Company: EVLVW
Filing Date: 2025-01-23
Form Type: 8-K
Source: 0001628280-25-002293
Chunk: 1

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-01-23
Form: 8-K
Item: Item 2.05
Chunk 1
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Item 2.05 Costs Associated with Exit or Disposal Activities.

On January 21, 2025, the Board approved a reduction in force involving 40 employees in all organizations across the Company, representing approximately 14% of the Company’s workforce. This action is part of the Company’s initiative to increase its annualized run rate cash savings as the Company seeks further flexibility to pursue its investment strategy with certain growth opportunities.

The Company expects to incur pre-tax charges of approximately $2.3 million for the reduction in force, substantially all of which is expected to be incurred in the first quarter of 2025. These charges consist of one-time termination charges arising from severance obligations of approximately $2.0 million, extended eligibility for the vesting of certain equity awards originally scheduled to vest on or before March 1, 2025, resulting in incremental non-cash expense of approximately $0.2 million (which amount is based on the Company's stock price as of January 22, 2025) and other customary employee benefit payments in connection with a reduction in force of approximately $0.1 million. This reduction in force is expected to result in approximately $9.0 million of annualized run rate cash savings, which primarily includes the reduction in force and excludes potential hiring of new employees or other additions to the Company’s costs and expenses. The Company expects that the reduction in force will be substantially completed by March 31, 2025. The Company may incur additional expenses not currently contemplated due to events associated with the reduction in force. The charges that the Company expects to incur in connection with the reduction in force and annualized run rate cash savings are estimates and are subject to a number of assumptions, and actual results may differ materially.

Item 7.01 Regulation FD Disclosure.