Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39417 | |
Entity Registrant Name | Evolv Technologies Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-4473840 | |
Entity Address, Address Line One | 500 Totten Pond Road | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02451 | |
City Area Code | (781) | |
Local Phone Number | 374-8100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 156,086,596 | |
Entity Central Index Key | 0001805385 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | EVLV | |
Security Exchange Name | NASDAQ | |
Warrants to purchase one share of Class A common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase one share of Class A common stock | |
Trading Symbol | EVLVW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 44,596 | $ 67,162 | |
Restricted cash | 0 | 275 | |
Marketable securities | 36,415 | 51,289 | |
Accounts receivable, net | [1] | 22,030 | 22,611 |
Inventory | 11,007 | 9,507 | |
Current portion of contract assets | 2,538 | 3,707 | |
Current portion of commission asset | 4,516 | 4,339 | |
Prepaid expenses and other current assets | 20,700 | 16,954 | |
Total current assets | 141,802 | 175,844 | |
Restricted cash, noncurrent | 275 | 0 | |
Contract assets, noncurrent | 307 | 451 | |
Commission asset, noncurrent | 7,000 | 7,107 | |
Property and equipment, net | 129,342 | 112,921 | |
Operating lease right-of-use assets | 2,535 | 1,195 | |
Other assets | 999 | 1,202 | |
Total assets | 282,260 | 298,720 | |
Current liabilities: | |||
Accounts payable | 15,584 | 17,400 | |
Accrued expenses and other current liabilities | 13,712 | 15,578 | |
Current portion of deferred revenue | 48,913 | 47,677 | |
Current portion of operating lease liabilities | 1,713 | 1,391 | |
Total current liabilities | 79,922 | 82,046 | |
Deferred revenue, noncurrent | 22,808 | 23,813 | |
Operating lease liabilities, noncurrent | 980 | 0 | |
Contingent earn-out liability | 22,220 | 29,119 | |
Contingently issuable common stock liability | 6,003 | 6,530 | |
Public warrant liability | 8,738 | 10,889 | |
Total liabilities | 140,671 | 152,397 | |
Commitments and contingencies (Note 14) | |||
Stockholders’ equity: | |||
Preferred stock, $0.0001 par value; 100,000,000 authorized at March 31, 2024 and December 31, 2023; no shares issued and outstanding at March 31, 2024 and December 31, 2023 | 0 | 0 | |
Common stock, $0.0001 par value; 1,100,000,000 shares authorized at March 31, 2024 and December 31, 2023; 155,356,947 and 151,310,080 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 16 | 15 | |
Additional paid-in capital | 451,731 | 444,825 | |
Accumulated other comprehensive loss | (50) | (53) | |
Accumulated deficit | (310,108) | (298,464) | |
Stockholders’ equity | 141,589 | 146,323 | |
Total liabilities and stockholders’ equity | $ 282,260 | $ 298,720 | |
[1] Includes related party accounts receivable, net of $2.1 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 1,100,000,000 | 1,100,000,000 | |
Common stock, shares issued (in shares) | 155,356,947 | 151,310,080 | |
Common stock, shares outstanding (in shares) | 155,356,947 | 151,310,080 | |
Accounts receivable, net | [1] | $ 22,030 | $ 22,611 |
Related Party | |||
Accounts receivable, net | $ 2,100 | $ 1,700 | |
[1] Includes related party accounts receivable, net of $2.1 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Revenue: | |||
Total revenue | [1] | $ 21,668 | $ 18,581 |
Cost of revenue: | |||
Total cost of revenue | 9,896 | 13,816 | |
Gross profit | 11,772 | 4,765 | |
Operating expenses: | |||
Research and development | 6,205 | 5,389 | |
Sales and marketing | 16,005 | 12,804 | |
General and administrative | 11,840 | 8,926 | |
Loss from impairment of property and equipment | 0 | 137 | |
Total operating expenses | 34,050 | 27,256 | |
Loss from operations | (22,278) | (22,491) | |
Other income (expense), net: | |||
Interest expense | 0 | (654) | |
Interest income | 1,085 | 953 | |
Other income (expense), net | (28) | 19 | |
Loss on extinguishment of debt | 0 | (626) | |
Change in fair value of contingent earn-out liability | 6,899 | (3,318) | |
Change in fair value of contingently issuable common stock liability | 527 | (742) | |
Change in fair value of public warrant liability | 2,151 | (1,750) | |
Total other income (expense), net | 10,634 | (6,118) | |
Net loss | $ (11,644) | $ (28,609) | |
Weighted average common shares outstanding - basic (in shares) | 153,076,719 | 146,433,378 | |
Weighted average common shares outstanding - diluted (in shares) | 153,076,719 | 146,433,378 | |
Net loss per share - basic (in dollars per share) | $ (0.08) | $ (0.20) | |
Net loss per share - diluted (in dollars per share) | $ (0.08) | $ (0.20) | |
Net loss | $ (11,644) | $ (28,609) | |
Other comprehensive income (loss) | |||
Cumulative translation adjustment | 3 | (16) | |
Total other comprehensive income (loss) | 3 | (16) | |
Total comprehensive loss | (11,641) | (28,625) | |
Product revenue | |||
Revenue: | |||
Total revenue | 603 | 8,754 | |
Cost of revenue: | |||
Total cost of revenue | 2,777 | 10,578 | |
Subscription revenue | |||
Revenue: | |||
Total revenue | 14,503 | 6,466 | |
Cost of revenue: | |||
Total cost of revenue | 5,779 | 2,351 | |
Service revenue | |||
Revenue: | |||
Total revenue | 5,384 | 2,786 | |
Cost of revenue: | |||
Total cost of revenue | 1,211 | 583 | |
License fee and other revenue | |||
Revenue: | |||
Total revenue | 1,178 | 575 | |
Cost of revenue: | |||
Total cost of revenue | $ 129 | $ 304 | |
[1] Includes related party revenue of $1.9 million and $3.6 million for the three months ended March 31, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Total revenue | [1] | $ 21,668 | $ 18,581 |
Related Party | |||
Total revenue | $ 1,900 | $ 3,600 | |
[1] Includes related party revenue of $1.9 million and $3.6 million for the three months ended March 31, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at the beginning (in shares) at Dec. 31, 2022 | 145,204,974 | ||||
Balance at the beginning at Dec. 31, 2022 | $ 226,985 | $ 15 | $ 419,190 | $ (10) | $ (192,210) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon net exercise of stock options (in shares) | 100,587 | ||||
Issuance of common stock upon net exercise of stock options | 33 | 33 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,841,257 | ||||
Issuance of common stock upon exercise of warrants (in shares) | 830,216 | ||||
Issuance of common stock upon exercise of warrants | 348 | 348 | |||
Stock-based compensation cost | 5,101 | 5,101 | |||
Cumulative translation adjustment | (16) | (16) | |||
Net loss | (28,609) | (28,609) | |||
Balance at the end (in shares) at Mar. 31, 2023 | 147,977,034 | ||||
Balance at the end at Mar. 31, 2023 | 203,842 | $ 15 | 424,672 | (26) | (220,819) |
Balance at the beginning (in shares) at Dec. 31, 2023 | 151,310,080 | ||||
Balance at the beginning at Dec. 31, 2023 | $ 146,323 | $ 15 | 444,825 | (53) | (298,464) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon net exercise of stock options (in shares) | 519,089 | 519,089 | |||
Issuance of common stock upon net exercise of stock options | $ 302 | $ 1 | 301 | ||
Issuance of common stock upon vesting of restricted stock units (in shares) | 3,527,778 | ||||
Stock-based compensation cost | 6,605 | 6,605 | |||
Cumulative translation adjustment | 3 | 3 | |||
Net loss | (11,644) | (11,644) | |||
Balance at the end (in shares) at Mar. 31, 2024 | 155,356,947 | ||||
Balance at the end at Mar. 31, 2024 | $ 141,589 | $ 16 | $ 451,731 | $ (50) | $ (310,108) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||
Net loss | $ (11,644) | $ (28,609) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 3,474 | 1,815 | |
Write-off of inventory and change in inventory reserve | 1,059 | 214 | |
Loss from impairment of property and equipment | 0 | 137 | |
Stock-based compensation | 6,410 | 5,043 | |
Non-cash interest expense | 0 | 22 | |
Accretion of discount on marketable securities, net of change in accrued interest | 200 | 0 | |
Non-cash lease expense | 354 | 214 | |
Change in allowance for expected credit losses | (267) | 124 | |
Loss on extinguishment of debt | 0 | 626 | |
