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x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

¨			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Delaware			84-4473840
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

500 Totten Pond Road, 4th Floor

Waltham, Massachusetts 02451

Title of Each Class

Trading symbol

Name of Exchange on which registered

Class A common stock, par value $0.0001 per share

EVLV

The Nasdaq Stock Market

Warrants to purchase one share of Class A common stock

EVLVW

The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Large accelerated filer

o

Accelerated filer

o

Non-accelerated filer

x

Smaller reporting company

x

Emerging growth company

x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

						Page
Part I			Financial Information
Item 1.			Financial Statements
			Condensed Consolidated Balance Sheets (Unaudited)			F-1
			Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)			F-2
			Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)			F-3
			Condensed Consolidated Statements of Cash Flows (Unaudited)			F-5
			Notes to Consolidated Financial Statements (Unaudited)			F-7
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			1
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			21
Item 4.			Controls and Procedures			21
Part II			Other Information			24
Item 1.			Legal Proceedings			24
Item 1A.			Risk Factors			24
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			26
Item 3.			Defaults Upon Senior Securities			26
Item 4.			Mine Safety Disclosures			26
Item 5.			Other Information			26
Item 6.			Exhibits			27
Signatures

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding our results of operations and financial position, business strategy, plans and prospects, existing and prospective products, research and development costs, timing and likelihood of success, macroeconomic and market trends, and plans and objectives of management for future operations and results.

We may announce material business and financial information to our investors using our investor relations website at https://ir.evolvtechnology.com/. We therefore encourage investors and others interested in Evolv to review the information that we make available on our website, in addition to following our filings with the SEC, webcasts, press releases and conference calls. Information contained on our website is not part of this Quarterly Report on Form 10-Q.

			September 30, 2022						December 31, 2021
Assets
Current assets:
Cash and cash equivalents			$	218,499					$	307,492
Restricted cash			400						400
Accounts receivable, net			21,199						6,477
Inventory			6,732						2,890
Current portion of contract assets			5,291						1,459
Current portion of commission asset			2,413						1,645
Prepaid expenses and other current assets			20,223						10,757
Total current assets			274,757						331,120
Restricted cash, noncurrent			275						275
Contract assets, noncurrent			1,524						3,418
Commission asset, noncurrent			4,607						3,719
Property and equipment, net			40,532						23,783
Operating lease right-of-use assets			1,882						—
Other assets			2,045						542
Total assets			$	325,622					$	362,857
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	11,139					$	6,045
Accrued expenses and other current liabilities			8,884						9,551
Current portion of deferred revenue			15,852						6,599
Current portion of deferred rent			—						135
Current portion of long-term debt			4,000						2,000
Current portion of operating lease liabilities			1,106						—
Total current liabilities			40,981						24,330
Deferred revenue, noncurrent			9,234						2,475
Deferred rent, noncurrent			—						333
Long-term debt, noncurrent			4,959						7,945
Operating lease liabilities, noncurrent			1,147						—
Contingent earn-out liability			11,452						21,206
Contingently issuable common stock liability			2,735						5,264
Public warrant liability			6,733						11,030
Total liabilities			77,241						72,583
Commitments and contingencies (Note 20)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 100,000,000 authorized at September 30, 2022 and December 31, 2021; no shares issued and outstanding at September 30, 2022 and December 31, 2021			—						—
Common stock, $0.0001 par value; 1,100,000,000 shares authorized at September 30, 2022 and December 31, 2021; 144,434,717 and 142,745,021 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively			14						14
Additional paid-in capital			412,238						396,064
Accumulated other comprehensive income			35						—
Accumulated deficit			(163,906)						(105,804)
Stockholders’ equity			248,381						290,274
Total liabilities and stockholders’ equity			$	325,622					$	362,857

The accompanying notes are an integral part of these condensed consolidated financial statements.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Revenue:
Product revenue			$	9,839					$	5,395					$	19,179					$	10,279
Subscription revenue			5,198						2,312						12,208						5,060
Service revenue			1,493						717						2,923						1,456
Total revenue			16,530						8,424						34,310						16,795
Cost of revenue:
Cost of product revenue			12,960						2,967						23,513						7,386
Cost of subscription revenue			2,207						1,277						5,730						3,080
Cost of service revenue			1,138						713						3,392						1,685
Total cost of revenue			16,305						4,957						32,635						12,151
Gross profit			225						3,467						1,675						4,644
Operating expenses:
Research and development			5,616						3,612						13,947						8,399
Sales and marketing			11,746						10,024						33,169						17,756
General and administrative			8,839						7,535						29,268						12,058
Loss from impairment of property and equipment			626						1,656						1,038						1,656
Total operating expenses			26,827						22,827						77,422						39,869
Loss from operations			(26,602)						(19,360)						(75,747)						(35,225)
Other income (expense), net:
Interest expense			(188)						(295)						(489)						(5,952)
Interest income			1,052						—						1,611						—
Other expense, net			(57)						(669)						(57)						(669)
Loss on extinguishment of debt			—						(865)						—						(12,685)
Change in fair value of derivative liability			—						475						—						(1,745)
Change in fair value of contingent earn-out liability			7,245						32,609						9,754						32,609
Change in fair value of contingently issuable common stock liability			1,081						5,718						2,529						5,718
Change in fair value of public warrant liability			(1,146)						3,152						4,297						3,152
Change in fair value of common stock warrant liability			—						42						—						(879)
Total other income (expense), net			7,987						40,167						17,645						19,549
Net income (loss) attributable to common stockholders – basic			$	(18,615)					$	20,807					$	(58,102)					$	(15,676)
Net income (loss) attributable to common stockholders – diluted			$	(18,615)					$	21,278					$	(58,102)					$	(15,676)
Weighted average common shares outstanding
Basic			144,117,273						119,745,196						143,522,555						47,772,253
Diluted			144,117,273						153,936,436						143,522,555						47,772,253
Net income (loss) per share
Basic			$	(0.13)					$	0.17					$	(0.40)					$	(0.33)
Diluted			$	(0.13)					$	0.14					$	(0.40)					$	(0.33)
Net income (loss)			$	(18,615)					$	20,807					$	(58,102)					$	(15,676)
Cumulative translation adjustment			45						—						35						—
Total other comprehensive income			45						—						35						—
Total comprehensive income (loss)			$	(18,570)					$	20,807					$	(58,067)					$	(15,676)

