Filed pursuant to Rule 424(b)(3)
Registration Statement No. 333-258748
Prospectus Supplement No. 5
(To Prospectus dated September 3, 2021)
This prospectus supplement updates, amends and supplements the prospectus dated September 3, 2021 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-258748). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.
This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with information on Evolv Technologies Holdings, Inc.’s unaudited fourth quarter and full year 2021 financial results, which is set forth below.
This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.
Our Class A common stock is quoted on The Nasdaq Stock Market, or NASDAQ, under the symbol “EVLV” and our warrants are quoted on the NASDAQ under the symbol “EVLVW.” On March 11, 2022, as reported on NASDAQ, the closing sale price of our Class A common stock was $3.09 and the closing sale price of our warrants was $0.40.
We are an “emerging growth company” under federal securities laws and are subject to reduced public company reporting requirements. Investing in our securities involves certain risks. See “Risk Factors” beginning on page 3 of the Prospectus.
Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is March 14, 2022.
Evolv Technology
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31 | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 3,618 | $ | 857 | $ | 13,917 | $ | 1,279 | ||||||||
| Subscription revenue | 2,737 | 894 | 7,855 | 2,637 | ||||||||||||
| Service revenue | 491 | 284 | 1,920 | 869 | ||||||||||||
| Total revenue | 6,846 | 2,035 | 23,692 | 4,785 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product revenue | 5,234 | 816 | 12,471 | 1,177 | ||||||||||||
| Subscription revenue | 1,102 | 632 | 3,644 | 1,824 | ||||||||||||
| Service revenue | 204 | 119 | 936 | 495 | ||||||||||||
| Total cost of revenue | 6,540 | 1,567 | 17,051 | 3,496 | ||||||||||||
| Gross profit | 306 | 468 | 6,641 | 1,289 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 3,086 | 5,081 | 11,416 | 15,710 | ||||||||||||
| Sales and marketing | 10,120 | 2,260 | 27,404 | 7,365 | ||||||||||||
| General and administrative | 8,851 | 2,434 | 20,013 | 5,110 | ||||||||||||
| Loss from impairment of leased equipment | 213 | - | 1,869 | - | ||||||||||||
| Total operating expenses | 22,270 | 9,775 | 60,702 | 28,185 | ||||||||||||
| Loss from operations | (21,964 | ) | (9,307 | ) | (54,061 | ) | (26,896 | ) | ||||||||
| Interest and other expense | (55 | ) | (223 | ) | (6,712 | ) | (430 | ) | ||||||||
| Loss on extinguishment of debt | - | (66 | ) | (12,685 | ) | (66 | ) | |||||||||
| Change in fair value of derivative liability | - | - | (1,745 | ) | - | |||||||||||
| Change in fair value of contingent earn-out liability | 14,394 | - | 46,212 | - | ||||||||||||
| Change in fair value of contingently issuable common stock liability | 688 | - | 6,406 | - | ||||||||||||
| Change in fair value of public warrant liability | 9,454 | - | 12,606 | - | ||||||||||||
| Change in fair value of common stock warrant liability | - | - | (879 | ) | - | |||||||||||
| Total other income (expense) | $ | 24,481 | $ | (289 | ) | $ | 43,203 | $ | (496 | ) | ||||||
| 6 | ||||||||||||||||
| Net income (loss) and comprehensive income (loss) attributable to common stockholders – basic and diluted | $ | 2,517 | $ | (9,596 | ) | $ | (10,858 | ) | $ | (27,392 | ) | |||||
| Net income (loss) per share – basic and diluted | $ | 0.02 | $ | (1.06 | ) | $ | (0.15 | ) | $ | (3.07 | ) | |||||
| Weighted average ordinary shares outstanding – basic | 142,403,779 | 9,044,968 | 71,662,694 | 8,932,404 | ||||||||||||
| Weighted average ordinary shares outstanding – diluted | 161,906,393 | 9,044,968 | 71,662,694 | 8,932,404 | ||||||||||||
Evolv Technology
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
December 31, | December 31, | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 307,492 | $ | 4,704 | ||||
| Restricted Cash | 400 | - | ||||||
| Accounts receivable, net | 6,477 | 1,401 | ||||||
| Inventory | 5,140 | 2,742 | ||||||
| Prepaid expenses and other current assets | 14,151 | 1,462 | ||||||
| Total current assets | 333,660 | 10,309 | ||||||
| Commission asset, noncurrent | 3,719 | 1,730 | ||||||
| Property and equipment, net | 21,592 | 9,316 | ||||||
| Restricted cash, noncurrent | 275 | - | ||||||
| Other long-term assets | 3,819 | - | ||||||
| Total assets | $ | 363,065 | $ | 21,355 | ||||
| Liabilities and Shareholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,363 | $ | 4,437 | ||||
| Accrued expenses and other current liabilities | 9,183 | 3,727 | ||||||
| Current portion of deferred revenue | 6,690 | 3,717 | ||||||
| Current portion of long-term debt | 2,000 | - | ||||||
| Other current liabilities | 135 | 238 | ||||||
