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Velo3D Announces Fourth Quarter and Fiscal Year 2021 Financial Results

Exceeded Fourth Quarter and Full Year Revenue Forecast

Reiterates Previous FY2022 Revenue Guidance of $89 Million 

CAMPBELL, Calif. — (BUSINESS WIRE) — March 2, 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, 2021.

“Our performance reflects strong execution as we exceeded our fourth quarter and fiscal year 2021 revenue forecast, surpassed our bookings target and achieved a key strategic milestone as we shipped our first Sapphire XC system which will be a significant driver of our growth in 2022,” said Benny Buller, CEO of Velo3D. “Overall, 2021 was an important and successful year for Velo3D, and I’m enormously proud of everything we achieved. Customer demand for our industry leading Sapphire systems remains high as we help some of the world’s most innovative companies create the future using our advanced additive manufacturing technology”.

“In addition to shipping a record number of systems in the fourth quarter, our strong bookings reflected increasing demand across a number of verticals as we execute on our land and expand strategy. For the year, shipments increased more than 75% and we continued to add new customers, including our first customer in Europe, which is a significant market opportunity we are looking to capitalize on this year. Also, we believe we remain well positioned to achieve our 2022 goals given our fourth quarter execution as well as the strong revenue visibility provided by our current backlog of 23 systems, including 18 Sapphire XC systems. As a result, we are reiterating our previous 2022 revenue guidance of $89 million,” continued Buller.

“Looking forward, we are excited about our long-term opportunities given our industry leading technology, continued execution on our growth plans and strong customer demand. Specifically for 2022, our strategic priorities will focus on expanding our new and existing customer footprint in both the U.S and Europe reflecting the increasing demand for our Sapphire XC system. Additionally, we will continue the buildout of our new manufacturing facility which will enable us to more than double annual shipments in 2022. Finally, we will remain focused on delivering the highest level of service possible to enable our customers to design and build the high value metal parts they need to succeed-without compromise,” concluded Buller.

($ Millions, except percentages and
per-share data)

4th Quarter
2021

3rd Quarter
2021

4th Quarter
2020

 

 

FY2021

 

FY2020

GAAP revenue

$10.4

$8.7

$6.7

 

$27.4

$19.0

GAAP gross margin

16%

17%

35%

 

18%

34%

GAAP Net Loss1

($14.4)

($66.6)

($4.2)

 

($107.1)

($21.8)

GAAP Net Loss per diluted share

($0.08)

($3.36)

($0.26)

 

($2.51)

($0.56)

 

 

 

 

 

 

 

Non-GAAP Net Loss2

($17.5)

($14.6)

($4.0)

 

($51.9)

($20.4)

Non-GAAP Net Loss per diluted share2

($0.10)

($0.74)

($0.25)

 

($1.21)

($1.30)

Cash and investments

$223

$297

$16

 

$223

$16

Information about Velo3d’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release.

  1. Third quarter and full year 2021 results include $51 million extraordinary charge related to the loss on fair value on the convertible note modification in conjunction with the JAWS Spitfire merger transaction.
  2. 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, fair value adjustment for the Company’s warrants and earnout liabilities and charge related to the loss on fair value on the convertible note modification.

Summary of Fourth Quarter and FY 2021 results

Revenue for the fourth quarter was $10.4 million, an increase of 20% compared to the third quarter of 2021. For fiscal year 2021, revenue rose 45% to $27 million. The improvement in revenue was driven primarily by higher Sapphire system sales as well as increased revenue from support services and recurring payment transactions due to the Company’s increasing installed base of systems.

The Company shipped a record 8 systems in the fourth quarter including its first Sapphire XC system. For 2021, the Company shipped a total of 23 systems compared to 13 systems in 2020, an increase of 77%, including shipments to 10 new customers. Finally, with the booking of 34 systems in 2021, the Company has increasing confidence in its ability to reach its revenue goals this year.

Gross margin for the quarter was 16% and primarily reflected the impact of launch customer price concessions for the Company’s first Sapphire XC system shipped during the quarter. This pricing reduced the Company’s gross margin for the fourth quarter by approximately 400 basis points and is expected to impact gross margin through the third quarter of 2022 as the Company completes the delivery of an additional 9 Sapphire XC systems under its launch customer contract. Additionally, as we gain experience with Sapphire XC production, the Company expects to lower its material costs and reduce labor and overhead expenses per unit. As a result of these efficiencies, the Company expects to achieve a gross margin of 30% in the fourth quarter.

