $30.0 million, respectively, an increase of $7.0 million, or 23.2%.

Cost of 3D Printer and parts was $33.4 million and $22.4 million for the nine months ended September 30, 2025 and 2024, respectively. The increase of $11.0 million was due to the increased number of systems sold for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, and the higher overhead and labor absorption to manufacture the systems which were started in 2024 and sold in 2025, offset by the product mix and decrease in the number of systems sold, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The Cost of 3D Printer and parts also included cost for printed parts and consumables.

Cost of Recurring Payment was less than $0.1 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively. This decrease of $0.7 million was primarily due to a decrease in depreciation of the equipment subject to operating lease and allocable Cost of Support Services as a result of fewer 3D Printers in service in the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Cost of Support Services was $3.6 million and $6.9 million for the nine months ended September 30, 2025 and 2024, respectively. Cost of Support Services decreased by $3.3 million, due to reliability improvement efforts that the Company undertook in 2024 leading to lower field service engineering labor and overhead in September 30, 2025, compared to September 30, 2024. We expect this to decrease on a per unit basis as the Sapphire XC, Sapphire 1MZ and Sapphire XC 1MZ system reliability improves. We also expect our Cost of Support Services will increase with the delivery of more 3D Printer systems to customers.

Cost of revenue as a percentage of revenue was 101.3% and 105.8% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in the cost of revenue as a percentage of revenue was primarily driven by product mix and improvements in the number of systems sold and the average selling price of 3D Printers.

------

We may experience increasing component costs from our suppliers due to international tariffs and our current financial situation. We are currently unable to secure credit terms and volume discounts with our suppliers, causing us to pay a premium, in advance, or source from alternate suppliers at unfavorable terms for our products. This has negatively impacted our cost of revenue and will continue to negatively impact our cost of revenue until our financial conditions improve and costs associated with tariffs ease.

*Gross Profit (Loss) and Gross Margin*

Total gross loss was $0.5 million and $1.6 million for the nine months ended September 30, 2025 and 2024, respectively. As a percentage of revenue, the gross margin was (1.3)% and (5.8)% for the nine months ended September 30, 2025 and 2024, respectively. The improvement in gross loss for the nine months ended September 30, 2025 was primarily attributable to the number of systems sold, product mix and improvements in the average selling price of 3D Printers, offset by the historical higher manufacturing cost of systems started in 2024 but sold in 2025 during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

Our gross loss 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 loss and gross margin have been and will continue to be negatively impacted until our financial condition improves.

*Research and Development Expenses* 

Research and development expenses were $8.2 million and $14.0 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $5.9 million. The decrease in research and development expenses primarily driven by a $3.0 million decrease in headcount, salaries and employee-related expenses, a decrease of $1.8 million in stock-based compensation, a decrease of $1.1 million in other research and development 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 in the 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 $4.8 million and $12.2 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $7.4 million. The decrease was primarily attributable to a decrease of $6.0 million in headcount, salaries and employee-related expenses and a $1.4 million decrease in stock-based compensation.

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.

*General and Administrative Expenses*

General and administrative expenses were $21.2 million and $33.0 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $11.8 million. The decrease was primarily attributable to a $1.8 million decrease in headcount, salaries and employee-related expenses, a $0.6 million decrease in stock-based compensation, a $1.1 million decrease in facilities

------

related expenses and a $1.6 million decrease in legal and other professional services, and a non-recurring bad debt write down of $6.7 million in the nine months ended September 30, 2024.

We expect general and administrative expenses to decrease as a result of savings from our reduction in force implemented in late 2024. We continue to focus on our company-wide initiatives to reduce operating costs for the remainder of 2025 as we continue to reduce our general and administrative expenses through reducing our reliance on outside consultants, managing facility costs, negotiating with vendors for improved pricing and enterprise level efficiency improvements.

*Interest Expense*

Interest expense was $3.8 million and $12.9 million for the nine months ended September 30, 2025 and 2024, respectively, due to the reduction in Senior Secured Notes and offset by the issuance of the Secured Convertible Notes.

We expect our interest expense will continue to decrease as a result of our amendments to the interest rates.

*Gain (loss) on Fair Value of Warrants*

The change in fair value of warrants resulted in a gain (loss) of ($1.0) and $31.9 million for the nine months ended September 30, 2025 and 2024, respectively, and was related to the non-cash fair value change of the warrant liabilities driven by the relative change in our stock price.

*Gain (loss) on Fair value of Contingent Earnout Liabilities*

The change in fair value of the contingent earnout liability was $0.0 and $1.4 million for the nine months ended September 30, 2025 and 2024, respectively, and was related to the non-cash fair value change of the earnout liabilities driven by the relative change in our stock price.

*Loss on Warrant Cancellation*

Loss on warrant cancellation was $11.4 million and $0.0 for the nine months ended September 30, 2025 and 2024, respectively, and related to the loss recognized in conjunction with the February 2025 Warrant Exchange transaction.

*Gain (loss) on debt extinguishment*

The gain (loss) on debt extinguishment was $0.0 million and ($7.5) million for the nine months ended September 30, 2025 and 2024, respectively, and was related to the Third Note Amendment related to the Secured Notes with High Trail Investments On LLC and an affiliated institutional investor on July 1, 2024, in accordance with the warrant issuance. The Third Note Amendment and concurrent issuance of warrants constituted a substantial change to the Secured Notes resulting in a debt extinguishment.

*Other Income (Expense), Net*

Other expense, net was less than $0.1 million and $3.7 million for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2024, $2.4 million loss was related to the initial measurement of the August 2024 inducement warrants.

*Income Taxes* 

No provision for federal and state income taxes was recorded for both the nine months ended September 30, 2025 and 2024 due to projected losses, and we maintained a full valuation allowance on the deferred tax assets as of September 30, 2025 and December 31, 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 in the remainder of 2025 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.

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**Liquidity and Capital Resources**

As of September 30, 2025, the Company had approximately $11.8 million in cash and short-term investments and $6.7 million in accounts receivable. 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 $5.3 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 Quarterly Report for further discussion.

During the nine months ended September 30, 2025, we experienced less revenue growth than expected due to our focus on improving the reliability of systems and working on restoring market confidence with our high-value customers with the new executive leadership team. As of September 30, 2025, we do not have sufficient working capital to meet our financial needs for the twelve-month period following the filing date of this Quarterly Report. 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 included elsewhere in this Quarterly Report.

We will need to engage in additional financings to fund our operations and satisfy our debt obligations in the near-term as well as to respond to business challenges and opportunities, including the need to repay the Secured Notes, provide working capital, continue to fund payroll for employees, improve our operating infrastructure, and continue to sustain operations. Accordingly, subject to our compliance with the covenants in the Secured Notes, to fund our operations, we will need to engage in equity or debt financings to secure additional funds, including seeking additional capital from public or private offerings of our equity or debt securities, electing to repay, restructure or refinance our existing indebtedness, or electing to borrow additional amounts under new credit lines or from other sources. We may also seek to raise additional capital, including from offerings of our equity or debt securities, on an opportunistic basis when we believe there are suitable opportunities for doing so.

Additionally, our recent and projected financial results, and the related conditions that raise substantial doubt about our ability to continue as a going concern, and general concerns among potential investors and creditors about our financial well-being, may make cost cutting activities and securing additional financing on commercially reasonable terms (if at all) or in an amount sufficient to fund our operations for at least 12 months especially difficult.

More generally, our ability to meet our cash requirements depends on, among other things, our operating performance, competitive and industry developments, and financial market conditions, all of which are significantly affected by business, financial, economic, political, and other factors, many of which we may not be able to control or influence. To the extent that our actual operating results or other developments differ from our expectations, our liquidity will continue to be adversely affected.

*Debt Facilities*

As of September 30, 2025, our debt arrangements comprised the Secured Notes, the January Notes, and the February Notes, of which we had approximately $23.0 million aggregate principal amount outstanding as of September 30, 2025.

We do not hedge our exposure to changes in interest rates. A 10% change in interest rates may have a material impact on annualized interest expense.

For more information, see Note 9, *Debt*, in the notes of the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report.

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**Cash Flow Summary**

The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |  |
|  | **2025** | **2024** | **Change** |
|  | **(In thousands)** | **(In thousands)** |  |
| Net cash used in operating activities | $(19590) | $(30465) | $10875 |
| Net cash (used in) provided by investing activities | $(2112) | $6644 | $(8756) |
| Net cash provided by financing activities | $32323 | $958 | $31365 |

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*Operating Activities* 

Net cash used in operating activities for the nine months ended September 30, 2025 was $19.6 million, consisting primarily of a net loss of $51.0 million, non-cash loss of $27.8 million described below, and a decrease in net operating assets of $3.6 million. The cash used from net operating assets was comprised of a decrease from other assets of $5.9 million, a decrease from accounts receivable of $2.9 million, a decrease from contract assets of $2.9 million, a decrease from contract liabilities of $2.0 million, a decrease from accounts payable of $1.8 million, and a decrease from other net operating assets of $0.5 million, and offset by an increase from inventories of $11.3 million, and an increase from accrued expenses and other liabilities of $8.3 million. The non-cash loss of $27.8 million primarily consisted of the loss on cancellation of warrants of $11.4 million, stock-based compensation expense of $9.1 million, and the loss on fair value of warrants of $1.0 million.

