Quick Look

  • According to a securities filing on Friday, Michael Port, the chief financial officer of mobility software provider Urgently, stepped down on August 5, just two months after taking the role.
  • The Vienna, Virginia-based company provides AI-driven software solutions for the automotive, insurance, and other transportation-related industries. The filing shows that the company has appointed CEO Matthew Booth to also serve as CFO, and corporate controller Andrea Makkai has been named chief accounting officer, with both appointments effective August 5.
  • The CFO departure comes as the company continues to address material weaknesses related to internal control over financial reporting. These weaknesses were identified following annual audits for the periods ending December 2023 and December 2024, as disclosed in a filing submitted to the U.S. Securities and Exchange Commission on May 14. Previously, the company had received a notice from the Nasdaq Stock Exchange stating that its net income from continuing operations fell below the minimum requirement for continued listing, with the notice issued on March 24.

In-Depth Analysis

According to company filings, Port is entitled to severance benefits upon stepping down as CFO, including the accelerated full payment of a one-time cash bonus of $50,000.

Port previously served as vice president of finance and corporate controller at electric vehicle equipment maker Lordstown Motors. He joined Urgently in May as vice president of finance and assumed the CFO role after Timothy Huffmyer announced his resignation. Huffmyer stepped down on June 6 after three years in the position, a move disclosed in a company filing on May 21.

Urgently stated in the filing: "The company expresses its gratitude for Mr. Huffmyer's services and does not expect his departure to result from any disagreement with the company regarding its operations, policies, or practices, including any issues related to the company's controls, financial or accounting matters, or disclosures." Following Huffmyer's departure, Urgently entered into a consulting agreement with him to provide "certain transitional services" to the company through October 31.

Shortly before Port was appointed CFO, the company announced it was "restructuring its finance function, including expanding accounting, control, and compliance functions, to develop and implement continuous improvement measures to address the overall issues that led to the material weaknesses," as part of the remediation plan disclosed in its May 14 filing.

During the audits, Urgently management identified two material weaknesses: first, "a lack of evidence of segregation of duties within the accounting and finance functions," and second, "deficiencies in the design and maintenance of IT general controls over information systems and user access related to financial statement preparation," as stated in the company's May 14 filing.

In the first quarter, the company reported revenue of $31.3 million, down 22% year-over-year, and gross profit fell 15% to $8 million, according to results for the quarter ended March 31. CEO Booth called the quarter a "solid" start, noting that "on nearly every key metric, we delivered our best quarter as a public company."

The roadside assistance software provider has taken several steps to shore up its weak financial position. In February, the company announced a new credit agreement with MidCap Financial, securing a credit facility of up to $20 million. Additionally, the company has reduced its total headcount by 50% over the past 12 months, with CEO Booth stating during the first-quarter earnings call that the company "reviewed all business functions to improve processes and procedures."

Urgently is expected to report second-quarter results for the period ended June 30 after the market closes on Tuesday. As of press time, Urgently did not immediately respond to a request for comment.