VLD - Velo3D Announces Fourth Quarter and Fiscal Year 2022 Financial Results

March, 02 2023 04:05 PM Velo3D Inc.

Strategic Initiatives to Drive Significant Improvement in Profitability in 2023

Record Q422 revenue – 56% sequential increase
Continued demand – expected revenue growth of >50% for FY 2023
Technology leadership – record Sapphire XC shipments in Q422
Strong year on year sales growth – 200% for 2022
New customers – increased customer base by >50% in 2022

Velo3D, Inc. (NYSE: VLD), a leading additive manufacturing technology company for mission-critical metal parts, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

“We exited the year with a strong fourth quarter performance as we exceeded our revenue forecast, added to our diversified customer base and maintained our technology leadership with the continued, successful ramp up of our Sapphire XC system,” said Benny Buller, CEO of Velo3D. “Overall, 2022 was another important and successful year for Velo3D. Despite a number of challenges, we were able to triple our annual revenue and demonstrate our commitment to innovation by further expanding our range of industry leading products. This success reflects strong execution as well as our ability to capitalize on customer’s increasing deployment of additive manufacturing solutions to produce the high value metal parts they need.”

“Specifically, we continue to see strong demand for our Sapphire family of printers as we shipped a record number of Sapphire XC systems during the quarter and commenced initial volume shipments of our next generation Sapphire XC 1MZ product. We also expanded our installed base with annual new customer growth in excess of 50% for the year. Finally, we booked $15 million in new orders in the fourth quarter and our backlog now totals $43 million. This provides significant revenue visibility for the first half of this year and positions us well to achieve 2023 revenue growth of more than 50%.”

“Looking forward, we remain very excited about the future given the significant market opportunity and the increasing adoption of our industry leading technology. We are confident that we have a clear path to profitability and our key initiatives for 2023 reflect this focus. These initiatives include programs for continued gross margin improvement, a 20% reduction in quarterly non-GAAP operating expenses by the end of 2023 as well as the benefits from the further execution of our previously announced supply chain and manufacturing efficiency improvements. Given our positive momentum coming into this year and the further ramp up of our new products, we believe we are well positioned to capitalize on the rapidly expanding market for mission critical, high value metal parts,” concluded Buller.

($ in Millions, except percentages and per-share data)
4th Quarter 2022
3rd Quarter 2022
4th Quarter 2021
FY2022
FY2021
GAAP revenue
$29.8
$19.1
$10.4
$80.8
$27.4
GAAP gross margin
5.9%
(0.6%)
16.2%
3.6%
18.1%
GAAP net income (loss) ¹
$22.6
($75.2)
($14.4)
$10.0
($107.1)
GAAP net income (loss) per diluted share
$0.11
($0.41)
($0.08)
$0.05
($1.82)






Non-GAAP net loss ²
($16.4)
($22.5)
($17.5)
($83.0)
($51.9)
Non-GAAP net loss per diluted share ²
($0.08)
($0.12)
($0.10)
($0.41)
($0.88)
Cash and Investments
$80
$113
$223
$80
$223

Information about Velo3D’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release.

Reconciliations to U.S. generally accepted accounting principles (GAAP) financial measures are presented below under “Non-GAAP Financial Information”.
Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, and fair value adjustments for the Company’s warrants and earnout liabilities in the three months and years ended December 31, 2022 and 2021, and transaction costs related to the JAWS Spitfire merger transaction and charge related to the loss on fair value on the convertible note modification in conjunction with the merger transaction for the three months and year ended December 31, 2021.

Summary of Fourth Quarter 2022 results

Revenue for the fourth quarter was $30 million, an increase of 56% compared to the third quarter of 2022. For fiscal year 2022, revenue rose 194% to $81 million compared to fiscal year 2021. Sequential Year of Sale revenue ¹ improvement was driven by an increase in system volume, a higher average selling price due to a more favorable transaction mix resulting from record Sapphire XC shipments and an increase in deferred payment transactions compared to the third quarter of 2022. On a year over year basis, revenue growth reflected higher annual system sales, specifically a significant increase in the sales of the company’s Sapphire XC system compared to fiscal year 2021, as well as the growth in support service and recurring payment revenue resulting from an increase in the company’s installed base.

