On May 3, 2012, the SEC issued additional FAQs (Questions 18-41) on Title I (IPO on
Ramp) of the JOBS Act clarifying various issues related to emerging
growth companies (EGCs). Highlights of the FAQs are presented
below.
EGC Status
Subject to certain conditions, a company may continue to be an
EGC until the last day of the fiscal year following the fifth
anniversary of its IPO. FAQs explain that this date is determined
by looking to the fiscal year during which the fifth anniversary
occurs. The last day of this fiscal year will be the first day that
the company is a non-emerging growth company, provided that none of
the other disqualifying conditions have been triggered. For
example, if an issuer with a December 31 fiscal year-end first sold
common equity securities in an IPO on May 2, 2012, it would cease
to be an EGC no later than December 31, 2017).
