Fractional CFO

MIKE KOVAR, CPA, CFA

Irvine, CA linkedin.com/in/MikeKovarCFO/

949-***-**** ******@*********.***

Executive Summary

Driven and high-impact SaaS, fintech and financial services finance leader focused on growth and increasing shareholder value. I leverage technology, metrics, results and analysis to provide information to drive strategic decision-making and positively impact operations. Personal and team mandate is to partner with operations and executive stakeholders to drive efficiency and ensure stakeholders and operations are accountable and focused on strategic initiatives to obtain results as set by Board and Executive Management. Highly proficient in quantitative analysis, computing, and mathematics.

Core Competencies

• Executive Leadership & Vision • Strategy – Operations & Business • Results-oriented Executive

• Operations Partnership • Profitability/Restructuring • Risk Management

• Develops World-Class teams • GAAP Technical expertise • Innovator - Technology & Systems

2024 CFO of the Year Nominee - Orange County Business Journal - Private Company Category

2024 CFO of the Year Finalist - Los Angeles Times Leadership Awards - Large Private Company Category

PROFESSIONAL EXPERIENCE

Mike Kovar CFO (Irvine, CA)

A consulting firm that provides fractional services for middle market and PE portfolio companies with an industry focus on fintech, technology, SaaS, financial services, professional services, real estate and business services. Fractional CFO 2024 – Present

Provides financial leadership for middle-market companies in operational and financial growth areas that impact efficiency and profitability. Areas of expertise include operations, profitability analysis, revenue recognition, budgeting, technology, restructuring, M&A, and financial reporting and analysis.

• Increased monthly revenue by 25% after identifying the ROI of individual marketing channel to complete strategic modifications from non-optimal channels.

• Exceeded $6.5M in investment results by preparing the investment deck and go-to-market strategy for a large healthcare insurance company. Additionally, coached executives to further optimize company reinvestments and growth.

• Specialized in profitability analysis, revenue recognition, budgeting, technology, restructuring, mergers & acquisitions, and financial reporting and analysis.

Acra Lending (Lake Forest, CA)

The largest Non-QM fintech lender in the nation and private equity-owned mortgage bank specializing in the non-qualified mortgage market that originates over $3BB in mortgage products annually and services a $7BB servicing portfolio Chief Financial Officer & Treasurer Jan-2022 – April-2024 Provided financial leadership and treasury services for nationwide mortgage lender. Managed a 17-member team in accounting, financial reporting and analysis, treasury and investor reporting groups.

• Provided leadership in navigating declining mortgage markets to improve market share and grow the enterprise into the nation’s largest non-qualified mortgage lender, originating over $3B in mortgage products annually.

• Implemented new ERP system (Loan Vision), upgrading the end-to-end accounting function by establishing and automating commission, T&E and AP approval processes. Transformed the company’s financial package and re-engineered semiannual performance evaluations to promote consistency and improvement.

• Built a strong 17-member team vision across the Accounting, FP&A, Treasury, and Investor Reporting functions. Reduced legacy mindset to emphasize best practices, continuous improvement, and constant role re-engineering and adaptability. Took what was perceived as a weak, underperforming team and created one of the strongest results-oriented teams in the company.

• Established a new bottom-up budgeting process for the first time in company history and implemented an enhanced accounting system for 17 cost and profit centers. Transformed the company’s financial package and instituted monthly variance evaluations by cost center. Provided financial transparency to department leads for the first time in company history.

• Generated $3.5M in previously undiscovered annual interest income by leveraging dual cash investment strategies, such as investing trust cash into insured sweep accounts and money market investment strategies. This was only possible by extensive legal analysis by state and by modifying and negotiating new warehouse covenant terms with our Wall Street lenders.

• Voting member of the Compliance Committee.

EBB Group (Dallas, TX)

An investment bank with over 30 years of experience providing advisory services in mergers, acquisitions and divestitures for middle market companies.

Director 2018 – 2022 (Part-time)

Led west coast office including active engagement in all facets of the M&A and capital raising deal process including acquisition of mandate, strategic and financial buyer search, due diligence and financial modeling. Worked with C- level executives and founders to execute negotiation strategies with buyers.

Middle Market CFO Services (Rancho Santa Margarita, CA)

Provides financial leadership for middle-market companies in operational and financial growth areas that impact efficiency and profitability. Areas of expertise include operations, profitability analysis, revenue recognition, budgeting, technology, restructuring, M&A, and financial reporting and analysis. Principal 2014 – 2021

• Provided fractional CFO services to middle-market and Private Equity Portfolio companies

• Developed and implemented financial strategies that significantly increased shareholder value

• Managed financial operations across software, technology, financial services, manufacturing, and business services

South Orange County Tennis Academy (Coto De Caza, CA) One of the largest tennis academies in Orange County providing diverse tennis programming for all levels of aspiring tennis players.

Founder and Director 2015 – 2022 (Part-time)

Founder of South Orange County Tennis Academy (SOCTA) to bridge the gap between high quality tennis programming at a reasonable price. We provided the highest quality instruction and equip our students with the mental, physical and technical tools necessary to compete successfully at the highest levels. SOCTA grew to be one of the largest tennis academies in South Orange County.

