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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.
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