Velo3D, Inc. Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures and Disclosures (Tables)

9 Months Ended

Sep. 30, 2022

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


	Fair Value Measured as of September 30, 2022
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Money market funds (i)	$	39,215	$	—	$	—	$	39,215
U.S. Treasury securities (ii)	35,131		—		—		35,131
Corporate bonds (ii)	—		37,347		—		37,347
Total financial assets	$	74,346	$	37,347	$	—	$	111,693
Liabilities
Common stock warrant liabilities (Public) (iii)	$	6,986	$	—	$	—	$	6,986
Common stock warrant liabilities (Private Placement) (iii)	—		—		3,605		3,605
Common stock warrant liabilities (2022 Private Warrant) (iii)					245		245
Contingent earnout liabilities	—		—		53,377		53,377
Total financial liabilities	$	6,986	$	—	$	57,227	$	64,213

	Fair Value Measured as of December 31, 2021
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Money market funds (i)	$	207,471	$	—	$	—	$	207,471
U.S. Treasury securities (ii)	8,141		—		—		8,141
Corporate bonds (ii)	—		7,342		—		7,342
Total financial assets	$	215,612	$	7,342	$	—	$	222,954
Liabilities
Common stock warrant liabilities (Public) (iii)	$	14,318	$	—	$	—	$	14,318
Common stock warrant liabilities (Private Placement) (iii)	—		—		7,387		7,387
Contingent earnout liabilities	—		—		111,487		111,487
Total financial liabilities	$	14,318	$	—	$	118,874	$	133,192

(i) Included in cash and cash equivalents on the condensed consolidated balance sheets.

(ii) Included in short-term investments on the condensed consolidated balance sheets.

(iii) Included in warrant liabilities on the condensed consolidated balance sheets.

The following table presents a rollforward of the Level 3 assets and liabilities measured at fair value on a recurring basis:


	Redeemable convertible preferred stock warrant liabilities		Private placement warrant liabilities		2022 Private Warrant		Contingent earnout liabilities
	(In thousands)
Three Months Ended September 30, 2022
Fair value as of June 30, 2022	$	—	$	1,380	$	—	$	12,492
Issuance of warrant	—		—		170		—
Change in fair value	—		2,225		75		40,885
Fair value as of September 30, 2022	$	—	$	3,605	$	245	$	53,377
Nine months ended September 30, 2022
Fair value as of January 1, 2022	$	—	$	7,387	$	—	$	111,487
Issuance of warrant	—		—		170		—
Change in fair value	—		(3,782)		75		(58,110)
Fair value as of September 30, 2022	$	—	$	3,605	$	245	$	53,377
Three Months Ended September 30, 2021
Fair value as of June 30, 2021	$	1,922	$	—	$	—	$	—
Private placement warrant liabilities acquired as part of the reverse recapitalization	—		7,165		—		—
Contingent earnout liabilities recognized upon the closing of the reverse recapitalization	—		—		—		120,763
Exercise of warrants	(899)		—		—		—
Change in fair value	(1,023)		(312)		—		(2,014)
Fair value as of September 30, 2021	$	—	$	6,853	$	—	$	118,749
Nine months ended September 30, 2021
Fair value as of January 1, 2021	$	181	$	—	$	—	$	—
Private placement warrant liabilities acquired as part of the reverse recapitalization	—		7,165		—		—
Contingent earnout liabilities recognized upon the closing of the reverse recapitalization	—		—		—		120,763
Exercise of warrants	(899)		—		—		—
Change in fair value	718		(312)		—		(2,014)
Fair value as of September 30, 2021	$	—	$	6,853	$	—	$	118,749