Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 406

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 406
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 and for the ongoing transition to the next generation of Evolv Express systems;

•$4.1 million increase in prepaid expenses and other current assets primarily due to prepaid deposits related to orders placed for Evolv Express systems; partially offset by

•$13.6 million increase in deferred revenue due to a higher volume of sales;

•$1.7 million increase in accrued expenses due to the timing of certain payments; and

•$1.0 million decrease in contract assets related to the timing of revenue recognition.

Investing Activities

During the nine months ended September 30, 2025, cash used in investing activities was $43.2 million, consisting of $29.1 million for the purchase of property and equipment, primarily related to the purchase of Evolv Express systems to be leased to customers and $4.3 million for the development of internal-use software and software embedded in products to be sold or leased, offset by $9.8 million of net cash provided by purchases and redemptions of marketable securities.

During the nine months ended September 30, 2024, cash provided by investing activities was $11.9 million, consisting primarily of a net $41.1 million inflow related to purchases and redemptions of marketable securities, offset by $24.4 million for the purchase of property and equipment, primarily related to the purchase of Evolv Express systems to be leased to customers, and $4.8 million for the development of internal-use software and software embedded in products to be sold or leased.

Financing Activities

During the nine months ended September 30, 2025, cash provided by financing activities was $34.7 million. The increase was primarily driven by $30.0 million in proceeds from debt issuance under the drawn Initial Term Loan, partially offset by total debt issuance costs of $3.7 million. Additional sources of financing cash flows included proceeds from the exercise of stock.

During the nine months ended September 30, 2024, cash provided by financing activities was $1.2 million, consisting primarily of proceeds from the exercise of stock options.

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Recent Accounting Pronouncements

As further discussed in Note 2, Summary of Significant Accounting Policies, there have been two new accounting pronouncements issued since the issuance of the 2024 Form 10-K that may have a material impact on our consolidated financial position, results of operations or cash flows. We are currently evaluating the potential impacts of ASU 2025-05 and 2025-06.