The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited)

			Convertible Preferred Stock															Common Stock												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Accumulated Deficit						Total Stockholders’ Equity (Deficit)
			Shares (1)						Amount									Shares (1)						Amount
Balances at December 31, 2021			—						$	—								142,745,021						$	14					$	396,064					$	—					$	(105,804)					$	290,274
Issuance of common stock upon net exercise of stock options			—						—									496,971						—						226						—						—						226
Issuance of common stock upon vesting of restricted stock units			—						—									80,044						—						—						—						—						—
Stock-based compensation cost			—						—									—						—						3,953						—						—						3,953
Net loss			—						—									—						—						—						—						(13,801)						(13,801)
Balances at March 31, 2022			—						—									143,322,036						14						400,243						—						(119,605)						280,652
Issuance of common stock upon net exercise of stock options			—						—									350,092						—						157						—						—						157
Issuance of common stock upon vesting of restricted stock units			—						—									157,867						—						—						—						—						—
Stock-based compensation cost			—						—									—						—						5,093						—						—						5,093
Cumulative translation adjustment			—						—									—						—						—						(10)						—						(10)
Net loss			—						—									—						—						—						—						(25,686)						(25,686)
Balances at June 30, 2022			—						—									143,829,995						14						405,493						(10)						(145,291)						260,206
Issuance of common stock upon net exercise of stock options			—						—									428,155						—						188						—						—						188
Issuance of common stock upon vesting of restricted stock units			—						—									176,567						—						—						—						—						—
Stock-based compensation cost			—						—									—						—						6,557						—						—						6,557
Cumulative translation adjustment			—						—									—						—						—						45						—						45
Net loss			—						—									—						—						—						—						(18,615)						(18,615)
Balances at September 30, 2022			—						$	—								144,434,717						$	14					$	412,238					$	35					$	(163,906)					$	248,381
Balances at December 31, 2020			77,340,057						$	75,877								9,846,830						$	1					$	10,110					—						$	(94,916)					$	(84,805)
Issuance of warrant to purchase common stock			—						—									—						—						1						—						—						1
Issuance of common stock upon exercise of stock options			—						—									1,563,281						—						455						—						—						455
Stock-based compensation cost			—						—									—						—						321						—						—						321
Net loss			—						—									—						—						—						—						(13,506)						(13,506)
Balances at March 31, 2021			77,340,057						75,877									11,410,111						1						10,887						—						(108,422)						(97,534)
Issuance of warrant to purchase common stock			—						—									—						—						—						—						—						—
Issuance of common stock upon exercise of stock options			—						—									1,993,081						—						202						—						—						202
Repurchase of common stock upon settlement of related party note			—						—									(43,665)						—						—						—						—						—
Stock-based compensation cost			—						—									—						—						1,083						—						—						1,083
Net loss			—						—									—						—						—						—						(22,977)						(22,977)
Balances at June 30, 2021			77,340,057						75,877									13,359,527						1						12,172						—						(131,399)						(119,226)
Conversion of convertible preferred stock into common stock in connection with the closing of the Merger			(77,340,057)						(75,877)									80,833,007						8						75,869						—						—						75,877
Issuance of common stock in connection with the closing of the Merger			—						—									10,391,513						1						84,944						—						—						84,945
Issuance of common stock in connection with the consummation of the PIPE Investment			—						—									30,000,000						3						299,997						—						—						300,000
Issuance of common stock for net settlement of common stock and preferred stock warrants upon settlement of the Merger			—						—									2,029,712						—						880						—						—						880

Issuance of common stock for the conversion of convertible notes			—						—									5,408,672						1						53,644						—						—						53,645
Issuance of public warrant in connection with the closing of the Merger			—						—									—												(23,636)						—						—						(23,636)
Payment of deferred offering costs in connection with the closing of the Merger and PIPE Investment			—						—									—						—						(35,738)						—						—						(35,738)
Initial fair value of contingent earn-out liability recognized upon the closing of the Merger			—						—									—						—						(67,021)						—						—						(67,021)
Initial fair value of contingently issuable common stock liability recognized upon the closing of the Merger			—						—									—						—						(11,670)						—						—						(11,670)
Issuance of common stock upon exercise of stock options			—						—									311,722						—						120						—						—						120
Issuance of common stock upon vesting of restricted stock units			—						—									1,837						—						—						—						—						—
Stock-based compensation expense			—						—									—						—						3,124						—						—						3,124
Net income			—						—									—						—						—						—						20,807						20,807
Balances at September 30, 2021			—						$	—								142,335,990						$	14					$	392,685					$	—					$	(110,592)					$	282,107

			(1)			The shares of the Company’s convertible preferred stock and common stock, prior to the Merger (as defined in Note 3) have been retrospectively restated to reflect the exchange ratio of 0.378 established in the Merger as described in Note 3.