Change in fair value of contingent earn-out liability | (6,899) | 3,318 | |
Change in fair value of contingently issuable common stock liability | (527) | 742 | |
Change in fair value of public warrant liability | (2,151) | 1,750 | |
Changes in operating assets and liabilities | |||
Accounts receivable | 848 | 8,640 | |
Inventory | (2,091) | 1,418 | |
Commission assets | (70) | (644) | |
Contract assets | 1,313 | 258 | |
Other assets | 203 | (130) | |
Prepaid expenses and other current assets | (3,746) | (25) | |
Accounts payable | (760) | (2,213) | |
Deferred revenue | 231 | 8,757 | |
Accrued expenses and other current liabilities | (1,628) | (4,637) | |
Operating lease liability | (392) | (254) | |
Net cash used in operating activities | (16,083) | (3,434) | |
Cash flows from investing activities: | |||
Development of internal-use software | (1,797) | (733) | |
Purchases of property and equipment | (19,665) | (13,365) | |
Proceeds from sale of property and equipment | 0 | 60 | |
Purchases of marketable securities | (14,567) | 0 | |
Proceeds from maturities of marketable securities | 29,241 | 0 | |
Net cash used in investing activities | (6,788) | (14,038) | |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 302 | 33 | |
Proceeds from long-term debt | 0 | 1,876 | |
Repayment of principal on long-term debt | 0 | (31,876) | |
Payment of debt issuance costs and prepayment penalty | 0 | (332) | |
Net cash provided by (used in) financing activities | 302 | (30,299) | |
Effect of exchange rate changes on cash and cash equivalents | 3 | (16) | |
Net decrease in cash, cash equivalents and restricted cash | (22,566) | (47,787) | |
Cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 67,437 | 230,058 | $ 230,058 |
Cash, cash equivalents and restricted cash at end of period | 44,871 | 182,271 | 67,437 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 0 | 710 | |
Supplemental disclosure of non-cash activities | |||
Transfer of property and equipment to inventory | 468 | 191 | |
Capital expenditures incurred but not yet paid | 12,030 | 10,648 | |
Capitalization of stock compensation | 195 | 91 | |
Finback exercise price | 0 | 348 | |
Operating lease liabilities arising from obtaining right-of-use assets | 1,694 | 0 | |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 44,596 | 180,996 | 67,162 |
Restricted cash | 0 | 1,000 | 275 |
Restricted cash, noncurrent | 275 | 275 | 0 |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 44,871 | $ 182,271 | $ 67,437 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | Nature of the Business and Basis of Presentation Evolv Technologies Holdings, Inc. (the “Company”), a Delaware corporation, is a leader in AI-based weapons detection for security screening. The Company’s mission is to make the world a safer and more enjoyable place to live, work, learn, and play. The Company is democratizing security by making it seamless for gathering spaces to better address the chronic epidemic of escalating gun violence, mass shootings, and terrorist attacks in a cost-effective manner while improving safety and the visitor experience. The Company is headquartered in Waltham, Massachusetts. As used in this Quarterly Report on Form 10-Q, unless otherwise indicated or the context otherwise requires, references to “we,” “us,” “our,” the “Company” and “Evolv” refer to the consolidated operations of Evolv Technologies Holdings, Inc. and its wholly-owned subsidiaries, which include Evolv Technologies, Inc., Evolv Technologies UK Ltd. and Give Evolv LLC. References to “NHIC” refer to our legal predecessor, a special-purpose acquisition company, prior to the consummation of our business combination on July 16, 2021 (the “Merger”), and references to “Legacy Evolv” refer to Evolv Technologies, Inc. dba Evolv Technology, Inc. prior to the consummation of the Merger. The Merger was contemplated by the Agreement and Plan of Merger, dated March 5, 2021, with NHIC Sub Inc., NHIC, and Legacy Evolv, as amended by that certain First Amendment to Agreement and Plan of Merger dated June 5, 2021 (as amended, the “Merger Agreement”). Basis of presentation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements as of March 31, 2024, and for the three months ended March 31, 2024 and 2023 have been prepared on the same basis as the audited annual consolidated financial statements as of December 31, 2023 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2024 and the results of its operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024, any other interim periods, or any future year or period. Reclassifications During the year ended December 31, 2023, the Company began classifying revenue from professional services, which includes installation, training, and event support, as well as other one-time revenue, within license fee and other revenue on the consolidated statements of operations and comprehensive loss, whereas the revenue for these services has previously been included in service revenue. Correspondingly, the Company began classifying costs associated with professional services within cost of license fee and other revenue, whereas these costs were previously included in cost of service revenue. These reclassifications were made to align the presentation of professional services with the Company's internal reporting and analysis. The reclassifications did not impact total revenue or total cost of revenue for any period. Prior year amounts included in this Quarterly Report on Form 10-Q have been reclassified to conform to the current presentation. For the three months ended March 31, 2023, the reclassifications resulted in an increase in license fee and other revenue of $0.6 million and a corresponding decrease in service revenue, as well as in increase in cost of license fee and other revenue of $0.3 million and a corresponding decrease in cost of service revenue. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Significant Accounting Policies The significant accounting policies and estimates used in preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2023, and the notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2024. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the impact of this standard on the disclosures within the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on the disclosures within the consolidated financial statements. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 Amortized Cost Unrealized Gain/(Loss) Fair Value U.S. Treasury bills $ 36,415 $ — $ 36,415 Total marketable securities $ 36,415 $ — $ 36,415 December 31, 2023 Amortized Cost Unrealized Gain/(Loss) Fair Value U.S. Treasury bills $ 51,289 $ — $ 51,289 Total marketable securities $ 51,289 $ — $ 51,289 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 23,771 $ — $ — $ 23,771 Treasury bills — 41,378 — 41,378 $ 23,771 $ 41,378 $ — $ 65,149 Liabilities: Contingent earn-out liability $ — $ — $ 22,220 $ 22,220 Contingently issuable common stock liability — — 6,003 6,003 Public Warrant liability 8,738 — — 8,738 $ 8,738 $ — $ 28,223 $ 36,961 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 57,829 $ — $ — $ 57,829 Treasury bills — 51,289 — 51,289 $ 57,829 $ 51,289 $ — $ 109,118 Liabilities: Contingent earn-out liability $ — $ — $ 29,119 $ 29,119 Contingently issuable common stock liability — — 6,530 6,530 Public Warrant liability 10,889 — — 10,889 $ 10,889 $ — $ 35,649 $ 46,538 Money market funds are included in cash and cash equivalents on the condensed consolidated balance sheets. As of March 31, 2024, U.S. treasury bills with maturities less than 3 months, which totaled $5.0 million, are included in cash and cash equivalents, while treasury bills with maturities greater than 3 months, which totaled $36.4 million, are reflected as marketable securities. As of December 31, 2023, all outstanding treasury bills, which totaled $51.3 million, had maturities greater than 3 months and are reflected as marketable securities. The fair value of the treasury bills, which are classified as Level 2 securities, is calculated by a third-party pricing service and is based on estimates obtained from various sources. The Company may also value its non-financial assets and liabilities, including items such as inventories and property and equipment, at fair value on a non-recurring basis if it is determined that impairment has occurred. Such fair value measurements use significant unobservable inputs and are classified as Level 3. The carrying amounts of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued liabilities, and other accrued expenses approximate fair value because of their short maturity. During each of the three months ended March 31, 2024 and 2023, there were no transfers between Level 1, Level 2 and Level 3. Valuation of Contingent Earn-out Pursuant to the Merger Agreement, the Legacy Evolv stockholders, 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, 2023. The Company’s contingent earn-out shares were recorded at fair value as contingent earn-out liability upon the closing of the Merger and are remeasured each reporting period. As of March 31, 2024, no milestones have been achieved. 