| Total current liabilities | 24,371 | 12,119 | ||||||
| Deferred revenue, noncurrent | 2,475 | 480 | ||||||
| Noncurrent portion of deferred rent | 333 | - | ||||||
| Common stock warrant liability | - | 1 | ||||||
| Public warrant liability | 11,030 | - | ||||||
| Derivative liability | - | 1,000 | ||||||
| Contingent earn-out liability | 20,809 | - | ||||||
| Contingently issuable common stock liability | 5,264 | - | ||||||
| Financing obligation, noncurrent | - | 132 | ||||||
| Long-term debt, noncurrent | 7,945 | 16,432 | ||||||
| Total liabilities | 72,227 | 30,164 | ||||||
| Convertible preferred stock and shareholders’ equity | ||||||||
| Convertible preferred stock | - | 75,877 | ||||||
| Common stock | 14 | 1 | ||||||
| Additional paid-in capital | 395,563 | 9,194 | ||||||
| Accumulated deficit | (104,739 | ) | (93,881 | ) | ||||
| Total shareholders’ equity (deficit) | 290,838 | (84,686 | ) | |||||
| Total liabilities and shareholders’ equity | $ | 363,065 | $ | 21,355 | ||||
EVOlv TECHNOLOGY
Consolidated Statements Of Cash Flows
(In thousands)
(Unaudited)
| Twelve Months Ended December 31, |
||||||||
| 2021 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (10,858 | ) | $ | (27,392 | ) | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 2,895 | 1,065 | ||||||
| Write-off of inventory | 2,041 | - | ||||||
| Loss from impairment of leased equipment | 1,869 | - | ||||||
| Loss on disposal of fixed assets | 617 | - | ||||||
| Stock-based compensation | 8,511 | 662 | ||||||
| Noncash interest expense | 5,245 | 25 | ||||||
| Provision recorded for allowance for doubtful accounts | (13 | ) | 47 | |||||
| Loss on extinguishment of debt | 12,685 | 66 | ||||||
| Change in fair value of derivative liability | 1,745 | - | ||||||
| Change in fair value of common stock warrant liability | 879 | - | ||||||
| Change in fair value of earn-out liability | (46,212 | ) | - | |||||
| Change in fair value of contingently issuable common stock | (6,406 | ) | - | |||||
| Change in fair value of public warrant liability | (12,606 | ) | - | |||||
| Changes in operating assets and liabilities | (29,673 | ) | 2,273 | |||||
| Net cash used in operating activities | (69,281 | ) | (23,254 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (4,057 | ) | (6,609 | ) | ||||
| Development of internal-use software | (1,028 | ) | - | |||||
| Net cash used in investing activities | (5,085 | ) | (6,609 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of Series B-1 convertible preferred stock, net of issuance costs | - | 2,994 | ||||||
| Proceeds from exercise of stock options | 915 | 442 | ||||||
| Proceeds from issuance of common stock from the PIPE Investment | 300,000 | - | ||||||
| Proceeds from the closing of the Merger | 84,945 | - | ||||||
| Payment of offering costs from the closing of the Merger and PIPE Investment | (34,132 | ) | - | |||||
| Repayment of financing obligations | (359 | ) | (244 | ) | ||||
| Proceeds from long-term debt, net of issuance costs | 31,882 | 22,438 | ||||||
| Repayment of principal on long term debt | (5,422 | ) | (8,404 | ) | ||||
| Net cash provided by financing activities | 377,829 | 17,226 | ||||||
| Net increase (decrease) in Cash, cash equivalents and restricted cash | 303,463 | (12,637 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 4,704 | 17,341 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 308,167 | $ | 4,704 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 860 | $ | 405 | ||||
EVOlv TECHNOLOGY
Reconciliation of 2022 NET Loss to Adjusted EBITDA
(In thousands)
(Unaudited)
| Twelve Months Ended December 31, 2022 | ||||||||
| High | Low | |||||||
| Net income (loss) | $ | (83,000 | ) | $ | (85,000 | ) | ||
| Adjustments to reconcile net income (loss) to Adjusted EBITDA: | ||||||||
| Depreciation and amortization | 6,000 | 6,000 | ||||||
| Stock-based compensation | 11,000 | 11,000 | ||||||
| Other expense | 1,000 | 1,000 | ||||||
| Adjusted EBITDA | $ | (65,000 | ) | $ | (67,000 | ) | ||
EVOlv TECHNOLOGY
SuMMARY OF KEY OPERATING STATISTICS
(Unaudited)
| ($ in thousands) | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | |||||||||||||||
| New customers | 6 | 13 | 21 | 23 | 27 | |||||||||||||||
| Total contract value of orders booked | $ | 5,956 | $ | 8,424 | $ | 10,476 | $ | 16,995 | $ | 17,916 | ||||||||||
| Annual recurring revenue | $ | 4,034 | $ | 5,424 | $ | 7,423 | $ | 9,932 | $ | 12,907 | ||||||||||
| Remaining performance obligation | $ | 13,381 | $ | 17,658 | $ | 24,930 | $ | 34,152 | $ | 40,160 | ||||||||||
| Contract value for units in backlog | n/a | n/a | n/a | n/a | $ | 10,599 | ||||||||||||||
| Net additions | 32 | 64 | 113 | 176 | 136 | |||||||||||||||
| Ending deployed units | 214 | 278 | 391 | 567 | 703 | |||||||||||||||
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