Company: EVLVW
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001628280-25-020355
Chunk: 178

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 8
Chunk 178
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 accounting for certain sales transactions was materially inaccurate and that, among other things, revenue was prematurely or incorrectly recognized in connection with financial statements prepared for certain periods. Total revenue for the year ended December 31, 2024 was $104 million. See also the “Restatement of Previously Issued Financial Statements” section of our report.

The principal considerations for our determination that performing procedures relating to revenue recognition – impact of the Investigation is a critical audit matter are (i) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to revenue recognition and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. As disclosed by management, material weaknesses were identified related to this matter.

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Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others, evaluating and determining the nature and extent of audit procedures performed and evidence obtained that are responsive to the Investigation and the misstatements identified. These procedures also included (i) evaluating the impact of the material weaknesses related to the control environment, including the lack of a sufficient complement of personnel, risk assessment, and information and communication components of internal control, as well as  revenue control activities; (ii) evaluating the sufficiency of the Investigation conducted by the Committee of the Board; (iii) expanding the nature and extent of fraud inquiries performed with Company personnel; and (iv) considering the Investigation findings in assessing the risks associated with revenue recognition and designing incremental audit procedures to be performed. Incremental audit procedures performed included, for a sample of transactions, confirming terms and conditions of sales arrangements directly with customers, including performing alternative procedures when responses were not received; and evaluating the timing of revenue recognition and that revenue was recognized in the appropriate period. The incremental audit procedures also included testing the revenue-related journal entries recorded by Company personnel that engaged in misconduct; and testing the completeness and accuracy of the restatement adjustments. Professionals with specialized skill and knowledge were used to assist in evaluating the sufficiency of the Investigation conducted by the Committee of the Board.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

April 28, 2025

We have served as the Company’s auditor since 2015.

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EVOLV TECHNOLOGIES HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

December 31,20242023(Restated)AssetsCurrent assets:Cash and cash equivalents