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 March 31, 2024 were as follows: 85% expected stock price volatility, a risk-free rate of return of 4.6%, a 25% likelihood of change in control and a remaining term of 1.9 years. The following table provides a rollforward of the contingent earn-out liability (in thousands): Balance at December 31, 2023 $ 29,119 Change in fair value (6,899) Balance at March 31, 2024 $ 22,220 Valuation of Contingently Issuable Common Stock Prior to the Merger, certain NHIC stockholders owned 4,312,500 shares of NHIC Class B common stock which were converted into shares of the Company's stock in connection with the Merger (the “Founder Shares”). Of these 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 will 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, 2023. The Company’s contingently issuable common shares were recorded at fair value on the closing of the Merger and are remeasured each reporting period. As of March 31, 2024, 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 March 31, 2024 were as follows: 95% expected stock price volatility, a risk-free rate of return of 4.5%, a 25% likelihood of change in control and a remaining term of 2.3 years. The following table provides a rollforward of the contingently issuable common shares (in thousands): Balance at December 31, 2023 $ 6,530 Change in fair value (527) Balance at March 31, 2024 $ 6,003 Valuation of Public Warrant Liability In connection with the closing of the Merger, the Company assumed warrants to purchase 14,325,000 shares of common stock (the “Public Warrants”) 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 are subsequently remeasured to fair value at each reporting date based on the closing price as reported by Nasdaq on the last date of the reporting period. As of March 31, 2024, 14,324,893 Public Warrants are outstanding. The following table provides a rollforward of the public warrant liability (in thousands): Balance at December 31, 2023 $ 10,889 Change in fair value (2,151) Balance at March 31, 2024 $ 8,738 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition 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. The Company derives revenue from (1) subscription arrangements generally accounted for as operating leases, including SaaS and maintenance, (2) the sale of products, (3) SaaS and maintenance related to products sold to customers either by Evolv or by Columbia Tech pursuant to the Distribution and License Agreement (as defined below), (4) license fees related to the Distribution and License Agreement (as defined below), and (5) professional services, including installation, training, and event support. Maintenance consists of preventative maintenance, technical support, bug fixes, and when-and-if available threat updates. Our arrangements are generally noncancelable and nonrefundable after ownership passes to the customer. Revenue is recognized net of sales tax. Distribution and License Agreement In March 2023, the Company entered into a distributor licensing agreement (the “Distribution and License Agreement”) with Columbia Electrical Contractors, Inc. (“Columbia Tech”). Columbia Tech, a wholly-owned subsidiary of Coghlin Companies, which serves as the Company's primary contract manufacturer. Under this arrangement, the Company has granted a license of its intellectual property to Columbia Tech, which contracts directly with certain of the Company's resellers to fulfill sales demand where the end-user customer prefers to purchase the hardware equipment as opposed to lease the equipment. Columbia Tech pays the Company a hardware license fee for each system it manufactures and sells under the agreement. In these instances, the Company still contracts directly with the reseller to provide a multi-year SaaS and maintenance subscription to the end-users. The Company has assessed whether it operates as the principal or as an agent in relation to the sale of product made by Columbia Tech to the Company's resellers pursuant to the Distribution and License Agreement. The Company considered various factors, including but not limited to, inventory risk, discretion in establishing pricing, and which entity is primarily responsible for fulfillment. Based on an evaluation of the facts and circumstances, the Company concluded that Columbia Tech is the principal in the arrangement. The Company therefore does not recognize revenue in relation to sales of product pursuant to the Distribution and License Agreement, but does recognize revenue in relation to license fees received from Columbia Tech and the SaaS and maintenance subscription contracts. Remaining Performance Obligations The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of March 31, 2024. Less than 1 year 1 - 2 years More than 2 years Total Product revenue $ 998 $ — $ — $ 998 Subscription revenue 63,890 56,850 65,829 186,569 Service revenue 22,261 21,691 22,112 66,064 License fee and other revenue 436 1 2 439 Total revenue $ 87,585 $ 78,542 $ 87,943 $ 254,070 The amount of minimum future leases is based on expected income recognition. As of March 31, 2024, future minimum payments on noncancelable leases are as follows (in thousands): Year Ending December 31: 2024 (nine months remaining) $ 48,486 2025 58,972 2026 47,647 2027 27,312 2028 4,033 Thereafter 119 $ 186,569 Contract Balances from Contracts with Customers Contract assets arise from unbilled amounts in customer arrangements when revenue recognized exceeds the amount billed to the customer and the Company’s right to payment is conditional and not only subject to the passage of time. As of March 31, 2024 and December 31, 2023, the Company had $2.5 million and $3.7 million in current portion of contract assets and $0.3 million and $0.5 million in contract assets, noncurrent on the condensed consolidated balance sheets, respectively. Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which it has received consideration (or the amount is due) from the customer. The Company has a contract liability related to service revenue, which consists of amounts that have been invoiced but that have not been recognized as revenue. