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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

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