Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 112

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 112
---
 impairment of property and equipment— 294 (294)*Total operating expenses71,015 58,105 12,910 22 Loss from operations(44,277)(46,650)2,373 5 Other income (expense), net:Interest expense— (654)654 *Interest income1,766 2,806 (1,040)(37)Other expense, net(67)(3)(64)(2,133)Loss on extinguishment of debt— (626)626 *Change in fair value of contingent earn-out liability23,413 (31,431)54,844 174 Change in fair value of contingently issuable common stock liability4,274 (5,837)10,111 173 Change in fair value of public warrant liability7,037 (13,501)20,538 152 Total other income (expense), net36,423 (49,246)85,669 174 Net loss$(7,854)$(95,896)$88,042 92 %Gross profit margin:Product revenue(73) %(13) %N/A(60) %Subscription revenue60 %60 %N/A1 %Service revenue77 %75 %N/A2 %License fee and other revenue91 %55 %N/A36 %

*N/A – Not meaningful

66

Revenue, Cost of Revenue and Gross Profit

We believe there are several key trends that are continuing to drive increased adoption of our solutions and growth in our sales, including (i) escalating gun violence, which has created stronger demand for security screening solutions for customers and prospects in our key vertical markets, (ii) customer acquisition activities which led to the addition of 137 new customers during the six months ended June 30, 2024, (iii) the expansion of our existing customers’ initial Evolv Express deployments to other venues and locations, and (iv) growing momentum with our channel partners which helps us extend our reach in certain geographies or vertical markets.

Product Revenue

The decreases in product revenue and cost of product revenue are primarily due to a transition to pure subscription sales and sales under our distributor licensing model during the preceding twelve months. The decrease in product gross profit margin for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 is primarily attributable to $1.0 million of expense related to