50% of Emerging Growth Companies Have $0 Revenues
According to a new report from the Public Company Accounting Oversight Board 50% of Emerging Growth Companies (ECG) not listed on the NASDAQ or NYSE have no revenue. 50% of all ECGs had reported sales of less than $140,000.
The general financial data from ECG wasn’t very impressive and was even worse for issuers not listed on a senior exchange (ECG not listed on the NASDAQ are usually listed on the OTC or are voluntary filers).
About 51% of the EGCs studied, and 74% of those that weren’t listed on senior exchanges, had an explanatory paragraph in their most recent auditor’s report that expressed “substantial doubt about the company’s ability to continue as a going concern.”
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