NewHold Investment Corp. II Reports Internal Investigation Results and Organizational Changes

NewHold Investment Corp. II, operating under Evolv Technologies Holdings, Inc., has recently disclosed the outcomes of an internal probe into certain sales practices and subsequent organizational changes. The investigation, led by an ad hoc committee of independent directors, explored practices impacting revenue recognition and other metrics within the company.

As of the latest filing on November 20, 2024, it was revealed that Mark Donohue, the Chief Financial Officer and principal accounting officer, resigned from his position effectively. Notably, no severance payments are offered to Mr. Donohue in relation to his departure. In response to this development, Dave Rawden from AlixPartners LLP has been appointed as the Interim Chief Financial Officer, who will serve until a permanent Chief Financial Officer is recruited.

David Rawden, aged 67 with extensive financial experience, has been involved in various interim CFO roles for different companies. AlixPartners has been engaged to provide finance and accounting assistance, including expediting the preparation of the restated financial statements and related filings. Mr. Rawden will not receive direct compensation from the company; instead, AlixPartners will be remunerated with a weekly fee of $50,000 for his services.

Moreover, Evolv Technologies disclosed the preliminary findings of the internal investigation, indicating that certain sales transactions involved extra-contractual terms impacting revenue recognition. The investigation reaffirmed an estimate of $4 million to $6 million in premature or incorrect revenue recognition through June 30, 2024, and confirmed that these errors did not affect the cash position of the company.

In response to the investigation, the Board is emphasizing new leadership and a robust plan for remedial actions to fortify risk management, strengthen internal controls, and ensure accurate financial disclosures. Concurrently, the company remains engaged with regulatory authorities, having self-reported these issues and cooperating with ongoing investigations.

The company’s press release on November 21, 2024, discussed the results of the internal investigation, the steps undertaken, and the planned corrective measures. Evolv Technologies aims to maintain its commitment to enhancing security technology and delivering long-term value to all stakeholders.

######

The above article summarizes the key details of NewHold Investment Corp. II’s recent disclosures as per the 8-K SEC Filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NewHold Investment Corp. II’s 8K filing here.

NewHold Investment Corp. II Company Profile

NewHold Investment Corp. II does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company intends to focus on the industrial technology business.