Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 265

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 265
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 obligation of the holders to return unvested shares upon failure to meet Vesting Conditions is accounted for as a freestanding financial asset in accordance with ASC 815. This asset is initially recognized at fair value and remeasured at each reporting period. As of September 30, 2025, the Company recognized a $3.2 million contingently returnable common stock asset, which is included in other assets in our condensed consolidated balance sheets. Management evaluated the accounting impacts on prior periods based on the historical dates of transfers between July 2022 and June 2025, concluding that such impacts were not material to the historical financial statements, as further described in Note 1, Nature of the Business.The fair value of the contingently issuable common shares and the contingently returnable common stock asset is determined using a Monte Carlo analysis in order to simulate the future path of the Company’s stock price over the vesting period. The carrying amount of the liability may fluctuate significantly and actual amounts paid may be materially different from the liability’s estimated value. The significant assumptions used in the Monte Carlo model as of September 30, 2025 were as follows: 70% expected stock price volatility, a risk-free rate of return of 3.7%, a 15% likelihood of change in control and a remaining term of 0.8 years. The assumed likelihood of change in control was reduced to 15% as of September 30, 2025 from 25% as of June 30, 2025, reflecting the shortened remaining term of less than one year.The following table provides a rollforward of the contingently issuable common shares (in thousands):Balance at December 31, 2024$4,001 Change in fair value1,906 Common shares issuance(2,269)Balance at September 30, 2025$3,638 The following table provides a rollforward of the contingently returnable common stock asset (in thousands):Balance at December 31, 2024$— Fair value of the contingently returnable common stock asset3,239 Balance at September 30, 2025$3,239 

F-14

Table of ContentsEVOLV TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Valuation of Public Warrant LiabilityIn connection with the closing of the Merger, the Company assumed warrants to purchase 14,325,