Evolv Financials "Material Weaknesses" Analyzed

********-****** ***** *** ********* "******** **********" in *** ******** ** *** ********* reporting ** *** ****** ****** ******, that ********* **** *********** ** *** previous *** ***** *** **** *** revelations, ********* **** *** ***********.

** **** ******, ** ******* *****'* "material **********" **********, **** **** ******* of, *****'* ******* ** **** ******, and *** **** ***** ****** *** company.

Executive *******

**** ** *** ***** **** ***** has ********* ** "******* *******" **** its *********** ******** ********************** (***), ******** its **** *** ******* **** ********* "material **********" ** ********* *********. ** adverse ******* ** *** ***** ********** an ******* *** *******, *** ** indicates * *******'* ********* ******* *** unreliable *** *** *********** ****** **** its ********** *********.

******* ***** *** *** ******* **** specifically *** "******** **********" ***, *** what ********* ******* **** ****** ***** from ********* **** "***** ****** ** a ************ ** ************* *** ** our ******** ** ***********." *******, ***** blamed * **** ** ***** **** "accounting *********," ******** ********** ** ******, and "************" ********** ********.

***** "******** **********" **** ** ********** risk ** *********, ** *** ** Evolv, ***** ** ******* ***** *** and *** *************.

Evolv ********* *** ******* *******, "******** **********" ** ********* *********

***** ***** ****** ******** ****** ********** *** **** ********* *******, ********* * "****** ****** *******," Evolv's**** **-* *** ************** * ********** ********** ** "******** weaknesses ** *** ******** ******* **** financial *********," ********* *****'* ******* ** "achieve ********, ********, *** ****** ********* accounting."

**** ******** ** "******* *******" **** Evolv's ********, ***, "** * ****** of *** ******** **********." ** ******* opinion ***** ***** ** *** **** ******* ******** ** ******* ******, ********** the *******'* ******** ********** *** *** trustworthy.

***** ** *** *********** ******* ** remediate ***** ******** **********, *** ******** weaknesses **** *** ** ********** ********** until *** *********** **** *** **** fully ***********, *** ********** ******** ******* for * ********** ****** ** ****, and ** **** *********, ******* *******, that *** ***** *********** *** ******** controls *** ********* ***********. ** ********* in **** **, **** ** – Controls *** **********, ** **** ****** Report ** **** **-*, *** ********** has ********* **** *** ******** ******* over ********* ********* *** *** ********* as ** ******** **, ****, ***our *********** ********** ****** ********** **** ******** ** ******* ******* ** *** ******** ******* **** ********* *********, as a result of the material weaknesses described above. At this time, we cannot predict the success of our remediation efforts or the outcome of our assessment of such efforts. We can give no assurance that our efforts will remediate these material weaknesses in our internal control over financial reporting, or that additional material weaknesses will not be identified in the future. [emphasis added]

***** ******* ******* ***** ** *** annual ****** ** *********** ********** *** issue, ** ** ***** ******* ********** the ****** ** *** "******** **********." Evolv **** *** *** ******* **** their ****** ***** **, ***** **** saying **** ***** ****** *********** **********: "These ******** ********** ***** ****** ** a ************ ** ************* *** ** our ******** ** *********** **** ***** result ** * ******** ************ ** the ****** ** ******* ************ ********* statements **** ***** *** ** ********* or ********."

***** **** *** ******* ******** ******* they ****** ***** "**** ** *********** level ** ******** ******** *** ********** knowledge," **** ***** *** "************ *********** of ****** ** *** ******* *** accounting *********," *** "** *** *** design *** ******** ********* ******** **** information **********...******** ** *** *********** ** our ************ ********* **********."

"Material **********" *******

** *** *******, "********" ** * term ** *** ********* ** *********** with "* *********** ********** **** ***...**** would **** **** ****** ** *** reasonable ******** ** ****** ************* ******* the '***** ***' ** *********** **** available"*** *** ** ******* *****.

*** ***********, "********" ****** *** **** that - ** ***** - ***** impact * ******'* ******** ** ****** or ******** ***** ********** ** * given *******.

Previous ***** ********** ** "******** **********" ******** *******'* ******

***** ***** ********* "******** **********" ** financial ******** ** ******* ****** ******, ********** **** ****** **** **** ** public******* **** **** **** ******* "********** existing ******** ******** *** ** ****** applicable ** ************* ******."

** ****,***** ***** ********"******** **********" *** ** ****** ****** post-SPAC **********. *********, *** ****, ****, and **** ******* **** ****** ********* concerns, ******, *** *********** ***** *** Evolv's ********* ******** ******.

** *** ****, ***** ******** *** auditor's ****** *** ******** *** ********** of *** ********* ******** ** ****** advantage ** ** ********* ** ********** required ********** ********* ** "******** ****** companies."

Auditor's ****** ********* "******** **********" *** *** ***** ****

** *** *** ** ****, ***** was ** ****** ********** ** ******** growth *******, ******* ** ********* ***'* assessment ** *** ********* ******** *** the ***** ****, ***** ***** ********* as "** ******* *******."

*** ******** **** ** ******** ******* in *****'* **** ****** "******* ******, in *** ******** ********, *** ********* position ** *** *******," *** ********** Evolv, ****** **** "** *** *******, the ******* *** *** ********, ** all ******** ********, ********* ******** ******* over ********* ********* ** ** ******** 31, ****."

**** *****, *** **** *** ***** any ********* ** ** *** ***** or ******.

Evolv *********** ****

***** **** ** ** ******* ** fix *** ******, ********* ****** ********** accounting *** ** ********* *** ******** outside ***********. *******, ***** *** ******** the **** *********** **** ***** ****.

Comparison ** ***** *********

**** ******* *** ********* ******* ** other *********, **** ** *****, ******* (IPOed ***** ***** **** ******), *** Evolv's *** ******* ********.

**** ********* ******** **** ******** ********** in ********* *********.

*** *** ******** ******* **** *** admitted ******** ********** ** *****, ***** was ******** *** ***** *** *** released ********* ******* *** *********** *** years (******** ****** ***** *************). ** ** **** ** ******* Latch *** ***** ** **** ******, since ***** *** *** ********* ********** detail. *******, *****'* **** ***** ********* a *** ********** *****.

Impact ** *****

** "******* *******" **** ** ******* is * ******* ****** *** * publicly ****** *********** ** ** ********* the *******'* ********** *** *** *********** and *** ******* ** *** *************, which ***** ** ******* *****, ****** for **** ***** *** **** ** primarily ***** ********* ****** (** ** least **** ******* ** *** *** inquiry, ***** ** ****** *********). ****, along **** *** **** **** ***** has *** ********* *** "******** **********" for ******* *****, ***** ******* ********* investor ********** ** *** *******.

Update (**/**/**): Previously, this report incorrectly stated that Rekor went public via SPAC and has been updated. Rekor went public after acquiring a NASDAQ-listed company, which was consolidated with other assets to become the currently-listed Rekor Systems.