Month: November 2022

Nebraska K-12 school enables student safety without harming student experience

WALTHAM, Mass. (November 22, 2022) – Evolv Technology (NASDAQ: EVLV), the leader in AI-based weapons detection security screening, today announced the successful work it has done in partnership with Nebraska’s Winnebago Public Schools. Winnebago uses Evolv’s state-of-the-art Evolv Express® system to help create safer spaces for its elementary through high school students.

Winnebago Public Schools in Winnebago, Nebraska, educates roughly 600 students in kindergarten through Grade 12, all in the same building. Installed just prior to the start of the 2022-2023 academic year, in its first month in use at the school’s two entrances, Evolv Express screened more than 17,000 students, educators and visitors.

Evolv Express uses powerful sensor technology with artificial intelligence (AI) to provide safer, more accurate threat detection at unprecedented volume and speed. Students can walk through without always having to stop to remove personal items like cellphones or keys and begin their day engaging positively with school staff. School officials have also found success using Evolv Insights®, an analytics dashboard which allows them to continually improve their security posture for the school day as well as special events by providing the ability to easily access and visualize system performance, student flow, and location-specific performance.

“Being able to see student flows down to five-minute intervals, detection performance at both entrances, when alerts occurred, and detailed unit information provides us with valuable and actionable information,” said Adam James, safety and events director for Winnebago Public Schools. “Ultimately, Evolv Express was the only technology that met our requirement to improve security without negatively impacting student experience.”

While the school has never had a major issue with weapons being brought in, Evolv Express has detected vapes and other prohibited paraphernalia, which administrators believe has deterred students from attempting to bring banned items to the school. According to school officials, the Winnebago community has responded positively to Evolv, with students saying they feel safer, and parents appreciative that the school is being proactive in elevating security.

“We are very pleased to hear about the success of Evolv in a community like Winnebago,” said Peter George, CEO of Evolv Technology. “Empowering teachers, principals and school staff to help increase safety in the buildings and reduce anxiety so that the focus can remain on learning is at the center of our mission in the education space.”

Winnebago joins a growing list of schools across the country using Evolv Express to help keep students, teachers and staff safer so the focus can remain on education. Read related press releases and case studies to learn more.

About Evolv Technology

Evolv Technology (NASDAQ: EVLV) is transforming human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered weapons detection and analytics. Its mission is to transform security to create a safer world to work, learn, and play. Evolv has digitally transformed the gateways in places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than 425 million people, second only to the Department of Homeland Security’s Transportation Security Administration (TSA) in the United States. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category. Evolv Technology®, Evolv Express®, Evolv Insights®, and Evolv Cortex AI® are registered trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit https://evolvtechnology.com.

Forward-looking Statements

Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events or our Company’s performance and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the risk factors set forth in our Annual Report on Form 10-K for the year ended on December 31, 2021, that was filed with the SEC on March 28, 2022, as may be updated in other filings we make with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended on September 30, 2022 that was filed with the SEC on November 9, 2022. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Media Contact:

Alexandra Smith Ozerkis aozerkis@evolvtechnology.com

Investor Contact:

Brian Norris bnorris@evolvtechnology.com

WALTHAM, Mass. (November 17, 2022) — SoFi Stadium, YouTube Theater, and Evolv Technology, the leader in AI-based weapons detection security screening, entered into a multi-year partnership to bring safer, more accurate threat detection to the venues’ entries. As part of the agreement, Evolv was named the “Official Weapons Detection Screening Systems Provider” for the state-of-the-art venues, which are located at Hollywood Park, the 300-acre mixed-use development being built by Los Angeles Rams Owner/Chairman E. Stanley Kroenke.

SoFi Stadium and YouTube Theater employ Evolv Express® systems, which use powerful sensor technology with artificial intelligence (AI) to provide threat detection at unprecedented volume and speed. Fans walk through the sensors without always having to stop, enjoying shortened lines and the ability to move right through each venue’s entries.

“Evolv is a leading innovator within venue security and the addition of their scanners has enhanced the guest experience at SoFi Stadium and YouTube Theater,” said Jason Gannon, managing director, SoFi Stadium and Hollywood Park. “We’ve built our venues to accommodate the latest technology, and the Evolv technology allows our team to more efficiently keep guests safe and secure.”

Evolv security scanners can be found at each entry of SoFi Stadium, the home of the Los Angeles Chargers and reigning Super Bowl Champion Los Angeles Rams, and YouTube Theater, a 6,000-seat performance venue situated under the same roof canopy as SoFi Stadium and American Airlines Plaza. Evolv’s technology at both venues provides a seamless entry, allowing security to instantly differentiate between potential security concerns and everyday objects carried in pockets.

“Everything about SoFi Stadium and YouTube Theater is world-class,” said John Baier, Evolv Technology’s vice president of sports. “These are state-of-the-art facilities in America’s second-largest city and home to two NFL teams, including the reigning Super Bowl champions. We’re thrilled to provide our advanced weapons detection solution that matches the top-notch experience the stadium and theater provides.”

SoFi Stadium and YouTube Theater are the latest venues to partner with Evolv and use the company’s technology to ensure a premium fan experience. For more information on Evolv Technology, visit https://www.evolvtechnology.com/.

About SoFi Stadium
SoFi Stadium, the home of the reigning Super Bowl Champion Los Angeles Rams and Los Angeles Chargers, is located at Hollywood Park, a near 300-acre sports and entertainment destination being developed by Los Angeles Rams Owner/Chairman E. Stanley Kroenke in Inglewood, Calif. The 3.1 million square-foot SoFi Stadium is the largest stadium in the NFL, as well as the first indoor-outdoor stadium. It seats approximately 70,000, expandable up to 100,000, with more than 260 luxury suites and more than 13,000 premium seats. SoFi Stadium was host to Super Bowl LVI and will host the College Football National Championship Game in 2023, and the Opening and Closing Ceremonies of the Olympic Games in 2028. Adjacent to the stadium and sitting under the same roof canopy is the 2.5-acre American Airlines Plaza and the 6,000-seat YouTube Theater. For more information about SoFi Stadium, visitwww.SoFiStadium.comor @SoFiStadium on Instagram, Facebook, Twitter and YouTube.

About YouTube Theater
YouTube Theater is a 6,000-seat performance venue located at Hollywood Park, a near 300-acre sports and entertainment destination in Inglewood Calif., being developed by Los Angeles Rams Owner/Chairman E. Stanley Kroenke. The state-of-the-art theater is a 227,000 square foot, three-story indoor venue situated under the same roof canopy as SoFi Stadium and American Airlines Plaza. The venue can be configured to house three different crowd capacities, including intimate settings with minimum capacities of 3,400 and 4,400. Equipped with premium finishes throughout, the venue also offers guests both an interior and exterior balcony, luxury boxes, an industry room, and a private club with premium seats. Opened in August 2021, YouTube Theater is equipped to host a variety of events, including concerts, awards shows, esports competitions, community gatherings, conferences and more.

About Evolv Technology
Evolv Technology (NASDAQ: EVLV) is transforming human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered weapons detection and analytics. Its mission is to transform security to create a safer world to work, learn, and play. Evolv has digitally transformed the gateways in places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than 425 million people, second only to the Department of Homeland Security’s Transportation Security Administration (TSA) in the United States. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category. Evolv Technology®, Evolv Express®, Evolv Insights®, and Evolv Cortex AI® are registered trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visithttps://evolvtechnology.com.

Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events or our Company’s performance and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the risk factors set forth in our Annual Report on Form 10-K for the year ended on December 31, 2021, that was filed with the SEC on March 28, 2022, as may be updated in other filings we make with the SEC, , including our Quarterly Report on Form 10-Q for the quarter ended on September 30, 2022 that was filed with the SEC on November 9, 2022. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Media:
Natalie Gilmore
SoFi Stadium and Hollywood Park
natalie.gilmore@hollywoodparkca.com

Alexandra Smith Ozerkis
Evolv Technology
aozerkis@evolvtechnology.com

Investor:
Evolv Technology
Brian Norris
bnorris@evolvtechnology.com

WALTHAM, Mass.–Evolv Technology (NASDAQ: EVLV), the leader in AI-based weapons detection security screening, today announced the launch of the next evolution of its advanced AI-based software platform and capabilities with Evolv Express® 3.0/5.0. This is an important advancement in security screening as it now provides security professionals with the ability to implement open integration across most security technologies that venues use to mitigate threats.

