Skip to content
  • Saturday, February 4, 2023
  • About Us
  • Contact
  • Cookie Policy
  • DMCA
  • Privacy Policy
  • Terms of Use
OACPSRI

OACPSRI

Latest OACPSRI Information News

  • Home
  • Economy
  • Markets
  • Business
  • Personal Finance
  • Entrepreneurship
  • World
  • Home
  • SEC Adopts JOBS Act Inflation Adjustments: Increases Revenue Threshold at which Reporting Companies Lose EGC Status to $1.235 Billion
Business

SEC Adopts JOBS Act Inflation Adjustments: Increases Revenue Threshold at which Reporting Companies Lose EGC Status to $1.235 Billion

September 27, 2022
editor

On September 9, 2022, the Securities and Exchange Commission (the “SEC”) passed inflation adjustments mandated by the Jumpstart Our Business Startups Act (“JOBS Act”). As a result, an “Emerging Growth Company” (“EGC”) loses its EGC status on the last day of the fiscal year in which it achieves $1.235 billion or more in total annual gross income, instead of the previous $1.07 billion threshold. The JOBS Act requires the SEC to make inflation adjustments to certain rules promulgated under the JOBS Act at least every five years, and the most recent inflation adjustments were in 2017.[1] The final rules came into effect on September 20, 2022.

Issuers that are EGCs are permitted to take advantage of certain tiered disclosure requirements, such as: B. providing audited financial statements for two financial years instead of three, postponing compliance with certain changes in accounting standards, and failing to provide an auditor’s certification of internal control over financial reporting in, among other things, their annual reports. If an issuer qualifies as an EGC on the first day of its fiscal year, it will retain that status until the earliest (i) last day of the issuer’s fiscal year in which it has annual gross income of at least US$1.235 billion (previously US$1.07 billion USD or more); (ii) the last day of its fiscal year following the fifth anniversary of the first sale of its common stock pursuant to a valid registration statement; (iii) the date that the issuer issued more than US$1 billion of non-convertible debt securities during the preceding three year period; or (iv) the date on which the issuer is considered a Large Accelerated Filer. An issuer is considered a large accelerated filer if it has an initial public offering of at least $700 million (as of the last business day of the issuer’s most recently completed second fiscal quarter) and has been subject to SEC reporting requirements for at least 12 months and has at least one annual report submitted.

Also Read :  Wall Street Is Missing the Risk to Stocks If Inflation Is Beaten

Takeaways regarding the elevated EGC revenue threshold

  • No reclaiming status: The definition of EGC does not include a provision allowing companies to regain lost EGC status. As a result, companies that exceeded the previous gross revenue threshold of $1.07 billion in 2021 (resulting in the loss of EGC status in 2022) may not regain EGC status, even if their gross revenue in 2022 is below the revised threshold of $1.235 billion.
  • maintain status: The higher revenue threshold may be welcome news for EGCs approaching $1.07 billion in annual gross revenue, as they may still be able to benefit from relaxed EGC requirements.
  • SEC Filing Update: EGCs should ensure they update their registration statements and other SEC filings that reference the definition of an EGC and include the updated gross sales threshold.
  • Slightly more companies remain EGCs: The SEC estimates that the inflation adjustment will increase the number of EGCs by about 50 companies for a total of about 1,755 EGCs, accounting for 24.4% of all applicants.
Also Read :  Inflation "Not Worth the Price of Crashing the Economy"
Tags: act, Adjustments, Adopts, billion, capital markets, companies, EGC, increases, inflation, Jobs, law, law firms, lawyers, legal, legal advisor, legal awareness, legal developments, Legal directory, legal newsletter, legal updates, Legislative Updates, lose, offers, reporting, Revenue, SEC, status, Threshold, United States of America

Post navigation

Interac now has mellow music for the inflation-weary
India $60+ Million Genetic Testing Markets, Analysis, Competition, Forecast & Opportunities, 2018-2021 & 2022-2028 – ResearchAndMarkets.com

Related Post

Markets

Nasdaq Leads the Way for Stocks with 3% Gain

February 3, 2023
Lisa Betty
Business

Tech stocks extend post-Fed rally, Dow futures lag

February 3, 2023
Laura Lisa
Personal Finance

How to Safely Use Payment Apps

February 3, 2023
Kimberly Carol
Entrepreneurship

ICYMI: Startup Founders Describe Critical Role of Digital Tools in Entrepreneurship

February 3, 2023
editor
World

Saturn’s moon Mimas may be a ‘stealth’ ocean world

February 3, 2023
Donna Maria
Markets

Nasdaq Leads the Way for Stocks with 3% Gain

February 3, 2023
Lisa Betty
Markets

Fed’s quarter-point rate hike reaction

February 2, 2023
Lisa Betty
Markets

Trade agreements, access to foreign markets debated in U.S. Senate farm bill hearing

February 2, 2023
Lisa Betty
Business

Tech stocks extend post-Fed rally, Dow futures lag

February 3, 2023
Laura Lisa

US stocks were mixed on Thursday as tech stocks boosted vaults ahead of the Federal Reserve’s latest interest rate hike and another batch of earnings from the tech industry’s biggest…

Business

iQuantum: A modern procurement platform for today’s business

February 2, 2023
Laura Lisa
Business

Asia-Pacific markets mostly rise as investors digest Fed’s smaller quarter-point hike

February 2, 2023
Laura Lisa
Business

Bed Bath and Beyond is closing 87 more stores. See the list

February 2, 2023
Laura Lisa
Business

AMD Stock: Chipmaker Beats Q4 Targets

February 2, 2023
Laura Lisa

You may Missed

Markets

Nasdaq Leads the Way for Stocks with 3% Gain

February 3, 2023
Lisa Betty
Business

Tech stocks extend post-Fed rally, Dow futures lag

February 3, 2023
Laura Lisa
Personal Finance

How to Safely Use Payment Apps

February 3, 2023
Kimberly Carol
Entrepreneurship

ICYMI: Startup Founders Describe Critical Role of Digital Tools in Entrepreneurship

February 3, 2023
editor
World

Saturn’s moon Mimas may be a ‘stealth’ ocean world

February 3, 2023
Donna Maria
Economy

Manufacturing, overall economy softens in January

February 3, 2023
Lisa Betty
Copyright © 2023 OACPSRI
Privacy Policy