Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 397

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 397
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 through our distributor licensing model, per-unit license fees also increased for our second generation of Evolv Express systems. License fee revenue earned under the agreement has no associated cost of revenue. 

Research and Development Expenses

Six Months Ended June 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$7,394 $8,249 $(855)(10)%Materials and prototypes240 1,343 (1,103)(82)%Professional fees1,330 1,846 (516)(28)%Other635 808 (173)(21)%$9,599 $12,246 $(2,647)(22)%

The decrease in personnel related expenses is primarily due to the January 2025 reductions in force, which resulted in a decrease in payroll costs of $0.8 million, partially offset by a $0.2 million increase in stock-based compensation. The decrease in materials and prototypes expense is primarily due to a decrease of $0.5 million in design and engineering costs and $0.4 million inventory reserve on unused components recognized in the prior year, both of which relate primarily to the development of the next generation of our Evolv Express system and new product offerings. The decrease in professional fees primarily relates to a decrease in consulting costs incurred for product development and engineering of $0.5 million. The decrease in other expense is primarily due to a decrease in IT and software subscription and supplies costs of $0.2 million.

15

Sales and Marketing Expenses

Six Months Ended June 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$17,638 $23,825 $(6,187)(26)%Advertising and direct marketing1,276 1,854 (578)(31)%Travel and entertainment1,200 2,658 (1,458)(55)%Professional fees1,229 1,839 (610)(33)%Other1,436 2,040 (604)(30)%$22,779 $32,216 $(9,437)(29)%

The decrease in personnel related expenses is due to a decrease in payroll costs and stock-based compensation of $6.5 million, which resulted primarily from the reductions in force in May 2024 and January 2025, partially offset by an increase in severance cost of $0.5 million. Stock compensation expense included in sales and marketing expenses was $2.8 million for the six months ended