The accompanying notes are an integral part of these condensed consolidated financial statements.

			Nine Months Ended September 30,
			2022						2021
Cash flows from operating activities:
Net loss			$	(58,102)					$	(15,676)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			3,782						1,948
Write-off of inventory			559						400
Adjustment to property and equipment for sales type leases			(625)						—
Loss from impairment of property and equipment			1,038						1,656
Loss on disposal of property and equipment			—						659
Stock-based compensation			15,513						6,032
Non-cash interest expense			14						5,561
Non-cash lease expense			602						—
Provision recorded for allowance for doubtful accounts			100						(63)
Loss on extinguishment of debt			—						12,685
Change in fair value of derivative liability			—						1,745
Change in fair value of common stock warrant liability			—						879
Change in fair value of earn-out liability			(9,754)						(32,609)
Change in fair value of contingently issuable common stock			(2,529)						(5,718)
Change in fair value of public warrant liability			(4,297)						(3,152)
Changes in operating assets and liabilities
Accounts receivable			(14,822)						(5,866)
Inventory			(4,401)						(736)
Commission assets			(1,656)						(1,102)
Contract assets			(1,938)						(3,477)
Other assets			(629)						23
Prepaid expenses and other current assets			(9,009)						(11,535)
Accounts payable			2,177						240
Deferred revenue			16,005						2,352
Deferred rent			—						397
Warranty Reserve			—						(42)
Accrued expenses and other current liabilities			(750)						2,834
Operating lease liability			(699)						—
Net cash used in operating activities			(69,421)						(42,565)
Cash flows from investing activities:
Development of internal-use software			(1,936)						—
Purchases of property and equipment			(17,554)						(10,994)
Proceeds from sale of property and equipment			312						—
Net cash used in investing activities			(19,178)						(10,994)
Cash flows from financing activities:
Proceeds from exercise of stock options			571						777
Proceeds from issuance of common stock from the PIPE Investment			—						300,000
Proceeds from the closing of the Merger			—						84,945
Payment of offering costs from the closing of the Merger and PIPE Investment			—						(33,968)
Repayment of financing obligations			—						(359)
Proceeds from long-term debt, net of issuance costs			—						31,882
Repayment of principal on long-term debt			(1,000)						—
Net cash provided by (used in) financing activities			(429)						383,277
Effect of exchange rate changes on cash and cash equivalents			35						—
Net increase (decrease) in cash, cash equivalents and restricted cash			(88,993)						329,718
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period			308,167						4,704
Cash, cash equivalents and restricted cash at end of period			$	219,174					$	334,422
Supplemental disclosure of cash flow information
Cash paid for interest			$	478					$	427
Supplemental disclosure of non-cash activities

Capital expenditures incurred but not yet paid			$	5,935					$	3,123
Capitalization of stock compensation			90						40
Deferred offering costs included in accounts payable			—						1,770
Conversion of convertible preferred stock to common stock			—						75,877
Initial fair value of contingent earn-out liability recognized in connection with the closing of the Merger			—						67,021
Initial fair value of contingently issuable common stock liability recognized in connection with the closing of the Merger			—						11,670
Conversion of common stock warrants to common stock in connection with the closing of the Merger			—						880
Initial fair value of public warrants in connection with the closing of the Merger			—						23,636
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents			$	218,499					$	333,747
Restricted cash			400						400
Restricted cash, noncurrent			275						275
Total cash, cash equivalents and restricted cash shown in the statements of cash flows			$	219,174					$	334,422

The accompanying notes are an integral part of these condensed consolidated financial statements.

Prior to January 1, 2022, the Company accounted for leases in accordance with ASC 840, Leases. At lease inception, the Company determined if an arrangement was an operating or capital lease. For operating leases, the Company recognized rent expense, inclusive of rent escalation, on a straight-line basis over the lease term.

Effective on January 1, 2022, the Company accounts for leases in accordance with ASC 842, Leases. At contract inception, the Company determines if an arrangement is or contains a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If determined to be or contain a lease, the lease is assessed for classification as either an operating or finance lease at the lease commencement date, defined as the date on which the leased asset is made available for use by the Company (when the Company is the lessee). Where the Company is the lessee, for each lease with a term greater than twelve months, the Company records a right-of-use asset and lease liability.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as subsequently amended (collectively “ASC 842”). The guidance amends the existing accounting standards for lease accounting, including requirements for lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expanding disclosure requirements regarding leasing arrangements. For lessees, leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessors are required to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if it effectively transfers control of the underlying asset to the lessee as indicated by any one of five criteria being met. All leases that are not sales-type or direct financing leases will be classified as operating leases. In July 2018, the FASB issued additional guidance, which offers a transition option to entities adopting ASC 842 in which entities can elect to apply the new guidance using a modified retrospective approach at the beginning of the year in which the new lease standard is adopted. The Company utilized this transition option whereby financial information for prior periods presented before the ASC 842 effective date will not be updated. In November 2019, the FASB issued ASU 2019-10 deferring the effective date for private entities (also applicable for public companies that qualify as emerging growth companies) for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. In June 2020, the FASB issued ASU 2020-05 which further defers the effective date for private entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various areas related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. For public entities the guidance is effective for annual reporting periods beginning after December 15, 2020 and for interim periods within those fiscal years. For non-public entities, the guidance is effective for annual reporting periods beginning after December 15, 2021 and for interim periods within years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance effective January 1, 2022 and the adoption of this guidance did not have a material impact on its condensed consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies and clarifies certain calculation and presentation matters related to convertible and equity and debt instruments. Specifically, ASU 2020-06 removes requirements to separately account for conversion features as a derivative under ASC Topic 815 and removing the requirement to account for beneficial conversion features on such instruments. ASU 2020-06 also provides clearer guidance surrounding disclosure of such instruments and provides specific guidance for how such instruments are to be incorporated in the calculation of Diluted EPS. The guidance under ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For public entities except smaller reporting companies, the guidance is effective for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, which deferred the effective date for non-public entities and smaller reporting companies to annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is allowed. The Company expects to adopt this guidance effective January 1, 2023, and does not expect that adoption of the guidance will have a material impact on its condensed consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. The Company expects to adopt this guidance effective January 1, 2023, and does not expect that adoption of the guidance will have a material impact on its condensed consolidated financial statements.