The new update also includes enhancements to Evolv Express’ analytics and outdoor capabilities. Evolv Express is the only free-flow screening technology that is digitally transforming security screening, making it seamless to connect it to the layers of venue security technologies, both helping to improve detection and prevention of a potential risk.

Managing security technologies, the staff required, and operational processes around both, is complex and requires a multi-layered security posture intended to keep out adversaries and reduce as much risk as possible. The prevention must be comprehensive, the detection holistic, and response immediate to any potential incident. Evolv works closely with customers, partners, and security experts to continually improve and offer solutions that work for today’s venues, pace of modern life, and reality of an ever-changing threat landscape.

Updated capabilities available in Express 3.0/5.0 include:

• New Open API (Application Programming Interface): Allows integration from Evolv Express to various security endpoints, such as video management systems (VMS), video analytics, incident management systems and mass notification systems, all used in layered security.

• New Data Extract API: Allows customers to ingest Evolv Insights® security screening and ingress data into their existing data infrastructure to run holistic analytics and reporting, in an effort to continually improve security and operations.

• New Evolv Insights® Dashboard: Helps customers better understand security staff screening performance to continually improve security staff managing the system and the operations around the system, and to improve threat resolution.

• New Outdoor Systems Design: Outdoor systems now have a new, ruggedized design making it easier to move over non-finished and sloped surfaces as well as facilitating simple and fast set-up by venue personnel; Customers also have the option to order a retrofit kit for their existing outdoor systems.

As Evolv continues to focus on innovation, customers are already leveraging the latest upgrades.

For Winnebago School District in Illinois, utilizing the integration capabilities of Express has been game-changing in allowing mass communication to happen seamlessly. Winnebago has been using security surveillance cameras for 13 years, and Evolv’s new Open API has enabled the integration of those cameras with the Express system. The same Open API can be used to integrate the district’s mass communication system, which is used to manage online interactions between the school and parents, law enforcement, and the Winnebago community.

“We plan to activate these two integrations in the near future,” said Adam James, safety and events director, Winnebago Public Schools. “We really like Evolv’s long-term integration strategy. Rather than having siloes of different security technology that don’t talk to each other, this Open API gives us the ability to consolidate them into one platform that shrinks our time to respond to an incident while enabling us to build better efficiencies.”

Gillette Stadium in Massachusetts has also benefitted from its partnership with Evolv and the company’s new upgrades designed to enhance the venue’s security posture.

“A lot of companies have really bright people, and Evolv certainly fits into that bucket. But they are really good listeners as well,” said Mike Loynd, vice president, strategic initiatives, Kraft Sports & Entertainment, which operates Gillette Stadium. “The Evolv team spent a lot of time learning our security requirements and actually integrated our feedback into their product roadmap. The Evolv Express ruggedized unit is one such example. We trialed it on site and are excited to put them into production.”

The ruggedized unit is just one of the new product capabilities on Evolv’s roadmap that the Gillette team is excited about. “The Open API will enable us to integrate additional technologies such as ticket scanning and video cameras,” added Loynd. “We feel that we have a voice on the roadmap of the technology.”

“Evolv listens to our customers who expressed the need for effective integration and data exchange as part of layered security. We recognize that constant innovation is a key to continual improvement of the overall security posture of a venue and response time improvement to potential threats,” said Steve Morandi, vice president, product, for Evolv Technology.

About Evolv Technology

Evolv Technology (NASDAQ: EVLV) is transforming human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered weapons detection and analytics. Its mission is to transform security to create a safer world to work, learn, and play. Evolv has digitally transformed the gateways in places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than 425 million people, second only to the Department of Homeland Security’s Transportation Security Administration (TSA) in the United States. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category. Evolv Technology®, Evolv Express®, Evolv Insights®, and Evolv Cortex AI® are registered trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit https://evolvtechnology.com.

