Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 238

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 238
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 million of depreciation and amortization, offset by $22.8 million of an aggregate change in fair value of the contingent earn-out liability, contingently issuable common stock liability, and public warrant liability. Non-cash expense for the nine months ended September 30, 2023 is primarily attributable to $17.8 million of stock-based compensation expense, $6.6 million of depreciation and amortization, and $26.3 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 nine months ended September 30, 2024 are primarily related to the following:

•$13.7 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers;

•$8.3 million increase in inventory primarily due to increased purchases to satisfy future expected demand for the first generation of Evolv Express systems and for the ongoing transition to the next generation of Evolv Express systems;

•$4.1 million increase in prepaid expenses and other current assets primarily due to prepaid deposits related to orders placed for Evolv Express units; partially offset by

•$13.6 million increase in deferred revenue due to a higher volume of sales;

•$1.7 million increase in accrued expenses due to the timing of certain payments; and

•$1.0 million decrease in contract assets related to the timing of revenue recognition.

Changes in operating assets and liabilities for the nine months ended September 30, 2023 are primarily related to the following:

•$4.2 million decrease in inventory primarily due to 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;

•$39.4 million increase in deferred revenue due to a higher volume of sales; partially offset by

•$6.4 million decrease in accounts payable (excluding the non-cash change in capital expenditures incurred but not yet paid from December 31, 2022 to September 30, 2023) primarily due to a decrease in inventory.

Investing Activities

During the nine months ended September 30, 2024, cash provided by investing activities was $11.9 million, consisting of $24.4 million for the purchase of property and equipment, primarily related to the purchase of Evolv Express units to be leased to customers and $4.8 million for the development of internal-use software