How SEC and FTC Investigations Could Fundamentally Change Evolv Analyzed

***** ***** *** ********** ********** *** risks ***** *** ************* *** *** *************, *** ***** *** ******* ******** they ***** ************* ****** *****.

** ****** **** ***** *** **** already ***** *********** ******* ***** ** making, **** **** ** **** ** come ** *** ************** *******.

** **** ******** ****, ** ******* why **** ***** ************* ****** *****, undermining *** *********** ********* *********** (***** on *****'* *** *********), **** *** the *** ************* ** **** *********** than *** *** ***. *******, ** conclude **** *****'* **** ********* ****** these ************** *** *** **** ***** support *****.

Evolv *********

*****'* **** ******** **** **-* ****** report******** * *** ******* ********** *** risk ** *** *** *** *** investigations, ****** ** **** ***** **** emphasis ***** ** **, ** ****:

*** ********* *** **** ** *** products *** **** ******* ** ********* regulation ** ******* ******* ********, ********* the *** *** ******** ******* ****** commission, ** **** ** ******* ***** federal, *****, **********, *****, *** ************* regulatory *********** ** *** ********* ** which *** ******** *** *********** ** sold *** ******** ***** ** *******.**** time ** ****, ** ******* ********** regulatory ********* *** ******** *** *********** relating ** *** ********* ********* *** our ******** ** ** ** *********** and ******* **** ***** *** ******* and ********. *** *******, *** *** has ********* *********** ***** ******* ******* of *** ********* *********. ** *** complying **** *** ***'* ******** *** have **** *********** **** **** ** answer ***** ********* *** ******* **** about *** *******. ***********, ** ******** 2024, ** ******** * ******** **** the***, ******** ** ***********, ********** **** we ******* ******* ********* *** ***********,much ** ***** ** ******* ** *** ********* *** *********** ********** ********* ** *** ***. We are cooperating and intend to continue to cooperate with the SEC's investigation. The Company is cooperating **** *** *** *** *** **** ******* ** *** **************, and there can be no assurance whether there will be further information requests or potential enforcement or litigation, which is necessarily uncertain. 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. Any ********* ** ********** ******* *** ***’* ** ***'* ********, **** ** *********, or comply with applicable laws, regulations, and policies, could ****** ** *********** ******* ** *********** ********* ** ******, which could, in turn, divert financial and management resources, damage our reputation, inhibit sales, and otherwise adversely affect our business. In addition to the possibility of fines, injunctive relief, lawsuits and other claims, we ***** ** ******** ** ************* ****** *** ******** **********, ********* **********, *** *********. Responding to these or other investigations alone can be costly and time-consuming. [emphasis added]

Fundamentally ******

*** **** ******** "*********** ******" **** disclosed ** ** *** **** *** of **** *******, ****** ***** *** emphasis:

** ******** ** *** *********** ** fines, ********** ******, ******** *** ***** claims,we ***** ** ******** ** ************* ****** *** ******** **********, ********* **********, *** *********. Responding to these or other investigations alone can be costly and time-consuming. [emphasis added]

*** ***** ***** ****** ** ***** investigations (********* *********) ** ****** ** be ************* ** *** ****-**** ********* of *** *******. **** ** **** wind ** ******** **** ** ******** on ****, ***** *** ********* ** Evolv ** ** ***** ******** ** dollars, **** ***** ******** ****.

*******, ***** ************** *** ******, ** our **********, ** "************* ******" *** they ** ** ******, ** ***** concedes *** *********** ******. ** **** happens, ** ***** ** ** *********** risk ** *** ******* ****** ** it ***** ****** ** ******* *** value ***********.

SEC **** ********* **** ***

** *** **** **-* ******, ***** says ** **** *** ****** *** FTC ************* ** **** * ******** effect, *** ** **** *** *** the **** ***** *** *** ***:

** *** ******** ****** ** ********, the ******* ** ******* ** ********** and ************ ************, *********** ********* ********, inquiries, *** **************. *** *** *** previously ********* *********** ***** ******* ******* of *** *******'* ********* *********. *** Company ** *********** **** *** ************* and *** ******** ************* *** *********** responsive ** ***FTC *******. We ********* ** *** ****** **** ************* ** **** * ******** ****** ** *** ******* ** **********, ********* ********* ** *********, ****** ************ ** ** *** *********.

*******, **February ****, ** ******** * ******** **** *** ***, Division of Enforcement, requesting that we produce certain documents and information, muchof which is similar ** *** ********* *** *********** ********** ********* ** *** ***. We are cooperating and intend to continue to cooperate with the SEC's investigation. [emphasis added]

** ****** **** *****'* ******** ************** here. *** *** ************* ** * greater ********* **** ** ***** **** the *** ***. ***** ***** ***** seek ** ********* *** *** ***** its ********** ******** ****** **** *** focus, ***** ***** **** *** ******* difficulty *********** *** ***'* ********* ** regulate *****. ********, ** ********* *** SEC's ******** ** "*******" "********* *** information" **** *** *** ********* ** be **** *** *** ** ************* the **********'* **** ******* *****.

Two ***** ************ *** ***** - ********* *** "***** ** ****"

***** *** *********** ***** ** ******** screening ******* ** ** ****** *** stop *******, *** ******** ******* ***** is ** ******* "***** ** ****."

*** ******* ** ****, *************, **** few ********** (*.*., *******, *****'* ******* market) **** **** * ********, **** or ******* ****** ***** ** *** other ******** ******. ** ******** **** ~99% ** ******** **** *** ** affected ** *** ******** ** * school ****** ***** *-** ********* (*** ******). **** ** ********* ** ******** reason *** ***** *** ****** ***** convenience *** **** ********** ******* *** statistical **** ** ** ***.

