The SEC Commissioners voted unanimously on June 28, 2018 to
expand the definition of "smaller reporting company."
This change has been requested as a key recommendation for a number
of years at the annual SEC small business conference.
Companies with SRC status have somewhat relaxed disclosure and
reporting obligations, such as providing two rather than three
years of financial information, as well as relief from some of the
more costly aspects of the Sarbanes-Oxley Act of 2002. The change
is effective 60 days after publication in the Federal
Register, which should happen fairly soon.
The revised definition raises the value of a company's
public float to qualify as an SRC from $75 million to $250
million. If a company does not have public float (such as at the
time of its IPO), it previously was an SRC unless revenues exceeded
$50 million. The new rule says any company is an SRC if it has less
than $100 million in revenues and either no public float or a
public
