Evolv CFO Mark Donohue Resigns Following Announcement Of Internal Investigation Findings, Stock Up

(RTTNews) - Evolv Technologies Holdings, Inc. (EVLV), Thursday said that Chief Financial Officer Mark Donohue has resigned following the announcement of an internal investigation, looking into certain sales practices that impacted revenue recognition and other metrics.

The internal probe found that accounting for certain transactions, including sales to one of the company's largest channel partners, was inaccurate, and premature or incorrect revenue was recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024.

The investigation also revealed that certain senior finance and accounting personnel were aware of the issues, but failed to communicate it to the Audit Committee of the Board or the company's independent registered public accounting firm, PricewaterhouseCoopers LLP.

Along with Donohue, four other employees, including those from sales, accounting and finance departments, were terminated or resigned.

However, the Ad Hoc committee assured that the errors in revenue recognition did not impact the company's cash position.

The security technology company also announced that around 465 new multi-year subscriptions of Evolv express were activated during the third quarter.

Currently, Evolv's stock is moving up 7.84 percent, to $2.82 on the Nasdaq.