Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 268

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 268
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 from operating leases is related to the leased equipment under subscription arrangements and is classified as subscription revenue in the condensed consolidated statements of operations and comprehensive loss. Revenue related to leases entered into with related parties were $0.5 million and $0.3 million during the three months ended September 30, 2024 and 2023, respectively. Revenue related to leases entered into with related parties were $1.1 million and $0.7 million (restated) during the nine months ended September 30, 2024 and 2023, respectively. Disaggregated RevenueThe following table presents the Company’s revenue by revenue stream (in thousands). Certain prior period amounts have been reclassified to conform to current period presentation:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2024202320242023(Restated)(Restated)Product revenue$1,344 $3,456 $4,789 $20,920 Subscription revenue17,909 9,858 47,783 23,733 Service revenue6,085 4,345 16,903 10,750 License fees1,606 2,012 4,047 2,012 Professional services and other revenue416 290 1,243 1,570 Total revenue$27,360 $19,961 $74,765 $58,985 

F-24

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

Commissions

The Company incurs and pays commissions on sales of its products and services. The Company applies the practical expedient for contracts less than one year in duration to expense the commission costs in the period in which they were incurred. Commissions on product sales and services are expensed in the period in which the related revenue is recognized. Commissions on subscription arrangements and maintenance are expensed ratably over the life of the contract. The Company had total deferred assets related to commissions of $12.6 million and $11.6 million (as restated) as of September 30, 2024 and December 31, 2023, respectively. During the three months ended September 30, 2024 and 2023, the Company recognized commission expense of $1.4 million and $1.3 million (as restated), respectively. During the nine months ended September