Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 196

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 196
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 be fulfilled through the Company's purchase subscription model going forward.The Company has assessed whether it operates as the principal or as an agent in relation to the sale of product made by Columbia Tech to the Company's resellers pursuant to the Distribution and License Agreement. The Company considered various factors, including but not limited to, inventory risk, discretion in establishing pricing, and which entity is primarily responsible for fulfillment. Based on an evaluation of the facts and circumstances, the Company concluded that Columbia Tech is the principal in the arrangement. The Company therefore does not recognize revenue in relation to sales of product pursuant to the Distribution and License Agreement, but does recognize revenue in relation to license fees received from Columbia Tech and the SaaS and maintenance subscription contracts.

F-15

Table of ContentsEVOLV TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Remaining Performance ObligationsThe following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of September 30, 2025:Less than 1 year1 - 2 yearsMore than 2 yearsTotalProduct revenue$7,346 $— $— $7,346 Subscription revenue87,330 68,552 62,643 218,525 Service revenue31,045 20,772 19,841 71,658 License fee and other revenue938 32 61 1,031 Total revenue$126,659 $89,356 $82,545 $298,560 Contract Balances from Contracts with CustomersContract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is conditional and not only subject to the passage of time.  As of September 30, 2025 and December 31, 2024, the Company had $1.2 million and $0.8 million in current portion of contract assets and $0.4 million and $0.7 million in contract assets, noncurrent on the condensed consolidated balance sheets, respectively.Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has a contract liability related to service revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. Amounts expected to be recognized as revenue within