Net cash used in operating activities for the nine months ended September 30, 2024 was $30.5 million, consisting primarily of a net loss of $51.6 million, non-cash gain of $13.2 million described below, and a decrease in net operating assets of $8.0 million. The decrease in net operating assets was comprised a decrease from accounts receivable of $7.4 million due to timing of customer payments, and a decrease in accrued expenses and other current liabilities of $1.1 million, and a decrease from other net operating assets of $0.9 million, offset by an increase in contract liabilities of $6.4 million, an increase from other assets of $3.6 million, an increase in contract assets of $3.5 million, an increase from prepaid expenses of $2.2 million related to insurance and vendor prepayments, an increase from inventories of $1.7 million for Sapphire XC, Sapphire 1MZ and Sapphire XC 1MZ system production. The noncash gain of $13.2 million primarily consisted of the gain on fair value of warrants of $31.9 million, and the gain on fair value of contingent earnout liabilities of $1.4 million, offset by the stock-based compensation expense of $13.0 million, depreciation and amortization of $3.9 million, amortization of debt discount and deferred financing costs of $7.3 million, loss on debt extinguishment of $7.5 million and non-cash cost of issuance of common stock warrants in connection with the BEPO Offering of $8.0 million.

We expect our cash used in operating activities to decrease, driven by our efforts to stabilize our working capital requirements through our expense reduction efforts and overall enterprise efficiency improvement programs.

*Investing Activities* 

Net cash used by investing activities during the nine months ended September 30, 2025 was $2.1 million, consisting of purchases of property and equipment of $2.1 million.

Net cash provided by investing activities during the nine months ended September 30, 2024 was $6.6 million, consisting of the sale of available for sale securities of $3.2 million, and maturities of available-for-sale investment securities of $3.5 million.

We expect our capital expenditures to increase in 2025 compared to 2024 as we invest in printer capacity and related facilities for RPS.

*Financing Activities* 

Net cash provided by financing activities during the nine months ended September 30, 2025 was $32.3 million, consisting of $17.8 million net proceeds from the August 2025 Offering and $15.0 million net proceeds from the issuance of the January Note and the February Note, offset by the repayment of the secured notes of $0.5 million.

Net cash provided by financing activities during the nine months ended September 30, 2024 was $1.0 million, consisting of proceeds of $10.7 million from the capital raise, proceeds from the August Warrant Inducement of $1.7 million, and $0.3 million from the issuance of common stock upon exercise of stock options, offset by the repayment of the secured notes of $11.8 million.

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We expect cash provided by financing activities to increase by issuing new equity or incurring new debt to continue operations, subject to our compliance with the covenants in the Secured Notes. Our future cash requirements and the adequacy of available funds will depend on many factors, including our operating performance, competitive and industry developments, and financial market conditions.

**Off-Balance Sheet Arrangements**

As of September 30, 2025 and December 31, 2024, except as discussed below, we did not have any off-balance sheet arrangements.

See Note 16, *Momentus Master Service Agreement,* in the notes to our unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report for additional information.

**Recent Accounting Pronouncements**

For a description of recent accounting pronouncements, including the expected dates of adoption and estimated effects, if any, on Velo3D's unaudited condensed consolidated interim financial statements, see Note 2, *Summary of Significant Accounting Policies*, in the notes to the unaudited condensed consolidated interim financial statements in this Quarterly Report.

**Implications of Being an Emerging Growth Company**

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an "emerging growth company" as defined in Section 2(a)(19) of the Securities Act of 1933, as amended (the "Securities Act") and have elected to take advantage of the benefits of this extended transition period.

We will elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public business entities and nonpublic business entities until the earlier of the date we (a) are no longer an emerging growth company or (b) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used. Please refer to Note 2. *Summary of Significant Accounting Policies,* of the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report for the recent accounting pronouncements adopted and the recent accounting pronouncements not yet adopted for the nine months ended September 30, 2025 and 2024.

