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, 2023

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire in 2024 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.

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.

Total ROU assets and lease liabilities are as follows:


	December 31,
	2023		2022
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	10,672	$	13,545
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,153	$	2,411
Noncurrent (Other noncurrent liabilities)	9,973		12,201
	12,126		14,612
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	113	$	35
Noncurrent (Other noncurrent liabilities)	203		5
	$	316	$	40
Total lease liabilities	$	12,442	$	14,652

There were no impairments recorded related to these assets as of December 31, 2023 and 2022.

Information about lease-related balances were as follows:


	December 31,
	2023		2022
	(In thousands, except years and percentages)
Operating lease expense	$	3,002	$	2,956
Financing lease expense	80		36
Short-term lease expense	314		351
Total lease expense	$	3,396	$	3,343
Cash paid for leases	$	2,827	$	2,360
Weighted – average remaining lease term – operating leases (years)	7.8		4.1
Weighted – average discount rate – operating leases	8.8%		8.7%

Maturity of operating lease liabilities as of December 31, 2023 are as follows:


	(In thousands)
2024	$	2,806
2025	2,360
2026	2,402
2027	2,400
2028	2,490
Thereafter	8,779
Total operating lease payments	$	21,237
Less portion representing imputed interest	(9,111)
Total operating lease liabilities	$	12,126
Less current portion	2,153
Long-term portion	$	9,973

Leases

Total ROU assets and lease liabilities are as follows:


	December 31,
	2023		2022
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	10,672	$	13,545
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	2,153	$	2,411
Noncurrent (Other noncurrent liabilities)	9,973		12,201
	12,126		14,612
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	113	$	35
Noncurrent (Other noncurrent liabilities)	203		5
	$	316	$	40
Total lease liabilities	$	12,442	$	14,652

There were no impairments recorded related to these assets as of December 31, 2023 and 2022.

Information about lease-related balances were as follows:


	December 31,
	2023		2022
	(In thousands, except years and percentages)
Operating lease expense	$	3,002	$	2,956
Financing lease expense	80		36
Short-term lease expense	314		351
Total lease expense	$	3,396	$	3,343
Cash paid for leases	$	2,827	$	2,360
Weighted – average remaining lease term – operating leases (years)	7.8		4.1
Weighted – average discount rate – operating leases	8.8%		8.7%

Maturity of operating lease liabilities as of December 31, 2023 are as follows:


	(In thousands)
2024	$	2,806
2025	2,360
2026	2,402
2027	2,400
2028	2,490
Thereafter	8,779
Total operating lease payments	$	21,237
Less portion representing imputed interest	(9,111)
Total operating lease liabilities	$	12,126
Less current portion	2,153
Long-term portion	$	9,973