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as deferred revenue, noncurrent. The Company recognized revenue of $17.3 million during the three months ended March 31, 2024 that was included in the December 31, 2023 deferred revenue balance. The Company recognized revenue of $6.9 million during the three months ended March 31, 2023 that was included in the December 31, 2022 deferred revenue balance. The following table provides a rollforward of deferred revenue (in thousands): Balance at December 31, 2023 $ 71,490 Revenue recognized in relation to the beginning of the year contract liability balance (17,323) Revenue deferred 17,554 Balance at March 31, 2024 $ 71,721 The following table presents the Company’s components of lease revenue (in thousands): Three Months Ended 2024 2023 Interest income on lease receivables 42 53 Lease income - operating leases 14,503 6,466 Total lease revenue $ 14,545 $ 6,519 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 under interest income 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. Revenue related to leases entered into with related parties were $0.3 million and $0.2 million during the three months ended March 31, 2024 and 2023, respectively. Disaggregated Revenue The following table presents the Company’s revenue by revenue stream (in thousands). Certain prior period amounts have been reclassified to conform to current period presentation: Three Months Ended 2024 2023 Product revenue $ 603 $ 8,754 Subscription revenue 14,503 6,466 Service revenue 5,384 2,786 License fees 724 — Professional services and other revenue 454 575 Total revenue $ 21,668 $ 18,581 Commissions |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Allowance for Expected Credit Losses Changes in the allowance for expected credit losses were as follows (in thousands): Allowance for Doubtful Accounts Balance at December 31, 2023 $ (582) Provisions 264 Write-offs, net of recoveries 3 Balance at March 31, 2024 $ (315) |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 2,048 $ 1,869 Finished goods 8,959 7,638 Total $ 11,007 $ 9,507 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and telecom equipment $ 1,481 $ 1,331 Lab equipment 1,588 1,171 Furniture and fixtures 111 111 Leasehold improvements 566 566 Leased equipment 90,200 80,206 Capitalized software 10,520 8,629 Sales demo equipment 2,853 2,758 Equipment held for lease 1 39,163 32,910 Construction in progress 3,094 2,493 149,576 130,175 Less: Accumulated depreciation and amortization (20,234) (17,254) $ 129,342 $ 112,921 1 Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated. As of March 31, 2024 and December 31, 2023, the net book value of capitalized software was $8.6 million and $7.0 million, respectively. These amounts include $0.9 million and $0.7 million of capitalized stock compensation costs, respectively. Depreciation and amortization expense related to property and equipment was $3.5 million and $1.8 million for the three months ended March 31, 2024 and 2023, respectively, which included amortization expense of capitalized software of $0.3 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively. Leased equipment and the related accumulated depreciation were as follows: March 31, December 31, Leased equipment $ 90,200 $ 80,206 Accumulated depreciation (15,661) (13,283) Leased equipment, net $ 74,539 $ 66,923 Depreciation expense related to leased units was $2.9 million and $1.4 million during the three months ended March 31, 2024 and 2023, respectively. Depreciable lives are generally 7 years, consistent with the Company’s planned and historical usage of the equipment subject to operating leases. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt In December 2022, the Company entered into a loan and security agreement (the “2022 SVB Credit Agreement”) with Silicon Valley Bank (“SVB”) in order to finance purchases of hardware to be leased to customers. On March 10, 2023, SVB was closed by California state regulators and the FDIC was appointed as receiver. In light of the foregoing, on March 31, 2023, the Company fully repaid all borrowings and accrued interest under the 2022 SVB Credit Agreement and terminated the 2022 SVB Credit Agreement. In accordance with the terms of the 2022 SVB Credit Agreement, the Company was required to pay a prepayment premium equal to 1.0% of the principal balance on the date of repayment. During the three months ended March 31, 2023, the Company incurred a loss on debt extinguishment of $0.6 million, consisting of the prepayment penalty of $0.3 million and the write-off of $0.3 million of unamortized debt issuance costs. The Company had no long-term debt as of March 31, 2024 and December 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options 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 three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Risk-free interest rate 4.1 % 4.2 % Expected term (in years) 6.1 6.1 Expected volatility 90.0 % 87.5 % Expected dividend yield 0.0 % 0.0 % The following table summarizes the Company’s stock option activity since December 31, 2023 (in thousands, except for share and per share data): Number of Weighted Outstanding as of December 31, 2023 20,324,528 $ 1.04 Granted 2,725,625 3.63 Exercised (519,089) 0.58 Forfeited (9,059) 0.42 Outstanding as of March 31, 2024 22,522,005 1.37 Restricted Stock Units The following table summarizes the Company's restricted stock units activity since December 31, 2023: Number of Grant Date Fair Outstanding as of December 31, 2023 13,046,679 $ 3.49 Granted 6,850,765 3.70 Vested (3,147,778) 3.35 Forfeited (289,631) 3.58 Outstanding as of March 31, 2024 16,460,035 $ 3.60 Performance Stock Units The following table summarizes the Company's performance stock units activity since December 31, 2023: Number of Grant Date Fair Outstanding as of December 31, 2023 380,000 $ 2.64 Granted — — Vested (380,000) 2.64 Forfeited — — Outstanding as of March 31, 2024 — $ — Finback Common Stock Warrants In January 2021, the Company granted warrants (the “Finback Common Stock Warrants”) to purchase 2,552,913 shares of the Company's Class A common stock at an exercise price of $0.42 per share to Finback Evolv OBH, LLC (“Finback”), a consulting group affiliated with one of the Company's stockholders. The Finback Common Stock Warrants vest upon meeting certain sales criteria as defined in a business development agreement (the “Finback BDA”), which had a term of 3 years. The Finback BDA expired on January 1, 2023 but included a 1-year “tail period” expiring on January 1, 2024. During the tail period, the Finback Common Stock Warrants continued to vest related to any sale consummated by the Company for which it was determined Finback provided services prior to January 1, 2023 in furtherance of the sale. The Finback Common Stock Warrants 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. As of March 31, 2024, 117,423 Finback Common Stock Warrants were exercisable at a total aggregate intrinsic value of $0.5 million, and there were no Finback Common Stock Warrants that are unvested, given the expiration of the 1-year tail period on January 1, 2024. The Company recognizes compensation expense for the Finback Common Stock Warrants when the warrants vest based on meeting the specified sales criteria. During the three months ended March 31, 2024, there was no stock-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants. During the three months ended March 31, 2023, the Company recorded $0.6 million of stock-based compensation expense within sales and marketing expense related to the Finback Common Stock Warrants. Stock-Based Compensation Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 138 $ 145 Research and development 882 837 Sales and marketing 2,959 1,998 General and administrative 2,431 2,063 Total stock-based compensation expense $ 6,410 $ 5,043 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes There is no provision for income taxes for the three months ended March 31, 2024 and 2023 because the Company has historically incurred net operating losses and maintains a full valuation allowance against its deferred tax assets. The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate (“AETR”), adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, a cumulative adjustment is made in that quarter. