08 July 2018

US Corporate Law News: SEC expands the scope of SRC scaled disclosures

On June 28, 2018, the Securities and Exchange Commission expanded the number of smaller companies eligible to comply with scaled disclosure requirements by approving amendments to raise the thresholds of smaller reporting companies (“SRC”). Under the amendments, a company with a public float of less than $250 million will qualify as an SRC, a company with no public float or a public float of less than $700 million will qualify as a SRC if it had annual revenues of less than $100 million during its last completed fiscal year, and companies may omit the first of three years of financial statements otherwise required for businesses acquired or to be acquired if the net revenues of that business are less than $100 million. The amendments preserve the “accelerated filer” and “large accelerated filer” requirements and, thus, companies with $75 million or more of public float that qualify as SRCs remain subject to accelerated filer requirements. For more information visit: https://www.sec.gov/news/press-release/2018-116