Companies that raised money online using Reg CF or Regulation Crowdfunding must file Form C-AR by today (April 29, 2024). Form C-AR references the required filing of the company’s annual report.
While there have been thousands of firms that have leveraged the JOBS Act securities exemption, there are a good number that have been slow or delinquent in filing the mandated document. While the SEC is aware of the shortfall, so far the Commission has not publicly commented on the issue. This is probably due in part to the fact that for many or these firms it is not negligence so much as cost and comprehension. However, failure to file the document could impede future funding rounds.
As CI has recently reported, Crowdfund Capital Advisors (CCA) is offering a free guide to help firms file the report.
And raisepapers, part of KingsCrowd, is offering a service so issuers can streamline the process of completing the report.
