Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 166

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 166
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 in commission assets due to a higher volume of sales; partially offset by

•$12.8 million increase in deferred revenue due to a higher volume of sales; and

•$4.5 million increase in accrued expenses due to the timing of certain payments.

Changes in operating assets and liabilities for the year ended December 31, 2023 are primarily related to the following:

•$39.5 million increase in deferred revenue to a higher volume of sales;

•$4.5 million decrease in accounts receivable primarily due to the Company's transition away from the purchase subscription model during the preceding twelve months, under which upfront billings to customers are generally higher; and

•$3.9 million increase in accrued expenses and other current liabilities, related to accrued consulting and professional fees and an accrual for purchase order cancellation fees, offset by

•$6.0 million decrease in accounts payable (excluding the non-cash portion related to capital expenditures incurred but not yet paid from December 31, 2022 to December 31, 2023) due primarily to the timing of vendor payments;

•$2.4 million increase in prepaid expense and other current assets due to an increase in vendor deposits; and

•$2.8 million increase in commission assets due to a higher volume of sales.

Changes in operating assets and liabilities for the year ended December 31, 2022 are primarily related to the following:

•$23.4 million increase in deferred revenue due to a higher volume of sales;

•$7.7 million increase in accounts payable primarily due to amounts payable to the Company's contract manufacturer; offset by

•$20.1 million increase in accounts receivable primarily due to higher sales and the timing of billings to customers;

•$10.6 million increase in inventory primarily due to increased production of units to meet customer demand;

•$3.5 million increase in commission assets due to a higher volume of sales; and

•$3.3 million increase in prepaid expenses and other current assets primarily due to deposits paid to the Company's contract manufacturer.

Investing Activities

During the year ended December 31, 2024, cash provided by investing activities was $1.4 million, consisting of $31.2 million for the purchase of property and equipment, primarily related to the purchase of Evolv Express units to be leased to customers and $6.1 million for the development of internal-use software and software embedded in products to be sold or leased, offset by a net $