Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 218

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 218
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 License fee and other revenue98 %89 %N/A9 %

The increases in license fee and other revenue and gross profit are primarily driven by $3.2 million of license fee revenue earned during the three months ended March 31, 2025 compared to $0.7 million earned during the prior year period under the Distribution and License Agreement with Columbia Tech. License fee revenue earned under the agreement have no associated cost of revenue.

Research and Development Expenses

Three Months Ended March 31,20252024$ Change% Change(Restated)Personnel related (including stock-based compensation)$3,850 $4,178 $(328)(8)%Materials and prototypes67 839 (772)(92)%Professional fees672 917 (245)(27)%Other273 462 (189)(41)%$4,862 $6,396 $(1,534)(24)%

The decrease in personnel related expenses is due to a decrease in payroll costs of $0.2 million and a higher amount of payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.3 million, partially offset by a $0.2 million increase in stock-based compensation resulting primarily from new hires in our research and development function during the past twelve months. 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