Summary Financial Information in Form S-1 Registration Statements

Going Public Lawyers Summary Financial Information in Form S-1 Registration Statements

Securities Lawyer 101 Blog

Under the JOBS Act, an Emerging Growth Company may provide two years of summary financial information in its SEC registration statement or for the period from the date of the company’s inception, if shorter, and any interim periods that are included in the financial statements.

Registration statement attorneys should stress to issuer’s going public that the purpose of Summary Financial Information in the Form S-1 or other Registration Statement is to highlight certain significant information and trends of the issuer’s financial condition and operations.

Summary financial information is derived from financial statements and contains less detail than the financial statements, while still providing a structured presentation consistent with that provided by the financial statements.

The summary financial information should reflect the issuer’s economic resources or obligations at a specific point in time or the changes therein for a period of time.

The required summary financial information to be included in Form S-1 and other SEC registration statements includes:

♦ the Company’s revenues;

♦ income (loss) from continuing operations, in total and per share;

♦ total assets;

♦ long-term obligations such as  debt, capital leases and redeemable preferred stock;

♦ shareholders’ equity; and

♦ any cash or other dividends declared.

The issuer may also include additional financial  information to enhance an investor’s understanding of its financial condition and results of operations.   Issuers should be mindful that while ummary  financial information is derived from financial statements and contains less detail than the financial statements, it should still provide a structured presentation of issuer’s financial condition consistent with that provided by its financial statements.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com.   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com