Gross margin for the fourth quarter was 5.9%, up sequentially, as the company benefited from higher average selling prices, a reduced number of shipments of Sapphire XC systems at launch customer pricing compared to the third quarter of 2022 and lower service and recurring revenue costs. The company completed its final shipment under its launch customer pricing contract during the fourth quarter. Labor and overhead costs for the fourth quarter were in line with forecasts and the company expects further improvement in its material costs through the first half of 2023.

Operating expenses for the fourth quarter declined 15% to $23.7 million. The decline was driven by $3.4 million of non-recurring expense reductions, primarily in research and development. Research and development costs also declined due to the completion of major development projects and improved expense control. General and administrative costs were in line with the third quarter while sales and marketing expenses rose slightly. Non-GAAP operating expenses, which excludes, among other items, stock-based compensation expense of $5.1 million, was $18.6 million in the three months ended December 31, 2022.

Net income for the quarter was $22.6 million and reflected a gain of $44.1 million on the fair value of warrants and contingent earnout liabilities. Non-GAAP net loss, which excludes, among other items, the gain on fair value of warrants and contingent earnout liabilities as well as stock-based compensation expense, was $16.4 million in the three months ended December 31, 2022. Adjusted EBITDA for the quarter, excluding the same metrics, was a loss of $14.4 million. For more information regarding the company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below.

The company ended the quarter with a strong balance sheet with $80 million in cash and investments. As a result, the company believes given its current liquidity and its recently established “at-the-market” equity offering program, it has the liquidity to fund its operations including its technology investments and growth plans.

Guidance

Given strong demand trends, current backlog and fourth quarter bookings, the company is confident in achieving its 2023 financial forecasts.

For the first quarter of 2023, the company expects the following:

Revenue in the range of $25 million to $28 million
Gross margin in the range of 9% to 11%, assuming no impact from potential non-recurring charges

For the fiscal year 2023, the company expects the following:

Revenue in the range of $120 million to $130 million
Gross margin in the range of 19% to 21%, assuming no impact from potential non-recurring charges – with gross margin of approximately 30% in the fourth quarter of 2023

The company will host a conference call for investors this afternoon to discuss its fourth quarter and fiscal year 2022 performance at 2:00 p.m. Pacific Time. The call will be webcast and can be accessed from the Events page of the Investor Relations section of Velo3D’s website at https://ir.velo3d.com/ .

About Velo3D:

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2023 . For more information, please visit Velo3D.com , or follow the company on LinkedIn or Twitter .

¹ Year of sale revenue refers to revenue from all units shipped within the calendar year.

Amounts herein pertaining to December 31, 2022 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Annual Report on Form 10-K with the Securities and Exchange Commission (the “SEC”). More information on our results of operations for the twelve months ended December 31, 2022 will be provided upon filing our Annual Report on Form 10-K with the SEC.

Forward-Looking Statements:

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s guidance for the first quarter, fourth quarter and full year 2023 (including the company’s estimates for revenue and revenue growth and gross margin), the company’s expectations regarding its ability to achieve profitability, its improved bill of materials costs during the first half of 2023, the company’s strategic priorities for 2023 (including the company’s plans and targets for revenue growth, gross margin improvement, non-GAAP operating expense reduction and supply chain and manufacturing efficiency improvements), the company’s expectations regarding its liquidity and capital requirements, and the company’s other expectations, hopes, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “FY 2021 10-K”), which was filed by the company with the SEC on March 28, 2022 and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the company to execute its business plan, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) changes in the applicable laws or regulations; (3) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; (4) the impact of the global COVID-19 pandemic; and (5) other risks and uncertainties indicated from time to time described in the FY 2021 10-K, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Information

The company uses non-GAAP financial measures to help it make strategic decisions, establish budgets and operational goals for managing its business, analyze its financial results and evaluate its performance. The company also believes that the presentation of these non-GAAP financial measures in this release provides an additional tool for investors to use in comparing the company’s core business and results of operations over multiple periods. However, the non-GAAP financial measures presented in this release may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with generally accepted accounting principles accepted in the United States (“GAAP”).

