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

Fair Value Measures and Disclosures (Tables)

9 Months Ended

Sep. 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 September 30, 2023
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Money market funds (i)	$	52,174	$	—	$	—	$	52,174
U.S. Treasury securities (ii)	6,952		—		—		6,952
Corporate bonds (ii)	—		6,516		—		6,516
Total financial assets	$	59,126	$	6,516	$	—	$	65,642
Liabilities
Common stock warrant liabilities (Public) (iii)	$	1,850	$	—	$	—	$	1,850
Common stock warrant liabilities (Private Placement) (iii)	—		—		934		934
Common stock warrant liabilities (2022 Private Warrant) (iii)	—		—		99		99
Contingent earnout liabilities	—		—		14,414		14,414
Debt derivatives	—		—		17,538		17,538
Total financial liabilities	$	1,850	$	—	$	32,985	$	34,835

	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		June 30, 2023		Change in fair value		September 30, 2023
	(In thousands)

Private placement warrant liabilities	$	888	$	600	$	1,488	$	(554)	$	934
2022 Private Warrant	109		31		140		(41)		99
Contingent earnout liabilities	17,414		7,810		25,224		(10,810)		14,414
Debt derivatives	—		—		—		17,538		17,538
	$	18,411	$	8,441	$	26,852	$	6,133	$	32,985


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

Private placement warrant liabilities	$	7,387	$	(6,007)	$	1,380	$	2,225	$	3,605
2022 Private Warrant	—		—		—		245		245
Contingent earnout liabilities	111,487		(98,995)		12,492		40,885		53,377
	$	118,874	$	(105,002)	$	13,872	$	43,355	$	57,227