On July 16, 2021, we consummated the business combination (the “Merger”), contemplated by the Agreement and Plan of Merger, dated March 5, 2021, with NHIC Sub Inc. (“Merger Sub”), a wholly-owned subsidiary of NewHold Investment Corp. (“NHIC”), a special purpose acquisition company, which is our legal predecessor, and Evolv Technologies, Inc. dba Evolv Technology, Inc. (“Legacy Evolv”), as amended by that certain First Amendment to Agreement and Plan of Merger dated June 5, 2021 by and among NHIC, Merger Sub and Legacy Evolv (the “Amendment” and as amended, the “Merger Agreement”). Pursuant to the Merger Agreement, Merger Sub was merged with and into Legacy Evolv, with Legacy Evolv surviving the Merger as a wholly owned subsidiary of NHIC. Upon the closing of the Merger, NHIC changed its name to Evolv Technologies Holdings, Inc. Evolv Technologies Holdings, Inc. became the successor entity to NHIC pursuant to Rule 12g-3(a) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

The transaction was accounted for as a “reverse recapitalization” in accordance with GAAP. Under this method of accounting, NHIC was treated as the “acquired” company for financial reporting purposes. This determination was primarily because subsequent to the Merger, Legacy Evolv’s shareholders have a majority of the voting power of the combined company, Legacy Evolv comprises all of the ongoing operations of the combined entity, Legacy Evolv comprises a majority of the governing body of the combined company, and Legacy Evolv’s senior management comprises

Evolv had previously indicated that it would list units (consisting of one share of common stock and one-half of one warrant) on Nasdaq under the ticker symbol EVLVU, in continuation of the listing of the units NHIC sold in its initial public offering on August 4, 2020 under the ticker symbol NHICU. In September 2021, our transfer agent separated the units into the component shares and warrants at the closing of the Merger, and as a result the Evolv units were not made eligible to settle through the facilities of The Depositary Trust Company. Accordingly, all trades in the units from July 19, 2021 (the first trading day after the completion of the Merger) until August 24, 2021 were settled between brokers in the shares and warrants underlying the units. Trading in ticker symbol EVLVU was halted on August 24, 2021, and no trades in the units were permitted or occurred since that date. The units were delisted from Nasdaq effective September 10, 2021.

Upon closing of the Merger each share of NHIC Class B common stock issued and outstanding immediately prior to the effective time of the Merger, which totaled 10,391,513 shares held by the NHIC Initial Shareholders (“Initial Shareholders”), was automatically converted into one validly-issued share of our Class A common stock.

In addition, pursuant to the Merger Agreement, certain Legacy Evolv Shareholders became entitled to receive up to 15,000,000 shares of Class A common stock as earn-out shares.

Upon closing of the Merger:

•all of 24,359,107 shares of Legacy Evolv’s Series A-1 convertible preferred stock were converted into an equivalent number of shares of Legacy Evolv common stock on a one-to-one basis;

•all of 3,484,240 shares of Legacy Evolv’s Series A convertible preferred stock were converted into an equivalent number of shares of Legacy Evolv common stock on a two-to-one basis;

•all of 34,129,398 shares of Legacy Evolv’s Series B-1 convertible preferred stock were converted into an equivalent number of shares of Legacy Evolv common stock on a one-to-one basis; and

•all of 15,367,312 shares of Legacy Evolv’s Series B convertible preferred stock were converted into an equivalent number of shares of Legacy Evolv common stock on a one-to-one basis

On the closing date of the Merger, each share of Legacy Evolv common stock then issued and outstanding was cancelled and the holders thereof in exchange received 94,192,534 shares of the Company’s Class A common stock, which is equal to 0.378 newly-issued shares of the Company’s Class A common stock for each share of Legacy Evolv common stock (the “Exchange Ratio”).

All outstanding warrants exercisable for common stock in Legacy Evolv (other than warrants that expired, were exercised or were deemed automatically net exercised immediately prior to the Merger) were exchanged for warrants exercisable for the Company’s Class A common stock with the same terms and conditions except adjusted by the Exchange Ratio.

All outstanding stock options of Legacy Evolv common stock, totaling 57,938,375 stock options, were cancelled and the holders thereof in exchange received options to receive 0.378 shares of the Company’s Class A common stock for a total of 21,891,254 stock options. The modification of the stock options to reflect the exchange ratio did not result in an incremental compensation expense upon closing of the Merger.

