Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 265

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 265
---
plemental disclosure of non-cash activitiesTransfer of property and equipment to inventory$468 $— $468 Capital expenditures incurred but not yet paid3,407 — 3,407 Capitalization of stock compensation450 (23)427 Operating lease liabilities arising from obtaining right-of-use assets1,694 — 1,694 Reconciliation of cash, cash equivalents and restricted cash:Cash and cash equivalents$35,698 $— $35,698 Restricted cash, noncurrent275 — 275 Total cash, cash equivalents and restricted cash shown in the statements of cash flows$35,973 $— $35,973 (1) Relates to adjustments related to ADJ 2.(2) Relates to the following adjustments: ADJ 3 = ($464), ADJ 4 = ($62)

3. Summary of Significant Accounting Policies

Significant Accounting PoliciesThe significant accounting policies and estimates used in preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2024, and the notes thereto, which are included in our 2024 Form 10-K. Except for the partner rebate program and the estimates used to determine the grant date valuation for certain market-based stock units (“MSUs”), as described below, there have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2025.Partner Rebate ProgramFor the fiscal year 2025, the Company implemented a channel partner rebate program (the “Rebate Program”) for eligible resellers. Under the Rebate Program, eligible resellers that attain at least 25% of their current fiscal year total contract value (“TCV”) target (“Annual Target”) in a given quarter are eligible for a rebate based upon a percentage of their TCV for that quarter. In addition, resellers that meet their Annual Target are eligible for a one-time rebate based upon a percentage of their total fiscal year TCV, applied as a credit in the subsequent fiscal year. All rebates are issued as credits against future purchases, and no cash rebates are paid. Unused rebate credits are forfeited in the event of a reseller agreement termination.The Company recognizes an accrued liability related to the Rebate Program in accrued expenses and other current liabilities in our condensed consolidated balance sheets and recognizes the rebates as reduction of revenue.Market-based Stock UnitsThe estimated grant date