Core Viewpoint - Evolv Technologies Holdings, Inc. (EVLV) has shown a significant price increase of 30% over the past four weeks, with a mean price target of $7.06 indicating a potential upside of 29.3% from the current price of $5.46 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $1.16, where the lowest estimate is $5.50 (0.7% increase) and the highest is $8.25 (51.1% increase) [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Agreement - There is a growing optimism among analysts about EVLV's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 23.3% over the past month, with no negative revisions reported [12] Zacks Rank and Investment Potential - EVLV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside in the near term [13]

Group 1 - Evolv Technologies Holdings Inc. is positioned for long-term growth due to its AI-driven security screening solutions and increasing adoption in various verticals [1] - The company offers Security-as-a-Service solutions that are gaining traction in the market [1] - The analyst emphasizes the importance of combining financial data with qualitative analysis to evaluate companies and sectors, particularly in technology, infrastructure, and internet services [1] Group 2 - The analyst holds certifications in financial modeling and data analysis, indicating a strong foundation for evaluating investment opportunities [1] - The focus remains on providing value to readers and investors interested in long-term investing strategies [1]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 was $32 million, up 10% sequentially and 44% year over year, reflecting new customer acquisition and strong expansion from the installed customer base [21][43] - Annual recurring revenue (ARR) grew 34% year over year to $106 million at the end of Q1 2025, with 80% of revenue in Q1 being recurring [22][44] - Adjusted EBITDA for Q1 2025 increased to $1.7 million, with an adjusted EBITDA margin of 5% [22][46] Business Line Data and Key Metrics Changes - The company welcomed over 50 new customers in Q1 2025, now serving approximately 950 customers across key end markets [21] - The Evolve Expedite product saw early traction with 12 new customers added shortly after its launch [28] Market Data and Key Metrics Changes - Evolve's technology is deployed in 20 of the 100 largest US school districts, screening over 850,000 students and visitors daily [31] - In healthcare, the installed base reached 500 hospital buildings, with daily visitor screenings nearly doubling year over year [32] Company Strategy and Development Direction - The company aims to leverage its subscription model to drive predictable long-term revenue growth, with 78% of the 2025 revenue plan already contracted at the start of the year [12][74] - A new certified pre-owned program is being introduced to recapture value from returning units, which is expected to positively impact revenue and cash flow [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on 2025 revenue targets, expecting revenue growth of 20% to 25% [40][54] - The company is focused on enhancing operational efficiency and expects to achieve positive full-year adjusted EBITDA in 2025 [54] Other Important Information - The company has resolved an FTC inquiry and completed a restatement that shifted $3.1 million in revenue to future periods [17] - The company ended Q1 2025 with $35 million in cash, down from $52 million at the end of Q4 2024, primarily due to one-time cash disbursements [48] Q&A Session Summary Question: Success with expansions and vertical contributions - Management noted that 50% of new subscriptions in Q1 came from existing customers, indicating strong customer commitment [60][61] Question: Impact of new California law on hospital security - Management acknowledged the legislation as a positive indicator for increased safety focus in healthcare and noted active engagement with customers in California [62][63] Question: Expectations for gross margin with new product rollout - Management indicated that gross margins are expected to remain consistent, with a shift towards more full subscriptions maximizing ARR [64] Question: CapEx expectations for the year - Management estimated CapEx to be in the range of $20 to $25 million to support the subscription business [68] Question: Strategy refinements and potential acquisitions - Management emphasized the focus on driving a strong subscription model and securing more entry lanes for growth [74] Question: Revenue progression expectations for 2025 - Management expects to maintain a consistent revenue growth trajectory, informed by strong subscription bookings [85][88] Question: Purchase versus subscription model mix - Management confirmed a preference for pure subscription models but will continue to offer both options to customers [92][94] Question: Performance of the Evolve Expedite product - Management reported a mix of new and existing customers adopting the Expedite product, indicating strong market interest [95]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 was $32 million, up 