Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001628280-25-020353
Chunk: 205

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 205
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-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants. During the three and nine months ended September 30, 2023, the 

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

Company recorded $0.8 million and $2.2 million of stock-based compensation expense, respectively, within sales and marketing expense related to the Finback Common Stock Warrants. Stock-Based CompensationStock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2024 2023 2024 2023(Restated)(Restated)Cost of revenue$244$114$555$443Research and development1,2431,1483,3673,223Sales and marketing2,5162,2938,1996,809General and administrative3,5042,4819,2437,296Total stock-based compensation expense$7,507$6,036$21,364$17,771

13. Income Taxes

There is no provision for income taxes for the three and nine months ended September 30, 2024 and 2023 because the Company has historically incurred net operating losses and maintains a full valuation allowance against its deferred tax assets.The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate (“AETR”), adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, a cumulative adjustment is made in that quarter.

14. Net (Loss) Income per Share

In periods in which the Company reported net income, net income attributable to common stockholders is computed using the two-class method as the Founder Shares are classified as participating securities containing rights to receive dividends. In accordance with the two-class method, a portion of net income is allocated to participating securities and excluded from the calculation of income allocated to common stock.Basic net (loss) income per share is calculated by dividing net (loss) income attributable to common stockholders by the weighted average shares outstanding during the