Annual report pursuant to Section 13 and 15(d)

Equity Instruments (Tables)

v3.22.1
Equity Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Schedule of Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock consisted of the following:
As of December 31, 2021
Authorized Issued and Outstanding Original issue price per share Liquidation Preference Carrying value
(In thousands, except share and per share data)
Redeemable Convertible Preferred Stock 10,000,000  —  $ —  $ —  $ — 

As of December 31, 2020
Redeemable Convertible Preferred Stock Authorized Issued and
Outstanding		 Original issue price per share Liquidation Preference Carrying value
(In thousands, except share and per share data)
Series A 8,906,694  6,726,134  $ 2.928  $ 19,696  $ 17,030 
Series B 10,385,804  8,386,456  $ 3.851  32,300  32,176 
Series C 8,848,760  8,399,058  $ 5.524  46,400  39,378 
Series D 97,278,007  94,222,735  $ 0.375  35,366  35,120 
125,419,265  117,734,383  $ 133,762  $ 123,704 
Schedule of Shares of Common Stock Reserved for Issuance Shares of common stock reserved for issuance on an “as if converted” basis were as follows:
December 31,
2021 2020
(share data)
Redeemable convertible preferred —  147,876,672 
Redeemable convertible preferred stock warrants —  408,729 
Common stock warrants 13,075,000  214,033 
Restricted stock units issued and outstanding 4,041,346  — 
Stock options issued and outstanding 21,191,226  21,471,321 
Shares available for future grant under 2014 Equity Incentive Plan —  5,887,008 
Shares available for future grant under 2021 Equity Incentive Plan 17,533,471  — 
Reserved for employee stock purchase plan 3,663,277  — 
Total shares of common stock reserved
59,504,320  175,857,763 
Schedule of Warrants for Shares of Stock Warrants for shares of common stock consisted of the following:
December 31, 2021
Issue Date Expiration Date Number of Warrants Exercise Price per warrant Fair Value on Issue Date per warrant
Fair Value on December 31, 2021
(In thousands)
Private Placement Warrants - Common Stock 12/02/2020 09/29/2026 4,450,000  $11.50 $2.00 $ 7,387 
Public Warrants - Common Stock 12/02/2020 09/29/2026 8,625,000  $11.50 $3.30 $ 14,318 
13,075,000  $ 21,705 
December 31, 2020
Issue Date Expiration
Date		 Number of
Warrant		 Exercise
Price per warrant		 Fair Value on
Issue Date per warrant
Warrants - Common Stock 12/02/2015 12/02/2025 11,132  $0.87 $0.70
Warrants - Common Stock 07/02/2018 07/02/2028 40,715  $2.47 $2.00
Warrants - Common Stock 12/17/2020 12/17/2030 162,186  $0.18 $0.17
Total outstanding 214,033 
(1) Legacy Velo3D Warrants - Common Stock: As of December 31, 2020, warrants on common stock are equity classified and recorded at fair value on the issue date without further remeasurement.
December 31, 2020
Issue Date Expiration
Date		 Number of
Warrant		 Exercise Price
per Warrant		 Fair Value on
Issue Date per Warrant
Series A redeemable convertible preferred stock 11/14/2014 11/13/2024 13,362 $1.12 $1.25
Series C redeemable convertible preferred stock 04/18/2019 04/18/2029 160,000 $5.52 $1.05
Total outstanding 173,362
Warrant Liability Rollforward The liability for private placement and public warrants on common stock (carried at fair value) was as follows for the year ended December 31, 2021:
December 31,
2021
(In thousands)
Beginning Balance $ — 
Reclassification of warrants liability upon the reverse recapitalization 21,051 
(Loss)/gain on fair value of warrants 654 
Ending Balance $ 21,705 
The liability for warrants on redeemable convertible preferred stock (carried at fair value) was as follows for the years ended December 31, 2021 and 2020:

December 31,
2021 2020
(In thousands)
Beginning Balance $ 181  $ 185 
Loss/(gain) on fair value of warrants
 4,484  (4)
Exercise of warrants (Redeemable preferred convertible stock) (4,665) — 
Ending Balance $ —  $ 181 
Fair Value Assumptions
The fair value assumptions used in the Monte Carlo simulation model for the recurring valuation of the private placement common stock warrants and public common stock warrant liability were as follows:
Year ended December 31, 2021
Current stock price $7.81
Expected volatility 40.5%
Risk-free interest rate 1.2%
Dividend yield —%
Expected term (in years) 4.75
The level 3 fair value assumptions used in the Black-Scholes model for the recurring valuation of the redeemable convertible preferred stock warrant liability were as follows:
Year ended December 31, 2020
Expected volatility
35.0% - 45.0%
Risk-free interest rate
0.1% - 0.8%
Dividend yield —
Assumptions used in the fair value of the contingent earnout liabilities are described below.

Year ended December 31, 2021 Closing Date September 29, 2021
Current stock price $7.81 $8.44
Expected volatility 52.5% 48.0%
Risk-free interest rate 1.2% 1.0%
Dividend yield —% —%
Expected Term (years) 4.75 5.0
Rollforward of Contingent Earnout Liabilities
The rollforward for the contingent earnout liabilities was as follows as of December 31, 2021:

December 31,
2021
(In thousands)
Beginning Balance $ — 
Reclassification of contingent earnout liability upon the reverse capitalization
 120,763 
Gain on fair value of contingent earnout liabilities (9,275)
Ending Balance $ 111,487