We will remain an emerging growth company under the JOBS Act until the earliest of (a) December 31, 2025, (b) the last date of our fiscal year in which we have total annual gross revenue of at least $1.235 billion, (c) the last date of our fiscal year in which we are deemed to be a "large accelerated filer" under the rules of the SEC or (d) the date on which we have issued more than $1.0 billion in nonconvertible debt securities during the previous three years.

**Implications of Being a Smaller Reporting Company**

We are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited consolidated financial statements.

We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We will remain a smaller reporting company and may take advantage of certain scaled disclosures available to smaller reporting companies until the last day of the fiscal year in which (a) the market value of our voting and nonvoting common stock held by non-affiliates equals or exceeds $250.0 million measured on the last business day of that year's second fiscal quarter and (b) our annual revenue equals or exceeds $100.0 million during the most recently completed fiscal year or our voting and nonvoting common stock held by non-affiliates equals or exceeds $700.0 million measured on the last business day of that year's second fiscal quarter.

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**Critical Accounting Policies and Significant Estimates**

Our discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated interim financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). We evaluated the development and selection of our critical accounting policies and estimates and believe that the following involve a higher degree of judgment or complexity and are most significant to reporting our results of operations and financial position and are therefore discussed as critical. The following critical accounting policies reflect the significant estimates and judgments used in the preparation of our unaudited condensed consolidated interim financial statements. Actual results could differ materially from those estimates and assumptions, and those differences could be material to our unaudited condensed consolidated interim financial statements. We re-evaluate our estimates on an ongoing basis. For more information, see Note 2, *Summary of Significant Accounting Policies,* included in the notes to the unaudited condensed consolidated interim financial statements in this Quarterly Report, and *Critical Accounting Policies and Significant Estimates* in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**Item 3. Quant** **itative and Qualitative Disclosures about Market Risk**

We are a smaller reporting company as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a result, pursuant to Item 305(e) of Regulation S-K, we are not required to provide the information required by this Item.

**Item 4. Controls and Pro** **cedures**

***Evaluation of Disclosure Controls and Procedures***

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Our management, with participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of September 30, 2025. Based upon this evaluation our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2025, our disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial reporting described below.

***Material Weaknesses in Internal Control over Financial Reporting*** 

As described Part II, Item 9A. "Controls and Procedures" of our Annual Report on Form 10-K for the year ended December 31, 2024, we identified material weaknesses in our internal control over financial reporting. These material weaknesses have not been remediated as of September 30, 2025. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim consolidated financial statements will not be prevented or detected on a timely basis. The material weaknesses are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain an effective control environment commensurate with our financial reporting requirements. Specifically, we did not maintain a sufficient complement of personnel with an appropriate degree of internal controls and accounting knowledge, experience, and training commensurate with our accounting and financial reporting requirements. Additionally, the lack of a sufficient complement of personnel resulted in an inability to consistently establish appropriate authorities and responsibilities in pursuit of our financial reporting objectives, as demonstrated by, among other things, insufficient segregation of duties in our finance and accounting functions. This material weakness contributed to the following additional material weaknesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over the segregation of duties related to journal entries and account reconciliations. Specifically, certain personnel have the ability to both (i) create and post journal entries within our general ledger system and (ii) prepare and review account reconciliations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over the accounting and disclosure for debt and equity instruments. Specifically, we did not design and maintain effective controls over the accounting for the issuance and extinguishment of convertible note arrangements, warrants, common stock, and the accounting for earnout liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over the accounting for inventory and related accounts. Specifically, we did not design and maintain effective controls over verifying the existence of inventory, the accuracy of purchases, manufacturing costs, and write-offs and the financial statement presentation of inventory and related accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over the accounting for contract assets and liabilities. Specifically, we did not design and maintain effective controls over the accuracy and the financial statement presentation of contract assets and liabilities, including variable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over financial statement preparation, presentation and disclosure commensurate with our financial reporting requirements. Specifically, we did not design and maintain effective controls over the appropriate classification and presentation of accounts and disclosures in the consolidated financial statements.

