Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 197

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 197
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 Form 10-K. The Company’s contingently issuable common shares were recorded at fair value on the closing of the Merger and are remeasured each reporting period. As of June 30, 2025, no milestones have been achieved.The fair value of the contingently issued common shares is determined using a Monte Carlo analysis in order to simulate the future path of the Company’s stock price over the vesting period. The carrying amount of the liability may fluctuate significantly and actual amounts paid may be materially different from the liability’s estimated value. The significant assumptions used in the Monte Carlo model as of June 30, 2025 were as follows: 82.5% expected stock price volatility, a risk-free rate of return of 3.9%, a 25% likelihood of change in control and a remaining term of 1.0 years.The following table provides a rollforward of the contingently issuable common shares (in thousands):Balance at December 31, 2024$4,001 Change in fair value2,247 Balance at June 30, 2025$6,248 Valuation of Public Warrant LiabilityIn connection with the closing of the Merger, the Company assumed warrants to purchase 14,325,000 shares of common stock (the “Public Warrants”) at an exercise price of $11.50. The Public Warrants are immediately exercisable and expire in July 2026. The Public Warrants are classified as a liability and are subsequently remeasured to fair value at 

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Table of ContentsEVOLV TECHNOLOGIES HOLDINGS, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

each reporting date based on the closing price as reported by Nasdaq on the last date of the reporting period. As of June 30, 2025, 14,324,893 Public Warrants are outstanding.The following table provides a rollforward of the public warrant liability (in thousands):Balance at December 31, 2024$4,297 Change in fair value3,582 Balance at June 30, 2025$7,879 

6. Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification 606 – Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for