Security Tech Firm Evolv Will Redo Two Years of Financials (1)

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 ...