Evolv Technologies Holdings, Inc. (EVLV) announced on Friday that there will be a delay in releasing its third-quarter financial report due to an internal investigation into its sales practices.
Upon conducting a preliminary investigation, the security technology firm discovered that specific sales, including those to one of its largest channel partners, had been subject to additional terms and conditions not included in contracts. Some of these terms and conditions were not disclosed to the company's accounting staff, and instances of misconduct related to these transactions were identified involving certain company personnel.
Furthermore, these supplementary terms and conditions had been withheld from the company's Audit Committee and its independent registered public accounting firm, PricewaterhouseCoopers LLP.
Based on these initial findings, Evolv identified inaccuracies in certain sales transactions, leading to premature and incorrect revenue reporting in the company's financial statements from the second quarter of 2022 to the second quarter of 2024.
As of now, Evolv's shares are trading at $2.35 on the Nasdaq, reflecting a decline of 42.36 percent.