Operating expenses for the quarter rose 26% sequentially to $20.8 million, primarily driven by increased headcount and other general and administrative costs to fund the Company’s global expansion plans. Non-GAAP operating expenses, which excluded stock-based compensation expense of $2.6 million, was $18.2 million.

Net loss for the quarter was $14.4 million. Non-GAAP net loss, which excludes loss on fair value of warrants, gain on fair value of earnout liabilities and stock-based compensation, was $17.5 million. Adjusted EBITDA for the quarter, excluding loss on fair value of warrants, gain on fair value of earnout liabilities and stock-based compensation, was a loss of $14.7 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 $223 million in cash and investments which reflects the repayment of $20.8 million in debt. As a result, the Company believes it has the liquidity for ongoing technology investments as well as providing the resources needed to fund its growth plans.

Guidance

For fiscal year 2022, the Company is providing the following guidance.

  1. Reiterating previous revenue guidance of $89 million
  2. Total bookings – 47-49
  3. Total shipments – 47-49
  4. Sapphire XC shipments – 23-25
  5. New customer additions – 23-25

For fiscal year 2022, given its significant backlog and increasing demand for its Sapphire XC solution, the Company remains confident in its ability to achieve its 2022 revenue forecast of $89 million.

The Company will host a conference call for investors this afternoon to discuss its fourth quarter 2021 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 end-to-end 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 to Fast Company’s prestigious annual list of the World’s Most Innovative Companies for 2021. For more information, please visit velo3d.com, or follow the company on LinkedIn or Twitter.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

Amounts herein pertaining to December 31, 2021 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 three and twelve months ended December 31, 2021 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 full year 2022 (including the Company’s estimates for revenue, total Sapphire bookings, total Sapphire shipments, Sapphire XC shipments and new customer additions), the Company’s revenue forecast for 2022 and its ability to achieve such forecast, the Company’s expectations regarding its pricing, expenses and gross margin during 2022, the Company’s strategic priorities for 2022 (including the Company’s customer expansion plans), the timing and benefits of the Company’s manufacturing facility expansion, the expected benefits of the Company’s investments, the Company’s expectations regarding its 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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2021 (the “Q3 2021 10-Q”), which was filed by the Company with the SEC on November 16, 2021 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 to recognize the anticipated benefits of the merger transaction, 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) costs related to the merger transaction; (3) changes in the applicable laws or regulations; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (5) the impact of the global COVID-19 pandemic; and (6) other risks and uncertainties indicated from time to time described in the Q3 2021 10-Q, 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, “EBITDA,” “Adjusted EBITDA”, “Non-GAAP Net Loss”, 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 EBITDA, Adjusted EBITDA, Non-GAAP Net Loss 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 business.

The following table reconciles Net loss to EBITDA, Adjusted EBITDA and Non-GAAP Net Loss and Total Operating Expenses to Adjusted Operating Expenses during the years ended December 31, 2021 and 2020, the three months ended December 31, 2021 and 2020, and the three months ended September 30, 2021:

Velo3D, Inc.

NON-GAAP Net Loss Reconciliation

(Unaudited)

 

Three months ended

Year Ended December 31,

December 31, 2021

September 30, 2021

December 31, 2020

2021

2020

(In thousands, except for percentages)

Revenue

$

10,410

 

100.0

%

$

8,711

 

100.0

%

$

6,742

 

100.0

%

$

27,439

 

100.0

%

$

18,975

 

100.0

%

Gross Profit

$

1,690

 

16.2

%

$

1,474

 

16.9

%

$

2,374

 

35.2

%

$

4,958

 

18.1

%

$

6,367

 

33.6

%

Net Loss

$

(14,428

)

(138.6

)%

$

(66,578

)

(764.3

)%

$

(4,216

)

(62.5

)%

$

(107,091

)

(390.3

)%

$

(21,807

)

(114.9

)%

Stock-based compensation

 

2,617

 

25.1

%

 

676

 

7.8

%

 

212

 

3.1

%

 

4,368

 

15.9

%

 

1,455

 

7.7

%

Loss on convertible note modification

 

-

 

0.0

%

 

50,577

 

580.6

%

 

-

 

0.0

%

 

50,577

 

184.3

%

 

-

 

0.0

%

Loss/(gain) on fair value of warrant liabilities

 

1,569

 

15.1

%

 

1,892

 

21.7

%

 

(1

)

0.0

%

 

5,202

 

19.0

%

 

(4

)

0.0

%

Gain on fair value of contingent earnout liabilities

 

(7,261

)

