Company: EVLVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001805385-25-000017
Chunk: 237

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 237
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 compared to $4.0 million earned during the nine months ended September 30, 2024 under the distributor licensing model, as well as a $0.4 million increase in installation and training service fees. In addition to the increase in the unit sales through our distributor licensing model, per-unit license fees also increased for our second generation of Evolv Express systems. 

Research and Development Expenses

Nine Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$11,633 $12,324 $(691)(6)%Materials and prototypes473 1,957 (1,484)(76)%Professional fees2,033 2,559 (526)(21)%Other1,068 1,216 (148)(12)%$15,207 $18,056 $(2,849)(16)%

The decrease in personnel related expenses is primarily due to the January 2025 reduction in force, which resulted in a decrease in payroll costs of $0.9 million, partially offset by a $0.1 million increase in stock-based compensation and a decrease in payroll costs capitalized related to internal-use software and software embedded in products to be sold or leased of $0.1 million. The decrease in materials and prototypes expense is primarily due to a decrease of $1.0 million in design and engineering costs and $0.4 million inventory reserve on unused components recognized in the prior year, both of which relate primarily to the development of the next generation of our Evolv Express system and new product offerings. The decrease in professional fees primarily relates to a decrease in consulting costs incurred for product development and engineering of $0.5 million. 

15

Sales and Marketing Expenses

Nine Months Ended September 30,20252024$ Change% ChangePersonnel related (including stock-based compensation)$26,773 $34,171 $(7,398)(22)%Advertising and direct marketing1,722 3,170 (1,448)(46)%Travel and entertainment1,907 3,963 (2,056)(52)%Professional fees1,706 2,754 (1,048)(38)%Other2,386 3,124 (738)(24)%$34,494 $47,182 $(12,688)(27)%

The decrease in personnel related expenses is due to a decrease in payroll costs and stock-based compensation of $7.2 million, which resulted primarily from the reductions