Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 277

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 277
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 4 %Insurance costs731 742 (11)(1)%Non-recurring professional and other expense6,279 2,314 3,965 171 %$14,972 $11,806 $3,166 27 %

The decrease in personnel related expenses is due to an decrease in payroll costs and stock-based compensation of $0.8 million, which resulted primarily from the reduction in force in January 2025. Stock compensation expense included in general and administrative expenses was $2.0 million for the three months ended March 31, 2025 compared to $2.4 million for the three months ended March 31, 2024. Non-recurring professional fees and other expense increased primarily due to a $6.9 million increase in consulting and legal fees related to the Investigation (as defined in Note 2 in the notes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q) and related matters, partially offset by estimated insurance recoveries of $3.9 million, as well as additional audit fees incurred in connection with the restatement of prior period financial statements, an increase in rent of $0.4 million for additional leased space, and an increase in expected credit loss expense of $0.3 million.

Restructuring Costs

Restructuring costs of $2.7 million for the three months ended March 31, 2025 resulted from the reduction in force in January 2025. Stock compensation expense included in restructuring costs was $0.5 million for the three months ended March 31, 2025.

10

Interest Income

Interest income of $0.4 million for the three months ended March 31, 2025 and $1.1 million for the three months ended March 31, 2024 related primarily to interest earned on money market funds and the accretion of discounts on treasury bills.

Change in Fair Value of Contingent Earn-out Liability

Change in the fair value of the contingent earn-out liability resulted in gains of $9.0 million and $6.9 million for the three months ended March 31, 2025 and 2024, respectively, resulting from quarterly mark-to-market adjustments. The contingent earn-out liability was established in connection with the closing of the Merger.

Change in Fair Value of Contingently Issuable Common Stock Liability

Change in the fair value of the contingently issuable common stock liability resulted in gains of $1.7 million