(Bloomberg) -- Evolv Technologies Holdings Inc., which develops weapons-screening technology, will have to redo two years of financial statements after an internal investigation into its sales and revenue accounting practices.
Sales to some of the company’s largest partners were subject to conditions that weren’t shared with its accounting personnel or its external auditor and “certain company personnel engaged in misconduct in connection with those transactions,” the company said Friday in a regulatory filing, referring to preliminary results from the internal probe.
Evolv voluntarily reported the investigation to the US Securities and Exchange Commission. The investigation focuses on whether the company prematurely recorded between $4 million and $6 million of revenue. The incorrect revenue figures are expected to affect other previously reported financial metrics, the company said in the regulatory filing.
“The Board is committed to taking whatever remedial actions are necessary so that we can provide reliable information to our key stakeholders,” Evolv said in a statement. “The Company will provide an update as soon as it can.”
The Waltham, Massachusetts-based company disclosed in February that it received a separate SEC subpoena for information. The company went public via a merger with a special purpose acquisition company, or SPAC, in 2021.
(Updates with company statement in fourth paragraph.)
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