These material weaknesses resulted in adjustments to accounts receivable, inventory, other current assets, current and non-current contract liabilities, accrued expenses and other current liabilities which were recorded prior to the issuance of the consolidated financial statements as of and for the years ended December 31, 2019, 2020 and 2021 and as of and for the interim periods ended September 30, 2021 and December 31, 2021. These material weaknesses also resulted in the revision of our consolidated financial statements for the year ended December 31, 2022 and as of and for the interim periods ended March 31, 2022, June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, and September 30, 2023. Also, these material weaknesses resulted in an uncorrected misstatement to inventories and cost of revenue and adjustments to debt – current portion and long-term debt, other income, additional paid in capital, gain on fair value of warrants, interest expense, revenue and contract assets, and loss on debt extinguishment which were recorded prior to the issuance of the consolidated financial statements as of and for the year ended December 31, 2023 and accounts receivable and contract assets as of and for the interim period ended September 30, 2025. These material weaknesses also resulted in adjustments to interest expense, debt – current portion, additional paid-in capital, warrant liabilities, contingent earnout liabilities and gain (loss) on fair value of contingent earnout liabilities, which were recorded prior to the issuance of the unaudited condensed consolidated interim financial statements as of and for the interim period ended September 30, 2025. Additionally, these material weaknesses could result in a misstatement of substantially all of our accounts or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We did not design and maintain effective controls over certain information technology ("IT") general controls for information systems that are relevant to the preparation of our consolidated financial statements. Specifically, we did not design and maintain effective:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪user access controls to ensure appropriate segregation of duties and that adequately restrict user and privileged access to financial applications, programs, and data to appropriate company personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪program change management controls to ensure that information technology program and data changes affecting certain financial IT applications and underlying accounting records are identified, tested, authorized and implemented appropriately.

These IT deficiencies did not result in a misstatement to the consolidated financial statements, however, the deficiencies, when aggregated, could impact maintaining effective segregation of duties, as well as the effectiveness of IT dependent controls (such as automated controls that address the risk of material misstatement to one or more assertions, along with the IT controls and underlying data that support the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all consolidated financial statement accounts and disclosures that would not be prevented or detected. Accordingly, management has determined these deficiencies in the aggregate constitute a material weakness.

***Remediation Measures for Material Weaknesses in Internal Control over Financial Reporting***

We have taken measures to remediate the material weaknesses remaining as of September 30, 2025, including the following: hired additional accounting and IT personnel to bolster our reporting, technical accounting and IT capabilities; provided ongoing training for our personnel on accounting, financial reporting and internal control over financial reporting; engaged a third-party to assist in designing and implementing controls, including controls related to segregation of duties and IT general controls; designing and implementing controls to formalize roles and review responsibilities to align with our team's skills and experience and designing and implementing controls over segregation of duties; and designing and implementing controls over the preparation and review of

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journal entries and account reconciliations. Additionally, we will need to hire and train additional accounting and IT personnel to further bolster our technical accounting and IT capabilities. We have also begun planning for measures to remediate the material weaknesses related to designing and implementing controls over accounting and disclosure for debt and equity instruments, the accounting for the issuance and extinguishment of convertible note arrangements, warrants and common stock; designing and implementing controls over the accounting for inventory and related accounts, the accuracy of inventory, purchases, manufacturing costs, and write-offs and the financial statement presentation of inventory and related accounts; designing and implementing controls over the accounting for contract assets and liabilities, the accuracy and the financial statement presentation and disclosure of contract assets and liabilities, including variable consideration; designing and implementing controls over controls over financial statement preparation, presentation and disclosure commensurate with our financial reporting requirements, the appropriate classification and presentation of accounts and disclosures in the consolidated financial statements; and designing and implementing IT general controls, including controls over the review and update of user access rights and privileges and program change management controls.

We believe ongoing progress has been taken toward the effectiveness of our internal control over financial reporting and disclosure controls and procedures. The measures that we will take are subject to continued testing with both internal and external resources, ongoing senior management review, as well as quarterly updates to our audit committee to provide oversight on the internal control environment. We will not be able to conclude whether the measures we are taking will fully remediate these material weaknesses in our internal control over financial reporting until we have completed our remediation efforts and subsequent evaluation of their effectiveness. We may also conclude that additional measures may be required to remediate the material weaknesses in our internal control over financial reporting, which may necessitate additional implementation and evaluation time. We will continue to assess the effectiveness of our internal control over financial reporting and take steps to remediate the known material weaknesses expeditiously.

***Changes in Internal Control over Financial Reporting***

Other than as described above, there were no changes in internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

**PART II. OTHER INFOR** **MATION**

**Item 1. Legal Proc** **eedings** 

From time to time, we may be involved in various disputes and litigation matters that arise in the ordinary course of business. We are currently not a party to any material legal proceedings.

**Item 1A. Risk** **Factors**

*There are numerous factors that affect our business and results of operations, many of which are beyond our control. Refer to Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which contains descriptions of significant risks that have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. Except as set forth below, there have been no material changes to risk factors previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and Item 1A of each of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025.*

**Risks Related to Our Financial Position and Need for Additional Capital**

***There is substantial doubt about our ability to continue as a going concern, which is having a material adverse impact on our business.***

As of September 30, 2025, the Company had approximately $11.8 million in cash and short-term investments and $6.7 million in accounts receivable. This amount is insufficient to satisfy the Company's short term obligations including accounts payable of $11.3 million and $23.0 million in Secured and Convertible Notes as of September 30, 2025.

As described in Note 1, *Description of Business and Basis of Presentation—Going Concern, Financial Condition and Liquidity and Capital Resources,* in the notes to the unaudited condensed consolidated interim financial statements included elsewhere in this Quarterly Report, we believe there is substantial doubt about our ability to continue as a going concern for the twelve-month period following the filing date of this Quarterly Report.

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Our conclusion that there is substantial doubt about our ability to continue as a going concern may be viewed unfavorably by current and prospective investors, as well as by analysts and creditors. As a result, this conclusion may make it more difficult for us to raise the additional financing necessary to continue to operate our business and satisfy our obligations. In addition, this conclusion may make it more difficult for us to sell our products and meet our sales forecasts or retain employees, which may further impede our ability to raise additional financing. If we become unable to continue as a going concern, we may find it necessary to file a petition for reorganization under Title 11 of the U.S. Code in order to provide us additional time to identify an appropriate solution to our financial situation and implement a plan of reorganization aimed at improving our capital structure.

This conclusion has caused customers to delay 3D printer orders until our financial condition improves, resulting in delays in 3D printer sales and difficulty building our bookings and backlog pipeline. Additionally, due to our inability to satisfy our accounts payable obligations, we are unable to secure credit terms and volume discounts with our suppliers, causing us to have to pay a premium and/or in advance, for components of our products and/or source components from alternate suppliers at unfavorable terms. Further delaying payments to our suppliers may cause them to terminate our business relationship or pursue legal action against our Company for amounts owed. The Company will need to consider and implement significant cost cutting measures, including further reductions in force. These activities may limit our ability to conduct or grow our business, and may make retaining our employees more difficult, resulting in further employee attrition.

***We expect to require additional capital to fund our operations in the near-term, and such capital might not be available on acceptable terms, if at all.***

We expect that we will need to engage in additional financings to fund our operations and satisfy our substantial debt obligations in the near-term as well as to respond to business challenges and opportunities, including the need to repay our Secured Notes, provide working capital, continuing to fund payroll, develop new features or enhance our products, expand our manufacturing capacity, improve our operating infrastructure or acquire complementary businesses and technologies. Accordingly, subject to our compliance with the covenants in the Secured Notes, we need to engage in equity or debt financings to secure additional funds, including seeking additional capital from public or private offerings of our equity or debt securities, electing to repay, restructure or refinance our existing indebtedness, or electing to borrow additional amounts under new credit lines or from other sources. However, our recent and projected financial results, and the related conditions that raise substantial doubt about our ability to continue as a going concern, and general concerns among potential investors and creditors about our financial well-being may make taking such actions on commercially reasonable terms especially difficult.

If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of holders of our common stock. Any debt financing that we may secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. We may not be able to obtain additional financing on terms favorable to us, if at all. Our ability to raise additional capital may be adversely affected by external factors beyond our control, including changes in the political climate, geopolitical actions, changes in market interest rates or foreign exchange rates, market volatility in the trading prices for our common stock and other technology companies, a recession, depression, high inflation or other sustained adverse market event, and the outbreak of epidemic disease. If we are unable to obtain adequate financing or financing on terms satisfactory to us in the near term, we will not be able to continue operations. If we are otherwise unable to obtain additional financing, our ability to respond to business challenges and opportunities could be significantly impaired, and our business may be adversely affected and we may be required to liquidate and/or file for bankruptcy protection.

**Risks Related to our Business and Industry**

***There is uncertainty regarding U.S. tariffs and support for existing treaty and trade relationships, and implementation of new legislative or regulatory policies by the U.S. government could impose additional costs on the Company, result in delayed timelines, or otherwise negatively impact the Company, which could have a material adverse impact on the Company's business.***

The recent imposition by the United States of tariffs, sanctions and other restrictions on goods imported into the United States, and countermeasures imposed by foreign countries in response to such government actions, if not significantly and promptly moderated or eliminated, may increase the cost of goods for our products or reduce our ability to sell products, which may, in turn, adversely affect our operating results and financial condition. The ultimate impact of these trade measures on our business operations and financial results is uncertain and may be affected by various factors, including whether and when such trade measures are implemented, the timing of when such measures may become effective, and the amount, scope, or nature of such trade measures, and our ability to execute strategies to mitigate the negative impacts.

