Multinational Software Company (public; NASDAQ-listed)
Acted as a subject matter expert on revenue recognition under Statement of Position 97-2, Software Revenue Recognition and Statement of Position 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts. This client, providing a software and services solution to the process industries, had recently restated several years of activity, including prior revenue transactions, and was under intense pressure to improve reporting and their control environment. The client contracted with Hayes Financial to provide management and advisory services in applying SOP 97-2 and SOP 81-1 to various customer transactions. Hayes Financial assisted the client by reviewing both prior and ongoing customer transactions, advising the client on structuring certain transactions, reviewing, critiquing and rewriting certain policy statements and control documents (including the overall revenue recognition policy), and representing the client in discussions with its auditors.
Government Subcontractor (private; acquired by NYSE company)
Acted as a part-time Chief Financial Officer for the
client, setting up all financial, human resource and legal operations from
inception of the 20-person company. Maintained
all financial records in accordance with GAAP and the
Network Equipment Manufacturer (private; acquired by Norwegian-listed company)
Hired by the managing partner of a venture capitalist, on behalf of the company’s Board of Directors, to assist the CEO with renegotiating certain vendor obligations during the company’s restructuring efforts. Successfully renegotiated vendor & lease agreements for the networking equipment vendor by reducing their overall obligations by approximately $500,000, thereby positioning the company for sale after the restructuring. Participated in monthly Board meetings to discuss the ongoing negotiations and provide recommendations. Provided management and the Board of Directors with assistance during the company’s acquisition process, including certain post-acquisition support.
Security Equipment Manufacturer (public; NASDAQ-listed)
Acted as a subject matter expert on revenue recognition under Statement of Position 97-2, Software Revenue Recognition, Staff Accounting Bulletin No. 104, Revenue Recognition, and Statement of Position 81-1, Accounting for Performance of Construction-Type and Certain Production-Type Contracts. In addition, provided SEC reporting expertise, by filing the Form 10-K, Form 10-Q and Form S-4. This client had a complex business model with multiple lines of business, each with different revenue models. Hayes Financial assisted the client by rewriting its revenue recognition policy, reviewing the customer arrangements and transactions, applying the principals of SOP 97-2, 81-1 and SAB 104, advising the sales, legal, and finance personnel on transaction structuring, representing the client in discussions with its auditors, and preparing the Form 10-K and 10-Q disclosures. Furthermore, lacking the bandwidth in SEC reporting expertise in-house, the client contracted with Hayes Financial to handle the 10-K and 10-Q SEC reporting, including writing the financial statements, financial disclosures, and coordinating all other business inputs. With two pending acquisitions, Hayes Financial also coordinated the financial updates in the S-4 reporting process, including SEC comment letter responses.
Storage Equipment Manufacturer (private; venture-backed)
Hired by the COO of a private, venture-backed network storage vendor to provide an independent assessment of control weaknesses disclosed by the company’s independent public accountants during a yearend audit. Interviewed the independent public accountants and members of the audit committee to assess past practices. Reviewed company policies and procedures, with specific emphasis on the revenue and collection cycle to determine completeness and adequacy of controls. Interviewed company personnel from all functions, including executive management, and reviewed background of finance personnel to assess level of training and experience to prepare the company for an exit strategy. Issued a comprehensive report, executive summary and PowerPoint presentation covering the adequacy of the control environment and recommended personnel changes for presentation to the company’s Board of Directors.
Telecom Equipment Manufacturer (public; NASDAQ-listed)
Acted as a subject matter expert on revenue recognition under Statement of Position 97-2, Software Revenue Recognition. This client had recently been forced to restate multiple years of activity, with the primary emphasis on revenue recognition. Prior to filing the current year Form 10-K, the client contracted with Hayes Financial to provide management and advisory services in applying SOP 97-2 to various customer transactions. Hayes Financial assisted the client by rewriting its revenue recognition policy, reviewing the customer arrangements and transactions, applying the principals of SOP 97-2, advising the sales, legal, and finance personnel on transaction structuring, representing the client in discussions with its auditors, reviewing Form 10-K and 10-Q disclosures, attending cross-functional weekly planning meetings, researching and recommending a new pricing structure for services, providing guidance on structuring the financial revenue function, and interviewing candidates for permanent positions in the revenue recognition area.
Telecom Equipment Manufacturer (private; private acquisition)
Acted as a permanent, part-time Chief Financial Officer for the client upon realization that a full-time CFO was not required for this 50-person company. Managed all financial, human resource, and legal operations of the client. Member of the senior management team and key advisor to the Chief Executive Officer. Ran all financial activity, including the budgeting, reporting, and management of revenue reporting in accordance with SOP 97-2. Assumed Corporate Secretary duties with the Board of Directors. Obtained new debt financing. Managed the audit with the client’s independent auditors. Reviewed and negotiated customer purchase agreements, including direct sales, reseller agreements, and OEM agreements. Managed the cash flows during a challenging telecom environment, including several organizational restructurings, coaching the executive staff with regards to restructuring activities, and eliminating unnecessary cash burn. Assisted in positioning the company for sale. Developed and recommended to the Board of Directors a management incentive plan for the sale of the company. Assisted in the drafting of the asset sale agreement and completed all financial due diligence of the successful transaction. Managed the asset sale process and wind-down of all operational matters of remaining shell, including negotiating settlements with the landlord and certain vendors, the repayment of secured debt, managing a future royalty stream, all COBRA activity, and the filing of final tax returns.
Telecom Equipment Manufacturer (private; venture-backed)
Acted as a permanent, part-time Chief Financial Officer for the client, setting up all financial, human resource, legal, information systems, and manufacturing operations for the 30-person company. Member of the senior management team and key advisor to the Chief Executive Officer and founders. Completed various tax matters, including managing a state sales and use tax audit and qualification for manufacturing status to avoid future use tax assessments. Obtained new debt financing. Managed the audit with the client’s independent auditors. Managed various aspects of exporting laws and regulations. Managed cash flows during a challenging telecom environment, including an organizational restructuring, renegotiating vendor contracts, and eliminating unnecessary cash burn. Assisted in positioning the company for sale. Recommended to the Board of Directors a complete corporate wind-down when no sale was imminent. Managed the liquidation process, including the negotiation of settlements with all vendors, the repayment of secured debt, a negotiated sale of tangible assets and intellectual property, and the filing of all final tax returns.
Medical Practitioner (private; owner-operated)
Acted as a part-time Chief Financial Officer. Fulfilled a business advisory role for the client, setting up all financial, human resource and legal operations from inception of the company. Performed all financial functions, including record-keeping, report generation and review of results with client. Performed human resource activities, including employee hiring, interviewing, immigration matters, payroll, and performance reviews. Performed legal activities, such as lease reviews and corporate filing requirements.
Construction and Retail Holding Company (private; owner-operated)
Acted as a Board Member to a holding company which operates a retail establishment, and separate contracting businesses. Provided guidance upon the initial operational and financial set-up of the holding company. Provided management assistance and guidance on a regular basis to maximize the success of different entities, including transfer price agreements. Advised owners in the sale of certain entities, including tax ramifications. Performed financial and operational due diligence on multiple acquisition candidates.