Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 194

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 194
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, Nature of the Business.The fair value of the contingently issuable common shares and the contingently returnable common stock asset is determined using a Monte Carlo analysis in order to simulate the future path of the Company’s stock price over the vesting period. The carrying amount of the liability may fluctuate significantly and actual amounts paid may be materially different from the liability’s estimated value. The significant assumptions used in the Monte Carlo model as of September 30, 2025 were as follows: 70% expected stock price volatility, a risk-free rate of return of 3.7%, a 15% likelihood of change in control and a remaining term of 0.8 years. The assumed likelihood of change in control was reduced to 15% as of September 30, 2025 from 25% as of June 30, 2025, reflecting the shortened remaining term of less than one year.The following table provides a rollforward of the contingently issuable common shares (in thousands):Balance at December 31, 2024$4,001 Change in fair value1,906 Common shares issuance(2,269)Balance at September 30, 2025$3,638 The following table provides a rollforward of the contingently returnable common stock asset (in thousands):Balance at December 31, 2024$— Fair value of the contingently returnable common stock asset3,239 Balance at September 30, 2025$3,239 

F-14

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

Valuation of Public Warrant LiabilityIn connection with the closing of the Merger, the Company assumed warrants to purchase 14,325,000 shares of common stock (the “Public Warrants”) at an exercise price of $11.50. The Public Warrants are immediately exercisable and expire in July 2026. The Public Warrants are classified as a liability and are subsequently remeasured to fair value at each reporting date based on the closing price as reported by Nasdaq on the last date of the reporting period. As of September 30, 2025, 14,324,893 Public Warrants are outstanding.The following table provides a rollforward of the public warrant liability (in thousands):Balance at December 31, 2024$4,297 Change in fair value6,160