Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 299

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 299
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875 31,054 8,821 28 Loss from impairment of property and equipment209 322 (113)(35)Total operating expenses105,976 90,188 15,788 18 Loss from operations(63,429)(67,842)4,413 7 Other income (expense), net:Interest expense— (654)654 100 Interest income2,394 4,597 (2,203)(48)Other expense, net(33)(67)34 51 Loss on extinguishment of debt— (626)626 *Change in fair value of contingent earn-out liability15,092 (17,353)32,445 187 Change in fair value of contingently issuable common stock liability2,218 (3,560)5,778 162 Change in fair value of public warrant liability5,461 (5,345)10,806 202 Total other income (expense), net25,132 (23,008)48,140 209 Net loss$(38,297)$(90,850)$52,553 58 %

12

Revenue, Cost of Revenue and Gross Profit

We believe there are several key trends that are continuing to drive increased adoption of our solutions and growth in our sales, including (i) escalating gun violence, which has created stronger demand for security screening solutions for customers and prospects in our key vertical markets, (ii) customer acquisition activities which led to the addition of 189 new customers during the nine months ended September 30, 2024, (iii) the expansion of our existing customers’ initial Evolv Express deployments to other venues and locations, and (iv) growing momentum with our channel partners which helps us extend our reach in certain geographies or vertical markets.

Product Revenue

Nine Months EndedSeptember 30,20242023$ Change% Change(Restated)Product revenue$4,789 $20,920 $(16,131)(77)%Cost of product revenue$8,569 $23,275 $(14,706)(63)%Gross profit - Product revenue$(3,780)$(2,355)$(1,425)(61)%Gross profit margin - Product revenue(79)%(11)%N/A(68)%

The decreases in product revenue and cost of product revenue are primarily due to a transition to pure subscription sales and sales under our distributor licensing model during the preceding twelve months. The