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Political tensions as a result of trade policies could reduce trade volume, investment, technological exchange, and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets, which could, in turn, have a material adverse impact on our business and financial condition.

***Government shutdowns could disrupt our operations, supply chain, and customer relationships, which could materially adversely affect our business, financial condition, and results of operations***

The most recent federal U.S. government shutdown began on October 1, 2025, after Congress failed to pass funding legislation. If there is a protracted U.S. government shutdown, it raises significant risks to our business operations and financial performance. Government shutdowns could create significant disruptions for U.S. manufacturers through delayed procurement processes, supply chain disruptions, and reduced access to economic planning data. Manufacturing companies face delays in regulatory approvals and export licenses from the Department of Commerce, which could directly impact our operations and customer deliveries.

The duration and scope of the current government shutdown, and any future shutdowns, remain uncertain. The longer a shutdown persists, the greater the potential negative impact on our business, suppliers, customers, and the overall economy. We cannot predict when the current shutdown will end or whether there will be additional shutdowns in the future, and we may not be able to mitigate all of the adverse effects of such events on our business and operations.

**Risks Related to Compliance Matters**

***We are subject to U.S. and other anti-corruption laws, trade controls, economic sanctions and similar laws and regulations. Our failure to comply with these laws and regulations could subject us to civil, criminal and administrative penalties and harm our reputation.***

Doing business on a worldwide basis requires us to comply with the laws and regulations of the U.S. government and various foreign jurisdictions. These laws and regulations place restrictions on our operations, trade practices, partners and investments.

In particular, our operations are subject to U.S. and foreign anti-corruption and trade control laws and regulations, such as the Foreign Corrupt Practices Act ("FCPA") and the Bribery Act, export controls and economic sanctions programs, including those administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"), the State Department's Directorate of Defense Trade Controls ("DDTC") and the Bureau of Industry and Security ("BIS") of the Department of Commerce. As a result of doing business in foreign countries and with foreign customers, we are exposed to a heightened risk of violating anti-corruption and trade control laws and sanctions regulations. In February 2025, President Donald J. Trump issued an executive order directing the U.S. Department of Justice to pause enforcement of the FCPA and to issue new enforcement guidelines that take into consideration U.S. national security and the competitiveness of U.S. companies abroad. On June 10, 2025, the U.S. Department of Justice issued new enforcement guidelines which set forth an approach to FCPA enfor<u>c</u>ement that is explicitly aimed at promoting U.S. economic interests and national security. It is unclear how these new guidelines may affect our industry as a whole or our business in particular.

Notwithstanding these new guidelines, as part of our business, we may deal with state-owned business enterprises, the employees of which are considered foreign officials for purposes of the FCPA's prohibition on providing anything of value to foreign officials for the purposes of obtaining or retaining business or securing any improper business advantage. In addition, the provisions of the Bribery Act extend beyond bribery of foreign public officials and also apply to transactions with individuals that a government does not employ. Some of the international locations in which we operate lack a developed legal system and have higher than normal levels of corruption. Our continued expansion outside the U.S., primarily in Europe, South-East Asia and Oceania, and our development of new partnerships worldwide, could increase the risk of FCPA, OFAC or Bribery Act violations in the future.

As an exporter, we must comply with various laws and regulations relating to the export of products and technology from the U.S. and other countries having jurisdiction over our operations. In the United States, these laws include the International Traffic in Arms Regulations ("ITAR") administered by the DDTC, the Export Administration Regulations ("EAR") administered by the BIS and trade sanctions against embargoed countries and destinations administered by OFAC. The EAR governs products, parts, technology and software which present military or weapons proliferation concerns, so-called "dual use" items, and ITAR governs military items listed on the United States Munitions List. Prior to shipping certain items, we must obtain an export license or verify that license exemptions are available. Any failures to comply with these laws and regulations could result in fines, adverse publicity and restrictions on our ability to export our products, and repeat failures could carry more significant penalties.