Forward-looking Statements

Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events or our Company’s performance and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the risk factors set forth in our Annual Report on Form 10-K for the year ended on December 31, 2021, that was filed with the SEC on March 28, 2022, as may be updated in other filings we make with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended on September 30, 2022 that was filed with the SEC on November 9, 2022. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Contacts

Media Contact:
Alexandra Smith Ozerkis
aozerkis@evolvtechnology.com

Investor Contact:
Brian Norris
bnorris@evolvtechnology.com

– Company Raises Outlook for 2022 –

• Q3 Revenue of $16.5 million, up 96% year-over-year

• Q3 Ending ARR of $28.7 million, up 189% year-over-year

• Q3 Ending RPO of $109.4 million, up 220% year-over-year

• Q3 Ending Evolv Express® subscriptions of 1,692, up 198% year-over-year

November 09, 2022 04:05 PM Eastern Standard Time

WALTHAM, Mass.–Evolv Technology (NASDAQ: EVLV), the leader in AI-based weapons detection security screening, today announced financial results for its third quarter ended September 30, 20221 and raised its business outlook for 2022.

“We’re pleased to be reporting record third quarter results which were highlighted by strong growth in revenues and continued market expansion,” said Peter George, President and Chief Executive Officer of Evolv Technology. “We experienced particularly robust market adoption with 92 new customers including five of the largest school districts in the United States, over a dozen new hospitals across the nation, as well as the home stadiums of five additional professional sports teams. Our results and momentum position us well to deliver full year growth above our previous outlook for 2022.”

Results for the Third Quarter of 2022

Total revenue for the third quarter of 2022 was $16.5 million, an increase of 96% compared to $8.4 million for the third quarter of 2021. Total Contract Value (“TCV”)2 of orders booked for the third quarter of 2022 was $45.4 million, an increase of 167% compared to $17.0 million in the third quarter of 2021. Annual Recurring Revenue (“ARR”)3 was $28.7 million at the end of third quarter of 2022, an increase of 189% compared to $9.9 million at the end of the third quarter of 2021. Net loss for the third quarter of 2022 was $(18.6) million, or $(0.13) per basic and diluted share, compared to net income attributable to common stockholders for basic and diluted shares of $20.8 million and $21.3 million, respectively, or $0.17 per basic share and $0.14 per diluted share, in the third quarter of 2021. Adjusted earnings (loss)4 for the third quarter of 2022 was $(18.6) million, or $(0.13) per diluted share, compared to adjusted earnings (loss)4 of $(12.9) million, or $(0.08) per diluted share, for the third quarter of 2021. Adjusted EBITDA4 for the third quarter of 2022 was $(18.0) million compared to $(11.5) million in the third quarter of 2021.

Results for the First Nine Months of 2022

Total revenue for the nine months ended September 30, 2022 was $34.3 million, an increase of 104% compared to $16.8 million for the nine months ended September 30, 2021. TCV2 of orders booked for the nine months ended September 30, 2022 was $86.6 million, an increase of 141% compared to $35.9 million for the nine months ended September 30, 2021. Net loss for the nine months ended September 30, 2022 was $(58.1) million, or $(0.40) per basic and diluted share, compared to net loss of $(15.7) million, or $(0.33) per basic and diluted share, for the nine months ended September 30, 2021. Adjusted earnings (loss)4 for the nine months ended September 30, 2022 was $(54.3) million, or $(0.38) per diluted share, compared to $(33.5) million, or $(0.70) per diluted share, for the nine months ended September 30, 2021. Adjusted EBITDA4 for the nine months ended September 30, 2022 was $(51.7) million, compared to $(24.9) million for the nine months ended September 30, 2021.

Company Raises Outlook for 2022

The Company today commented on its business outlook for 2022. The Company’s outlook is based on the current indications for its business, which may change at any time.

 

“We believe we are well positioned to deliver strong top line growth above our previously issued guidance in 2022,” said Mark Donohue, Chief Financial Officer of Evolv Technology. “Our preliminary estimates for 2023 call for exiting ARR in the range of $65 million and $70 million – reflecting growth of more than 100% – and full year revenues in the range of $55 million to $60 million, reflecting our transition towards a subscription model. We also expect to significantly reduce our full year operating cash usage in 2023. We will provide formal detailed guidance for 2023 when we release results for the fourth quarter of 2022.”