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic and diluted net loss per share attributable to common stockholders are calculated as follows (in thousands, except share and per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net loss attributable to common stockholders – basic and diluted $ (11,644) $ (28,609) Denominator: Weighted average common shares outstanding - basic and diluted 153,076,719 146,433,378 Net loss per share attributable to common stockholders – basic and diluted $ (0.08) $ (0.20) The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended 2024 2023 Options issued and outstanding 22,522,005 23,136,658 Public Warrants to purchase common stock 14,324,893 14,324,994 Warrants to purchase common stock (Finback) 117,423 1,590,984 Unvested restricted stock units 16,460,035 12,395,533 Unvested performance stock units — 414,500 Earn-out shares* 15,000,000 15,000,000 Contingently issuable common stock* 1,897,500 1,897,500 70,321,856 68,760,169 * Issuance of Earn-out shares and Contingently issuable common stock is contingent upon the satisfaction of certain conditions, which were not satisfied by the end of the period |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Original Equipment Manufacturer Partnership Agreement with Motorola In December 2020, the Company entered into an original equipment manufacturer partnership agreement with Motorola Solutions, Inc. (“Motorola”), an investor in the Company. The partnership agreement has since been amended and restated. Motorola sells Motorola-branded premium products based on the Evolv Express platform through their worldwide network of over 2,000 resellers and integration partners, and has integrated the Evolv Express platform with Motorola products. During the three months ended March 31, 2024 and 2023, revenue from Motorola's distributor services was $1.9 million and $3.2 million, respectively. As of March 31, 2024 and December 31, 2023, accounts receivable related to Motorola’s distributor services was $2.1 million and $1.2 million, respectively. Reseller Agreement with Stanley Black & Decker |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its Board of Directors and certain of its executive officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their role, status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2024 or December 31, 2023. Legal Proceedings We are from time to time subject to various claims, lawsuits, and other legal and administrative proceedings arising in the ordinary course of business. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses the costs related to such legal proceedings as incurred. The Company has identified certain claims as a result of which a loss may be incurred, but in the aggregate any loss is expected to be immaterial. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Actual outcomes of these legal and regulatory proceedings may materially differ from our current estimates. Based upon information presently known to management, the Company has not accrued a loss for these matters, including the matter described below, as a loss is not probable and reasonably estimable. While it is reasonably possible a loss may be incurred, the Company is unable to estimate a loss or range of loss in these matters. The pending proceedings involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources. The results of legal proceedings are inherently uncertain, and material adverse outcomes are reasonably possible. In March 2024, an Evolv shareholder filed in the U.S. District Court for the District of Massachusetts a putative class action lawsuit, captioned Raby v. Evolv Technologies Holdings, Inc., et al. case number 1:24-cv-10761, alleging that Evolv and certain of its current and former executives and other individuals violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on alleged misstatements concerning the Company’s products. This litigation is in the preliminary stages, and the outcome of any complex legal proceeding is inherently unpredictable and subject to significant uncertainties. Regulatory and Governmental Matters In the ordinary course of business, the Company is subject to regulatory and governmental examinations, information gathering requests, inquiries, and investigations. The U.S. Federal Trade Commission ( “ FTC ” ) has requested information about certain aspects of the Company's marketing practices. The Company is cooperating with the investigation and has provided documentation and information responsive to the FTC inquiry. Further, in February 2024, we received a subpoena from the SEC, Division of Enforcement, requesting that we produce certain documents and information. We are cooperating and intend to continue to cooperate with the SEC's investigation. Any resolution or litigation with the FTC, the SEC or other parties, could ultimately result in monetary and injunctive relief that may impose costs on us and/or require us to make changes to our business practices. These costs and requirements may be material both individually and in the aggregate. We can offer no assurances as to the outcome of these investigations or their potential effect, if any, on us or our results of operations. There can be no assurance whether there will be further information requests or potential enforcement action or litigation, which is necessarily uncertain. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ (11,644) | $ (28,609) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Merline Saintil [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 14, 2024, Merline Saintil, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of 30% of the net shares of the Company’s common stock underlying 25,846 restricted stock units. The trading arrangement is scheduled to expire on the earlier of July 31, 2024 or the date that all transactions under the trading arrangement are completed. |
Name | Merline Saintil |
Title | Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Arrangement Duration | 139 days |
Aggregate Available | 25,846 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Reclassifications | Reclassifications |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the impact of this standard on the disclosures within the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on the disclosures within the consolidated financial statements. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | Marketable securities as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 Amortized Cost Unrealized Gain/(Loss) Fair Value U.S. Treasury bills $ 36,415 $ — $ 36,415 Total marketable securities $ 36,415 $ — $ 36,415 December 31, 2023 Amortized Cost Unrealized Gain/(Loss) Fair Value U.S. Treasury bills $ 51,289 $ — $ 51,289 Total marketable securities $ 51,289 $ — $ 51,289 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | 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 March 31, 2024 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 23,771 $ — $ — $ 23,771 Treasury bills — 41,378 — 41,378 $ 23,771 $ 41,378 $ — $ 65,149 Liabilities: Contingent earn-out liability $ — $ — $ 22,220 $ 22,220 Contingently issuable common stock liability — — 6,003 6,003 Public Warrant liability 8,738 — — 8,738 $ 8,738 $ — $ 28,223 $ 36,961 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 57,829 $ — $ — $ 57,829 Treasury bills — 51,289 — 51,289 $ 57,829 $ 51,289 $ — $ 109,118 Liabilities: Contingent earn-out liability $ — $ — $ 29,119 $ 29,119 Contingently issuable common stock liability — — 6,530 6,530 Public Warrant liability 10,889 — — 10,889 $ 10,889 $ — $ 35,649 $ 46,538 |
Schedule of Common Stock Warrant Liability | The following table provides a rollforward of the contingent earn-out liability (in thousands): Balance at December 31, 2023 $ 29,119 Change in fair value (6,899) Balance at March 31, 2024 $ 22,220 The following table provides a rollforward of the contingently issuable common shares (in thousands): Balance at December 31, 2023 $ 6,530 Change in fair value (527) Balance at March 31, 2024 $ 6,003 The following table provides a rollforward of the public warrant liability (in thousands): Balance at December 31, 2023 $ 10,889 Change in fair value (2,151) Balance at March 31, 2024 $ 8,738 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Performance Obligations | The following table includes estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of March 31, 2024. Less than 1 year 1 - 2 years More than 2 years Total Product revenue $ 998 $ — $ — $ 998 Subscription revenue 63,890 56,850 65,829 186,569 Service revenue 22,261 21,691 22,112 66,064 License fee and other revenue 436 1 2 439 Total revenue $ 87,585 $ 78,542 $ 87,943 $ 254,070 |