(69.8

)%

 

(2,014

)

(23.1

)%

 

-

 

0.0

%

 

(9,275

)

(33.8

)%

 

-

 

0.0

%

Merger related transactional costs

 

-

 

0.0

%

 

846

 

9.7

%

 

-

 

0.0

%

 

4,360

 

15.9

%

 

-

 

0.0

%

Non-GAAP Net Loss

$

(17,503

)

(168.1

)%

$

(14,601

)

(167.6

)%

$

(4,005

)

(59.40

)%

$

(51,859

)

(189.0

)%

$

(20,356

)

(107.3

)%

Non-GAAP Net Loss per share, basic and diluted

$

(0.10

)

$

(0.74

)

$

(0.25

)

$

(1.21

)

$

(1.30

)

Weighted-average shares used in computing Non-GAAP Net Loss per share, basic and diluted

 

183,177,088

 

 

19,832,992

 

 

16,003,558

 

 

42,684,938

 

 

15,629,179

 

 

Velo3D, Inc.

NON-GAAP Adjusted EBITDA Reconciliation

(Unaudited)

 

Three months ended

Year Ended December 31,

December 31, 2021

September 30, 2021

December 31, 2020

2021

2020

(In thousands, except for percentages)

Revenue

$

10,410

 

100.0

%

$

8,711

 

100.0

%

$

6,742

 

100.0

%

$

27,439

 

100.0

%

$

18,975

 

100.0

%

Net Loss

 

(14,428

)

(138.6

)%

 

(66,578

)

(764.3

)%

 

(4,216

)

(62.5

)%

 

(107,091

)

(390.3

)%

 

(21,807

)

(114.9

)%

Interest expense

$

1,110

 

10.7

%

$

986

 

11.3

%

$

440

 

6.5

%

$

2,740

 

10.0

%

$

639

 

3.4

%

Tax expense

 

-

 

0.0

%

 

-

 

0.0

%

 

-

 

0.0

%

 

-

 

0.0

%

 

-

 

0.0

%

Depreciation and amortization

 

1,731

 

16.6

%

 

584

 

6.7

%

 

389

 

5.8

%

 

2,170

 

7.9

%

 

1,240

 

6.5

%

EBITDA

 

(11,587

)

(111.3

)%

 

(65,008

)

(746.3

)%

 

(3,387

)

(50.2

)%

 

(102,181

)

(372.4

)%

 

(19,928

)

(105.0

)%

Stock-based compensation

 

2,617

 

25.1

%

 

676

 

7.8

%

 

212

 

3.1

%

 

4,368

 

15.9

%

 

1,455

 

7.7

%

Loss/(gain) on fair value of warrant liabilities

 

1,569

 

15.1

%

 

1,892

 

21.7

%

 

(1

)

0.0

%

 

5,202

 

19.0

%

 

(4

)

0.0

%

Gain on fair value of contingent earnout liabilities

 

(7,261

)

(69.8

)%

 

(2,014

)

(23.1

)%

 

-

 

0.0

%

 

(9,275

)

(33.8

)%

 

-

 

0.0

%

Adjusted EBITDA

 

(14,662

)

(53.4

)%

 

(64,454

)

(739.9

)%

 

(3,176

)

(47.1

)%

 

(101,886

)

(371.3

)%

 

(18,477

)

(67.3

)%

Merger related transactional costs

 

-

 

0.0

%

 

846

 

9.7

%

 

-

 

0.00

%

 

4,360

 

15.9

%

 

-

 

0.0

%

Loss on fair value on the convertible note modification

 

-

 

0.0

%

 

50,577

 

580.6

%

 

-

 

0.0

%

 

50,577

 

184.3

%

 

-

 

0.0

%

Adjusted EBITDA excluding merger related transactional costs and loss on fair value on the convertible note modification

$

(14,662

)

(140.8

)%

$

(13,031

)

(149.6

)%

$

(3,176

)

(47.1

)%

$

(46,949

)

(171.1

)%

$

(18,477

)

(97.4

)%

 

Velo3D, Inc.