10% sequentially and 44% year over year, reflecting new customer acquisition and strong expansion from the installed customer base [21][43] - Annual recurring revenue (ARR) grew 34% year over year to $106 million at the end of Q1 2025 [22][44] - Adjusted EBITDA for Q1 2025 increased to $1.7 million, with an adjusted EBITDA margin of 5% [22][47] Business Line Data and Key Metrics Changes - The company welcomed over 50 new customers in Q1 2025, serving approximately 950 customers across key end markets [21] - Sales and marketing spend as a percentage of revenue is improving, indicating more effective execution by the sales team [24] - The new certified pre-owned program aims to recapture value from returning units, contributing positively to revenue and cash flow [25][26] Market Data and Key Metrics Changes - Evolve Express is deployed in 20 of the 100 largest US school districts, screening over 850,000 students and visitors daily [30] - In healthcare, the installed base has reached 500 hospital buildings, with daily visitor screenings nearly doubling year over year [31] - The company is monitoring new legislation in California mandating weapons detection systems in hospitals, indicating potential market growth [32] Company Strategy and Development Direction - The company aims to leverage its subscription model to drive predictable long-term revenue growth, with 78% of the 2025 revenue plan already contracted [75] - The focus is on expanding the subscription base and enhancing customer engagement across various verticals, including education and healthcare [76] - The company is optimistic about the long-term potential of its AI-powered weapons detection technology, with plans to increase market penetration significantly [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced over the past year but expresses confidence in the company's ability to emerge stronger and more resilient [18][20] - The outlook for 2025 includes expected revenue growth of 20% to 25%, with a focus on achieving positive adjusted EBITDA and cash flow [40][54] - The company is committed to maintaining operational efficiency while investing in back-office improvements to support growth [54] Other Important Information - The company has resolved an FTC inquiry and completed a restatement that shifted $3.1 million in revenue to future periods [17] - The balance sheet shows $35 million in cash and equivalents, down from $52 million at the end of Q4 2024, primarily due to one-time cash disbursements [49] Q&A Session Summary Question: Success with expansions and vertical contributions - Management noted that 50% of new subscriptions came from expansions, with specific vertical contributions to be followed up later [60] Question: Impact of new California law on hospital security - Management confirmed engagement with customers in California regarding the new legislation, viewing it as a significant opportunity [63] Question: CapEx expectations for the year - Management indicated a CapEx range of $20 to $25 million to support the subscription business [68] Question: Strategy refinements and potential acquisitions - The focus remains on driving the subscription model, with 78% of the revenue outlook already contracted [75] Question: Revenue progression expectations for 2025 - Management expects to deploy at least as many units in 2025 as in 2024, with a focus on subscription growth [84] Question: Purchase versus subscription model mix - Management confirmed a preference for pure subscription models, while still offering purchase options [92] Question: New customers for Expedite product - The 12 new customers for Expedite included both existing customers and new clients, indicating strong early traction [95]

Financial Performance - Evolv generated revenue of $32.0 million for the three months ended March 31, 2025, compared to $22.2 million for the same period in 2024, representing a year-over-year increase of 44%[158]. - The company reported a net loss of $1.7 million for the three months ended March 31, 2025, significantly improved from a net loss of $11.3 million in the same period of 2024[158]. - Total revenue for the three months ended March 31, 2025, was $32,007,000, representing a 44% increase from $22,181,000 in the same period of 2024[185]. - Subscription revenue increased by 35% to $19,237,000 in Q1 2025, up from $14,219,000 in Q1 2024[188]. - The net loss for the three months ended March 31, 2025, was $1,689,000, an 85% improvement from a net loss of $11,272,000 in the same period of 2024[185]. - Cash used in operating activities decreased from $16.2 million in Q1 2024 to $2.5 million in Q1 2025, indicating improved cash flow management[210]. - The company expects to continue generating losses for the foreseeable future, necessitating careful investment and potential additional capital[202]. Revenue Streams and Customer Growth - Evolv's solutions are primarily offered under a multi-year subscription model, which provides predictable revenue streams and is increasingly being adopted by customers[150]. - The company