Evolv Technologies Holdings, Inc.

Climate Impact & Sustainability Data (2022, 2023, September 30, 2024)

Increased presence in education, healthcare, and professional sports markets; operating in over 400 school buildings and nearly 100 hospital buildings in the US.

Awarded U.S. Department of Homeland Security SAFETY Act Designation for Evolv Express platform.

Short-term Goals:

Execute on land and expand strategy, leveraging existing relationships and extending leadership position in specific target metropolitan markets.
Extend momentum in education, healthcare, and professional sports markets.
Expand and deepen channel partner relationships to accelerate business scaling.

Developing alternative sourcing strategies
Investing in research and development, sales and marketing, and general and administrative functions
Implementing a plan to remediate material weaknesses in internal control over financial reporting
Maintaining insurance to protect against certain claims
Implementing policies and procedures to promote compliance with anti-corruption laws and export controls
Taking measures to protect the security of personal information
Investing in programs to help maintain company culture

We value the diversity of our employees and are committed to providing an engaging and inclusive atmosphere for all employees that promotes productivity and encourages creativity and innovation.

We provide a regular Code of Business Conduct training for our employees to identify and prevent misconduct and report situations that violate our policies and/or negatively impact our work environment.

We have identified material weaknesses in our internal control over financial reporting and our internal control over financial reporting was not effective as of December 31, 2023.
Increases in component costs, long lead times, supply shortages, and supply changes could disrupt our supply chain and have an adverse effect on our business, financial condition, and operating results.
Our business operations are vulnerable to disruption due to natural or other disasters, including climate-related events, strikes, and other events beyond our control.
We depend on a third-party contract manufacturer for substantially all of our manufacturing and distribution needs.
Because our products collect and store visitor and related information and images, we could be subject to domestic and international privacy and cyber security concerns, laws and regulations.

We have continued implementation of a plan to remediate these material weaknesses.
We are seeking to expand and diversify our contract manufacturer relationships.
We maintain insurance to protect against certain claims associated with the use of our products.
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.

major earthquake, fire, tsunami, hurricane, cyclone, or other disaster, such as a major flood, seasonal storms, drought, extreme temperatures, nuclear event, or terrorist attack

Transitional climate change risks that result from a shift to a low-carbon economy may also subject us to increased regulations, reporting requirements, standards, or expectations regarding the environmental impacts of our business and untimely or inaccurate disclosure could adversely affect our reputation, business, or financial performance.

Investigation into sales practices revealing extra-contractual terms and conditions not shared with accounting personnel, misconduct by certain personnel, and inaccurate accounting for sales transactions resulting in premature or incorrect revenue recognition.

An ad hoc committee of independent directors is investigating the sales practices. The company is preparing amendments to its financial statements.