Emerging Growth Companies Check The Box
Late last month, the SEC adopted some rules mandated by the JOBS Act including implementing the use of the term “emerging growth company” (EGC) throughout its registration and periodic reporting forms. This means that the first page of nearly every SEC form has changed to include this check box.
According to David Feldman, “The JOBS Act created the new status and gave a bunch of goodies to them in terms of lower disclosure and compliance obligations as part of the JOBS Act ‘IPO On-Ramp’ concept.“
Some goodies include that the JOBS Act:
– permits an EGC to include only two years of audited financial statements in its common equity initial public offering registration statement (“IPO registration statement”);
– permits an EGC to omit in other Securities Act registration statements filed with the Commission selected financial data 37 for any period prior to the earliest audited period included in its IPO registration statement;
– exempts an EGC from the Sarbanes-Oxley Act Section 404(b)43 auditor attestation on management’s assessment of its internal controls.
Learn more HERE.