added 54 new customers during the three months ended March 31, 2025, contributing to revenue growth[186]. - License fee and other revenue surged by 205% to $3,718,000 in Q1 2025, compared to $1,219,000 in Q1 2024[190]. Cost Management and Expenses - Sales and marketing costs are anticipated to decrease for the year ending December 31, 2025, due to cost-cutting measures including a reduction in force implemented in January 2025[175]. - General and administrative expenses rose significantly due to legal and consulting fees, expected to continue through Q2 2025[176]. - Research and development expenses decreased by 24% to $4,862,000 in Q1 2025, down from $6,396,000 in Q1 2024[191]. - Sales and marketing expenses decreased by $4.8 million (30%) from $15.9 million in Q1 2024 to $11.0 million in Q1 2025, primarily due to reductions in personnel-related costs and advertising expenses[193]. - General and administrative expenses increased by $3.2 million (27%) from $11.8 million in Q1 2024 to $15.0 million in Q1 2025, driven by a significant rise in non-recurring professional fees[194]. - The company incurred restructuring costs of $2.7 million in Q1 2025, primarily related to a reduction in force[195]. Product and Technology - Evolv's flagship product, Evolv Express, utilizes AI-powered software to enhance security screening and improve visitor experience, distinguishing between threats and harmless items[148]. - Evolv's innovative technology aims to address the growing demand for safer environments in venues such as sports, education, and healthcare facilities[146]. Market Dynamics and Future Outlook - The company expects fluctuations in revenue and operating results due to factors such as inflation, supply chain issues, and shifts towards touchless security screening[153][154]. - The company is focused on expanding its market presence in various verticals, particularly in the United States, while adapting pricing strategies to regional dynamics[156]. - The company anticipates a decrease in general and administrative expenses in the second half of 2025 as ongoing investigations conclude[176]. Financial Position and Cash Flow - As of March 31, 2025, the company had $35.0 million in cash, cash equivalents, and marketable securities, down from a net income of $11.3 million in Q1 2024 to a net loss of $1.7 million in Q1 2025[200]. - Cash provided by financing activities was less than $0.1 million in Q1 2025, indicating limited financing activity compared to $0.3 million used in Q1 2024[216]. - Total future minimum lease payments under noncancelable operating leases amount to $19.1 million as of March 31, 2025[208]. Accounting and Reporting - No material changes to critical accounting estimates during the three months ended March 31, 2025[218]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[219].

Financial Performance - Total revenue for Q4 2024 was $29.1 million, a 41% increase compared to $20.6 million in Q4 2023[6] - Annual Recurring Revenue (ARR) at the end of Q4 2024 was $99.4 million, up 39% from $71.3 million in Q4 2023[6] - Total revenue for the full year 2024 was $103.9 million, a 31% increase from $79.6 million in 2023[6] - Total revenue for the nine months ended September 30, 2024 was $74.8 million, a 27% increase compared to $59.0 million in the same period of 2023[5] - Total revenue for the twelve months ended December 31, 2024, was $74,765,000, representing a 26.7% increase from $58,985,000 in 2023[23] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $0.4 million, compared to a loss of $(10.3) million in Q4 2023[6] - The company achieved positive adjusted EBITDA in Q4 2024, six months ahead of schedule[2] - Gross profit for the year ended December 31, 2024, was $59.3 million, compared to $31.9 million for the previous year, representing an 86.1% increase[17] - The total comprehensive loss for the year was $54.0 million, compared to $108.1 million in the previous year, indicating a significant reduction[18] - Adjusted gross profit for the twelve months ended December 31, 2024, reached $64,100 million, up from $34,462 million in 2023, reflecting an 85.8% year-over-year growth[33] Net Loss and Earnings Per Share - Net loss for the full year 2024 was $(54.0) million, or $(0.34) per share, compared to $(108.0) million, or $(0.72) per share in 2023[6] - The net loss for Q4 2024 was $15.7 million, a slight improvement from a net loss of $17.2 million in Q4 2023[17] - Net loss for the twelve months ended December 31, 2024, was $54.02 million, improved from $108.05 million in the previous year[37] - Adjusted loss per share for Q4 2024 was $0.03, compared to $0.08 in Q4 2023, indicating a reduction in losses[37] Cash and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of $51.9 million and no debt[6] - Cash and cash equivalents decreased to $37,015,000 at the end of 2024 from $67,162,000 at the end of 2023, reflecting a decrease of 44.7%[22] - Cash flows from operating activities showed a net cash used of $34,057 million for the nine months ended September 30, 2024, compared to $6,658 million for the same period in 2023[27] Expenses - Research and development expenses for the year totaled $23.4 million, a decrease from $24.5 million in the previous year[17] - Sales and marketing expenses increased to $61.3 million for the year, compared to $55.0 million in 2023, reflecting a 9.4% rise[17] - One-time employee separation costs for the three months ended December 31, 2024, amounted to $2,060 million, compared to $262 million in the same period of 2023[34] - Stock-based compensation for the twelve months ended December 31, 2024, totaled $24,756 million, slightly increasing from $24,129 million in 2023[36] Customer Metrics - The company reported a total of 60 new customers in Q3 2024, compared to 52 in Q2 2024, indicating a growth in customer acquisition[29] - Total net units shipped rose from 375 in Q1 2024 to 468 in Q3 2024, indicating an increase of 24.8%[29] Future Outlook - The company plans to continue focusing on cost management and operational efficiency to improve future performance[37]

Financial Performance - The company reported net losses of $108.0 million and $54.0 million for the years ended December 31, 2023 and 2024, respectively, with an accumulated deficit of $354.7 million as of December 31, 2024[98]. - The company has not been profitable historically and may not achieve or maintain profitability in the future, with significant uncertainties affecting future operating results[98]. - The company intends to retain future earnings for business development and does not plan to pay cash dividends for the foreseeable future[224]. - The market price of the company's common stock has been highly volatile, influenced by various factors including financial performance and regulatory inquiries[219]. - Future sales of common stock by existing security holders could lead to a decline in the market price of the company's securities[225]. Internal Controls and Compliance - The company identified material weaknesses in internal control over financial reporting, leading to restatements of financial statements for the fiscal years ended December 31, 2022 and 2023[94]. - The company has restated its previously issued financial statements due to misstatements, which has exposed it to additional risks and uncertainties[92]. - The company is subject to ongoing legal proceedings and investigations related to its financial reporting and internal controls[93]. - The company is currently under investigation by the SEC regarding its sales practices, which may impact revenue recognition and other metrics[209]. - The company has received requests for documents from the SEC and the U.S. Attorney's Office related to the ongoing investigation and is cooperating with these inquiries[210]. Market and Competition - Increased competition may lead to pricing pressures, affecting sales prices and profitability[120]. - The competitive landscape in the physical security solutions market poses challenges for customer acquisition and retention, with competitors having greater resources[148]. - The evolving market for AI-based weapons detection may not grow as expected, with traditional security solutions still dominating enterprise budgets[139]. - Customer adoption and retention rates for AI-based products are difficult to predict, and any reduction in demand could adversely affect revenue and financial results[141]. Research and Development - The company expects to continue substantial investments in research and development and sales and marketing, including expanding its sales organization[99]. - Strategic investments in research and development, sales, and marketing are expected, but costs will be recognized earlier than the anticipated benefits[119]. - Significant investment in research and development is necessary to address evolving security risks, but this may also risk rendering existing products obsolete[154]. Legal and Regulatory Risks - The company faces potential legal liabilities from acquisitions, which could adversely impact its business and financial condition if acquired businesses do not meet expectations[127]. - Legal frameworks for AI governance are unsettled, and potential regulations could disrupt operations and impose additional costs on the company[144]. - Non-compliance with data privacy laws could lead to governmental enforcement actions, litigation, and reputational damage, adversely affecting business operations[196]. - The company faces potential liabilities from third-party actions related to data privacy, which could necessitate changes in business practices[197]. Operational Challenges - The company may face increased costs and operational challenges due to reliance on third-party technology and components[91]. - Supply chain disruptions and reliance on third-party manufacturers pose risks to production and operational efficiency[108][112]. - Business operations are vulnerable to disruptions from natural disasters, including climate-related events, which could significantly delay product shipments and installations[231]. - Concerns about terrorism, political