On October 25, 2024, before market hours, Evolv filed a Current Report on Form 8-K with the SEC announcing its “delay filing its Quarterly Report on Form 10-Q for the period ended September 30, 2024.” The reason behind the delay is due to “an internal investigation that is focused on the Company’s sales practices, including whether certain sales of products and subscriptions to channel partners and end users were subject to extra-contractual terms and conditions that impacted revenue recognition and other metrics, and if so, when senior Company personnel became aware of these issues.” In addition, results of the investigation “determined that the accounting for certain sales transactions was inaccurate and that, among other things, revenue was prematurely or incorrectly recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024.”
On this news, Evolv’s stock price fell $1.63 per share, or 40%, to close at $2.47 per share on October 25, 2024.
