Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 375

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 375
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 The Public Warrants are currently exercisable and expire in July 2026. We assessed the features of these warrants and determined that they qualify for classification as a liability. Accordingly, we recorded the warrants at fair value upon the closing of the Merger as a component of other income (expense), net in the consolidated statements of operations and comprehensive (loss) income with the offset to additional paid-in capital.

Income Taxes

Our income tax provision consists of an estimate for federal, state, and foreign income taxes based on enacted rates in the jurisdictions in which we operate, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities and changes in tax law. We have historically incurred net operating losses and maintain a full valuation allowance against our deferred tax assets.

Reclassification 

During the year ended December 31, 2023, the Company began classifying revenue from professional services, which includes installation, training, and event support, as well as one-time revenue within license fee and other revenue on the consolidated statements of operations and comprehensive (loss) income, whereas the revenue for these services has previously been included in service revenue. Correspondingly, the Company began classifying costs associated with 

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professional services within cost of license fee and other revenue, whereas these costs were previously included in cost of service revenue. These reclassifications were made to align the presentation of professional services with the Company's internal reporting and analysis.

Results of Operations

Comparison of the Three Months Ended September 30, 2024 and 2023

The following table summarizes our results of operations for the three months ended September 30, 2024 and 2023 (in thousands):Three Months EndedSeptember 30,20242023$ Change% Change(Restated)Revenue:Product revenue$1,344 $3,456 $(2,112)(61)%Subscription revenue17,909 9,858 8,051 82 Service revenue6,085 4,345 1,740 40 License fee and other revenue2,022 2,302 (280)(12)Total revenue27,360 19,961 7,399 37 Cost of revenue:Cost of product revenue2,616 3,496 (880)(25)Cost of subscription revenue7,348 4,157 3,191 77 Cost of service revenue1,404 1,219 185 15 Cost of license fee and other revenue183 198 (