Schedule of Minimum Future Payments on Noncancelable Leases | As of March 31, 2024, future minimum payments on noncancelable leases are as follows (in thousands): Year Ending December 31: 2024 (nine months remaining) $ 48,486 2025 58,972 2026 47,647 2027 27,312 2028 4,033 Thereafter 119 $ 186,569 |
Summary of Rollforward of Deferred Revenue | The following table provides a rollforward of deferred revenue (in thousands): Balance at December 31, 2023 $ 71,490 Revenue recognized in relation to the beginning of the year contract liability balance (17,323) Revenue deferred 17,554 Balance at March 31, 2024 $ 71,721 |
Schedule of Components of Lease Revenue | The following table presents the Company’s components of lease revenue (in thousands): Three Months Ended 2024 2023 Interest income on lease receivables 42 53 Lease income - operating leases 14,503 6,466 Total lease revenue $ 14,545 $ 6,519 |
Summary of Company's Revenue by Revenue Stream | The following table presents the Company’s revenue by revenue stream (in thousands). Certain prior period amounts have been reclassified to conform to current period presentation: Three Months Ended 2024 2023 Product revenue $ 603 $ 8,754 Subscription revenue 14,503 6,466 Service revenue 5,384 2,786 License fees 724 — Professional services and other revenue 454 575 Total revenue $ 21,668 $ 18,581 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | Changes in the allowance for expected credit losses were as follows (in thousands): Allowance for Doubtful Accounts Balance at December 31, 2023 $ (582) Provisions 264 Write-offs, net of recoveries 3 Balance at March 31, 2024 $ (315) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 2,048 $ 1,869 Finished goods 8,959 7,638 Total $ 11,007 $ 9,507 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and telecom equipment $ 1,481 $ 1,331 Lab equipment 1,588 1,171 Furniture and fixtures 111 111 Leasehold improvements 566 566 Leased equipment 90,200 80,206 Capitalized software 10,520 8,629 Sales demo equipment 2,853 2,758 Equipment held for lease 1 39,163 32,910 Construction in progress 3,094 2,493 149,576 130,175 Less: Accumulated depreciation and amortization (20,234) (17,254) $ 129,342 $ 112,921 1 Represents equipment that has not yet been deployed to a customer and, accordingly, is not being depreciated. |
Schedule of Leased Equipment | Leased equipment and the related accumulated depreciation were as follows: March 31, December 31, Leased equipment $ 90,200 $ 80,206 Accumulated depreciation (15,661) (13,283) Leased equipment, net $ 74,539 $ 66,923 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Fair Value Weighted-Average Assumptions | 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 three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Risk-free interest rate 4.1 % 4.2 % Expected term (in years) 6.1 6.1 Expected volatility 90.0 % 87.5 % Expected dividend yield 0.0 % 0.0 % |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity since December 31, 2023 (in thousands, except for share and per share data): Number of Weighted Outstanding as of December 31, 2023 20,324,528 $ 1.04 Granted 2,725,625 3.63 Exercised (519,089) 0.58 Forfeited (9,059) 0.42 Outstanding as of March 31, 2024 22,522,005 1.37 |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company's restricted stock units activity since December 31, 2023: Number of Grant Date Fair Outstanding as of December 31, 2023 13,046,679 $ 3.49 Granted 6,850,765 3.70 Vested (3,147,778) 3.35 Forfeited (289,631) 3.58 Outstanding as of March 31, 2024 16,460,035 $ 3.60 |
Summary of Performance Stock Unit Activity | The following table summarizes the Company's performance stock units activity since December 31, 2023: Number of Grant Date Fair Outstanding as of December 31, 2023 380,000 $ 2.64 Granted — — Vested (380,000) 2.64 Forfeited — — Outstanding as of March 31, 2024 — $ — |
Schedule of Allocation of Share Based Compensation Expense | Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 138 $ 145 Research and development 882 837 Sales and marketing 2,959 1,998 General and administrative 2,431 2,063 Total stock-based compensation expense $ 6,410 $ 5,043 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) Per Share | Basic and diluted net loss per share attributable to common stockholders are calculated as follows (in thousands, except share and per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net loss attributable to common stockholders – basic and diluted $ (11,644) $ (28,609) Denominator: Weighted average common shares outstanding - basic and diluted 153,076,719 146,433,378 Net loss per share attributable to common stockholders – basic and diluted $ (0.08) $ (0.20) |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Loss Per Share | The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended 2024 2023 Options issued and outstanding 22,522,005 23,136,658 Public Warrants to purchase common stock 14,324,893 14,324,994 Warrants to purchase common stock (Finback) 117,423 1,590,984 Unvested restricted stock units 16,460,035 12,395,533 Unvested performance stock units — 414,500 Earn-out shares* 15,000,000 15,000,000 Contingently issuable common stock* 1,897,500 1,897,500 70,321,856 68,760,169 * Issuance of Earn-out shares and Contingently issuable common stock is contingent upon the satisfaction of certain conditions, which were not satisfied by the end of the period |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | [1] | $ 21,668 | $ 18,581 |
Total cost of revenue | 9,896 | 13,816 | |
License fee and other revenue | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | 1,178 | 575 | |
Total cost of revenue | $ 129 | 304 | |
License fee and other revenue | Revision of Prior Period, Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | 600 | ||
Total cost of revenue | $ 300 | ||
[1] Includes related party revenue of $1.9 million and $3.6 million for the three months ended March 31, 2024 and 2023, respectively. |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 36,415 | $ 51,289 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 36,415 | 51,289 |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 36,415 | 51,289 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | $ 36,415 | $ 51,289 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value On Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Total assets measured at fair value | $ 65,149 | $ 109,118 |
Liabilities: | ||
Liabilities of fair value | 36,961 | 46,538 |
Money market funds | ||
Assets: | ||
Total assets measured at fair value | 23,771 | 57,829 |
Treasury bills | ||
Assets: | ||
Total assets measured at fair value | 41,378 | 51,289 |
Contingent earn-out liability | ||
Liabilities: | ||
Liabilities of fair value | 22,220 | 29,119 |
Contingently issuable common stock liability | ||
Liabilities: | ||
Liabilities of fair value | 6,003 | 6,530 |
Public Warrant liability | ||
Liabilities: | ||
Liabilities of fair value | 8,738 | 10,889 |
Level 1 | ||
Assets: | ||
Total assets measured at fair value | 23,771 | 57,829 |
Liabilities: | ||
Liabilities of fair value | 8,738 | 10,889 |
Level 1 | Money market funds | ||
Assets: | ||
Total assets measured at fair value | 23,771 | 57,829 |
Level 1 | Treasury bills | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Contingent earn-out liability | ||
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 1 | Contingently issuable common stock liability | ||
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 1 | Public Warrant liability | ||
Liabilities: | ||
Liabilities of fair value | 8,738 | 10,889 |
Level 2 | ||
Assets: | ||
Total assets measured at fair value | 41,378 | 51,289 |
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 2 | Money market funds | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | Treasury bills | ||
Assets: | ||
Total assets measured at fair value | 41,378 | 51,289 |
Level 2 | Contingent earn-out liability | ||
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 2 | Contingently issuable common stock liability | ||
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 2 | Public Warrant liability | ||
Liabilities: | ||
Liabilities of fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Liabilities of fair value | 28,223 | 35,649 |
