Nearly 1,000 Companies to Receive Smaller Reporting Company Status
With unanimous approval, the Securities and Exchange Commission (“SEC”) voted last month to issue a final rule that will give 966 companies smaller reporting company status. The rule, Release No. 33-10513, Amendments to Smaller Reporting Company Definition, raises the public float threshold (i.e., the value of a company’s publicly traded stock) for a smaller reporting company from $75 million to $250 million. Additionally, companies with no public float or have a public float under $700 million can qualify as a smaller reporting company if annual revenues were less than $100 million in their most recently concluded fiscal year. The SEC. Read More.
Change to Smaller Company Definition Expected in Spring 2018
A final rule to expand the smaller reporting company definition could be issued next spring. According to the Office of Budget and Management’s recent update to its rulemaking agenda, the Securities and Exchange Commission (“SEC”) plans to revise the definition to allow more companies to submit fewer disclosures in regulatory filings. Proposed in June 2016, the rule makes businesses with a public float of up to $250 million eligible for the SEC’s reporting requirements under Release No. 33-10107, Amendments to Smaller Reporting Company Definition. With the current threshold at $75 million, only 32 percent of SEC-registered companies had under $75. Read More.
Smaller Reporting Company Changes Proposed
A proposal by the Securities and Exchange Commission (“SEC”) aims to expand the financial thresholds under its definition for “smaller reporting company,” making it easier for companies to qualify for certain scaled disclosures under Regulation S-K and Regulation S-X. The changes would raise the threshold for a smaller reporting company from $75 million to $250 million. In addition, companies without a public float would be allowed to offer scaled disclosures if their annual revenues are below $100 million, which is double the current threshold. Another proposed change relates to when companies revert from being an accelerated filer back to being. Read More.