Velo3D, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Tax Expense (Benefit)

The Company recorded the below income tax expense (benefit) attributable to income from continuing operations for the year ending December 31, 2024 and December 31, 2023 as follows:


	December 31,
	2024			2023
	(In thousands, except percentages)
Current
Federal	$	(7	)	$	-
State		21			-
Foreign		(34	)		-
		(20	)		-
Deferred
Federal		-			-
State		-			-
Foreign		-			-
		-			-
Total income tax expense	$	(20	)	$	-

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the provision computed at the federal statutory rate to the Company's provision (benefit) for income taxes as follows:


	December 31,
	2024					2023
	(In thousands, except percentages)
Tax at federal statutory rate	$	(15,432	)	(21.0	)%	$	(28,354	)	(21.0	)%
State, net of federal benefit		12,779		17.4	%		(6,507	)	(4.8	)%
Stock based compensation		3,327		3.8	%		967		0.7	%
Fair value adjustments		(7,593	)	(9.6	)%		(3,555	)	(2.4	)%
Research and development credits		—		—	%		(1,121	)	(0.8	)%
Section 382 Limitation		14,583		19.8	%
Other		(745	)	(1.0	)%		675		0.2	%
Change in valuation allowance		(6,939	)	(9.4	)%		37,895		28.1	%
Total provision for income taxes	$	(20	)	—	%	$	—		—	%

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:


	December 31,
	2024			2023
	(In thousands)
Deferred tax assets
Net operating loss carryforwards	$	81,649		$	91,668
Research and development tax credits		5,086			12,087
Stock based compensation		5,866			6,162
Lease liability		2,632			3,098
Section 174 research and development capitalization		10,691			11,641
Interest expense		7,157			3,063
Other timing differences		8,754			1,408
Total deferred tax assets	$	121,835		$	129,127
Valuation allowance	$	(118,783	)	$	(125,722	)
Net deferred tax assets	$	3,052		$	3,405

Deferred tax liabilities
Fixed assets and intangibles	$	(299	)	$	(364	)
Right of use assets	$	(2,753	)	$	(3,041	)
Total deferred tax liabilities	$	(3,052	)	$	(3,405	)
Net deferred tax assets	$	—		$	—

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	December 31,
	2024			2023
	(In thousands)
Balance at beginning of year	$	6,060		$	4,750
Additions based on tax positions related to the current year		(3,301	)		1,310
Balance at end of year	$	2,759		$	6,060