Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 102

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 102
---
104,350 59,295 45,055 76 Loss from operations(102,950)(55,266)(47,684)(86)Other income (expense), net:Interest expense(712)(6,068)5,356 88 Interest income3,165 — 3,165 *Other expense, net(64)(617)553 90 Loss on extinguishment of debt— (12,685)12,685 *Change in fair value of derivative liability— (1,745)1,745 *Change in fair value of contingent earn-out liability6,988 47,360 (40,372)(85)Change in fair value of contingently issuable common stock liability1,872 6,406 (4,534)(71)Change in fair value of public warrant liability4,906 12,606 (7,700)(61)Change in fair value of common stock warrant liability— (879)879 *Total other income (expense), net16,155 44,378 (28,223)(64)Net loss$(86,795)$(10,888)$(75,907)(697) %Gross profit margin:Product revenue(32) %10 %N/A(42) %Subscription revenue56 %42 %N/A14 %Service revenue52 %(18) %N/A70 %License fee and other revenue(71) %(41) %N/A(30) %

*N/A – Not meaningful

Revenue, Cost of Revenue and Gross Profit

We believe there are several key trends driving 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) acceleration in our customer acquisition activities as highlighted by the addition 

59

of 295 new customers during the year ended December 31, 2022, (iii) the expansion of our existing customers' initial Evolv Express deployments to their other owned 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

The increases in product revenue and cost of product revenue are primarily due to the increase in product sales of Evolv Express units, which include the significant increase in the adoption of Evolv Express units by schools, healthcare facilities, hotels,