Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 241

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 241
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 proceeds of $26.6 million, after deducting $3.4 million in debt issuance costs. As of September 30, 2025, $30.0 million under initial term loan was drawn and outstanding, while the $30.0 million delayed draw facility and $15.0 million revolving credit facility remained undrawn and available.

We expect our cash, cash equivalents, and marketable securities of $56.2 million as of September 30, 2025, together with cash we expect to generate from future operations and our borrowing availability under our Senior Secured 

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Credit Facilities, will be sufficient to fund our operating expenses and capital expenditure requirements for a period of at least twelve months and thereafter from the date of this Quarterly Report on Form 10-Q. As we are in the growth stage of our business and operate in an emerging field of technology, we expect to continue to strategically and carefully invest in various areas of the business to support that growth.

Under the MidCap Credit Agreement, we are also required to comply with certain customary reporting requirements of periodic financial results and affirmative and negative covenants, including; (1) a minimum ending balance for annual recurring revenue (“ARR”), as defined, that begins at $106.0 million on December 31, 2025 and increases quarterly thereafter. The minimum required ARR on December 31, 2026 is $111.3 million. As of September 30, 2025, our ARR was $117.2 million, which is sufficient to satisfy the minimum required ARR through December 31, 2027; (2) minimum liquidity, as defined, of 50% of outstanding borrowings. As of September 30, 2025, the minimum liquidity required is $15.0 million, and liquidity, as defined in the agreement, was $71.1 million. This covenant would cease to apply following the resolution of certain litigation and regulatory matters; and (3) a minimum EBITDA covenant that takes effect on June 30, 2027. As of September 30, 2025, we are in full compliance with all applicable covenant requirements, and expects to remain in compliance for a period of at least twelve months from November 13, 2025.

Additionally, there continues to be significant uncertainty regarding recent changes and potential future developments related to increased trade restrictions, tariffs or taxes on imports or exports relating to countries where we source or sell materials or products. The exact magnitude of any