NON-GAAP Adjusted Operating Expenses Reconciliation

(Unaudited)

 

Three months ended

Year Ended December 31,

December 31, 2021

September 30, 2021

December 31, 2020

2021

2020

(In thousands, except for percentages)

Revenue

$

10,410

100.0

%

$

8,711

100.0

%

$

6,742

100.0

%

$

27,439

100.0

%

$

18,975

100.0

%

Cost of revenue

 

8,720

83.8

%

 

7,237

83.1

%

 

4,368

64.8

%

 

22,481

81.9

%

 

12,608

45.9

%

Gross profit

$

1,690

16.2

%

$

1,474

16.9

%

$

2,374

35.2

%

$

4,958

18.1

%

$

6,367

23.2

%

Operating expenses
Research and development

 

7,921

76.1

%

 

7,987

91.7

%

 

3,271

48.5

%

 

27,002

98.4

%

 

14,188

74.8

%

Selling and marketing

 

4,657

44.7

%

 

3,346

38.4

%

 

2,603

38.6

%

 

12,363

45.1

%

 

7,004

36.9

%

General and administrative

 

8,190

78.7

%

 

5,158

59.2

%

 

313

4.6

%

 

23,352

85.1

%

 

6,382

33.6

%

Total operating expenses

 

20,768

199.5

%

 

16,491

189.3

%

 

6,187

91.8

%

 

62,717

228.6

%

 

27,574

145.3

%

Stock-based compensation

 

2,617

25.1

%

 

676

7.8

%

 

212

3.1

%

 

4,368

15.9

%

 

1,455

7.7

%

Merger related transactional costs

 

-

0.0

%

 

846

9.7

%

 

-

0.0

%

 

4,360

15.9

%

 

-

0.0

%

Adjusted operating expenses

$

18,151

174.4

%

$

14,969

171.8

%

$

5,975

88.6

%

$

53,989

196.8

%

$

26,119

137.6

%

 

Velo3D, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

Three months ended

Year ended December 31,

December 31, 2021

September 30, 2021

December 31, 2020

2021

2020

 
Revenue
3D Printer

$

9,421

 

$

7,281

 

$

5,927

 

$

23,015

 

$

16,965

 

Recurring payment

 

358

 

 

596

 

 

204

 

 

1,589

 

 

350

 

Support services

 

631

 

 

834

 

 

611

 

 

2,835

 

 

1,660

 

Total Revenue

 

10,410

 

 

8,711

 

 

6,742

 

 

27,439

 

 

18,975

 

Cost of revenue
3D Printer

 

7,386

 

 

5,692

 

 

3,753

 

 

17,560

 

 

10,605

 

Recurring payment

 

250

 

 

418

 

 

143

 

 

1,112

 

 

245

 

Support services

 

1,084

 

 

1,127

 

 

472

 

 

3,809

 

 

1,758

 

Total cost of revenue

 

8,720

 

 

7,237

 

 

4,368

 

 

22,481

 

 

12,608

 

Gross profit

 

1,690

 

 

1,474

 

 

2,374

 

 

4,958

 

 

6,367

 

Operating expenses
Research and development

 

7,921

 

 

7,987

 

 

3,271

 

 

27,002

 

 

14,188

 

Selling and marketing

 

4,657

 

 

3,346

 

 

2,603

 

 

12,363

 

 

7,004

 

General and administrative

 

8,190

 

 

5,158

 

 

313

 

 

23,352

 

 

6,382

 

Total operating expenses

 

20,768

 

 

16,491

 

 

6,187

 

 

62,717

 

 

27,574

 

Loss from operations

 

(19,078

)

 

(15,017

)

 

(3,813

)

 

(57,759

)

 

(21,207

)

Interest expense

 

(1,110

)

 

(986

)

 

(440

)

 

(2,740

)

 

(639

)

Loss on convertible note modification

 

-

 

 

(50,577

)

 

-

 

 

(50,577

)

 

-

 

Loss/(gain) on fair value of warrants

 

(1,569

)

 

(1,892

)

 

(1

)

 

(5,202

)

 

4

 

Gain on fair value of contingent earnout liabilities

 

7,261

 

 

2,014

 

 

-

 

 

9,275

 

 

-

 

Other income (expense), net

 

68

 

 

(120

)

 

38

 

 

(88

)

 

35

 

Loss before provision for income taxes

 

(14,428

)

 

(66,578

)

 

(4,216

)

 

(107,091

)

 

(21,807

)

Provision for income taxes

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Net loss

$

(14,428

)

$

(66,578

)

$

(4,216

)

$

(107,091

)

$

(21,807

)

Extinguishment of redeemable convertible preferred stock

 

-

 

 

-

 

 

13

 

 

-

 

 

13,051

 

Net loss attributable to common stockholders

$

(14,428

)

$

(66,578

)

$

8,835

 

$

(107,091

)

$

(8,756

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.08

)

$

(3.36

)

$

0.55

 

$

(2.51

)

$

(0.56

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

183,177,088

 

 

19,793,863

 

 

16,003,558

 

 

42,684,938

 

 

15,629,179

 

 

Velo3D, Inc.