turmoil, and epidemic diseases could negatively impact the operations of the company's facilities and those of its contract manufacturers, suppliers, and customers[232]. Customer Relations and Sales - A significant portion of revenue is generated from product sales to new customers and additional sales to existing customers, with sales cycles lasting several months[101]. - The company faces challenges in attracting and retaining new customers and selling additional products to existing customers[103]. - The company must effectively manage relationships with reseller partners to ensure successful marketing and distribution of products[105][107]. Cybersecurity - Cybersecurity threats are constantly evolving, requiring the company to allocate additional resources to strengthen defenses against potential breaches[162]. - Cybersecurity incidents can lead to the misappropriation or destruction of critical data, impacting business operations and customer trust[165]. - The company has experienced cyber-attacks but has not yet faced material adverse impacts on its operations or financial condition[166]. Intellectual Property - The company’s ability to protect its intellectual property rights is crucial for maintaining its competitive position, with potential challenges in enforcing these rights[175]. - Legal actions to enforce intellectual property rights could result in substantial costs and divert resources from core business operations[177]. - The company may face significant damages and legal costs if found to infringe third-party intellectual property rights, which could harm its financial condition[180]. Tax and Financial Obligations - Changes in tax laws, such as the recent U.S. Inflation Reduction Act, could adversely affect the company's tax obligations and effective tax rates[201]. - The company may face additional costs and liabilities due to compliance with anti-corruption laws and export controls, which could impact financial condition[202]. - As of December 31, 2024, the company had federal net operating loss carryforwards of $20.1 million, which begin to expire in 2033, and an additional $203.3 million that do not expire but are limited to offsetting up to 80% of taxable income in any given year[213].

Financial Performance - Evolv generated revenue of $74.8 million for the nine months ended September 30, 2024, compared to $59.0 million for the same period in 2023, representing a year-over-year increase of approximately 26.4%[173]. - The company reported a net loss of $38.3 million for the nine months ended September 30, 2024, significantly improved from a net loss of $90.9 million for the same period in 2023[173]. - Total revenue for the three months ended September 30, 2024, was $27.36 million, a 37% increase from $19.96 million in the same period of 2023[202]. - Total revenue for the nine months ended September 30, 2024, was $74.77 million, an increase of $15.78 million (27%) from $58.99 million in 2023[218]. - The company reported a net loss of $30.44 million for Q3 2024, a significant decline from a net income of $5.05 million in Q3 2023, representing a 703% decrease[202]. - The net loss for the nine months ended September 30, 2024, was $38.30 million, a decrease of $52.55 million (58%) from a net loss of $90.85 million in 2023[218]. Revenue Sources - Evolv's solutions are offered primarily under a multi-year subscription model, providing predictable revenue streams and enhancing customer value[163]. - Evolv's revenue is derived from multiple sources, including subscription arrangements, product sales, and professional services, with subscription revenue recognized ratably over the lease term[175][177]. - Subscription revenue increased by 82% to $17.91 million in Q3 2024, compared to $9.86 million in Q3 2023[205]. - Subscription revenue surged by $24.05 million (101%) to $47.78 million for the nine months ended September 30, 2024, compared to $23.73 million in 2023[221]. - Service revenue increased by $6.15 million (57%) to $16.90 million for the nine months ended September 30, 2024, compared to $10.75 million in 2023[222]. - License fee and other revenue increased by 48% to $5.29 million for the nine months ended September 30, 2024, compared to $3.58 million in 2023[223]. Customer Growth - The company added 52 new customers during the three months ended September 30, 2024, contributing to growth in sales[203]. - The company added 189 new customers during the nine months ended September 30, 2024, contributing to revenue growth[219]. Operating Expenses - Total operating expenses rose by 9% to $34.96 million in Q3 2024, compared to $32.08 million in Q3 2023[202]. - Research and development expenses were $5.81 million in Q3 2024, a 9% decrease from $6.39 million in Q3 2023[202]. - Sales and marketing expenses increased by $558,000 (4%) to $14.97 million for the three months ended September 30, 2024, compared to $14.41 million in 2023[210]. - General and administrative expenses rose by $2.72 million (24%) to $13.98 million for the three months ended September 30, 2024, compared to $11.26 million in 2023[211]. - Research and development expenses decreased by 1% to $18.06 million for the nine months ended September 30, 2024, primarily due to higher capitalized payroll costs[224]. - Sales and marketing expenses increased by 18% to $47.84 million for the nine months ended September 30, 2024, driven by new hires and increased stock-based compensation[225]. - General and administrative expenses rose by 28% to $39.88 million for the nine months ended September 30, 2024, largely due to increased personnel costs and one-time regulatory expenses[226]. Profitability Metrics - Gross profit for subscription revenue was $10.56 million, representing an 85% increase from $5.70 million in the prior year[205]. - The gross profit margin for subscription revenue was 59% in Q3 2024, slightly up from 58% in the prior year[205]. - The gross profit margin for subscription revenue was 60% for the nine months ended September 30, 2024, compared to 59% in 2023[221]. - Gross profit from license fee and other revenue rose by 71% to $4.81 million, with a gross profit margin of 91% for the nine months ended September 30, 2024, up from 78% in 2023[223]. Cash Flow and Financial Position - Cash, cash equivalents, and marketable securities totaled $56.0 million as of September 30, 2024, expected to fund operating expenses for at least twelve months[235]. - The company incurred cash outflows from operating activities of $34.1 million for the nine months ended September 30, 2024, compared to $6.7 million in 2023[233]. - Interest income decreased to $2.4 million for the nine months ended September 30, 2024, down from $4.6 million in 2023[229]. - Cash provided by investing activities for the nine months ended September 30, 2024, was $11.9 million, while cash used in investing activities for the same period in 2023 was $92.8 million[244][246]. - Cash provided by financing activities for the nine months ended September 30, 2024, was $1.2 million, a significant decrease from the $29.7 million used in financing activities during the same period in 2023[247][248]. - The company invested $24.4 million in property and equipment during the nine months ended September 30, 2024, primarily for Evolv Express units[244]. Market and Operational Risks - The company expects fluctuations in revenue and operating results due to factors such as rising inflation, supply chain issues, and shifts towards touchless security screening[167][168]. - The company has restated certain previously reported financial information for the fiscal year ended December 31, 2023, impacting its consolidated financial statements[158]. - There were no new accounting pronouncements that materially impacted the company's financial position or operations since the issuance of the 2023 Form 10-K[249]. - The company reported no material changes in critical accounting estimates during the nine months ended September 30, 2024[250]. - Market risks remained unchanged from the disclosures in the 2023 Form 10-K[251].

Company Overview - Evolv Technologies Holdings, Inc (NASDAQ: EVLV) specializes in using sensors and cameras to detect unwanted objects, focusing primarily on weapons and explosives, which are challenging for traditional security methods [1] Investment Strategy - The investment strategy targets companies with a market capitalization of less than $10 billion, aiming for those with a proven ability to reinvest capital for impressive returns [1] - The ideal companies should demonstrate long-term capital compounding capabilities with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] - A long-term perspective is maintained to generate higher returns compared to market indices, especially in a rapidly evolving investment landscape [1] - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1]

Workforce Reduction - The company reported a reduction in force involving 40 employees, representing approximately 14% of its workforce, aimed at increasing annualized run rate cash savings[7] - The expected pre-tax charges for the reduction in force are approximately $2.3 million, primarily consisting of $2.0 million in severance obligations[8] - The reduction in force is anticipated to result in approximately $9.0 million of annualized run rate cash savings, excluding potential new hiring costs[8] - The company plans to complete the reduction in force by March 31, 2025[8] Regulatory Matters - The company is undergoing a pending restatement effort and addressing other regulatory matters[6] - Forward-looking statements indicate potential risks and uncertainties that may affect actual results compared to projections[11] - The company does not plan to publicly update or revise any forward-looking statements unless required by law[12] - The press release detailing these updates was issued on January 23, 2025[6] Investment Strategy - The company is focused on pursuing its investment strategy with certain growth opportunities following the workforce reduction[7] - The Chief Executive Officer's prepared remarks were included in the current report as an exhibit[9]