Real Estate Digital (Irvine, CA)

SaaS and Online Media Services Spinouts of Lender Processing Services in which select assets and product lines were purchased taking them private. Founded RED along with previous team leaders from Lender Processing. Chief Financial Officer & Co-Founder 2011 – 2014

Led critical negotiations of both spinoffs and shared services from public company, providing the financial leadership to position both spinoffs for future acquisition. Directed the ASC 805 purchase accounting analysis, new accounting system integration, treasury, internal controls, FP&A, budgeting, revenue recognition, M&A, and audit activities.

• Executed a management buyout of select assets from public company, taking public assets private. Co-Founder of SaaS and Online Media Services spinout with other executive leadership team.

• Led 7 direct reports in the ASC 805 purchase accounting implementation and new accounting system integration as well as general treasury, internal controls, reporting, budgeting, revenue recognition, M&A, and audit activities.

• Privatized the company after an intensive 30-day negotiating window as part of a management buyout. Over the next 3 years, drove 15% annual revenue gains and 40% profitability improvement. Delivered over 1,000% ROI for shareholders following the company sale in 2014.

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• Launched a spinoff product line, Cerulean Media Holdings, as a stand-alone organization. Increased revenue by 15% and profitability by 25% to deliver 1,000% return on shareholder value upon exit.

Lender Processing Services Real Estate Group (Irvine, CA) SaaS - $100M+ revenue division of NYSE-traded Lender Processing Services ($2B overall in revenue) providing SaaS technology and data & financial services

Senior Vice President & Chief Financial Officer 2008 – 2011 Recruited by the president to provide financial discipline and restructure an organization that was losing market share and burning through cash. Held full P&L responsibility with a nationwide staff of 19+ direct/indirect reports. Executed financial and operational disciplines and standardized processes across budgeting, reporting, payroll, and treasury

• Maintained full P&L responsibility and led a national staff of 19 direct and indirect reports.

• Converted $21M in losses to $1.8M in pretax gain by developing a comprehensive joint venture turnaround that halted revenue losses and cash burn by selling and eliminating unprofitable lines, resulting in the minority owner acquiring 100% of the company.

• Restructured a $100M division rapidly losing market share and consistently operating at a loss. Optimized business practices to stem dropping pre-tax margins from 20% to single digits within the largest product line. Result - Added over $1M in pre-tax profits and increased margins by 87%.

• Transformed the Finance function to become one of the strongest company teams and a trusted executive partner after lowering headcounts by 17%, improving productivity by 50%, and saving $200,000 in annual salary. Accelerated the closing process from over 10 days to just 4.

Lending Tree (Irvine, CA)

Fintech mortgage bank - one of the nation’s leading online lending exchanges, connection consumers and lenders. Vice President of Finance & Risk Controller 2004 – 2008 Hired by the CFO take private company public and provided the financial leadership that consummated acquisition by a publicly traded company. Was only CPA on staff and was primary liaison with external auditors. 4 direct reports. Member of Enterprise Risk Management Committee.

• Supported the private company’s public debut by providing financial leadership that consummated acquisition by a publicly traded company. Operated as the only CPA on staff, served as primary liaison with external auditors, and led technical accounting, risk management and internal audit group.

• Developed an actionable Opportunity Cost Analysis to identify over $5M in profitability opportunities across hedging, secondary marketing, interest carry, warehouse lines, and debt covenants.

• Attained SEC compliance requirements by implementing complex derivative accounting standards as well as reporting mechanisms and requirements for a highly complex GAAP standard.

• Implemented Sarbanes-Oxley (SOX) for both IT and Operations with testing methodologies to verify control performance. Launched the Internal Audit function concurrently to achieve and maintain ongoing compliance testing for SOX controls. Member of the Enterprise Risk Management Committee.

Pacific Life Insurance Company (Newport Beach, CA) The ninth-largest life insurance company in the nation providing life insurance products, annuities, and mutual funds offering a variety of investment products and services to individuals, businesses, and pension plans. Financial Engineer & Director – Enterprise Risk Management Group 1998 – 2004 Member of 6-person Enterprise Risk Management group tasked with managing critical risks for one of the nation's largest life insurance companies.

• Modeled $38BB investment portfolio of swaps, bonds, forward, futures through a variety of software packages including Fincad and CMS BondEdge to stress test portfolio.

• Structured and modeled $500MM collateralized debt obligation portfolio for both valuation and securitization issuance. Considered Moody’s, S&P and Fitch ratings methodology to assess potential securitization ratings. Mike Kovar Page 4 of 4

FURTHER PROFESSIONAL EXPERIENCE

Squar, Milner, & Reehl, LLP Senior Associate, Auditing Haworth International Senior Accountant

Honeywell Intercompany Accountant

EDUCATION

Master of Business Administration (MBA) Arizona State University - Tempe, AZ Bachelor of Science (BS), Mathematics Tarkio College - Tarkio, MO

Certified Public Accountant – Active

Chartered Financial Analyst - Active

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