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 cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash as reported on the consolidated statement of cash flows consists of the following (in thousands):


	June 30,		December 31,
	2021		2020
Cash and cash equivalents	$	9,963	$	4,704
Restricted cash		675		—
Total cash, cash equivalents, and restricted cash	$	10,638	$	4,704

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.