-Recently Completed Debt Exchange Significantly Strengthens Balance Sheet -Arun Jeldi Appointed Chief Executive Officer -New Go-To-Market Strategy to Leverage Industry Leading Technology -Company Announces Third Quarter 2024 Results

Velo3D, Inc. (OTC: VLDX), the leader in scalable metal 3D printing technology for production manufacturing, today announced that it has formally completed its strategic review process that commenced in December of 2023. As a result of the strategic review, the company has successfully implemented key corporate actions that position the company for sustainable growth starting in 2025, including:

The debt for equity exchange resulting in Arrayed Notes Acquisition Corp. (the Holder) ultimately owning 95% of the issued and outstanding common shares of Velo3D. This transaction will enable Velo3D and Arrayed Additive, the parent company of the Holder, to combine resources to further expand industry leadership positions in supplying high value, additive manufacturing solutions to the defense, aerospace, and space segments.
The resignation of six board members and the appointment of Arun Jeldi, CEO of Arrayed Additive, as the company's new board member and the company's Chief Executive Officer.
The launch of the company's new go to market strategy to identify and maximize multiple revenue streams as well as an increasing focus on providing a total solutions-based approach for customers which includes both system and parts sales.
The company firmly believes that these actions will significantly improve its operational and financial performance, strengthen the company's competitive position, and provide the foundation for long term sustainable and profitable growth.

"Completing the strategic review is a significant milestone for Velo3D and I am pleased to be leading Velo3D in the new era of growth," said Arun Jeldi, CEO of Velo3D. "Our focus remains on providing customers with our industry leading, large-format metal 3D printing solutions and look forward to working with all of our stakeholders to make the company successful. Additionally, as these actions also show, we have taken a number of steps to accelerate our path to profitability and execute on a sustainable, long term business model. While I am very happy with what the Company has accomplished to date, I am much more excited about the future of Velo3D as we embark on our next chapter of growth."

Summary of Third Quarter 2024 Results

The company reported the following financial results for its fiscal third quarter ended September 30, 2024. The company has also filed its third quarter 10-Q report with the Securities and Exchange Commission.

Revenue for the third quarter was $8.2 million with a gross margin of 49.4%. GAAP operating expenses for the third quarter were $22.8 million, which includes $6.7 million of bad debt expenses.

GAAP net loss for the quarter was $22.8 million and reflected a non-cash gain of $9.2 million on the change in the fair value of warrants and contingent earnout liabilities, offset by a GAAP interest expense of $10.9 million and bad debt expenses of $6.7 million.

The company will provide its 2025 financial outlook when it reports its fourth quarter and fiscal year 2024 results.