Company: EVLVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001805385-25-000009
Chunk: 391

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 391
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 (including stock-based compensation)$3,544 $4,071 $(527)(13)%Materials and prototypes173 504 (331)(66)%Professional fees658 929 (271)(29)%Other362 346 16 5 %$4,737 $5,850 $(1,113)(19)%

The decrease in personnel related expenses is due to the January 2025 reductions in force, which resulted in a decrease in payroll costs of $0.6 million, partially offset by a lower amount of payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.2 million. The decrease in materials and prototypes expense is due to a decrease of $0.2 million in design and engineering costs related to the development of the 

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next generation of our Evolv Express system and new product offerings in the prior year. The decrease in professional fees primarily relates to a decrease in consulting costs incurred for product development and engineering of $0.3 million.

Sales and Marketing Expenses

Three Months Ended June 30,20252024$ Change% Change(Restated)Personnel related (including stock-based compensation)$9,134 $11,979 $(2,845)(24)%Advertising and direct marketing693 1,044 (351)(34)%Travel and entertainment656 1,388 (732)(53)%Professional fees584 880 (296)(34)%Other669 1,066 (397)(37)%$11,736 $16,357 $(4,621)(28)%

The decrease in personnel related expenses is due to a decrease in payroll costs and stock-based compensation of $3.3 million, which resulted primarily from the reductions in force in May 2024 and January 2025, partially offset by an increase in severance cost of $0.5 million. Stock compensation expense included in sales and marketing expenses was $1.7 million for the three months ended June 30, 2025 compared to $2.7 million for the three months ended June 30, 2024. The decrease in advertising and direct marketing expense is primarily due to a decrease in sponsorship fees of $0.2 million. The decrease in travel and entertainment expense of $0.7 million is due to a decrease in travel costs for in-person sales meetings as a result of our reductions in force. Professional fees decreased due to a decrease in marketing consulting costs. Other expense decreased