Velo3D, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2023

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire in 2024 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.

As noted above in Note 6, Balance Sheet Components, the manufacturing facility operating lease at Campbell (McGlincy) was terminated on March 31, 2023, and is no longer in use. The Company’s right-of-use assets and lease liabilities related to McGlincy were amortized in full over the life of the lease.

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


	March 31,		December 31,
	2023		2022
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	12,855	$	13,545
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,375	$	2,411
Noncurrent (Other noncurrent liabilities)	11,606		12,201
	13,981		14,612
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	32	$	35
Noncurrent (Other noncurrent liabilities)	—		5
	$	32	$	40
Total lease liabilities	$	14,013	$	14,652

There were no impairments recorded related to these assets as of March 31, 2023 and December 31, 2022.

Information about lease-related balances were as follows:


	Three Months Ended March 31,
	2023		2022
	(In thousands, except years and percentages)
Operating lease expense	$	764	$	717
Financing lease expense	9		9
Short-term lease expense	84		99
Total lease expense	$	857	$	825
Cash paid for leases	$	706	$	281
Weighted – average remaining lease term – operating leases (years)	3.8		4.6
Weighted – average discount rate – operating leases	8.7%		4.4%

Maturity of operating lease liabilities as of March 31, 2023 are as follows:


	(In thousands)
Remainder of 2023	$	2,080
2024	2,730
2025	2,266
2026	2,313
2027	2,400
Thereafter	11,270
Total operating lease payments	$	23,059
Less portion representing imputed interest	(9,078)
Total operating lease liabilities	$	13,981
Less current portion	2,375
Long-term portion	$	11,606

Leases

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


	March 31,		December 31,
	2023		2022
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	12,855	$	13,545
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,375	$	2,411
Noncurrent (Other noncurrent liabilities)	11,606		12,201
	13,981		14,612
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	32	$	35
Noncurrent (Other noncurrent liabilities)	—		5
	$	32	$	40
Total lease liabilities	$	14,013	$	14,652

There were no impairments recorded related to these assets as of March 31, 2023 and December 31, 2022.

Information about lease-related balances were as follows:


	Three Months Ended March 31,
	2023		2022
	(In thousands, except years and percentages)
Operating lease expense	$	764	$	717
Financing lease expense	9		9
Short-term lease expense	84		99
Total lease expense	$	857	$	825
Cash paid for leases	$	706	$	281
Weighted – average remaining lease term – operating leases (years)	3.8		4.6
Weighted – average discount rate – operating leases	8.7%		4.4%

Maturity of operating lease liabilities as of March 31, 2023 are as follows:


	(In thousands)
Remainder of 2023	$	2,080
2024	2,730
2025	2,266
2026	2,313
2027	2,400
Thereafter	11,270
Total operating lease payments	$	23,059
Less portion representing imputed interest	(9,078)
Total operating lease liabilities	$	13,981
Less current portion	2,375
Long-term portion	$	11,606