An SRC (Smaller Reporting Company) is generally a company that meets certain public float or revenue thresholds when it first determines its status. A company qualifies as an SRC if it has:
1️⃣ A public float of less than $250 million, or
2️⃣ Less than $100 million in annual revenues and either no public float or a public float of less than $700 million.
SRCs can choose to take advantage of scaled disclosure requirements, which allow smaller public companies to provide less extensive disclosures in SEC filings. If you’re wondering what is an SRC or how smaller reporting company status works, this designation helps reduce compliance costs while maintaining transparency for investors.
Smaller Reporting Companies, Rule 405 of the Securities Act, Compliance Guide: Smaller Reporting Company Definition, Fact Sheet: Amendments to the Smaller Reporting Company Definition
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