Level 3 | Money market funds | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Treasury bills | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Contingent earn-out liability | ||
Liabilities: | ||
Liabilities of fair value | 22,220 | 29,119 |
Level 3 | Contingently issuable common stock liability | ||
Liabilities: | ||
Liabilities of fair value | 6,003 | 6,530 |
Level 3 | Public Warrant liability | ||
Liabilities: | ||
Liabilities of fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 16, 2021 | Jul. 15, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable securities | $ 36,415 | $ 51,289 | ||
Recurring Basis | Treasury bills | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
U.S. treasury bills with maturities less than three months | $ 5,000 | |||
Public Warrant | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrant exercisable (in shares) | 14,325,000 | |||
Warrants exercise price (in dollars per share) | $ 11.50 | |||
Warrants outstanding (in shares) | 14,324,893 | |||
Contingent earn-out liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Dividends, common stock | $ 0 | |||
Contingent earn-out liability | Measurement Input, Price Volatility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 85% | |||
Contingent earn-out liability | Measurement Input, Risk Free Interest Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 4.60% | |||
Contingent earn-out liability | Change in control | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 25% | |||
Contingent earn-out liability | Measurement Input, Expected Term | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration term | 1 year 10 months 24 days | |||
Contingently issuable common stock liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Dividends, common stock | $ 0 | |||
Issuance of common stock in connection with the consummation of the PIPE Investment (in shares) | 517,500 | 4,312,500 | ||
Shares vested (in shares) | 1,897,500 | |||
Outstanding shares expected to vest (in shares) | 1,897,500 | |||
Contingently issuable common stock liability | Measurement Input, Price Volatility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 95% | |||
Contingently issuable common stock liability | Measurement Input, Risk Free Interest Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 4.50% | |||
Contingently issuable common stock liability | Change in control | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 25% | |||
Contingently issuable common stock liability | Measurement Input, Expected Term | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration term | 2 years 3 months 18 days |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Earn-Out and Contingently Issuable Common Shares (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Contingent earn-out liability | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning | $ 29,119 |
Change in fair value | (6,899) |
Balance at ending | 22,220 |
Contingently issuable common stock liability | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning | 6,530 |
Change in fair value | (527) |
Balance at ending | $ 6,003 |
Fair Value Measurements - Warra
Fair Value Measurements - Warrant Liability (Details) - Public Warrant $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning | $ 10,889 |
Change in fair value | (2,151) |
Balance at ending | $ 8,738 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of performance obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 254,070 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 87,585 |
Revenue arrangement period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 78,542 |
Revenue arrangement period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 87,943 |
Revenue arrangement period | |
Product revenue | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 998 |
Product revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 998 |
Revenue arrangement period | 9 months |
Product revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 0 |
Revenue arrangement period | 1 year |
Product revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 0 |
Revenue arrangement period | |
Subscription revenue | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 186,569 |
Subscription revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 63,890 |
Revenue arrangement period | 9 months |
Subscription revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 56,850 |
Revenue arrangement period | 1 year |
Subscription revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 65,829 |
Revenue arrangement period | |
Service revenue | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 66,064 |
Service revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 22,261 |
Revenue arrangement period | 9 months |
Service revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 21,691 |
Revenue arrangement period | 1 year |
Service revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 22,112 |
Revenue arrangement period | |
License fee and other revenue | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 439 |
License fee and other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 436 |
Revenue arrangement period | 9 months |
License fee and other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 1 |
Revenue arrangement period | 1 year |
License fee and other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Disaggregation of Revenue [Line Items] | |
Total revenue | $ 2 |
Revenue arrangement period |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of minimum future payments on noncancelable leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
2024 (nine months remaining) | $ 48,486 |
2025 | 58,972 |
2026 | 47,647 |
2027 | 27,312 |
2028 | 4,033 |
Thereafter | 119 |
Lessor, operating lease, payments to be received | $ 186,569 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Current portion of contract assets | $ 2,538 | $ 3,707 | |
Contract assets, noncurrent | 307 | 451 | |
Revenue recognized from prior year deferred revenue balance | 17,323 | $ 6,900 | |
Lease revenue (less than) | 14,545 | 6,519 | |
Deferred asset related to commissions | 11,500 | $ 11,400 | |
Amortized commissions | 1,400 | 1,600 | |
Related Party | |||
Disaggregation of Revenue [Line Items] | |||
Lease revenue (less than) | $ 300 | $ 200 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of rollforward of deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance at beginning of period | $ 71,490 | |
Revenue recognized in relation to the beginning of the year contract liability balance | (17,323) | $ (6,900) |
Revenue deferred | 17,554 | |
Balance at end of period | $ 71,721 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of components of lease revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Interest income on lease receivables | $ 42 | $ 53 |
Lease income - operating leases | 14,503 | 6,466 |
Total lease revenue | $ 14,545 | $ 6,519 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of company's revenue by revenue stream (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenue | [1] | $ 21,668 | $ 18,581 |
Product revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 603 | 8,754 | |
Subscription revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 14,503 | 6,466 | |
Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 5,384 | 2,786 | |
License fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 724 | 0 | |
Professional services and other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 454 | $ 575 | |
[1] Includes related party revenue of $1.9 million and $3.6 million for the three months ended March 31, 2024 and 2023, respectively. |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ (582) |
Provisions | 264 |
Write-offs, net of recoveries | 3 |
Ending balance | $ (315) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,048 | $ 1,869 |
Finished goods | 8,959 | 7,638 |
Total | $ 11,007 | $ 9,507 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 149,576 | $ 130,175 |
Less: Accumulated depreciation and amortization | (20,234) | (17,254) |
