**NewHold Investment Corp. II Investigates Financial Irregularities Leading to Restatement of Financial Statements**

NewHold Investment Corp. II (OTCMKTS:NHICU) is currently facing significant challenges as Evolv Technologies Holdings, Inc., which the company has a pending merger agreement with, disclosed substantial financial irregularities. The specifics were detailed in an 8-K filing submitted to the Securities and Exchange Commission.

The investigation was triggered by an ad hoc committee of independent directors appointed by Evolv Technologies Holdings, Inc. The inquiry focused on the company’s sales practices and highlighted concerns around sales to channel partners and end-users. The investigation is probing if these transactions were influenced by undocumented terms affecting revenue recognition and related metrics. The preliminary findings suggest mismanagement and potential misconduct by certain staff members. Notably, investigations revealed that certain sales were subject to inaccuracies in revenue recognition between the second quarter of 2022 and the second quarter of 2024.

As a consequence of these findings, the Committee overseeing the investigation recommended to the Board that previously released financial statements for the fiscal years ending December 31, 2022, and December 31, 2023, along with interim reports up to June 30, 2024, should no longer be relied upon due to material misstatements in revenue recognition. The Board has also flagged that prior disclosures related to these financial statements should not be trusted.

The estimated impact of these discrepancies relates to approximately $4 million to $6 million in terms of premature or incorrect revenue recognition. The company is diligently working to rectify these inaccuracies, with the Committee collaborating with external experts to complete the investigation promptly and amend financial statements accordingly.

Given these ongoing internal assessments, Evolv Technologies Holdings, Inc. has opted to delay the submission of its Quarterly Report on Form 10-Q for the quarter ending September 30, 2024. This delay allows for additional time to finalize the investigation and subsequent adjustments to financial filings.

It’s worth noting that the company has reported these issues to the SEC and is actively cooperating with their ongoing investigation. The Committee intends to further update once the internal investigation is finalized.

While the fundamentals of Evolv Technologies Holdings, Inc. remain strong, uncertainties in financial reporting underscore the importance of accurate and transparent disclosures to shareholders. The company’s commitment to rectifying these irregularities is paramount to restore trust and ensure reliable information dissemination to stakeholders. Investors are advised to exercise caution when relying on previous financial disclosures until further clarifications and revisions are made.

The full text of the formal filing can be accessed via the Securities and Exchange Commission’s website.

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.

About NewHold Investment Corp. II

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.