Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 316

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 316
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 the nine months ended September 30, 2024, such adjustments included $21.4 million of stock-based compensation expense and $11.9 million of depreciation and amortization, offset by $22.8 million of an aggregate change in fair value of the earn-out liability, contingently issuable/returnable common stock liability/asset, and public warrant liability.

Changes in operating assets and liabilities for the nine months ended September 30, 2025 are primarily related to the following:

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•$16.9 million increase in accrued expenses and other current liabilities primarily due to a legal settlement offer accrual and bonus accrual, partially offset by decrease in accrued vendor payables;

•$11.6 million increase in deferred revenue due to a higher volume of sales; 

•$11.1 million decrease in inventory primarily due to an increased focus on efficient inventory management, partially offset by a decrease in products expected to be leased to customers; and

•$1.8 million increase in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to September 30, 2025) due primarily to the timing of vendor payments; partially offset by

•$20.6 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers; 

•$17.3 million increase in prepaid expenses and other current assets primarily due to estimated outstanding insurance recoveries and capitalization of costs associated with Delayed Draw Term Loan and Revolving Credit Facility, partially offset by decrease in vendor deposits; 

•$1.8 million decrease in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to September 30, 2025) due primarily to the timing of vendor payments; and

•$0.7 million increase in commission assets due to a higher volume of sales.

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 customer billings;

•$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