Quarterly report pursuant to Section 13 or 15(d)

Equity Instruments (Tables)

v3.21.2
Equity Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Schedule of Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock consisted of the following:
As of September 30, 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:
September 30, 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  214,032 
Common stock options issued and outstanding 21,342,660  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 21,423,388  — 
Reserved for employee stock purchase plan 10,989,830  — 
Total shares of common stock reserved
66,830,878  175,857,762 
    Total potentially dilutive common share equivalents for the nine months ended September 30, 2021, excludes 21,758,148 shares related to the earnout liability as these shares are contingently issuable upon meeting certain triggering events.
Schedule of Warrants for Shares of Stock
Warrants for shares of common stock consisted of the following:
September 30, 2021
Issue Date Expiration Date Number of Warrants Exercise Price per warrant Fair Value on Issue Date per warrant Fair Value on September 30, 2021
(In thousands)
Private placement warrants - Common Stock 12/02/2020 09/29/2026 4,450,000  $ 11.50  $ 2.00  $ 6,853 
Public warrants - Common Stock 12/02/2020 09/29/2026 8,625,000  $ 11.50  $ 3.30  $ 13,283 
13,075,000  $ 20,136 
December 31, 2020
Issue Date Expiration
Date		 Number of
Warrant		 Exercise
Price per warrant		 Fair Value on
Issue Date per warrant
Fair Value on December 31, 2020 (1)
(In thousands)
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  $ — 
Warrants for shares of Legacy Velo3D Series A and Series C redeemable convertible preferred stock consisted of the following (dollars in thousands, except share and per share amounts):
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
Rollforward of the liability for warrants on redeemable convertible preferred stock:
Warrants on redeemable convertible preferred stock Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands)
Beginning Balance $ 1,922  $ 178  $ 181  $ 185 
Issuance of new warrant —  —  —  — 
Change in fair value (Other income (expense), net) (1,023) 2  718  (5)
Exercise of warrants (Redeemable preferred convertible stock) (899) —  (899) — 
Ending Balance $ —  $ 180  $ —  $ 180 
Fair Value Assumptions 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:
Nine months ended September 30,
2021 2020
Expected volatility
30.0% - 40.0%
35.0% - 45.0%
Risk-free interest rate
0.1% - 1.0%
0.1% - 0.8%
Dividend yield — —
Assumptions used in the valuation are described below.
As of September 30, 2021 Closing Date September 29, 2021
Current stock price $ 8.37  $ 8.44 
Expected volatility
45.0% - 55.0%
45.0% - 55.0%
Risk-free interest rate
0.1% - 1.0%
0.1% - 1.0%
Dividend rate —  % —  %
Expected Term (years) 5.0 5.0