The information in the table below sets forth the non-GAAP financial measures that the company uses in this release. Because of the limitations associated with these non-GAAP financial measures, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA excluding merger costs and loss on convertible note extinguishment” and “Adjusted Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, EBITDA, Adjusted EBITDA, “Adjusted EBITDA excluding merger costs and loss on convertible note extinguishment” and Adjusted Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the company's business.

The following tables reconcile Net income (loss) to Non-GAAP Net Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to Adjusted Operating Expenses during the three months ended December 31, 2022 and 2021, the year ended December 31, 2022 and 2021 and the three months ended September 30, 2022 and 2021:

Velo3D, Inc.
NON-GAAP Net Income (Loss) Reconciliation
(Unaudited)



















Three months ended

Year eded

Three months ended

December 31, 2022

December 31, 2021

December 31, 2022

December 31, 2021

September 30, 2022

September 30, 2021

(In thousands, except for percentages)


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev
Revenue
$
29,780

100.0
%

$
10,410

100.0
%

$
80,757

100.0
%

$
27,439

100.0
%

$
19,115

100.0
%

$
8,711

100.0
%
Gross Profit

1,768

5.9
%


1,690

16.2
%


2,894

3.6
%


4,958

18.1
%


(121
)
(0.6
)%


1,474

16.9
%
Net Income (Loss)
$
22,607

75.9
%

$
(14,428
)
(138.6
)%

$
10,020

12.4
%

$
(107,091
)
(390.3
)%

$
(75,195
)
(393.4
)%

$
(66,578
)
(764.3
)%
Stock-based compensation

5,058

17.0
%


2,617

25.1
%


20,148

24.9
%


4,368

15.9
%


5,157

27.0
%


676

7.8
%
Loss on the convertible note modification

—

—
%


—

—
%


—

—
%


50,577

184.3
%


—

—
%


50,577

580.6
%
(Gain) Loss on fair value of warrants

(8,090
)
(27.2
)%


1,569

15.1
%


(19,129
)
(23.7
)%


5,202

19.0
%


6,612

34.6
%


1,892

21.7
%
(Gain) Loss on fair value of contingent earnout liabilities

(35,963
)
(120.8
)%


(7,262
)
(69.8
)%


(94,073
)
(116.5
)%


(9,276
)
(33.8
)%


40,885

213.9
%


(2,014
)
(23.1
)%
Merger related transactional costs

—

—
%


—

—
%


—

—
%


4,360

15.9
%


—

—
%


846

9.7
%
Non-GAAP Net Loss
$
(16,388
)
(55.0
)%

$
(17,504
)
(168.1
)%

$
(83,034
)
(102.8
)%

$
(51,860
)
(189.0
)%

$
(22,541
)
(117.9
)%

$
(14,601
)
(167.6
)%

Velo3D, Inc.
NON-GAAP Adjusted EBITDA Reconciliation
(Unaudited)



















Three months ended

Year eded

Three months ended

December 31, 2022

December 31, 2021

December 31, 2022

December 31, 2021

September 30, 2022

September 30, 2021

(In thousands, except for percentages)


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev
Revenue
$
29,780

100.0
%

$
10,410

100.0
%

$
80,757

100.0
%

$
27,439

100.0
%

$
19,115

100.0
%

$
8,711

100.0
%
Net Income (Loss)

