FX.co ★ Evolv CFO Mark Donohue Resigns Following Announcement Of Internal Investigation Findings, Stock Up

Evolv Technologies Holdings, Inc. (EVLV) announced on Thursday the resignation of Chief Financial Officer Mark Donohue, following the initiation of an internal investigation into specific sales practices affecting revenue recognition and other financial metrics.

The investigation revealed inaccuracies in accounting for certain transactions, notably involving sales to one of the company’s major channel partners, leading to the premature or incorrect recognition of revenue between the second quarter of 2022 and the second quarter of 2024.

Furthermore, the probe disclosed that certain senior finance and accounting personnel were aware of these discrepancies but did not report them to the Audit Committee of the Board or the independent registered public accounting firm, PricewaterhouseCoopers LLP.

In addition to Donohue's departure, four other employees from sales, accounting, and finance were terminated or have resigned.

Despite these challenges, the Ad Hoc committee confirmed that the errors in revenue recognition did not affect the company’s cash position.

Evolv Technologies also reported the activation of approximately 465 new multi-year subscriptions for its Evolv Express product in the third quarter.

Currently, Evolv’s shares are trading up 7.84 percent to $2.82 on the Nasdaq.