General form for registration of securities under the Securities Act of 1933

Leases

v3.25.2
Leases
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Leases

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:

 

    June 30,     December 31,  
    2025     2024  
    (In thousands)  
Right-of-use assets:                
Net book value (Other assets)   $ 7,838     $ 8,774  
Operating lease liabilities:                
Current (Accrued expense and other current liabilities)   $ 1,569     $ 1,612  
Noncurrent (Other noncurrent liabilities)     7,583       8,361  
Total operating lease liabilities     9,152       9,973  
Financing lease liabilities:                
Current (Accrued expense and other current liabilities)   $ 149     $ 142  
Noncurrent (Other noncurrent liabilities)     37       114  
Total financing lease liabilities   $ 186     $ 256  
Total lease liabilities   $ 9,338     $ 10,229  

 

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

 

Information about lease-related balances were as follows:

 

    2025     2024     2025     2024  
    Three Months Ended June 30,     Six Months Ended June 30,  
    2025     2024     2025     2024  
    (In thousands, except years and percentages)     (In thousands, except years and percentages)  
Operating lease expense   $ 578     $ 746     $ 1,156     $ 1,492  
Financing lease expense     40       43       80       92  
Short-term lease expense     45       40       86       108  
Total lease expense   $ 663     $ 829     $ 1,322     $ 1,692  
Cash paid for leases   $ 595     $ 752     $ 1,190     $ 1,498  
Weighted – average remaining lease term – operating leases (years)     6.8       7.5       6.8       7.5  
Weighted – average discount rate – operating leases     9.0 %     8.9 %     9.0 %     8.9 %

 

 

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

 

Year Ending December 31,   (In thousands)  
Remainder of 2025   $ 1,200  
2026     2,430  
2027     2,400  
2028     2,490  
2029     2,585  
Thereafter     6,195  
Total operating lease payments   $ 17,300  
Less portion representing imputed interest     (8,148 )
Total operating lease liabilities   $ 9,152  
Less current portion     1,569  
Long-term portion   $ 7,583  

 

Note 8. Leases

 

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, with expiration dates ranging from 2024 to 2032. Each lease includes options to extend and a provision for renewal at the prevailing market rate at the time of renewal, as specified in the agreements.

 

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. Additionally, the Company exited from its two facilities at Campbell (Division) on December 31, 2023, which are no longer in use, however the lease agreement was not terminated. On November 20, 2024, the Company exited the Augsburg Technology Center lease for which no lease termination costs were incurred.

 

Total ROU assets and lease liabilities are as follows:

 

    2024     2023  
    December 31,  
    2024     2023  
    (In thousands)  
Right-of-use assets:                
Net book value (Other assets)   $ 8,774     $ 10,672  
Operating lease liabilities:                
Current (Accrued expense and other current liabilities)   $ 1,612     $ 2,153  
Noncurrent (Other noncurrent liabilities)     8,361       9,973  
Total operating lease liabilities      9,973       12,126  
Financing lease liabilities:                
Current (Accrued expense and other current liabilities)   $ 142     $ 113  
Noncurrent (Other noncurrent liabilities)     114       203  
Total finance lease liabilities    $ 256     $ 316  
Total lease liabilities   $ 10,229     $ 12,442  

 

There were no impairments recorded related to these assets as of December 31, 2024 and 2023.

 

 

Velo3D, Inc.

Notes to Consolidated Financial Statements

 

Information about lease-related balances were as follows:

 

    2024     2023  
    December 31,  
    2024     2023  
    (In thousands, except years and percentages)  
Operating lease expense   $ 2,830     $ 3,002  
Financing lease expense     175       80  
Short-term lease expense     195       314  
Total lease expense   $ 3,200     $ 3,396  
Cash paid for leases   $ 2,850     $ 2,827  
Weighted – average remaining lease term – operating leases (years)     7.1       7.8  
Weighted – average discount rate – operating leases     9.0 %     8.8 %

 

Maturity of operating lease liabilities as of December 31, 2024 are as follows:

 

    (In thousands)  
2025     2,390  
2026     2,430  
2027     2,400  
2028     2,490  
2029     2,585  
Thereafter     6,194  
Total operating lease payments   $ 18,489  
Less portion representing imputed interest     (8,516 )
Total operating lease liabilities   $ 9,973  
Less current portion     1,612  
Long-term portion   $ 8,361