Consolidated Balance Sheets

(Unaudited)

 

December 31,

2021

2020

(in thousands, except share and per share data)

Assets
Current assets:
Cash and cash equivalents

$

207,602

 

$

15,517

 

Short-term investments

 

15,483

 

 

-

 

Accounts receivable, net

 

12,778

 

 

1,232

 

Inventories

 

22,479

 

 

7,309

 

Contract assets

 

274

 

 

3,033

 

Prepaid expenses and other current assets

 

9,458

 

 

807

 

Total current assets

 

268,074

 

 

27,898

 

Property and equipment, net

 

10,046

 

 

1,006

 

Equipment on lease, net

 

8,366

 

 

2,855

 

Other assets

 

16,231

 

 

932

 

Total assets

$

302,717

 

$

32,691

 

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable

$

9,882

 

$

1,226

 

Accrued expenses and other current liabilities

 

9,414

 

 

2,512

 

Debt – current portion

 

5,114

 

 

3,687

 

Contract liabilities

 

22,252

 

 

4,702

 

Total current liabilities

 

46,662

 

 

12,127

 

Long-term debt – less current portion

 

2,956

 

 

4,316

 

Contingent earnout liabilities

 

111,487

 

 

-

 

Warrant liabilities

 

21,705

 

 

181

 

Other noncurrent liabilities

 

9,492

 

 

184

 

Total liabilities

 

192,302

 

 

16,808

 

Stockholders’ equity (deficit):
Redeemable convertible preferred stock, $0.00001 par value, 10,000,000 and 125,419,265 shares authorized as of December 31, 2021 and 2020, respectively; 0 and 117,734,383 shares issued as of December 31, 2021 and 2020, respectively, 0 and 117,734,383 shares outstanding as of December 31, 2021 and 2020; liquidation preference of $0 and $133,762 as of December 31, 2021 and 2020, respectively

 

-

 

 

123,704

 

 
Common stock, $0.00001 par value – 500,000,000 and 176,025,618 shares authorized at December 31, 2021 and 2020, 183,232,494 and 16,003,558 shares issued and outstanding as of December 31, 2021 and 2020, respectively

 

2

 

 

1

 

Additional paid-in capital

 

340,294

 

 

14,954

 

Accumulated other comprehensive loss

 

(14

)

 

-

 

Accumulated deficit

 

(229,867

)

 

(122,776

)

Total stockholders’ equity (deficit)

 

110,415

 

 

(107,821

)

Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

$

302,717

 

$

32,691

 

 

Velo3D, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

Three months ended

Year ended December 31,

December 31, 2021

September 30, 2021

December 31, 2020

2021

2020

 
Cash flows from operating activities
Net loss

$

(14,428

)

$

(66,578

)

$

(4,216

)

$

(107,091

)

$

(21,807

)

Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization

 

894

 

 

584

 

 

389

 

 

2,170

 

 

1,240

 

Amortization of deferred loan costs

 

837

 

 

-

 

 

-

 

 

837

 

 

-

 

Stock-based compensation

 

2,617

 

 

676

 

 

212

 

 

4,368

 

 

1,455

 

Loss on convertible note modification

 

-

 

 

50,577

 

 

-

 

 

50,577

 

 

-

 

Loss/(gain) on fair value of warrants

 

1,569

 

 

3,633

 

 

1

 

 

5,202

 

 

(4

)

Gain on fair value of contingent earnout liabilities

 

(7,262

)

 

(2,014

)

 

-

 

 

(9,276

)

 

-

 

Changes in assets and liabilities
Accounts receivable

 

(6,220

)

 

(2,678

)

 

1,532

 

 

(11,546

)

 

742

 

Inventories

 

(4,988

)

 

(1,743

)

 

(1,360

)

 

(8,010

)

 

(2,743

)

Contract assets

 

1,236

 

 

(1,350

)

 

(2,360

)

 

2,759

 

 

(2,493

)

Prepaid expenses and other current assets

 

(5,861

)

 

(19

)

 

652

 

 

(7,628

)

 

1,077

 

Other assets

 

(12,092

)

 

(251

)

 

400

 

 

(14,499

)

 

466

 

Accounts payable

 

2,128

 

 

(5,548

)

 

134

 

 

1,876

 

 

(490

)

Accrued expenses and other liabilities

 

3,478

 

 

(369

)

 

215

 

