Velo3D, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2021

The Company leases its office and manufacturing facilities under four non-cancellable operating leases which expire in 2023 to 2027 and one month to-month operating lease. During the year ended December 31, 2021, the Company signed three operating leases: (1) office in Europe, (2) manufacturing facility and (3) a R&D facility. The contractual obligations for the manufacturing facility and R&D facility was $10.9 million and $0.5 million, respectively, in base rent and certain reimbursement of lessor’s operating expenses. The agreements include a provision for renewal at the then market rate for terms specified in each lease. During the year ended December 31, 2021, the Company also signed a finance lease for technology equipment.

Total ROU assets and lease liabilities are as follows:


	December 31,
	2021		2020
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	11,073	$	633
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,222	$	494
Noncurrent (Other noncurrent liabilities)	9,143		232
	11,365		726
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	33	$	—
Noncurrent (Other noncurrent liabilities)	41		—
	$	74	$	—
Total lease liabilities	$	11,439	$	726

There were no impairments recorded related to these assets as of December 31, 2021 and 2020.

Information about lease-related balances were as follows:


	December 31,
	2021		2020
	(In thousands, except years and percentages)
Operating lease expense	$	1,058	$	571
Financing lease expense	31		—
Short-term lease expense	186		27
Total lease expense	$	1,275	$	598
Cash paid for leases	$	1,018	$	557
Weighted – average remaining lease term – operating leases (years)	4.9		1.6
Weighted – average discount rate – operating leases	4.4%		4.5%

Maturity of operating lease liabilities as of December 31, 2021 are as follows:


	(In thousands)
2022	$	2,306
2023	2,696
2024	2,670
2025	2,232
2026	2,315
Thereafter	599
Total operating lease payments	$	12,818
Less portion representing imputed interest	(1,453)
Total operating lease liabilities	$	11,365
Less current portion	2,222
Long-term portion	$	9,143

Leases

Total ROU assets and lease liabilities are as follows:


	December 31,
	2021		2020
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	11,073	$	633
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,222	$	494
Noncurrent (Other noncurrent liabilities)	9,143		232
	11,365		726
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	33	$	—
Noncurrent (Other noncurrent liabilities)	41		—
	$	74	$	—
Total lease liabilities	$	11,439	$	726

There were no impairments recorded related to these assets as of December 31, 2021 and 2020.

Information about lease-related balances were as follows:


	December 31,
	2021		2020
	(In thousands, except years and percentages)
Operating lease expense	$	1,058	$	571
Financing lease expense	31		—
Short-term lease expense	186		27
Total lease expense	$	1,275	$	598
Cash paid for leases	$	1,018	$	557
Weighted – average remaining lease term – operating leases (years)	4.9		1.6
Weighted – average discount rate – operating leases	4.4%		4.5%

Maturity of operating lease liabilities as of December 31, 2021 are as follows:


	(In thousands)
2022	$	2,306
2023	2,696
2024	2,670
2025	2,232
2026	2,315
Thereafter	599
Total operating lease payments	$	12,818
Less portion representing imputed interest	(1,453)
Total operating lease liabilities	$	11,365
Less current portion	2,222
Long-term portion	$	9,143