Company: EVLVW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001628280-25-026845
Chunk: 197

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 197
---
 Stock Compensation as the warrants vest upon certain performance conditions being met. As of March 31, 2025, 117,423 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $0.3 million, and there were no Finback Common Stock Warrants that were unvested, given the expiration of the 1-year tail period on January 1, 2024. The Company recognized compensation expense for the Finback Common Stock Warrants when the warrants vested based on meeting the specified sales criteria. During the three months ended March 31, 

F-21

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

2025 and 2024, there was no stock-based compensation expense 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 March 31,2025 2024Cost of revenue$219$138Research and development1,115902Sales and marketing1,0482,959General and administrative1,9722,431Restructuring costs$525$—Total stock-based compensation expense$4,879$6,430

11. Income Taxes

The provision for income taxes for the three months ended March 31, 2025 and 2024 was immaterial. The Company continues to maintain a full valuation allowance against its deferred tax assets, as it is not more likely than not that these assets will be realized.The Company’s tax provision and resulting effective tax rate for interim periods are determined using the estimated annual effective tax rate (“AETR”), which is updated each quarter and adjusted for discrete items recognized in the period. The AETR is based on the forecasted full-year pre-tax income and anticipated tax expense. Variability in the effective tax rate between quarters may result from differences between actual and projected earnings or losses, as well as the timing and nature of discrete items. If the estimated AETR changes during a quarter, the Company records a cumulative adjustment to the tax provision in that period.The Company's income tax provision reflects an estimate of federal, state, and foreign income taxes based on enacted tax rates in the jurisdictions in which we operate. The provision is adjusted for the impact of allowable tax credits and deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes