Wed, Aug 14, 9:21 PM (153 days ago)
Velo3D, Inc. reported significant challenges in its Q2 2024 financial results, reflecting a dramatic decline in revenue and persistent operational losses. Total revenue for the quarter was $10.3 million, down 58.8% year-over-year, primarily due to a 62.6% drop in 3D printer sales, which were $8.7 million. The company also experienced increased costs, with total cost of revenue at $13.2 million, leading to a gross loss of $2.9 million. Operating expenses decreased by 37.6% to $17.6 million, yet the loss from operations widened to $20.5 million. Interest expenses surged to $5.5 million due to the Secured Notes, while gains from the fair value of warrants totaled $25.3 million, mitigating some losses. The net loss was $172,000, a significant improvement from a $23.2 million loss in Q2 2023. The company’s liquidity is precarious, with only $3.2 million in cash and short-term investments against $14 million in accounts payable and $24.6 million in Secured Notes due. A strategic realignment is underway to enhance cash flow, but substantial doubt remains regarding the company's ability to continue as a going concern. Future financing remains uncertain, compounded by operational challenges and customer hesitancy due to financial instability.