Prior to the completion of the Merger, the Company entered into subscription agreements (collectively, the “PIPE Investment”) with certain parties subscribing for shares of the Company’s common stock (the “Subscribers”) pursuant to

The proceeds, net of redemptions, received from the Merger were $84.9 million and gross proceeds received from the PIPE investment were $300.0 million. Based on the number of shares of common stock outstanding on July 16, 2021 (in each case, not giving effect to any shares issuable upon exercise of warrants, options, or earn-out shares), Legacy Evolv shareholders owned approximately 92.7% of the common stock of the Company and NHIC shareholders owned approximately 7.3%.

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):

			Fair Value Measurements at September 30, 2022
			Level 1						Level 2						Level 3						Total
Assets:
Money market funds			$	198,610					$	—					$	—					$	198,610
			$	198,610					$	—					$	—					$	198,610
Liabilities:
Contingent earn-out liability			$	—					$	—					$	11,452					$	11,452
Contingently issuable common stock liability			—						—						2,735						2,735
Public Warrant liability			6,733						—						—						6,733
			$	6,733					$	—					$	14,187					$	20,920

			Fair Value Measurements as of December 31, 2021
			Level 1						Level 2						Level 3						Total
Assets:
Money market funds			$	297,536					$	—					$	—					$	297,536
			$	297,536					$	—					$	—					$	297,536
Liabilities:
Contingent earn-out liability			$	—					$	—					21,206						$	21,206
Contingently issuable common stock liability			—						—						5,264						5,264
Public Warrant liability			11,030						—						—						11,030
			$	11,030					$	—					$	26,470					$	37,500

The fair value classification of the public warrant liability as of December 31, 2021 and September 30, 2022 has been updated to Level 1. During each of the three and nine months ended September 30, 2022 and 2021, there were no transfers between Level 1, Level 2 and Level 3.

Pursuant to the Merger Agreement, the Legacy Evolv shareholders, immediately prior to the Merger, were entitled to receive additional shares of the Company’s common stock upon the Company achieving certain milestones as described in Note 2 of our consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31,

The fair value of the contingent earn-out is calculated using a Monte Carlo analysis in order to simulate the future path of the Company’s stock price over the earn-out 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, 2022 were as follows: 90% expected stock price volatility, a risk-free rate of return of 4.2%, a 25% likelihood of change in control and a remaining term of 3.4 years.

December 31, 2021			$	21,206
Change in fair value			(9,754)
September 30, 2022			$	11,452

Prior to the Merger, certain NHIC shareholders owned 4,312,500 Founder Shares. 1,897,500 shares vested at the closing of the Merger, 517,500 shares were transferred back to NHIC and then contributed to Give Evolv LLC, and the remaining 1,897,500 outstanding shares shall vest upon the Company achieving certain milestones as described in Note 2 of our consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2021. The Company’s contingently issuable common stock was recorded at fair value as contingent shares on the closing of the Merger and are remeasured each reporting period. As of September 30, 2022, no milestones have been achieved.

The fair value of the contingently issued common shares 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, 2022 were as follows: 90% expected stock price volatility, a risk-free rate of return of 4.2%, a 25% likelihood of change in control and a remaining term of 3.8 years.

The following table provides a rollforward of the contingently issuable common shares (in thousands):

December 31, 2021			$	5,264
Change in fair value			(2,529)
September 30, 2022			$	2,735

Upon the closing of the Merger, the Company assumed the Public Warrants to purchase shares of the Company’s common stock (see Note 13). The Public Warrants are publicly traded and the fair value is remeasured each reporting period based on the closing price as reported by Nasdaq on the last date of the reporting period.

December 31, 2021			$	11,030
Change in fair value			(4,297)
September 30, 2022			$	6,733

The Company recognizes revenue in accordance with Accounting Standards Codification 606 – Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In order to achieve this core principle, the Company applies the following five steps when recording revenue: (1) identify the contract, or contracts, with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when, or as, performance obligations are satisfied.

			Less than 1 year						Greater than 1 year						Total
Product revenue			$	4,087					$	—					$	4,087
Subscription revenue			22,682						49,935						72,617
Service revenue			9,061						23,642						32,703
Total revenue			$	35,830					$	73,577					$	109,407

The amount of minimum future leases is based on expected income recognition. As of September 30, 2022, future minimum payments on noncancelable leases are as follows (in thousands):

Year Ending December 31:
2022 (three months remaining)			$	5,734
2023			22,403
2024			20,956
2025			17,067
2026			6,377
Thereafter			80
			$	72,617

Balance at December 31, 2021			$	9,074
Revenue recognized			5,995
Revenue deferred			10,017
Balance at September 30, 2022			$	25,086

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Revenue from sales-type leases			$	29					$	—					$	1,341					$	—
Interest income on lease receivables			60						—						170						—
Lease income - operating leases			5,198						2,312						12,208						5,060
Total lease revenue			$	5,287					$	2,312					$	13,719					$	5,060

The revenue from sales-type leases is related to the Evolv Express units where the lease term is for the major part of the economic life of the underlying equipment and is classified as product revenue in the condensed consolidated statements of operations and comprehensive loss. The interest income on lease receivables is classified as other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. The lease income from operating leases is related to the leased equipment under subscription arrangements and is classified as subscription revenue in the condensed consolidated statements of operations and comprehensive loss.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Product revenue			$	9,839					$	5,395					$	19,179					$	10,279
Leased equipment			5,198						2,312						12,208						5,060
SaaS and Maintenance revenue			1,180						300						2,277						662
Professional services and other revenue			313						417						646						794
Total revenue			$	16,530					$	8,424					$	34,310					$	16,795

Company Headquarters (Waltham, MA)

Weighted average remaining lease term			2.1 years
Weighted average discount rate			6.95		%

Year Ended December 31:
2022 (remaining three months)			$	283
2023			1,149
2024			981
Total future lease payments			2,413
Less: imputed interest			(160)
Present value of operating lease liability			$	2,253

Rent expense recognized in accordance with ASC 840 for the three and nine months ended September 30, 2021 was approximately $0.3 million and $0.7 million, respectively.

