Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 125

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 125
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 marketing40,642 33,246 7,396 22 General and administrative31,054 29,484 1,570 5 Loss from impairment of property and equipment322 1,038 (716)(69)Total operating expenses90,188 77,499 12,689 16 Loss from operations(67,842)(76,307)8,465 11 Other (expense) income, net:Interest expense(654)(489)(165)(34)Interest income4,597 1,611 2,986 185 Other expense, net(67)(57)(10)(18)Loss on extinguishment of debt(626)— (626)*Change in fair value of contingent earn-out liability(17,353)9,754 (27,107)(278)Change in fair value of contingently issuable common stock liability(3,560)2,529 (6,089)(241)Change in fair value of public warrant liability(5,345)4,297 (9,642)(224)Total other (expense) income, net(23,008)17,645 (40,653)(230)Net loss$(90,850)$(58,662)$(32,188)(55)%Gross profit margin:Product revenue(11) %(25) %N/A13 %Subscription revenue59 %52 %N/A7 %Service revenue74 %31 %N/A42 %License fee and other revenue78 %(160) %N/A238 %

*N/A – Not meaningful

76

Revenue, Cost of Revenue and Gross Profit

We believe there are several key trends that are continuing to drive 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) customer acquisition activities which led to the addition of 205 new customers during the nine months ended September 30, 2023, (iii) the expansion of our existing customers' initial Evolv Express deployments to other 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 decreases in product revenue and cost of product revenue are primarily due to a transition to pure subscription sales and sales under our distributor licensing model during the preceding twelve months. The increases in product gross