Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 262

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 262
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 its presentation here would be duplicative of the condensed consolidated balance sheets. On the basis of these factors, the Company determined that it operates and manages its business as one operating and reporting segment, that develops, manufactures, markets and sells security screening products and specific services, and accordingly has one reportable segment for financial reporting purposes.Information by reportable segment is as follows (in thousands):

F-26

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

Three Months EndedMarch 31,20252024(As Restated)Segment revenue$32,007 $22,181 Less: Employee expense16,369 17,841 Travel and expense791 1,514 Capitalized R&D expense(1,489)(1,454)Stock-based compensation expense14,354 6,430 Other non-recurring expenses23,561 1,680 Consulting and contract staffing3,277 3,316 Software subscriptions1,535 1,458 Depreciation and amortization5,529 3,457 Restructuring costs2,662 — Other cost of revenue5,441 4,013 Other operating expenses4,366 5,832 Other segment items3(12,763)(10,634)Provision for income taxes63 — Segment net loss$(1,689)$(11,272)1 Excludes incremental expense related to modified awards included in the Restructuring costs line. See Note 16 for additional information.2 For the three months ended March 31, 2025, includes consulting and legal fees related to the Investigation (as defined in Note 2) and related matters, additional audit fees incurred in connection with the restatement of prior period financial statements, net of estimated insurance recoveries. For the three months ended March 31, 2024, includes costs associated with adverse non-cancellable inventory purchase commitments and severance expense.3 Refer to Total other income, net in the condensed consolidated statements of operations and comprehensive loss.

16. Restructuring Charges

In January 2025, the Company implemented a Board-approved reduction in force affecting 41 members of its workforce. This action is part of the Company’s initiative to increase its profitability and cash flow as the Company seeks further flexibility to pursue its investment strategy with certain growth opportunities.The Company incurred charges of $2.7 million for the reduction