Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 193

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 193
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V TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

CommissionsThe 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 a deferred asset related to commissions of $12.8 million and $13.0 million as of March 31, 2025 and December 31, 2024, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized commission expense of $1.5 million and $1.3 million (as restated), respectively. LeasesAs of March 31, 2025, future minimum noncancelable payments related to leases of the Company's equipment are as follows (in thousands):Year Ending December 31:2025 (nine months remaining)$58,776 202667,180 202745,766 202820,471 20292,328 Thereafter7 $194,528 

7. Accounts Receivable

Allowance for Expected Credit LossesChanges in the allowance for expected credit losses were as follows (in thousands):Allowance for Expected Credit LossesBalance at December 31, 2024$(734)Provisions(41)Write-offs, net of recoveries— Balance at March 31, 2025$(775)

8. Inventory

Inventory consisted of the following (in thousands):March 31,2025December 31,2024Raw materials$3,811 $4,362 Finished goodsFinished goods inventory6,071 12,153 Uninstalled inventory174 448 Total$10,056 $16,963 

F-18

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

As discussed in Note 2, Restatement of Previously Issued Condensed Consolidated Financial Statements, the Company offers products for purchase or multi-year subscription leases. For equipment for which the revenue recognition start date was moved to a later date due to the timing of