Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 378

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 378
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 $(15)(8)%Gross profit - License fee and other revenue$1,839 $2,104 $(265)(13)%Gross profit margin - License fee and other revenue91 %91 %N/A— %

The decrease in license fee and other revenue and gross profit was primarily driven by $1.6 million of license fees earned during the three months ended September 30, 2024 compared to $2.0 million earned during the prior year period under the Distribution and License Agreement.

Research and Development Expenses

Three Months Ended September 30,20242023$ Change% Change(Restated)Personnel related (including stock-based compensation)$4,075 $4,527 $(452)(10)%Materials and prototypes614 364 250 69 %Professional fees713 1,100 (387)(35)%Other408 395 13 3 %$5,810 $6,386 $(576)(9)%

The decrease in personnel related expenses is due to a higher amount of payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.5 million. The increase in materials and prototypes expense of $0.3 million is due to increased design and engineering costs related to the development of the next generation of our Evolv Express system and new product offerings. The decrease in professional fees primarily relates to higher amount of costs capitalized related to internal-use software and software embedded in products to be sold or leased for software consultants of $0.3 million.

9

Sales and Marketing Expenses

Three Months Ended September 30,20242023$ Change% Change(Restated)Personnel related (including stock-based compensation)$10,346 $10,049 $297 3 %Advertising and direct marketing1,316 980 336 34 %Travel and entertainment1,305 1,506 (201)(13)%Professional fees915 716 199 28 %Other1,084 1,157 (73)(6)%$14,966 $14,408 $558 4 %

The increase in personnel related expenses is due to an increase of $0.3 million in payroll costs and stock-based compensation resulting primarily from new hires in our sales and marketing functions to support increased sales volume during the past twelve months. The increase in advertising and direct marketing expense is primarily due to an increase in expenses related to trade shows and events of