Violations of anti-corruption and trade control laws and sanctions regulations are punishable by civil penalties, including fines, denial of export privileges, injunctions, asset seizures, debarment from government contracts and revocations or restrictions of licenses, as well as criminal fines and imprisonment and could harm our reputation, create negative shareholder sentiment and affect the value of our securities. We have established policies and procedures designed to assist our compliance with applicable U.S. and

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international anti-corruption and trade control laws and regulations, including the FCPA, the Bribery Act and trade controls and sanctions programs administered by OFAC, the DDTC and BIS, and have trained our employees to comply with these laws and regulations. However, there can be no assurance that all of our employees, consultants, agents or other associated persons will not take actions in violation of our policies and these laws and regulations. Additionally, there can be no assurance that our policies and procedures will effectively prevent us from violating these regulations in every transaction in which we may engage or provide a defense to any alleged violation. In particular, we may be held liable for the actions that our joint venture partners take inside or outside of the United States, even though our partners may not be subject to these laws. Such a violation, even if our policies prohibit it, could have an adverse effect on our reputation, business, financial condition and results of operations. In addition, various state and municipal governments, universities and other investors maintain prohibitions or restrictions on investments in companies that do business with sanctioned countries, persons and entities, which could adversely affect our reputation, business, financial condition and results of operations.

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**Item 2. Unregistered S** **ales of Equity Securities and Use of Proceeds**

None.

**Item 3. Defaults Upon Senior Securities**

Not applicable.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

During the three months ended September 30, 2025, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

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**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 1.1 | [<u>Underwriting Agreement, dated as of August 19, 2025, between the Company and Lake Street Capital Markets, LLC, as representative of the several underwriters named therein (incorporated by reference to Exhibit 1.1 to the Company's Current Report on Form 8-K filed on August 20, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000164117225024975/ex1-1.htm) |
| 3.1 | [<u>Certification of Incorporation of Velo3D, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on October 5, 2021)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000162828021019670/exhibit31-super8xk.htm) |
| 3.1.1 | [<u>Certificate of Amendment to the Certificate of Incorporation of Velo3D, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on June 9, 2023)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000182507923000025/exhibit31-charteramendment.htm) |
| 3.1.2 | [<u>Certificate of Amendment to the Certificate of Incorporation of Velo3D, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on June 12, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000182507924000024/vld-31xcertificateofamendm.htm) |
| 3.1.3 | [<u>Certificate of Amendment to the Certificate of Incorporation of Velo3D, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on July 2, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000164117225017477/ex3-1.htm) |
| 3.1.4 | [<u>Certificate of Amendment to the Certificate of Incorporation of Velo3D, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on July 25, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000164117225021026/ex3-1.htm) |
| 10.1 | [<u>January Note Amendment, dated as of August 14, 2025 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 18, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000164117225024603/ex10-1.htm) |
| 10.2 | [<u>February Note Amendment, dated as of August 14, 2025 (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on August 18, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1825079/000164117225024603/ex10-2.htm) |
| 31.1\*\* | [<u>Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a)</u>](velo-ex31_1.htm) |
| 31.2\*\* | [<u>Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a)</u>](velo-ex31_2.htm) |
| 32.1\* | [<u>Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350</u>](velo-ex32_1.htm) |
| 32.2\* | [<u>Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350</u>](velo-ex32_2.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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\* Furnished herewith. This certification is not deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

\*\* Filed herewith.

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **VELO3D, INC.** | **VELO3D, INC.** |
| Date: November 12, 2025 | By: | /s/ Hull Xu |
|  | Name: | Hull Xu |
|  | Title: | *Chief Financial Officer, Principal Financial Officer and Authorized Officer* |

---

------

## Exhibit 31.1

**Exhibit 31.1**

 **CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF**

**THE SARBANES-OXLEY ACT OF 2002**

I, Arun Jeldi, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Velo3D, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Arun Jeldi |
|  |  | Arun Jeldi |
|  |  | Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF**

**THE SARBANES-OXLEY ACT OF 2002**

I, Hull Xu, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Velo3D, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Hull Xu |
|  |  | Hull Xu |
|  |  | Chief Financial Officer |
|  |  | *(Principal Financial Officer)* |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Arun Jeldi, Chief Executive Officer of Velo3D, Inc. (the "Company"), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2025 (the "Report"), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Arun Jeldi |
|  |  | Arun Jeldi |
|  |  | Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Hull Xu, Chief Financial Officer of Velo3D, Inc. (the "Company"), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2025 (the "Report"), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Hull Xu |
|  |  | Hull Xu |
|  |  | Chief Financial Officer |
|  |  | *(Principal Financial Officer)* |

---

------