Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 317

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 317
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 June 30, 2025, as discussed in “Results of Operations” above.

Adjustments to reconcile net loss to net cash used in operating activities for the six months ended June 30, 2025 include $11.1 million of an aggregate change in fair value of the earn-out liability, contingently issuable common stock warrant liability, and public warrant liability, $10.4 million of stock-based compensation expense, and $11.3 million of depreciation and amortization. For the six months ended June 30, 2024, such adjustments included $13.9 million (as restated) of stock-based compensation expense, $7.4 million of depreciation and amortization, and $34.7 million of an aggregate change in fair value of the earn-out liability, contingently issuable common stock liability, and public warrant liability.

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

•$6.1 million increase in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2024 to June 30, 2025) due primarily to the timing of vendor payments; 

•$6.2 million increase in deferred revenue due to a higher volume of sales;

•$6.1 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

•$18.4 million increase in accrued expenses and other current liabilities primarily due to a legal settlement offer accrual and the timing of accrued payroll tax, partially offset by decrease in accrued vendor payables; partially offset by

•$13.3 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers; and

•$18.8 million increase in prepaid expenses and other current assets primarily due to estimated outstanding insurance recoveries and unsettled options exercises due to timing, partially offset by decrease in vendor deposits.

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Changes in operating assets and liabilities for the six months ended June 30, 2024 are primarily related to the following:

•$14.1 million (as restated) increase in accounts receivable primarily due to the timing of customer billings;

•$10.0 million (as restated) increase in inventory primarily due to increased purchases to satisfy future expected demand and for the ongoing transition to the next generation of Evolv Express systems;

•$3