SEC Increases Thresholds for “Smaller Reporting Company”

On June 28, the Securities and Exchange Commission increased the thresholds for “smaller reporting companies” (“SRCs”) and made certain other amendments designed to enlarge the category.  See here. “SRCs” are the lowest category of reporting companies (large accelerated filers, accelerated filers, non-accelerated filers and SRCs).  They need file only two years of audited financial statements, rather than three, and they have other reduced filing and disclosure requirements.  The thresholds have been increased from $75 million public float to $250 million; and from $50 million annual revenues and no public float to $100 million annual revenues and either no public float or float of less than $700 million.  (An SRC also cannot be an investment company, an issuer of asset-backed securities or owned by a parent that is not an SRC.)  The new rules will take effect on September 10, 2018.