The VHDL report statement is used to print messages during simulation for debugging. It has a severity level that controls whether simulation continues or stops. Severity levels NOTE and WARNING print messages but allow simulation to continue, while ERROR and FAILURE stop simulation after printing. In the example, two report statements print messages at NOTE and WARNING levels, so simulation continues. The execution table shows each step, including message printing and waiting. Variables like simulation time and last message update accordingly. Understanding severity effects helps control simulation flow during debugging.