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

Fair Value Measures and Disclosures (Tables)

6 Months Ended

Jun. 30, 2023

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


	Fair Value Measured as of June 30, 2023
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Money market funds (i)	$	25,744	$	—	$	—	$	25,744
U.S. Treasury securities (ii)	10,358		—		—		10,358
Corporate bonds (ii)	—		8,117		—		8,117
Total financial assets	$	36,102	$	8,117	$	—	$	44,219
Liabilities
Common stock warrant liabilities (Public) (iii)	$	2,842	$	—	$	—	$	2,842
Common stock warrant liabilities (Private Placement) (iii)	—		—		1,488		1,488
Common stock warrant liabilities (2022 Private Warrant) (iii)	—		—		140		140
Contingent earnout liabilities	—		—		25,224		25,224
Total financial liabilities	$	2,842	$	—	$	26,852	$	29,694

	Fair Value Measured as of December 31, 2022
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Money market funds (i)	$	31,728	$	—	$	—	$	31,728
U.S. Treasury securities (ii)	24,701		—		—		24,701
Corporate bonds (ii)	—		23,513		—		23,513
Total financial assets	$	56,429	$	23,513	$	—	$	79,942
Liabilities
Common stock warrant liabilities (Public) (iii)	$	1,748	$	—	$	—	$	1,748
Common stock warrant liabilities (Private Placement) (iii)	—		—		888		888
Common stock warrant liabilities (2022 Private Warrant) (iii)	—		—		109		109
Contingent earnout liabilities	—		—		17,414		17,414
Total financial liabilities	$	1,748	$	—	$	18,411	$	20,159

(i) Included in cash and cash equivalents on the condensed consolidated balance sheets.

(ii) Included in short-term investments on the condensed consolidated balance sheets.

(iii) Included in warrant liabilities on the condensed consolidated balance sheets.

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


	December 31, 2022		Change in fair value		March 31, 2023		Change in fair value		June 30, 2023
	(In thousands)

Private placement warrant liabilities	$	888	$	869	$	1,757	$	(269)	$	1,488
2022 Private Warrant	109		37		146		(6)		140
Contingent earnout liabilities	17,414		9,653		27,067		(1,843)		25,224
	$	18,411	$	10,559	$	28,970	$	(2,118)	$	26,852


	December 31, 2021		Change in fair value		March 31, 2022		Change in fair value		June 30, 2022
	(In thousands)

Private placement warrant liabilities	$	7,387	$	2,047	$	9,434	$	(8,054)	$	1,380
Contingent earnout liabilities	111,487		31,232		142,719		(130,226)		12,493
	$	118,874	$	33,279	$	152,153	$	(138,280)	$	13,873