The SEC released today a presentation regarding financial reporting issues for smaller issuers. A portion of this document reflected upon the changes regarding the Jobs Act and crowdfunding. This is reflective of the challenges the SEC is facing in their regulatory struggle regarding this disruptive form of capital formation.
The Jumpstart Our Business Startups (JOBS) Act, which was enacted on April5, 2012, made several significant changes to the securities laws.Title I of the JOBS Act, which was effective immediately upon enactment,creates a new category of company called an “emerging growth company,”which is defined as a company with total annual gross revenues of less than $1 billion during its most recently completed fiscal year and has either (1) not yethad or (2) had after December 8, 2011, its first sale of common equitysecurities pursuant to an effective registration statement under the SecuritiesAct of 1933…
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