Registration statement under Securities Act of 1933

Fair Value Measurements

v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 4. Fair Value Measurements

 

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

 

    Level 1     Level 2     Level 3     Total  
    Fair Value Measured as of December 31, 2024  
    Level 1     Level 2     Level 3     Total  
    (In thousands)  
Assets                                
Money market funds (i)     215       —       —       215  
Total financial assets   $ 215     $ —     $ —     $ 215  
Liabilities                                
Common stock warrant liabilities (2022 Private Warrant) (iii)   $ —     $ —     $ 1     $ 1  
Common stock warrant liabilities (RDO Warrants) (iii)     —       —       90       90  
Common stock warrant liabilities (Placement Agent Warrants) (iii)     —       —       16       16  
Common stock warrant liabilities (2024 Private Warrants) (iii)     —       —       378       378  
Common stock warrant liabilities (BEPO Warrants) (iii)     —       —       18       18  
Common stock warrant liabilities (BEPO Agent Warrants) (iii)     —       —       2       2  
Common stock warrant liabilities (July 2024 Private Warrants) (iii)     —       —       865       865  
Common stock warrant liabilities (August Inducement Warrants) (iii)     —       —       796       796  
Contingent earnout liabilities     —       —       11       11  
Total financial liabilities   $ —     $ —     $ 2,177     $ 2,177  

 

    Level 1     Level 2     Level 3     Total  
    Fair Value Measured as of December 31, 2023  
    Level 1     Level 2     Level 3     Total  
    (In thousands)  
Assets                        
Money market funds (i)   $ 3,422     $ —     $ —     $ 3,422  
Corporate bonds (ii)     —       6,621       —       6,621  
Total financial assets   $ 3,422     $ 6,621     $ —     $ 10,043  
Liabilities                                
Common stock warrant liabilities (Public) (iii)   $ 258     $ —     $ —     $ 258  
Common stock warrant liabilities (Private Placement) (iii)     —       —       127       127  
Common stock warrant liabilities (2022 Private Warrant) (iii)     —       —       23       23  
Common stock warrant liabilities (RDO Warrants) (iii)     —       —       10,891       10,891  
Common stock warrant liabilities (Placement Agent Warrants) (iii)     —       —       536       536  
Contingent earnout liabilities     —       —       1,456       1,456  
Total financial liabilities   $ 258     $ —     $ 13,033     $ 13,291  

 

(i) Included in cash and cash equivalents on the consolidated balance sheets.
(ii) Included in short-term investments on the consolidated balance sheets.
(iii) Included in warrant liabilities on the consolidated balance sheets.

 

For more information regarding the Public Warrants, the Private Placement Warrants, the 2022 Private Warrants, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO warrants, the BEPO Agent Warrants, the July 2024 Private Warrants, the August Inducement Warrants, and the Contingent earnout liabilities, see Note 10, Equity Instruments.

 

The aggregate fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of December 31, 2024 and 2023. Realized gains and losses, net of tax, were not material for any of the periods presented.

 

 

Velo3D, Inc.

Notes to Consolidated Financial Statements

 

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

 

    Private
placement
warrant
liabilities		     2022 Private
Warrant		     Contingent
earnout
liabilities		     Debt
derivatives		     RDO
Warrants		     Placement
Agent
Warrants		     2024 Private Warrants     BEPO Warrants     BEPO Agent Warrants     July 2024 Private Warrants     August Inducement Warrants  
    (In Thousands)  
Fair value as of January 1, 2024   $ 127     $ 23     $ 1,456     $ —     $ 10,891     $ 536     $ —     $ —     $ —     $ —     $ —  
Issuance of instruments     —       —       —       —       —       —       6,321       9,020       446       4,200       2,437  
Change in fair value     (127 )     (22 )     (1,445 )     —       (10,801 )     (520 )     (6,319 )     (8,642 )     (428 )     (3,335 )     (1,641 )
Fair value as of December 31, 2024   $ —     $ 1     $ 11     $ —     $ 90     $ 16     $ 2     $ 378     $ 18     $ 865     $ 796  
                                                                                         
Fair value as of January 1, 2023   $ 888     $ 109     $ 17,414     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —  
Issuance of instruments     —       —       —       13,890       10,891       536       —       —       —       —       —  
Change in fair value     (761 )     (86 )     (15,958 )     (8,485 )     —       —       —       —       —       —       —  
Extinguishment of debt derivatives in connection with debt extinguishment     —       —       —       (5,405 )     —       —       —       —       —       —       —  
Fair value as of December 31, 2023   $ 127     $ 23     $ 1,456     $ —     $ 10,891     $ 536     $ —     $ —     $ —     $ —     $ —  

 

The fair value of the Private placement warrant liability, the 2022 Private Warrant liability, the Contingent earnout liability, the Debt derivative liability, the RDO Warrant liability, the Placement Agent Warrant liability, the 2024 Private Warrant liability, the BEPO warrant liability, the BEPO Agent Warrant liability, the July 2024 Private Warrant liability, and the August Inducement Warrant liability are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

 

In determining the fair value of the Private placement warrant liability, Contingent earnout liability, Debt derivative liability and the 2024 Private Warrant liability, the Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods that assumes optimal exercise of the Company’s redemption option at the earliest possible date (see Note 10, Equity Instruments).

 

In determining the fair value of the 2022 Private Warrant liability, RDO Warrant liability, Placement Agent Warrant liability, BEPO Warrant liability, BEPO Agent Warrant liability, July 2024 Private Warrant liability and August Inducement Warrant liability the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10, Equity Instruments).