Future annual lease payments under non-cancelable operating leases as of December 31, 2021 under ASC 840 were as follows (in thousands):

Year Ended December 31:
2022			$	1,116
2023			1,150
2024			981
Total			$	3,247

			Allowance for Doubtful Accounts
Balance at December 31, 2021			$	(50)
Provisions			(100)
Write-offs, net of recoveries			—
Balance at September 30, 2022			$	(150)

			September 30, 2022						December 31, 2021
Raw materials			$	2,617					$	1,050
Finished goods			4,115						1,840
Total			$	6,732					$	2,890

			September 30, 2022						December 31, 2021
Prepaid deposits			$	15,397					$	7,273
Prepaid subscriptions			573						411
Current portion of net investment in sales-type leases			340						206
Prepaid insurance			2,771						2,625
Other			1,142						242
Total			$	20,223					$	10,757

			September 30, 2022						December 31, 2021
Computers and telecom equipment			$	466					$	40
Lab equipment			690						568
Furniture and fixtures			87						37
Leasehold improvements			542						491
Leased equipment			34,888						20,797
Internal-use software			3,255						1,146
Sales demo equipment			2,085						1,938
Equipment held for lease1			4,847						2,250
Construction in progress			180						—
			47,040						27,267
Less: Accumulated depreciation and amortization			(6,508)						(3,484)
			$	40,532					$	23,783

			September 30, 2022						December 31, 2021
Leased equipment			$	34,888					$	20,797
Accumulated depreciation			(4,868)						(2,631)
Leased equipment, net			$	30,020					$	18,166

Depreciation related to leased units was $1.1 million and $0.8 million during the three months ended September 30, 2022 and 2021, respectively. Depreciation expense related to leased units was $3.0 million and $1.8 million during the nine months ended September 30, 2022 and 2021, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases.

Impairment of property and equipment was $0.6 million and $1.0 million for the three and nine months ended September 30, 2022, respectively. This impairment related to Edge units and prototype versions of Express that were removed from service and retired. The Company is transitioning domestic customers to current model Express units which decreased the economic value of Edge units and Express prototypes and resulted in impairment. Impairment of property and equipment was $1.7 million and $1.7 million for the three and nine months ended September 30, 2021.

			September 30, 2022						December 31, 2021
Accrued employee compensation and benefits expense			$	4,240					$	5,692
Accrued professional services and consulting			1,011						1,114
Accrued sales tax			1,671						1,204
Accrued property tax			604						302
Other			1,358						1,239
			$	8,884					$	9,551

			September 30, 2022						December 31, 2021
Term loans payable			$	9,000					$	10,000
Less: Unamortized discount			(41)						(55)
			8,959						9,945
Less: Current portion of long-term debt			4,000						2,000
Long-term debt, net of discount			$	4,959					$	7,945

JPMorgan Chase Bank, N.A.(“JPM”) Credit Agreement

In December 2020, the Company entered into a $10.0 million credit agreement with JPMorgan Chase Bank, N.A. (“JPM Credit Agreement”) with a maturity date of December 3, 2024 and a revolving line of credit of up to $10.0 million with a maturity date of December 3, 2022.

Principal and interest on the JPM Credit Agreement is payable monthly commencing on July 1, 2022. The JPM Credit Agreement accrues interest at an annual rate calculated as the greater of (A) the Wall Street Journal Prime Rate plus 2.25% or (B) 5.5%. The revolving line of credit accrues interest at an annual rate calculated as the greater of (A) the Wall Street Journal Prime Rate plus 1.25% or (B) 4.5%. Upon closing, the Company issued warrants to purchase 377,837 shares of common stock to the lender with an exercise price of $0.42 per share with a fair value of $0.1 million on the date of issuance. The Company incurred debt issuance costs of $0.1 million equal to the fair value of the warrants in connection with the JPM Credit Agreement. These costs were recorded as debt discount and are amortized to interest expense, using the effective interest method, over the term of the loan. Upon the closing of the Merger, the warrants were converted into shares of the Company's common stock.

As of September 30, 2022, the unamortized debt discount was less than $0.1 million. As of September 30, 2022, the accrued interest on the JPM Credit Agreement was $0.1 million, which is included in accrued expenses and other current liabilities in the condensed consolidated balance sheet. Interest expense related to the JPM Credit Agreement totaled $0.2 million and $0.2 million for the three months ended September 30, 2022 and September 30, 2021, respectively, which includes the amortization of the debt discount which totaled less than $0.1 million in each period. Interest expense related to the JPM Credit Agreement totaled $0.5 million and $0.6 million for the nine months ended September 30, 2022 and September 30, 2021, respectively, which includes the amortization of the debt discount which totaled less than $0.1 million in each period. The interest rate in effect as of September 30, 2022 was 8.50% for the JPM Credit Agreement.

The Company’s obligations under the JPM Credit Agreement are secured by a first-priority security interest in all of its assets, including intellectual property.