Value - "***** ** ****"

*** ******* ***** **** ** ******* Evolv ******** ** "***** ** ****," something ***** ********** ***** ***** ****:

** ******** * ***** ***** ****** is *** *******. * ***** ***** experiences *** *********. *world ***** ***** ** **** ******** **** and making memories replaces anxiety. Evolv is committed to that vision. [emphasis added]

*** ******** ***** ****** **** ******** from ***** ** *** ******* ** tell ********, *******, *********, *********, ***., that **** *** *** ** ********* ******** "******* **** *****"*** ****"****** *** *** ******** * ******, you *** ** **** ***** **."**** ******** ******* ***** ** ****.

Practical ******

** ******* *****'* ********* ********* ** critical ** *** ******* ** ******* its ***** *** **** *** ******** base. ** ***** **** ***** **** buyers **** "***** ** ****" *** that ***** *** ********* **** ************* through ********* ********* ****** ****, ** dropped ****** ******* ********** ************ ** fear ** **** ************, ***** ************* undermine *** ***** ***********.

**** * ********* ***********, *****'* ******* to, ** *** **********, ******* *** public ** **** ** *** ******* to **** *** ******** *** ****** an ***** ** ********* **** **** competitors.

"Security *******"

***** *****'* *********, **** ******* *** risk ** ******** *******, ** ******** reports, **** ***** ********** ****, *******, "******** ******** *** ********’ ************* and *** **** *** “******** *******” that ******** * ***** ***** ** safety."

** **** ********* ***** ******** ** various ******* **** ***** ** ******* ***** ******* ** Not ******** ********************* ******* *** ****** ******* ****** Evolv.

Change - ********* ***** ****** ********* / ******* ********* ********

** ******* *** **** ****** ******* of *** *** *** ***'* ************** is **** ***** **** **** ** stop*** ********* "************" ********** ******** ***** ** ******* *** public **** *** ******* **** ** will **** *** ***** *** ***** or,** ***** ***** **, "** ******** ********* *********** **** to ******* ******** ********." *** ******* is **** ****-******** "********* ***********" ********* with **** ***** ***** *** ******.

*** *** ************* ** ********* ** this ******* ******* ** ******* *** SEC **** ****** **** **** ***** does *** **** *** ********* ** deceive *** ********* **** ** ***** believes **** ********** *** "*******."

Marketing ******* ***** *******

** *** *** ***** ***** ***** disclosed *** *** *************, ** **** already **** **** *********** ******* ** how ***** ** *********, ******** ************* more ************, ********** **** **** ** already ******** *** ***** **** ** market. * *** ******** *******:

• *****'* ********* ****** *** ******* **** "Safer *****" ** "***** ***********," ************* whether ****** ***** ***** *** ***** secure.
• *****'******************* **** ** "********** *** ********" of *********, *** ***** ** "******* to ********* *** ********."
• *****'**** ************** ****, "****** ***** ***** ******," but *** ****, "****** ** *** have ** ***** ******."
• *****'**** ************** ****, "***** ** ** **** for [******] ** **** ***** ***," and *** ****, "*** ******** ** not **** ** **** ***** ***."
• ***** *** ********** ****, "** *** not * ***** ********," *** *** changes ** **, "** *** *** a ****** ***** ********." ** ******* this ****** ******** **** **** ***** the *** ******* *******. *******, ***** George, **** *****, ************ *****'* *** official ******* ********* ** **************, "**'* *** * ***** ********."

***** *** ***** **** ***** ******* recognizes *** **** *** ** ****** concessions **** ** *** ************** ********.

Strength - ******** **** / ******** ***********

*******, ***** **** **** *********** ********* in *** *********** *,*** ******** ****, many ** **** *** ********* ****** (Disney *****, ******** ************ ****** ******, major *******, ***.). ** *** ****** districts ***** **** ** ******** ** people **** ***** ********.

* *** ***** *** ***** ****** is ** ****** ***** ************ ** peace ** ****; **** **** **** an "**," "*********," "************," "*******" ********. Our ********** ** **** *** *****, having ******* **** **** **** *** for ***** ** ****, ***** *****'* 4-year *********, **** ** ****** ********* to ***** **** **** ******** *** fear ** ************ ****** *** **** potentially ***** **********.

** ******* ** ***** ** ******* for ***** ** ***** *** ********* in *** ******* *** *** **** customers ** ***** ** *****, **** if **** ** *** **** ****** Evolv **** ** *** *** ***** removed ** *****, ***** ******** ** the ** **********.

******,*****'* **** **** *** ****** *** ******* *********** *** "*********"> "TRANSPARENCY> "*******," ***., ********* * *** series ** ******** ******, ********* ****** capped *****:

** ** ****** ********** *** ********* to ********* *** **** **** **** integrity, ************, *** ******* ***** ***** are ********* ******** ** * *****. However, ***** *****'* *********, **** ********* is *******.

*** **** **** ******** *** ***** is **** *** ********* ******** ***** by *****, **** *** ******* **** if ***** ***** ****, ***** ********** decisions **** **** **** ****.

*** ***** **** ******** *** ***** is **** *********** ********* ***** ******** out ******* *****, ***** *** *** and *** ************** ** ************* **** they **** ********. **** ***** ****** a ******** ***** *** ***** ***** existing ********* **** ** ******, *** prospects ***** *****.

*******

** *** ********* **** ***** **** fundamentally ****** *** ********* ******* **** are ******* ***** **, **** ***** after *** *** ************* *******.

** ******* **** ***** ************* ********* Evolv's ***** ***********, ****** *** **** depends ** *** ******** ** ******* that *** *** *** *** ** (or ** *** **) *** *** its ********* ***** ** ***** ************.