Company to Host Live Conference Call and Webcast

The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. Eastern Time today to discuss the financial results as well as management’s outlook for the business and other matters. The conference call may be accessed in the United States by dialing +1.877.692.8955 and using access code 774298. The conference call may be accessed outside of the United States by dialing +1.234.720.6979 and using the same access code. The conference call will be simultaneously webcast on the Company’s investor relations website, which can be accessed at http://ir.evolvtechnology.com. A replay of the conference call will be available for a period of 30 days by dialing +1.866.207.1041 or +1.402.970.0847 and using access code 4430069 or by accessing the webcast replay on the Company’s investor relations website at http://ir.evolvtechnology.com.

About Evolv Technology

Evolv Technology (NASDAQ: EVLV) is transforming human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered weapons detection and analytics. Its mission is to transform security to create a safer world to work, learn, and play. Evolv has digitally transformed the gateways in places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than 425 million people, second only to the Department of Homeland Security’s Transportation Security Administration (TSA) in the United States. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category. Evolv Technology®, Evolv Express®, Evolv Insights®, and Evolv Cortex AI® are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit https://evolvtechnology.com.

1 Amounts herein pertaining to September 30, 2022 represent a preliminary estimate as of the date of this earnings release. More information on our results of operations for the three and nine months ended September 30, 2022 will be provided upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

2 We define Total Contract Value, or TCV, of orders booked as the total value of the contract over the specified term. Our calculation of TCV is not adjusted for the impact of any known or projected future events (such as customer cancellations, upgrades or downgrades, or price increases or decreases). TCV should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of TCV may differ from similarly titled metrics presented by other companies. The fourth quarter of the fiscal year ended December 31, 2022 is the final quarter that we will be reporting TCV.

3 We define Annual Recurring Revenue, or ARR, as subscription revenue and the recurring service revenue related to purchase subscriptions for the final month of the quarter normalized to a one-year period. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, upgrades or downgrades, or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. In addition, the amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades, downgrades or other changes in pending renewals, as well as the effects of professional services revenue and acquisitions or divestitures. As a result, ARR should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.

4 Non-GAAP Financial Measures In this press release, the Company’s adjusted operating expenses, adjusted gross profit, adjusted gross margin, adjusted operating income (loss), adjusted EBITDA, adjusted earnings (loss), and adjusted earnings per share-diluted are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Adjusted gross profit and adjusted gross margin exclude one-time items which management believes provides a more meaningful representation of contribution margin. Adjusted EBITDA is defined as net income (loss) plus depreciation and amortization, share-based compensation, and certain other one-time expenses. Adjusted earnings (loss) is defined as net income (loss) plus stock-based compensation, change in fair value of derivative liability, change in fair value of contingent earn-out liability, change in fair value of contingently issuable common stock liability, change in fair value of public warrant liability, change in fair value of common stock warrant liability, restructuring expenses, loss on impairment of lease equipment, and certain other one-time expenses. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses non-GAAP financial measures for planning purposes, including analysis of the Company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company’s financial and operational performance. However, non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures included in this press release.

Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts should be considered forward-looking statements, including without limitation statements regarding: the transition of our business model, our ability to reduce future cash burn and meet our goals for revenue and profitability, including for fiscal years 2022 and 2023. Forward-looking statements involve the Company’s current expectations and projections relating to its financial condition, competitive position, future financial results, plans, objectives, and business. All statements other than statements of historical facts contained in this press release are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “should,” “could,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or the negative of these terms or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect the Company’s current views with respect to future events and the Company’s performance and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation expectations regarding the Company’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures; the Company’s history of losses and lack of profitability; the Company’s reliance on third party contract manufacturing; the rate of innovation required to maintain competitiveness in the markets in which the Company competes; the competitiveness of the market in which the Company competes; the ability for the Company to obtain, maintain, protect and enforce the Company’s intellectual property rights; the concentration of the Company’s revenues on a single solution; the Company’s ability to timely design, produce and launch its solutions, the Company’s ability to invest in growth initiatives and pursue acquisition opportunities; the limited liquidity and trading of the Company’s securities; geopolitical risk and changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; operational risk; risk that the COVID-19 pandemic, including variants, vaccine roll-out efforts, and local, state, and federal responses to addressing the pandemic may have an adverse effect on the Company’s business operations, as well as the Company’s financial condition and results of operations; risks associated with inflation and its possible impact on the Company; litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on resources; and the other important risk factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on March 28, 2022, as may be updated in other filings we make with the SEC.

These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.