As of September 30, 2022, future principal payments on long-term debt are as follows (in thousands):

December 31,
2022 (remaining three months)			$	1,000
2023			4,000
2024			4,000
			$	9,000

In September 2020, the Company entered into a Convertible Note Purchase Agreement (the “2020 Convertible Notes”) with an investor for gross proceeds of $2.0 million with a stated interest rate of 6.0% per annum. An additional $2.0 million in gross proceeds were made available in December 31, 2020 upon achievement of the integration milestone, whereby the Company successfully created software utilizing the investor’s application programming interface. The 2020 Convertible Notes provided a conversion option whereby upon the closing of a Qualified Financing event, in which the aggregate gross proceeds of the issuance of preferred stock totaled at least $10.0 million, the notes would automatically convert into shares of the same class and series of capital stock of the Company issued to other investors in the financing at a conversion price equal to 80% of the price per share paid by the other investors. The conversion option met the definition of an embedded derivative and was required to be bifurcated and accounted for separately from the notes. The proceeds from the 2020 Convertible Notes were allocated between the derivative liability, with a fair value at issuance of $1.0 million, and the notes, with an initial carrying value of $3.0 million, and included in long-term liabilities on the Company’s condensed consolidated balance sheet. The difference between the initial carrying value of the notes and the stated value of the notes represented a discount that was accreted to interest expense over the term of the Convertible Notes using the

Interest expense related to the 2020 Convertible Notes totaled less than $0.1 million and $0.3 million for the three and nine months ended September 30, 2021, respectively. No interest expense was recognized related to the 2020 Convertible Notes for the three and nine months ended September 30, 2022.

In January and February 2021, the Company entered into a Convertible Note Purchase Agreement (the “2021 Convertible Notes”) with various investors for gross proceeds of $30.0 million with a stated interest rate of 8.0% per annum. The 2021 Convertible Notes provided a conversion option whereby upon the closing of a Qualified Financing event, in which the aggregate gross proceeds totaled at least $100.0 million, the notes would automatically convert into shares of the same class and series of capital stock of the Company issued to other investors in the financing at a conversion price equal to 80.0% of the price per share paid by the other investors. The conversion option met the definition of an embedded derivative and was required to be bifurcated and accounted for separately from the notes. The proceeds from the 2021 Convertible Notes were allocated between the derivative liability, with a fair value at issuance of $7.0 million, and the notes, with an initial carrying value of $23.0 million, and included in long-term liabilities on the Company’s condensed consolidated balance sheet. The difference between the initial carrying value of the notes and the stated value of the notes represented a discount that was accreted to interest expense over the term of the Convertible Notes using the effective interest method. This derivative liability was derecognized as of December 31, 2021 as the liability was settled pursuant to the closing of the Merger.

In June 2021, the Company modified the 2021 Convertible Notes to grant the holders an additional 1,000,000 shares of NHIC common stock as further consideration upon the automatic conversion of the notes upon closing of the Merger. This modification of the notes resulted in an extinguishment and the Company recognized a loss on extinguishment of the 2021 Convertible Notes of $11.8 million. The $26.7 million carrying value of the notes at June 21, 2021 was derecognized and replacement notes with an initial carrying value of $29.6 million were recorded. Additionally, in the extinguishment accounting, a derivative liability of $19.2 million was recognized, which represents the value of the 1,000,000 NHIC shares as well as a bifurcated embedded derivative for the conversion option.

Upon the closing of the Merger, the Convertible Notes automatically converted into 4,408,672 shares of the Company’s common stock and the holders of the 2021 Convertible Notes also received the right to receive 1,000,000 shares of the Company’s common stock, as noted above. Upon the conversion of the Convertible Notes, the carrying value of the debt of $32.8 million, and the related derivative liability of $19.7 million and accrued interest of $0.2 million were derecognized resulting in a loss on extinguishment of debt of $0.9 million recorded in other income (expense).

Interest expense related to the 2021 Convertible Notes totaled $0.1 million and $4.9 million for the three and nine months ended September 30, 2021, respectively. No interest expense was recognized related to the 2021 Convertible Notes for the three and nine months ended September 30, 2022.

In January 2021, the Company granted warrants (the "Finback Common Stock Warrants") for the purchase of 2,552,913 shares of the Company's common stock at an exercise price of $0.42 per share to Finback Evolv II, LLC ("Finback"), a consulting group affiliated with one of the Company's shareholders. The Finback Common Stock Warrants vest upon meeting certain sales criteria as defined in a business development agreement (the "Finback BDA") and expire in January 2031. The Finback Common Stock Warrants are accounted for under ASC 718 Compensation – Stock Compensation as the warrants vest upon certain performance conditions being met (see Note 16).

In connection with the closing of the Merger, the Company assumed the Public Warrants for the purchase of 14,325,000 shares of common stock 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 recorded at their fair value of $23.6 million on the date of closing of the Merger with an offset to additional paid-in-capital and are subsequently remeasured to fair value at each reporting date based on the publicly available trading price. The change in fair value of the public warrant liability of

September 30, 2022
Issuance Date						Contractual Term (in years)						Underlying Equity Instrument						Balance Sheet Classification						Shares Issuable Upon Exercise of Warrant						Weighted Average Exercise Price
January 13, 2021						10						Common stock						Equity						2,552,913						$	0.42
July 16, 2021						5						Common stock						Liability						14,324,994						$	11.50
																								16,877,907

December 31, 2021
Issuance Date						Contractual Term (in years)						Underlying Equity Instrument						Balance Sheet Classification						Shares Issuable Upon Exercise of Warrant						Weighted Average Exercise Price
January 13, 2021						10						Common stock						Equity						2,552,913						$	0.42
July 16, 2021						5						Common stock						Liability						14,324,994						$	11.50
																								16,877,907

Prior to the Merger, Legacy Evolv had issued Series A convertible preferred stock (“Series A Preferred Stock”), Series A-1 convertible preferred stock (“Series A-1 Preferred Stock”), Series B convertible preferred stock (“Series B Preferred Stock”), and Series B-1 convertible preferred stock (“Series B-1 Preferred Stock”), collectively referred to as the “Preferred Stock”.

