Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 274

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 274
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$25,224 $64,551 $47,405 Partner Rebate ProgramAs discussed in Note 3, Summary of Significant Accounting Policies, the Company implemented a new Rebate Program for eligible resellers. As of June 30, 2025, the Company has accrued $0.4 million related to the Rebate Program, which is included in accrued expenses and other current liabilities in our condensed consolidated balance sheets. As a substantial amount of the Company's revenue with eligible resellers is recognized over-time, the Company recognized less than $0.1 million and $0.2 million of current portion of contract asset and contract asset, noncurrent in our condensed consolidated balance sheets, respectively, as of June 30, 2025 and recognized $0.1 million and $0.2 million as reduction of revenue for the three and six months ended June 30, 2025, respectively.

F-19

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

CommissionsThe Company incurs and pays commissions on sales of its products and services. The Company applies the practical expedient for contracts less than one year in duration to expense the commission costs in the period in which they were incurred. Commissions on product sales and services are expensed in the period in which the related revenue is recognized. Commissions on subscription arrangements and maintenance are expensed ratably over the life of the contract. The Company had a deferred asset related to commissions of $12.9 million and $13.0 million as of June 30, 2025 and December 31, 2024, respectively. During the three months ended June 30, 2025 and 2024, the Company recognized commission expense of $1.8 million and $1.6 million (as restated), respectively. During the six months ended June 30, 2025 and 2024, the Company recognized commission expense of $3.3 million and $2.9 million (as restated), respectively. LeasesAs of June 30, 2025, future minimum noncancelable payments related to leases of the Company's equipment are as follows (in thousands):Year Ending December 31:2025 (six months remaining)$41,984 202674,372 202753,103 202826,720 20295,