Quarterly report

Quarterly report is set of financial statements issued by a company at the end of fiscal quarter on a SEC form 10Q. It is a report of company performance during the specified period which helps investors to feel pulse of the company by getting insights into business performance and growth rate and provides them with future outlook.

Federal Securities law require from public companies to to provide certain information. Form 10Q has two parts that have to disclose relevant information regarding the company's financial position. First part contains unaudited financial statement (income statement, balance sheet, cash flow statement) for the quarter and year-to-date and results from previous year for comparison. It also includes management discussion and analysis of the company's financial condition, disclosure about risk factors that may affect the value of the company, internal controls. Second part contains all other pertinent information, including legal proceedings, unregistered sale of equity and use of proceeds from the sale, defaults upon senior securities, use of exhibits. Share price can experience significant gain or loss after the release of 10Q.

Quarterly report on form 10Q has similar information as on form 10K of annual report but less comprehensive. It has to be submitted at the end of first three fiscal quarters and at the end of fourth quarter annual report on form 10K is submitted. Quarters end on the last day of March, June, September and December but some companies follow different financial calendar. Deadlines for filing a quarterly report differ based on category in which issuer is classified. There are three categories that are determined by public float of the company. Public float represents part of company shares that are in the hands of the public and not in possession of insiders (officers,owners or the government). Large accelerated filers have public float of at least $700 million and deadline of 40 days to file a report. Accelerated filer has public float between $75 million and $700 million with same deadline of 40 days to file a report. More extend deadline of 45 days is reserved for non-accelerated filers with public float with less than $75 million.

If a company is failing to meet the deadline it must file report using non-timely filing and explain why the deadline is not achieved. This type of filing fives company five additional days an the filing is considered timely if it is done during this extension. Failing to meet the deadline brings legal repercussions and possible delisting and loss of SEC registration.

Comments

OTC stocks more difficult to trade and deposit

Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...

Company Disclosures

When we speak about disclosures and what they represent in financial terms, that actually refers to providing the public with all relevant information about a company on time. So relevant information includes facts, figures, dates, procedures, innovation, etc, which means any information regarding a company that can probably impact an investor’s decision. As a result, it is necessary to comprehend that public company directors and officers are in charge of company disclosures and securing investors with complete and valid information. Access to material info enables investors to make information-based investment decisions, which is vital for efficient market pricing and on which state and federal securities are based. Anytime new stocks are issued to the public, the SEC requisite disclosures of relevant financial and business info to possible investors, with exemptions provided for private placements and small issues. Integrated disclosure structure is the name give...

How important marketing is for Regulation A?

Regulation A+ represents the lately enacted SEC rule that amends and expands the rarely utilized Regulation A offering exemption. Regulation A+ might be viewed as an alternative to a small registered IPO and also, as a substitute or addition to other securities offering procedures that are not subject to registration under the Securities Act. Although Regulation A+ is still quite new, it is swiftly establishing a name as the perfect spot for so many American businesses looking for capital. Reg A+, which is supported by the SEC, actually permits non-SEC reporting corporations to raise capital from public investors while also allowing (or even more motivating) the issuer to publicize their offering openly. The opportunity to publicly market to investors has benefited greatly for numerous corporations. This method is intended to reduce regulatory constraints by allowing companies who wouldn’t have contemplated pursuing total IPOs to get the type of financing necess...

Mina Mar Group

Search This Blog