22,607

75.9
%


(14,428
)
(138.6
)%


10,020

12.4
%


(107,091
)
(390.3
)%


(75,195
)
(393.4
)%


(66,578
)
(764.3
)%
Interest expense

10

0.0
%


1,110

10.7
%


372

0.5
%


2,740

10.0
%


129

0.7
%


986

11.3
%
Tax expense

—

—
%


—

—
%


—

—
%


—

—
%


—

—
%


—

—
%
Depreciation and amortization

1,962

6.6
%


1,731

16.6
%


5,290

6.6
%


3,007

11.0
%


1,220

6.4
%


584

6.7
%
EBITDA
$
24,579

82.5
%

$
(11,587
)
(111.3
)%

$
15,682

19.4
%

$
(101,344
)
(369.3
)%

$
(73,846
)
(386.3
)%

$
(65,008
)
(746.3
)%
Stock-based compensation

5,058

17.0
%


2,617

25.1
%


20,148

24.9
%


4,368

15.9
%


5,157

27.0
%


676

7.8
%
(Gain) Loss on fair value of warrants

(8,090
)
(27.2
)%


1,569

15.1
%


(19,129
)
(23.7
)%


5,202

19.0
%


6,612

34.6
%


1,892

21.7
%
(Gain) Loss on fair value of contingent earnout liabilities

(35,963
)
(120.8
)%


(7,262
)
(69.8
)%


(94,073
)
(116.5
)%


(9,276
)
(33.8
)%


40,885

213.9
%


(2,014
)
(23.1
)%
Adjusted EBITDA
$
(14,416
)
(48.4
)%

$
(14,663
)
(140.9
)%

$
(77,372
)
(95.8
)%

$
(101,050
)
(368.3
)%

$
(21,192
)
(110.9
)%

$
(64,454
)
(739.9
)%
Merger related transactional costs

—

—
%


—

—
%


—

—
%


4,360

15.9
%


—

—
%


846

9.7
%
Loss on the convertible note modification

—

—
%


—

—
%


—

—
%


50,577

184.3
%


—

—
%


50,577

580.6
%
Adjusted EBITDA excluding merger related transactional costs and loss on fair value of the convertible note modification
$
(14,416
)
(48.4
)%

$
(14,663
)
(140.9
)%

$
(77,372
)
(95.8
)%

$
(46,113
)
(168.1
)%

$
(21,192
)
(110.9
)%

$
(13,031
)
(149.6
)%

Velo3D, Inc.
NON-GAAP Adjusted Operating Expenses Reconciliation
(Unaudited)



















Three months ended

Year eded

Three months ended

December 31, 2022

December 31, 2021

December 31, 2022

December 31, 2021

September 30, 2022

September 30, 2021

(In thousands, except for percentages)


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev


% of Rev
Revenue
$
29,780
100.0
%

$
10,410
100.0
%

$
80,757
100.0
%

$
27,439
100.0
%

$
19,115
100.0
%

$
8,711
100.0
%
Operating expenses

















Research and development

7,828
26.3
%


7,921
76.1
%


46,266
57.3
%


27,002
98.4
%


12,558
65.7
%


7,987
91.7
%
Selling and marketing

6,043
20.3
%


4,657
44.7
%


23,907
29.6
%


12,363
45.1
%


5,632
29.5
%


3,346
38.4
%
General and administrative

9,791
32.9
%


8,190
78.7
%


36,982
45.8
%


23,352
85.1
%


9,642
50.4
%


5,158
59.2
%
Total operating expenses

23,662
79.5
%


20,768
199.5
%


107,155
132.7
%


62,717
228.6
%


27,832
145.6
%


16,491
189.3
%
Stock-based compensation

5,058
17.0
%


2,617
25.1
%


20,148
24.9
%


4,368
15.9
%


5,157
27.0
%


676
7.8
%
Merger related transactional costs

—
—
%


—
—
%


—
—
%


4,360
15.9
%


—
—
%


846
9.7
%
Adjusted operating expenses
$
18,604
62.5
%

$
18,151
174.4
%

$
87,007
107.7
%

$
53,989
196.8
%

$
22,675
118.6
%

$
14,969
171.8
%

Velo3D, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands, except share and per share data)











