Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 383

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 383
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, 2023.

License fee and other revenue

Nine Months EndedSeptember 30,20242023$ Change% Change(Restated)License fee and other revenue$5,290 $3,582 $1,708 48 %Cost of license fee and other revenue$484 $772 $(288)(37)%Gross profit - License fee and other revenue$4,806 $2,810 $1,996 71 %Gross profit margin - License fee and other revenue91 %78 %N/A12 %

The increase in license fee and other revenue, gross profit, and gross profit margin was primarily driven by $4.0 million of license fees earned during the nine months ended September 30, 2024 compared to $2.0 million earned during the nine months ended September 30, 2023 under the Distribution and License Agreement which was executed in March 2023. 

Research and Development Expenses

Nine Months Ended September 30,20242023$ Change% Change(Restated)Personnel related (including stock-based compensation)$12,324 $12,687 $(363)(3)%Materials and prototypes1,957 1,561 396 25 %Professional fees2,559 3,025 (466)(15)%Other1,216 897 319 36 %$18,056 $18,170 $(114)(1)%

The decrease in personnel related expenses is due to a higher amount of payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $1.6 million, partially offset by an increase in payroll costs primarily resulting from new hires in our research and development function during the past twelve months. The increase in materials and prototypes expense of $0.4 million is due to inventory reserve on unused components, which relate primarily to the development of the next generation of our Evolv Express system. The decrease in professional fees of $0.5 million relates to higher amount of consulting costs capitalized related to internal-use software and software embedded in products to be sold or leased, offset by consulting costs incurred for product development and engineering. The increase in other expense of  $0.3 million is primarily due to an increase in IT and software subscription costs.

14

Sales and Marketing Expenses

Nine Months Ended September 30,20242023$ Change% Change(Restated)Personnel related (including stock-based compensation)$34,825