Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 246

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 246
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 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. There were no accounting pronouncements that became effective since the issuance of the 2024 Form 10-K that had a material impact on our consolidated financial position, results of operations or cash flows.

Critical Accounting Estimates

Our critical accounting estimates are described in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition” of our 2024 Form 10-K. Other than disclosures related to estimating the fair value of market-based stock units and for estimating rebate liabilities, as discussed below, there have been no material changes to our critical accounting estimates during the nine months ended September 30, 2025.

Market-based Stock Units

The estimated fair value of MSUs granted by the Company is determined using a Monte Carlo simulation that simulates the future path of the Company’s stock price throughout the performance period. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones including expected