Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 121

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 121
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 24 Loss from impairment of property and equipment28 189 (161)(85)Total operating expenses32,083 26,433 5,650 21 Loss from operations(21,192)(26,516)5,324 20 Other income (expense), net:Interest expense— (188)188 *Interest income1,791 1,052 739 70 Other income (expense), net(64)(57)(7)(12)Change in fair value of contingent earn-out liability14,078 7,245 6,833 94 Change in fair value of contingently issuable common stock liability2,277 1,081 1,196 111 Change in fair value of public warrant liability8,156 (1,146)9,302 812 Total other income (expense), net26,238 7,987 18,251 229 Net income (loss)$5,046 $(18,529)$23,575 127 %Gross profit margin:Product revenue(1) %(36) %N/A35 %Subscription revenue58 %57 %N/A— %Service revenue72 %62 %N/A10 %License fee and other revenue91 %(127) %N/A218 %

72

*N/A – Not meaningful

73

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 70 new customers during the three months ended September 30, 2023, (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 increases in product gross profit and product gross profit margin during the three months ended September 30, 2023 compared to the prior year period reflects a higher average number of units sold per transaction across our target end markets, particularly in the professional sports vertical.

Subscription Revenue