Evolv Technologies Holdings, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables) - Evolv Technologies Holdings, Inc.

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Schedule of customers that represent 10% or more of the Company's total revenue and accounts receivable


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Customer A	—		11.0	%	—		11.0	%
Customer B	17.0	%	—		—		—
Customer C	—		—		14.0	%	—
	17.0	%	11.0	%	14.0	%	11.0

The following table presents customers that represent 10% or more of the Company’s accounts receivable, net:


	June 30,		December 31,
	2021		2020
Customer B	11.80	%	—
Customer C	18.30	%	—
Customer D	—		23.8	%
Customer E	—		23.4	%
	30.1	%	47.2	%


	Year ended December 31,
	2020		2019
Customer A	10.7	%	—
Customer B	—		26.6	%
Customer C	—		21.7	%
Customer D	—		11.2	%
	10.7	%	59.5	%

2. Summary of Significant Accounting Policies (continued)

As of December 31, 2020, two customers each represented greater than 10% of the Company’s accounts receivable, net balance. As of December 31, 2019, two customers each represented greater than 10% of the Company’s accounts receivable, net balance. The following table presents customers that represent 10% or more of the Company’s accounts receivable, net:


	December 31,
	2020		2019
Customer C			56.3	%
Customer E	23.8	%
Customer F	23.4	%
Customer G			21.9	%
	47.2	%	78.2	%

Schedule of estimated useful life of property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows:


		Estimated Useful Life
Computers and telecommunications equipment		3 years
Lab equipment		5 years
Software		4 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of remaining lease term or useful life
Leased equipment		7 years


		Estimated Useful Life
Computers and telecommunications equipment		3 years
Lab equipment		5 years
Software		4 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of remaining lease term or useful life
Leased equipment		7 years

Schedule of estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied


	Less than		Greater than
	1 year		1 year		Total
Product revenue	$	156	$	181	$	337
Subscription revenue		7,089		15,326		22,415
Service revenue		—		—		—
Maintenance revenue		849		2,008		2,857
Total revenue	$	8,094	$	17,515	$	25,609


	Less than 1 year		Greater than 1 year		Total
Product revenue		—		—		—
Subscription revenue		3,636		7,123		10,759
Service revenue		—		—		—
Maintenance revenue		341		744		1,085
Total revenue	$	3,977	$	7,867	$	11,844

Schedule of future minimum payments on noncancelable leases


Quarter Ending June 30, 2021:
2021	$	3,627
2022		6,869
2023		6,224
2024		4,356
2025		1,130
Thereafter		209
	$	22,415

The amount of minimum future leases is based on expected income recognition. As of December 31, 2020, future minimum payments on noncancelable leases are as follows (in thousands):


Year Ending December 31:
2021	$	3,636
2022		3,241
2023		2,528
2024		1,254
2025		40
Thereafter		60
	$	10,759

Summary of rollforward of deferred revenue


Contract Liabilities
Balance at December 31, 2020	$	4,197
Revenue recognized		(3,740)
Revenue deferred		3,993
Balance at June 30, 2021	$	4,450


Contract Liabilities
Balance at December 31, 2018	$	484
Revenue recognized		(2,450)
Revenue deferred		3,822
Balance at December 31, 2019		1,856
Revenue recognized		(4,629)
Revenue deferred		6,970
Balance at December 31, 2020	$	4,197

Summary of company's revenue by revenue stream


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Product revenue	$	2,452	$	18	$	4,954	$	73
Subscription revenue(1)		1,513		490		2,813		949
Service revenue		291		—		356		5
Maintenance revenue		224		141		356		262
Total revenue	$	4,480	$	649	$	8,479	$	1,289

(1)

Subscription revenue is inclusive of $0.4 million and $0.1 million of maintenance revenue during the three months ended June 30, 2021 and 2020, respectively, and of $0.7 million and $0.3 million of maintenance revenue during the six months ended June 30, 2021 and 2020, respectively determined based on a relative fair value allocation as prescribed by ASC 606.

The following table presents the Company’s revenue by revenue stream (in thousands):


	Year ended December 31,
	2020		2019
Product revenue		1,279		4,192
Subscription revenue⁽¹⁾		2,637		1,096
Service revenue		350		136
Maintenance revenue		519		422
Total revenue	$	4,785	$	5,846

(1)	Subscription revenue is inclusive of $0.6 million and $0.3 million of maintenance revenue in 2020 and 2019, respectively, determined based on a relative fair value allocation as prescribed by ASC 606.