Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 205

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 205
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,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 in force during the three months ended March 31, 2025. These charges consisted of termination charges arising from severance obligations of approximately $2.0 million, extended eligibility for the vesting of certain equity awards originally scheduled to vest on or before March 1, 2025, resulting in incremental non-cash expense of $0.5 million, and other customary employee benefit payments in connection with a reduction in force of $0.2 million. All of these restructuring costs are reported within restructuring costs in our condensed consolidated statements of operations and comprehensive loss. All actions related to the reduction in force were completed by March 31, 2025, with the exception of payouts of severance obligations to certain employees who are subject to continuous payment through November 2025 under the Company's Severance And Change In Control Plan. The following table summarizes the liabilities recognized in relation to the cash obligations from reduction in force, which are included in accrued expenses and other current liabilities in our condensed consolidated balance sheets (in thousands):

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Table of ContentsEVOLV TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED