What is a Smaller Reporting Company?

Introuduction

A smaller reporting company (“SRC”) is a designation under the SEC rules allows for less stringent requirements reporting requirements.

Eligbility

To qualify as an SRC, the reporting company must have:

• less than $250 million in public float; or
• annual revenues of less than $100 million and either
  • (1) no public float; or
  • (2) public float of less than $700 million.

Benefits of Being an Smaller Reporting Company

SRCs don’t need to provide certain disclosures on Form 10-Q and on Form 10-K.

SRCs have 45 days after the reporting period as the deadline to file the 10-Q or the 10-K (as opposed to 40 days for regular reporting companies).

SRCs only need to provide 2 years of audited financial statements (as opposed to 3 years for regular reporting companies.

Disclaimer

This is not legal advice and does not create an attorney-client relationship between you and the author. This article is being furnished for educational purposes only.

The author makes no warranty as to the accuracy, completeness or applicability of the information and undertakes no obligation to update the information.