Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 281

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 281
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” above.

Non-cash expense for the three months ended March 31, 2025 is primarily attributable to $12.4 million of an aggregate change in fair value of the earn-out liability, contingently issuable common stock warrant liability, and public warrant liability, offset by $4.9 million of stock-based compensation expense and $5.5 million of depreciation and amortization. Non-cash expense for the three months ended March 31, 2024 is primarily attributable to $6.4 million of stock-based compensation expense, $3.5 million of depreciation and amortization, and $9.6 million of an aggregate change in fair value of the earn-out liability, contingently issuable common stock liability, and public warrant liability.

Changes in operating assets and liabilities for the three months ended March 31, 2025 are primarily related to the following:

•$7.2 million decrease in inventory primarily due to an increase in products expected to be leased to customers and an increased focus on efficient inventory management; 

•$2.8 million increase in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to March 31, 2025) due primarily to the timing of vendor payments; and

•$0.5 million increase in deferred revenue due to a higher volume of sales; partially offset by

•$6.1 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers; 

•$3.9 million increase in prepaid expenses and other current assets primarily due to estimated insurance recoveries; and

•$0.3 million increase in contract assets due to higher volume of sales.

Changes in operating assets and liabilities for the three months ended March 31, 2024 are primarily related to the following:

•$1.8 million decrease in inventory primarily due to increased production of units to meet customer demand, offset by a higher proportion of finished goods recorded as property and equipment based on our expectations of the future mix of Evolv Express units to be leased to customers versus sold to customers;

•$3.7 million increase in prepaid expenses and other current assets primarily due to prepaid deposits related to orders placed for Evolv Express units; 

•$1.9 million decrease in accrued expenses and other current liabilities primarily due to the payment of 2023 bonuses and commissions during the three months ended March 31, 2024; partially offset by

•$2.