 

6,878

 

 

(1,024

)

Contract liabilities

 

5,136

 

 

5,224

 

 

(1,720

)

 

17,550

 

 

(2,389

)

Other noncurrent liabilities

 

7,818

 

 

1,612

 

 

(430

)

 

9,429

 

 

(476

)

Net cash used in operating activities

 

(25,138

)

 

(18,244

)

 

(6,551

)

 

(56,404

)

 

(26,446

)

Cash flows from investing activities
Purchase of property and equipment

 

(8,085

)

 

(933

)

 

(176

)

 

(9,619

)

 

(401

)

Production of equipment for lease to customers

 

(1,561

)

 

(1,875

)

 

(74

)

 

(8,480

)

 

(3,028

)

Purchases of available-for-sale securities

 

(15,491

)

 

-

 

 

(15,491

)

 

-

 

Net cash used in investing activities

 

(25,137

)

 

(2,808

)

 

(250

)

 

(33,590

)

 

(3,429

)

Cash flows from financing activities
Proceeds from issuance of Series D redeemable convertible preferred stock, net of issuance costs

 

-

 

 

-

 

 

(125

)

 

-

 

 

28,153

 

Proceeds from Merger, net of transaction costs

 

(19,913

)

 

143,183

 

 

-

 

 

123,270

 

 

-

 

Proceeds from PIPE financing

 

-

 

 

155,000

 

 

-

 

 

155,000

 

 

-

 

Proceeds from loan refinance

 

-

 

 

5,000

 

 

2,324

 

 

19,339

 

 

2,324

 

Repayment of term loan

 

(20,286

)

 

(109

)

 

(420

)

 

(25,283

)

 

(420

)

Repayment of property and equipment loan

 

-

 

 

(833

)

 

-

 

 

(833

)

 

-

 

Proceeds from term loan revolver facility

 

-

 

 

3,000

 

 

-

 

 

3,000

 

 

-

 

Proceeds from equipment loans

 

-

 

 

2,219

 

 

(1,550

)

 

5,419

 

 

-

 

Repayment of equipment loans

 

(533

)

 

(242

)

 

370

 

 

(2,411

)

 

-

 

Proceeds from convertible notes

 

-

 

 

-

 

 

52

 

 

5,000

 

 

5,467

 

Issuance of common stock upon exercise of stock options

 

72

 

 

30

 

 

-

 

 

385

 

 

53

 

Net cash provided by/(used in) financing activities

 

(40,660

)

 

307,248

 

 

651

 

 

282,886

 

 

35,577

 

Effect of exchange rate on cash and cash equivalents

 

(7

)

 

-

 

 

-

 

 

(7

)

 

-

 

Net change in cash and cash equivalents

 

(90,942

)

 

286,196

 

 

(6,150

)

 

192,885

 

 

5,702

 

Cash and cash equivalents and restricted cash at beginning of period

 

299,344

 

 

13,148

 

 

21,667

 

 

15,517

 

 

9,815

 

Cash and cash equivalents and restricted cash at end of period

$

208,402

 

$

299,344

 

$

15,517

 

$

208,402

 

$

15,517

 

Supplemental disclosure of cash flow information
Cash paid for interest

 

560

 

 

577

 

 

274

 

 

1,417

 

 

461

 

Supplemental disclosure of non-cash information
Extinguishment of redeemable convertible preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

13,274

 

Conversion of convertible notes to Series D redeemable convertible preferred stock

 

-

 

 

5,000

 

 

-

 

 

5,000

 

 

6,967

 

Unpaid liabilities related to property and equipment

 

1,271

 

 

3,231

 

 

216

 

 

1,271

 

 

216

 

Conversion of warrants into redeemable convertible preferred stock, net settlement

 

-

 

 

899

 

 

-

 

 

899

 

 

-

 

Conversion of redeemable convertible preferred stock into common stock

 

-

 

 

180,180

 

 

-

 

 

180,180

 

 

-

 

Conversion of warrants into common stock, net settlement

 

-

 

 

3,635

 

 

-

 

 

3,635

 

 

-

 

Reclassification of warrants liability upon the reverse recapitalization

 

-

 

 

21,051

 

 

-

 

 

21,051

 

 

-

 

Reclassification of contingent earnout liability upon the reverse recapitalization

 

-

 

 

120,763

 

 

-

 

 

120,763

 

 

-

 

Issuance of common stock warrants in connection with financing

 

-

 

 

182

 

 

27

 

 

316

 

 

27

 

 



Contact:

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

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