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,
2021

 
  

December 31,
2020

 
 
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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