As of September 30, 2022 and December 31, 2021, the Company had reserved 74,315,885 and 76,008,377 shares of common stock, respectively, for exercise of outstanding stock options, granting of awards under the Company’s 2021 Equity Incentive Plan and 2013 Equity Incentive Plan (see Note 16) and the exercise of outstanding warrants (see Note 13).

The Company’s 2021 Incentive Award Plan (the “2021 Plan”) provides for the Company to grant incentive stock options or nonqualified stock options, restricted stock awards, restricted stock units, performance stock units, and other stock-based awards to employees, officers, directors and non-employees of the Company. A total of 21,177,295 shares of common stock may be issued under the 2021 Plan. As of September 30, 2022 and December 31, 2021, 11,287,459 and 19,511,916 shares, respectively, remained available for future grant under the 2021 Plan. Shares, units, and options that are

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted during the nine months ended September 30, 2022 and 2021:

			Nine Months Ended September 30,
			2022						2021
Risk-free interest rate			1.6		%				0.7		%
Expected term (in years)			6.1						6.0
Expected volatility			75.0		%				31.4		%
Expected dividend yield			0.0		%				0.0		%

			Number of Shares						Weighted Average Exercise Price						Weighted Average Remaining Contractual Term						Aggregate Intrinsic Value
															(in years)
Outstanding as of December 31, 2021			20,769,130						$	0.39
Granted			2,262,925						3.49
Exercised			(1,278,014)						0.43
Forfeited			(726,201)						0.42
Outstanding as of September 30, 2022			21,027,840						0.72						7.3						$	32,445
Vested and expected to vest as of September 30, 2022			21,027,840						$	0.72					7.3						$	32,445
Options exercisable as of September 30, 2022			13,190,147						$	0.38					6.7						$	22,981

The weighted average exercise price of the stock options granted in 2022 in the table above has been updated to align with the terms of the stock option awards.

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock.

			Number of Shares						Grant Date Fair Value
Outstanding as of December 31, 2021			1,951,924						$	6.76
Granted			7,136,963						3.30
Vested			(414,478)						7.02
Cancelled			(1,338,230)						5.24
Outstanding as of September 30, 2022			7,336,179						$	3.65

During the three and nine months ended September 30, 2022, the aggregate grant-date fair value of restricted stock units issued under the 2021 Plan was $0.6 million and $23.5 million, respectively. Restricted stock units generally vest ratably over a three year period subject to the grantee's continued service through the applicable vesting date.

			Number of Shares						Grant Date Fair Value
December 31, 2021			—						$	—
Granted			947,000						2.65
Vested			—						—
Canceled			(58,000)						2.65
September 30, 2022			889,000						$	2.65

During the three and nine months ended September 30, 2022, the aggregate grant-date value of performance stock units issued under the 2021 Plan was less than $0.1 million and $2.5 million, respectively. Based upon the terms of the award agreements, 50% of the applicable units shall vest on January 1, 2023 and 50% on January 1, 2024, provided that the Company has achieved its annual bookings goal for fiscal year 2022 and subject to the grantee’s continued service through the applicable vesting date.

As of September 30, 2022 and December 31, 2021, 3,435,748 shares of the Company’s common stock remained available for future issuance under the 2021 Employee Stock Purchase Plan. The Company’s board of directors may from time to time grant or provide for the grant to eligible employees of options to purchase common stock under the 2021 Employee Stock Purchase Plan during a specific offering period. As of September 30, 2022, no offerings have been approved.

The Company utilized a Black-Scholes pricing model to determine the grant-date fair value of the Finback Common Stock Warrants. The assumptions used are presented in the following table:

Warrants - Black Scholes
Risk-free interest rate			$	0.4	%
Expected term (in years)			3.0
Expected volatility			23.9		%
Expected dividend yield			0.0		%

On the date of issuance, the total value of the Finback Common Stock Warrants was $19.5 million.

As of September 30, 2022, 700,575 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $1.2 million. The remaining 1,852,338 Finback Common Stock Warrants are unvested and have a total unrecognized grant date fair value of $14.1 million. As of September 30, 2022, none of the Finback Common Stock Warrants had been exercised. The Company recognizes compensation expense for the Finback Common Stock Warrants when the warrants become vested based on meeting the certain sales criteria. During the three and nine months ended September 30, 2022, the Company recorded $1.3 million and $2.1 million, respectively, of stock-based compensation expense within sales and marketing expense related to the 2021 Finback common stock warrants.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Cost of revenue			$	227					$	66					$	615					$	91
Research and development			1,664						319						3,143						396
Sales and marketing			2,482						3,226						6,310						4,305
General and administrative			2,152						1,044						5,445						1,240
Total stock-based compensation expense			$	6,525					$	4,655					$	15,513					$	6,032