Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 276

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 276
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 The decrease in materials and prototypes expense is due to a decrease of $0.4 million in design and engineering costs related to the development of the next generation of our Evolv Express system and new product offerings and a $0.4 million decrease in inventory reserve charges during the prior year period, which also relate primarily to the development of the next generation of our Evolv Express system. The decrease in professional fees primarily relates to a decrease in consulting costs incurred for product development and engineering of $0.5 million, partially offset by lower amount of costs capitalized related to internal-use software and 

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software embedded in products to be sold or leased of $0.2 million. The decrease in other expense primarily relates to a decrease in supplies and IT and software subscription costs of $0.2 million.

Sales and Marketing Expenses

Three Months Ended March 31,20252024$ Change% Change(Restated)Personnel related (including stock-based compensation)$8,504 $11,846 $(3,342)(28)%Advertising and direct marketing583 810 (227)(28)%Travel and entertainment544 1,270 (726)(57)%Professional fees645 959 (314)(33)%Other767 974 (207)(21)%$11,043 $15,859 $(4,816)(30)%

The decrease in personnel related expenses is due to a decrease in payroll costs and stock-based compensation of $3.2 million, which resulted primarily from the reductions in force in May 2024 and January 2025. Stock compensation expense included in sales and marketing expenses was $1.0 million for the three months ended March 31, 2025 compared to $3.0 million for the three months ended March 31, 2024. The decrease in advertising and direct marketing expense is primarily due to a decrease in sponsorship fees of $0.2 million. The decrease in travel and entertainment expense of $0.7 million is due to a decrease in travel costs for in-person sales personnel meetings as our sales and marketing headcount decreased as a result of our reductions in force. Professional fees decreased due to a decrease in marketing consulting costs of $0.3 million. 

General and Administrative Expenses

Three Months Ended March 31,20252024$ Change% Change(Restated)Personnel related (including stock-based compensation)$5,304 $6,192 $(888)(14)%Professional fees2,658 2,558 100