Three months ended

Year ended

December 31, 2022

September 30, 2022

December 31, 2021

December 31, 2022

December 31, 2021










Revenue









3D Printer
$
27,010


$
16,537


$
9,421


$
71,346


$
23,015

Recurring payment

1,119



1,183



358



4,161



1,589

Support services

1,651



1,395



631



5,250



2,835

Total Revenue

29,780



19,115



10,410



80,757



27,439

Cost of revenue









Cost of 3D Printer

25,567



16,574



7,386



68,253



17,560

Cost of Recurring Payment

553



656



250



2,612



1,112

Cost of Support Services

1,892



2,006



1,084



6,998



3,809

Total cost of revenue

28,012



19,236



8,720



77,863



22,481

Gross profit

1,768



(121
)


1,690



2,894



4,958

Operating expenses









Research and development

7,828



12,558



7,921



46,266



27,002

Selling and marketing

6,043



5,632



4,657



23,907



12,363

General and administrative

9,791



9,642



8,190



36,982



23,352

Total operating expenses

23,662



27,832



20,768



107,155



62,717

Loss from operations

(21,894
)


(27,953
)


(19,078
)


(104,261
)


(57,759
)
Interest expense

(10
)


(129
)


(1,110
)


(372
)


(2,740
)
Loss on the convertible note modification

—



—



—



—



(50,577
)
Gain (loss) on fair value of warrants

8,090



(6,612
)


(1,569
)


19,129



(5,202
)
Gain (loss) on fair value of contingent earnout liabilities

35,963



(40,885
)


7,261



94,073



9,275

Other income (expense), net

458



384



68



1,451



(88
)
Income (loss) before provision for income taxes

22,607



(75,195
)


(14,428
)


10,020



(107,091
)
Provision for income taxes

—



—



—



—



—

Net income (loss)

22,607



(75,195
)


(14,428
)


10,020



(107,091
)










Net income (loss) per share:









Basic
$
0.12


$
(0.41
)

$
(0.08
)

$
0.05


$
(1.82
)
Diluted
$
0.11


$
(0.41
)

$
(0.08
)

$
0.05


$
(1.82
)
Shares used in computing net income (loss) per share:









Basic

186,491,083



185,560,177



183,177,088



184,967,734



58,688,496

Diluted

202,704,021



185,560,177



183,177,088



203,087,629



58,688,496











Net Income (loss)
$
22,607


$
(75,195
)

$
(14,428
)

$
10,020


$
(107,091
)
Net unrealized holding loss on available-for-sale investments

298



(178
)


—



(823
)


(14
)
Other comprehensive income (loss)
$
22,905


$
(75,373
)

$
(14,428
)

$
9,197


$
(107,105
)

Velo3D, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)





December 31,

December 31,

2022

2021
Assets



Current assets:



Cash and cash equivalents
$
31,983


$
207,602

Short-term investments

48,214



15,483

Accounts receivable, net

9,185



12,778

Inventories

71,202



22,479

Contract assets

6,805



274

Prepaid expenses and other current assets

5,533



9,458

Total current assets

172,922



268,074

Property and equipment, net

19,812



10,046

Equipment on lease, net

9,070



8,366

Other assets

23,310



16,231

Total assets
$
225,114


$
302,717





Liabilities and Stockholders' Equity



Current liabilities:



Accounts payable

12,207



9,882

Accrued expenses and other current liabilities

15,877



9,414

Debt - current portion

2,775



5,114

Contract liabilities

15,194



22,252

Total current liabilities

46,053



46,662

Long-term debt - less current portion

5,422



2,956

Contingent earnout liabilities

17,414



111,487

Warrant liabilities

2,745



21,705

Other noncurrent liabilities

12,634



9,492

Total liabilities
$
84,268


$
192,302





Commitments and contingencies







Stockholders’ equity:



Common stock, $0.00001 par value?– 500,000,000 shares authorized at December 31, 2022 and 2021, respectively, 187,561,368 and 183,232,494 shares issued and outstanding as of December 31, 2022 and 2021, respectively

2



2

Additional paid-in capital

361,528



340,294

Accumulated other comprehensive loss

(837
)


