Dive Brief:

• Urgently CFO Michael Port departed from his role effective Aug. 5 after just two months in the mobility software provider’s top finance seat, according to a Friday securities filing.
• The Vienna, Virginia-based company, which offers AI-powered software solutions for automotive, insurance and other transportation-related businesses, appointed its CEO Matthew Booth to the additional role of principal finance officer, according to the filing. Andrea Makkai, its corporate controller, was appointed as its principal accounting officer, with both appointments also effective Aug. 5.
• The CFO departure comes as the company looks to continue addressing material weaknesses related to its internal controls for financial reporting identified after an audit of the years ended December 2023 and 2024, according to a May 14 filing with the Securities and Exchange Commission. The disclosure of material weaknesses followed after the company weathered compliance challenges, after receiving a notice from the Nasdaq Stock Exchange that its net income from continued operations had fallen below the minimum requirement for continued listing on March 24.

Dive Insight:

In association with his departure from the CFO role, Port is entitled to severance benefits including the accelerated payment in full of a one-time $50,000 cash bonus, according to company filings.

Previously serving as VP of finance and controller for electric vehicle equipment manufacturer Lordstown Motors, Port first joined Urgently in May as its vice president of finance and assumed the top financial seat after Timothy Huffmyer announced he would be resigning from the role after a three-year tenure effective June 6, according to a May 21 company filing.

The company “is appreciative of the service of Mr. Huffmyer, and we expect that his departure is not the result of any disagreement he has with the Company on any matter relating to the Company’s operations, policies and practices, including any matters concerning the Company’s controls or any financial or accounting-related matters or disclosures,” Urgently said in the filing. Following his departure, Urgently entered into an advisor agreement with Huffmyer to provide “certain transitional services” to the company until Oct. 31.

Port’s appointment as CFO came shortly after the company announced it was “in the process of reorganizing our finance department, including the expansion of our accounting, control and compliance functions to develop and implement continued improvements and enhancements to address the overall deficiencies that led to the material weakness” as part of its remediation efforts, according to the May 14 filing.

In association with its audit, Urgently management identified two material weaknesses relating to “a lack of evidence of segregation of duties within the accounting and finance function,” as well as “the design and maintenance of effective control over IT general controls for information systems and user privileges related to the applications relevant to the preparation of our consolidated financial statements,” the company said in its May 14 filing.

For its Q1, the company reported revenue of $31.3 million, a 22% decrease year-over-year, as well as a 15% slump in gross profit to $8 million, according to its earnings release for the quarter ended March 31. CEO Booth credited the quarter as a “solid” start to the year, noting that “by almost all key measures, we delivered our best quarter as a public company,” according to a statement included in the release.

The roadside assistance software provider has taken multiple steps to boost faltering financials, announcing a new credit agreement for a credit facility of up to $20 million with MidCap Financial in February. The company has also reduced its total headcount by 50% in the last 12 months, “and looked across all functions of the business to improve procedures and processes,” CEO Booth said during its Q1 earnings call according to a transcript.  

Urgently is expected to report its Q2 results for the quarter ended June 30 after market close Tuesday.

Urgently did not immediately respond to requests for comment.