Velo3D Inc. (NYSE:VLD), a metal 3D printing technology firm, announced today that it will not be able to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, within the prescribed timeframe.
The delay is attributed to several factors, including management's focus on amending the terms of its senior secured notes due in 2026 and the discovery of an accounting error affecting revenue and asset figures.
The company also disclosed that it expects to report two additional material weaknesses in its financial reporting, specifically related to the accounting of debt and equity transactions and the presentation of financial statements.
These are in addition to two previously identified material weaknesses concerning inventory and contract asset accounting. Consequently, Velo3D's disclosure controls and procedures are deemed ineffective as of the end of 2023.
Furthermore, Velo3D is conducting an ongoing evaluation of its ability to continue as a going concern. The company has expressed substantial doubt about its ability to continue in this capacity, raising concerns about its financial stability.
This announcement comes as a significant disclosure for investors and market watchers, highlighting potential challenges in the company's financial management and operational stability. Velo3D's acknowledgment of these issues is based on a press release statement and reflects a critical moment for the company as it works to address and rectify the underlying causes of the delay.
The implications of these developments for Velo3D are yet to be fully understood, but the company's transparency in reporting these issues is an essential step in managing investor expectations and regulatory compliance.
As Velo3D navigates these challenges, the market will be closely monitoring the company's progress in amending its financial reporting and controls, as well as its strategies for ensuring long-term viability.
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