“Emerging Growth Company” Transition and Compliance After Loss of Status

An emerging growth company (EGC) is a type of issuer that can follow relaxed disclosure and gun-jumping regulations when it files with the SEC to go public. This status was created by the JOBS Act of 2012 to help smaller companies access public markets. To qualify as an EGC, a company must have total annual gross revenues of less than $1.235 billion in its most recent fiscal year and must have completed its initial public offering after December 8, 2011. An EGC can keep this status for up to five years. Once a company loses its status as an EGC, it must comply with the disclosure requirements applicable to companies other than EGCs beginning with its next periodic report.

Our Public Company Advisory Practice has prepared this EGC Transition and Compliance document to help attorneys and public companies analyze and process EGC transition and compliance dates.