Small Cap Case Study:
Interim CFO Support

DEBT COVENANT MANAGEMENT FOR A SMALL CAP HEALTHCARE COMPANY

CHALLENGE:
Absent CFO; Looming Reporting Deadlines

• The company had consistently missed financial debt covenant requirements, including financial statement audit and internal financial reporting deadlines for the past two years.
• It needed to complete an S-3 filing in four weeks to avoid further debt covenant violations.
• This need arose in the fourth quarter, and audited financial statements for the prior year had not yet been issued by the auditors.
• The CFO had taken a healthrelated leave of absence, and timing on his return was uncertain.

SOLUTION:
Quick, On-the-Ground Financial Leadership

CMF mobilized an interim CFO and controller team “on the ground” within five business days of firm’s approval to proceed, and executed a plan including:
• Facilitating the issuance of the audited financial statements from the prior year by clearing open item list with the auditors
• Conducting a detailed review and redraft of the prior and current year’s midyear financial statements and footnotes as necessary
• Assuming the CFO’s role in drafting key portions of the SB-2 document

OUTCOME:
Managed Deadlines, Enhanced Report Quality

• CMF’s interim CFO and controller support enabled the company to file the SB-2 within the deadline, including all required audited financial statements.
• The team created a repeatable and reliable management reporting process that reduced monthly close preparation time by one week and enhanced consistency and data integrity.