(14
)
Accumulated deficit

(219,847
)


(229,867
)
Total stockholders’ equity
$
140,846


$
110,415

Total liabilities and stockholders’ equity
$
225,114


$
302,717

Velo3D, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)





Year Ended

December 31, 2022

December 31, 2021
Cash flows from operating activities



Net loss

10,020



(107,091
)
Adjustments to reconcile net loss to net cash used in operating activities



Depreciation and amortization

5,290



3,007

Stock-based compensation

20,148



4,368

Loss on the convertible note modification

—



50,577

Loss (gain) on fair value of warrants

(19,129
)


5,202

Gain on fair value of contingent earnout liabilities

(94,073
)


(9,276
)
Bad debt provision

387



—

Changes in assets and liabilities



Accounts receivable

3,206



(11,546
)
Inventories

(47,017
)


(8,010
)
Contract assets

(6,531
)


2,759

Prepaid expenses and other current assets

6,142



(7,628
)
Other assets

(1,241
)


(14,499
)
Accounts payable

2,341



1,876

Accrued expenses and other liabilities

6,362



6,878

Contract liabilities

(7,058
)


17,550

Other noncurrent liabilities

(2,809
)


9,429

Net cash used in operating activities

(123,962
)


(56,404
)
Cash flows from investing activities



Purchase of property and equipment

(13,822
)


(9,619
)
Production of equipment for lease to customers

(5,595
)


(8,480
)
Purchases of available-for-sale investments

(87,655
)


(15,491
)
Proceeds from maturities of available-for-sale investments

54,050



—

Net cash used in investing activities

(53,022
)


(33,590
)
Cash flows from financing activities



Proceeds from Merger, net of transaction costs

—



123,270

Proceeds from PIPE financing

—



155,000

Proceeds from term loan

—



19,339

Proceeds from loan refinance, net of issuance costs

6,664



—

Repayment of loans in connection with loan refinance

(8,089
)


—

Repayment of term loan

—



(25,283
)
Repayment of property and equipment loan

(889
)


(833
)
Proceeds from term loan revolver facility

—



3,000

Proceeds from equipment loans

2,400



5,419

Repayment of equipment loans

—



(2,411
)
Proceeds from convertible notes

—



5,000

Issuance of common stock upon exercise of stock options

1,256



385

Net cash (used in) provided by financing activities

1,342



282,886

Effect of exchange rate changes on cash and cash equivalents

23



(7
)
Net change in cash and cash equivalents

(175,619
)


192,885

Cash and cash equivalents and restricted cash at beginning of period

208,402



15,517

Cash and cash equivalents and restricted cash at end of period
$
32,783


$
208,402





Supplemental disclosure of cash flow information



Cash paid for interest
$
372


$
1,417

Supplemental disclosure of non-cash information



Conversion of convertible notes to Series D redeemable convertible preferred stock

—



5,000

Unpaid liabilities related to property and equipment

—



1,271

Conversion of warrants into redeemable convertible preferred stock, net settlement

—



899

Conversion of redeemable convertible preferred stock into common stock

—



180,180

Conversion of warrants into common stock, net settlement

—



3,635

Reclassification of warrants liability upon the reverse recapitalization

—



21,051

Reclassification of contingent earnout liability upon the reverse recapitalization

—



120,763

Issuance of common stock warrants in connection with financing

170



316

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows:


Year ended

December 31,

December 31,

2022

2021


Cash and cash equivalents
$
31,983

$
207,602
Restricted cash (Other assets)

800


800
Total cash and cash equivalents, and restricted cash
$
32,783

$
208,402

View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005324/en/

Investor Relations:
Velo3D
Bob Okunski, VP Investor Relations
investors@velo3d.com

Media Contact:
Velo3D
Dan Sorensen, Senior Director of PR
dan.sorensen@velo3d.com

Company Name:	Velo3D Inc.
Stock Symbol:	VLD
Market:	NYSE
Website:	velo3d.com