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

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2024

The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire between 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 has not been terminated as of March 31, 2024.

Total right-of-use (“ROU”) assets and lease liabilities are as follows:


	March 31,		December 31,
	2024		2023
	(In thousands)
Right-of-use assets:
Net book value (Other assets)	$	10,237	$	10,672
Operating lease liabilities:
Current (Accrued expense and other current liabilities)	$	1,986	$	2,153
Noncurrent (Other noncurrent liabilities)	9,558		9,973
	11,544		12,126
Financing lease liabilities:
Current (Accrued expense and other current liabilities)	$	133	$	113
Noncurrent (Other noncurrent liabilities)	221		203
	$	354	$	316
Total lease liabilities	$	11,898	$	12,442

There were no impairments recorded related to these assets as of March 31, 2024 and December 31, 2023.

Information about lease-related balances were as follows:


	Three Months Ended March 31,
	2024		2023
	(In thousands, except years and percentages)
Operating lease expense	$	733	$	764
Financing lease expense	49		9
Short-term lease expense	68		84
Total lease expense	$	850	$	857
Cash paid for leases	$	746	$	706
Weighted – average remaining lease term – operating leases (years)	7.6		3.8
Weighted – average discount rate – operating leases	8.9%		8.7%

Maturity of operating lease liabilities as of March 31, 2024 are as follows:


	(In thousands)
Remainder of 2024	$	2,091
2025	2,390
2026	2,430
2027	2,400
2028	2,490
Thereafter	8,779
Total operating lease payments	$	20,580
Less portion representing imputed interest	(9,036)
Total operating lease liabilities	$	11,544
Less current portion	1,986
Long-term portion	$	9,558