Velo3D, Inc.VELO

Velo3D, Inc. Leases Disclosure

10-KFiled Apr 3, 20242 min read
Leases
The Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which expire in 2024 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in each lease.
As noted above in Note 6, Balance Sheet Components, the manufacturing facility operating lease at Campbell (McGlincy) was terminated on March 31, 2023, and is no longer in use. The Company’s right-of-use assets and lease liabilities related to McGlincy were amortized in full over the life of the lease. Additionally, the Company exited from its two facilities at Campbell (Division) on December 31, 2023, which are no longer in use, however the lease agreement was not terminated.
Total ROU assets and lease liabilities are as follows:
December 31,
20232022
(In thousands)
Right-of-use assets:
Net book value (Other assets)$10,672 $13,545 
Operating lease liabilities:
Current (Accrued expense and other current liabilities)$2,153 $2,411 
Noncurrent (Other noncurrent liabilities)9,973 12,201 
12,126 14,612 
Financing lease liabilities:
Current (Accrued expense and other current liabilities)$113 $35 
Noncurrent (Other noncurrent liabilities)203 5 
$316 $40 
Total lease liabilities$12,442 $14,652 
There were no impairments recorded related to these assets as of December 31, 2023 and 2022.
Information about lease-related balances were as follows:
December 31,
20232022
(In thousands, except years and percentages)
Operating lease expense$3,002 $2,956 
Financing lease expense80 36 
Short-term lease expense314 351 
Total lease expense$3,396 $3,343 
Cash paid for leases$2,827 $2,360 
Weighted – average remaining lease term – operating leases (years)7.84.1
Weighted – average discount rate – operating leases8.8%8.7%
Maturity of operating lease liabilities as of December 31, 2023 are as follows:
(In thousands)
2024
$2,806 
2025
2,360 
2026
2,402 
2027
2,400 
2028
2,490 
Thereafter8,779 
Total operating lease payments$21,237 
Less portion representing imputed interest(9,111)
Total operating lease liabilities$12,126 
Less current portion2,153 
Long-term portion$9,973 

Historical Timeline

Fiscal YearFiled
2023Apr 3, 2024Showing above
2022Mar 20, 2023
2021Mar 28, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EDebtCommitmentsStock CompensationNew Standards