Alerts

SEC Introduces New Reporting Requirements for Smaller Companies

February 28, 2008

During late December, the Securities and Exchange Commission (“SEC”) adopted amendments to the disclosure and reporting requirements applicable to smaller companies. The amendments expand the universe of issuers eligible for scaled-down disclosure by creating a new category of issuers known as “smaller reporting companies,“ which combines small business issuers and most non-accelerated filers into a single category. To be a smaller reporting company, an issuer must have (i) a common equity public float of less than $75 million or (ii) if it is unable to calculate its public float, annual revenues of $50 million or less. This new category of issuer replaces the “small business issuer“ designation, which consisted of issuers with revenues and public float of less than $25 million. According to the SEC‘s calculations, approximately 1,500 additional issuers are eligible for scaled disclosure as a result of these amendments.