Evolv Technology Announces Receipt of Extension from Nasdaq Stock Market

Rhea-AI Summary

Evolv Technology (NASDAQ: EVLV) has received an extension from Nasdaq regarding its compliance with listing requirements. The extension, granted on January 31, 2025, gives the company until May 19, 2025 to file its Q3 2024 Quarterly Report (Form 10-Q). The extension was granted as an exception to Nasdaq's Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the SEC.

The company is working with AlixPartners LLP to expedite the filing process and plans to host a public conference call to review financial results once the report is filed.

Positive

• Received extension from Nasdaq to maintain listing compliance
• Engaged AlixPartners LLP to expedite financial reporting

Negative

• Delayed filing of Q3 2024 financial reports
• Non-compliance with regular SEC filing requirements
• Risk of potential delisting if deadline not met

Insights

Financial Analyst

The granting of an extension by Nasdaq for Evolv Technology's Q3 2024 financial report filing warrants serious attention. The nearly eight-month delay from the original due date to the new May 19, 2025 deadline is exceptionally long, raising red flags about potential underlying issues in financial reporting or internal controls.

The engagement of AlixPartners LLP is particularly noteworthy. This firm is typically brought in for complex financial situations, restructuring, or when companies face significant operational or accounting challenges. Their involvement suggests the issues may be more substantial than routine filing delays.

For investors, this situation presents several concerns:

• The extended delay in financial reporting creates significant information asymmetry in the market
• The company's inability to file timely reports may indicate material weaknesses in internal controls
• There's increased risk of potential restatements or accounting adjustments
• The company remains at risk of delisting if it fails to meet the extended deadline

While the extension provides temporary relief from immediate delisting concerns, it's important to note that continued non-compliance could result in more severe consequences. The market typically views such delays negatively, as they create uncertainty and raise questions about operational and financial transparency.

WALTHAM, Mass.--(BUSINESS WIRE)-- Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) (the “Company” or “Evolv Technology”), a leading security technology company pioneering AI-powered solutions designed to create safer experiences, today announced that on January 31, 2025, it received a letter from the Nasdaq Stock Market ("Nasdaq") informing the Company that Nasdaq has granted the Company’s request for an exception to Nasdaq’s Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. The exception gives the Company until May 19, 2025 to file its Quarterly Report on Form 10-Q for the period ended September 30, 2024 (the “Quarterly Report”). In partnership with AlixPartners LLP, a leading global business advisory firm, the Company is working expeditiously to file the Quarterly Report. The Company will host a publicly accessible conference call to review the financial results once the Quarterly Report has been filed.

About Evolv Technology
Evolv Technology (NASDAQ: EVLV) is designed to transform human security to make a safer, faster, and better experience for the world’s most iconic venues and companies as well as schools, hospitals, and public spaces, using industry leading artificial intelligence (AI)-powered screening and analytics. Its mission is to transform security to create a safer world to live, work, learn, and play. Evolv has digitally transformed the gateways in many places where people gather by enabling seamless integration combined with powerful analytics and insights. Evolv’s advanced systems have scanned more than two billion people since 2019. Evolv has been awarded the U.S. Department of Homeland Security (DHS) SAFETY Act Designation as a Qualified Anti-Terrorism Technology (QATT) as well as the Security Industry Association (SIA) New Products and Solutions (NPS) Award in the Law Enforcement/Public Safety/Guarding Systems category, as well as Sport Business Journal’s (SBJ) awards for “Best In Fan Experience Technology” and “Best In Sports Technology”. Evolv^®, Evolv Express^®, Evolv Insights^®, Evolv Visual Gun Detection™, Evolv eXpedite™, and Evolv Eva™ are registered trademarks or trademarks of Evolv Technologies, Inc. in the United States and other jurisdictions. For more information, visit evolv.com.

Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements regarding the timing of the filing of the Company’s Quarterly Report. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results and actions to be materially different from any future results or actions expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, as any such factors may be updated from time to time in our other filings with the SEC, including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. The forward-looking statements in this press release are based upon information available to us as of the date hereof, and while we believe such information forms a reasonable basis for such statements, it may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250203635789/en/

Investor Relations:

Brian Norris

Senior Vice President of Finance and Investor Relations

bnorris@evolvtechnology.com

Media Relations:

Alex Ozerkis

Vice President of Corporate Communications

aozerkis@evolvtechnology.com

Source: Evolv Technologies Holdings, Inc.

FAQ

When is Evolv Technology's (EVLV) deadline to file its Q3 2024 quarterly report?

Evolv Technology has until May 19, 2025, to file its Q3 2024 quarterly report (Form 10-Q) as per the extension granted by Nasdaq.

What is the reason for EVLV's Nasdaq listing compliance issue?

EVLV failed to timely file its Q3 2024 periodic financial report with the SEC, violating Nasdaq's Listing Rule 5250(c)(1).

Who is helping Evolv Technology (EVLV) with their financial reporting?

AlixPartners LLP, a leading global business advisory firm, is working with Evolv Technology to expedite the filing of their Q3 2024 quarterly report.

What happens if EVLV doesn't file its quarterly report by May 19, 2025?

If EVLV fails to file by the extended deadline, they risk potential delisting from the Nasdaq stock market for non-compliance with listing requirements.