Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 297

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 297
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Three Months Ended September 30,20242023$ Change% Change(Restated)Personnel related (including stock-based compensation)$6,789 $6,083 $706 12 %Professional fees1,441 1,764 (323)(18)%Insurance costs830 708 122 17 %Other4,916 2,706 2,210 82 %$13,976 $11,261 $2,715 24 %

The increase in personnel related expenses is due to an increase of $0.8 million in payroll costs and stock-based compensation resulting from expanding our administrative team during the past twelve months. Stock compensation expense included in general and administrative expenses was $3.5 million for the three months ended September 30, 2024 compared to $2.5 million for the three months ended September 30, 2023. The decrease in professional fees of $0.3 million was primarily related to a decrease in outsourced accounting consultancy and audit fees. The increase in insurance costs of $0.1 million was primarily related to an increase in director and officer insurance premiums. Other expense increased primarily due to a $1.5 million increase in certain one-time expenses incurred related to our ongoing legal matters which included a $1.1 million reversal of legal accruals related to the FTC matters, as well as increases in rent of $0.2 million for additional leased space and IT and software subscription costs of $0.5 million.

Loss From Impairment of Property and Equipment

$0.2 million loss from impairment of property and equipment was recognized for the three months ended September 30, 2024, compared to less than $0.1 million for the three months ended September 30, 2023, primarily related to the removal of Evolv Edge units and Evolv Express units from service, resulting in impairment of the remaining economic value of such units. 

Interest Income

Interest income of $0.6 million for the three months ended September 30, 2024 and $1.8 million for the three months ended September 30, 2023 related primarily to interest earned on money market funds and the accretion of discounts on treasury bills.

10

Change in Fair Value of Contingent Earn-out Liability

Change in the fair value of the contingent earn-out liability resulted in a $8.3 million loss and $14.1 million gain for the three months ended September 30,