Total property, plant and equipment, net | 129,342 | 112,921 |
Computers and telecom equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,481 | 1,331 |
Lab equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,588 | 1,171 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 111 | 111 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 566 | 566 |
Leased equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 90,200 | 80,206 |
Less: Accumulated depreciation and amortization | (15,661) | (13,283) |
Total property, plant and equipment, net | 74,539 | 66,923 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 10,520 | 8,629 |
Total property, plant and equipment, net | 8,600 | 7,000 |
Sales demo equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,853 | 2,758 |
Equipment held for lease | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 39,163 | 32,910 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 3,094 | $ 2,493 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 129,342 | $ 112,921 | |
Total stock-based compensation expense | 6,410 | $ 5,043 | |
Depreciation and amortization | 3,474 | 1,815 | |
Capitalized software amortization | 300 | 200 | |
Loss from impairment of property and equipment | 0 | 137 | |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 8,600 | 7,000 | |
Depreciation and amortization | 900 | 700 | |
Leased equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 74,539 | $ 66,923 | |
Depreciation | $ 2,900 | $ 1,400 | |
Depreciable lives | 7 years |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of leased equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Leased equipment | $ 149,576 | $ 130,175 |
Accumulated depreciation | (20,234) | (17,254) |
Total property, plant and equipment, net | 129,342 | 112,921 |
Leased equipment | ||
Property, Plant and Equipment [Line Items] | ||
Leased equipment | 90,200 | 80,206 |
Accumulated depreciation | (15,661) | (13,283) |
Total property, plant and equipment, net | $ 74,539 | $ 66,923 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 0 | $ 626 | |
2022 SVB Term Loan | |||
Debt Instrument [Line Items] | |||
Interest rate, prepayment premium | 0.010 | 0.010 | |
Loss on extinguishment of debt | $ 600 | ||
Prepayment premium | 300 | $ 300 | |
Unamortized debt issuance cost | $ 300 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant date fair value of stock options (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 4.10% | 4.20% |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 90% | 87.50% |
Expected dividend yield | 0% | 0% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock options activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 20,324,528 |
Granted (in shares) | shares | 2,725,625 |
Exercised (in shares) | shares | (519,089) |
Forfeited (in shares) | shares | (9,059) |
Ending balance (in shares) | shares | 22,522,005 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 1.04 |
Granted (in dollars per share) | $ / shares | 3.63 |
Exercised (in dollars per share) | $ / shares | 0.58 |
Forfeited (in dollars per share) | $ / shares | 0.42 |
Ending balance (in dollars per share) | $ / shares | $ 1.37 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted stock units activity (Details) - Unvested restricted stock units - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 13,046,679 | |
Granted (in shares) | 6,850,765 | |
Vested (in shares) | (3,147,778) | |
Cancelled (in shares) | (289,631) | |
Outstanding, ending balance (in shares) | 16,460,035 | |
Grant Date Fair Value | ||
Outstanding, beginning balance (in dollars per share) | $ 3.60 | $ 3.49 |
Granted (in dollars per share) | 3.70 | |
Vested (in dollars per share) | 3.35 | |
Cancelled (in dollars per share) | 3.58 | |
Outstanding, ending balance (in dollars per share) | $ 3.60 | $ 3.49 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance stock units activity (Details) - Unvested performance stock units - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 380,000 | |
Granted (in shares) | 0 | |
Vested (in shares) | (380,000) | |
Cancelled (in shares) | 0 | |
Outstanding, ending balance (in shares) | 0 | |
Grant Date Fair Value | ||
Outstanding, beginning balance (in dollars per share) | $ 0 | $ 2.64 |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 2.64 | |
Cancelled (in dollars per share) | 0 | |
Outstanding, ending balance (in dollars per share) | $ 0 | $ 2.64 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | Jan. 31, 2021 year $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 6,410 | $ 5,043 | |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 2,959 | 1,998 | |
Finback BDA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrant exercisable (in shares) | shares | 2,552,913 | ||
Warrants exercise price (in dollars per share) | $ / shares | $ 0.42 | ||
Shares issuable upon exercise of warrant (in shares) | shares | 117,423 | ||
Aggregate intrinsic value of warrants exercisable | $ 500 | ||
Unvested warrants (in shares) | shares | 0 | ||
Finback BDA | Measurement Input, Expected Term | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Measurement input | year | 3 | ||
Maximum | Finback BDA | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 600 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock based compensation expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 6,410 | $ 5,043 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 138 | 145 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 882 | 837 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 2,959 | 1,998 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 2,431 | $ 2,063 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of the Company's loss before income tax expense | ||
Provision for income taxes | $ 0 | $ 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to common stockholders - basic | $ (11,644) | $ (28,609) |
Net loss attributable to common stockholders - diluted | $ (11,644) | $ (28,609) |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 153,076,719 | 146,433,378 |
Weighted average common shares outstanding - diluted (in shares) | 153,076,719 | 146,433,378 |
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (0.08) | $ (0.20) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (0.08) | $ (0.20) |
Net Loss per Share - Antidiluti
Net Loss per Share - Antidilutive effect (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 70,321,856 | 68,760,169 |
Options issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 22,522,005 | 23,136,658 |
Warrants | July 16, 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 14,324,893 | 14,324,994 |
Warrants | January 13, 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 117,423 | 1,590,984 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 16,460,035 | 12,395,533 |
Unvested performance stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 0 | 414,500 |
Earn Out Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 15,000,000 | 15,000,000 |
Contingently issuable common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of diluted net loss per share (in shares) | 1,897,500 | 1,897,500 |
Related Party Transactions -Nar
Related Party Transactions -Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2020 partner | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | ||
Related Party Transaction [Line Items] | |||||
Accounts receivable, net | [1] | $ 22,030 | $ 22,611 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, net | 2,100 | 1,700 | |||
Distribution Agreement With Motorola Member | |||||
Related Party Transaction [Line Items] | |||||
Number of resellers and integration partners | partner | 2,000 | ||||
Distribution Agreement With Motorola Member | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 1,900 | $ 3,200 | |||
Accounts receivable, net | $ 2,100 | 1,200 | |||
Reseller Agreement | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 400 | ||||
Accounts receivable, net | $ 600 | ||||
[1] Includes related party accounts receivable, net of $2.1 million and $1.7 million as of March 31, 2024 and December 31, 2023, respectively. |