The Securities and Exchange Commission (SEC) requires public companies, especially those seeking to raise capital and open themselves to outside investors, to submit certain documents and filings. One such filing is Form S-1 SEC for companies seeking to offer new securities offerings. It can be used by companies planning to go public If you plan to offer shares to investors or register shares for the stock exchange, you must submit this form as part of your public company audit report.
It can be challenging to keep up with the documents and filings necessary to make your business public. In this post, we’ll discuss Form S-1 SEC so you better understand what this form requires and who you should contact to help you prepare your documents.
What is Form S-1 SEC?
Form S-1 is a registration document the SEC requires of public companies that wish to raise capital or seek new securities and investments. Companies usually file SEC Form S-1 in anticipation of their initial public offiering (known as an IPO).
This form is time-intensive and will need to be reviewed by legal counsel before submission. It also requires verified, audited financial statements relating to your business expenses and full disclosure of your operations. However, the good news about this filing is that it only needs to be submitted once over the life of your business. So, while it might take some time to prepare, it’s worth it in the long run.
An Overview of the Components of Form S-1 SEC
Form S-1 requires two of your most recent audits, so it’s necessary to work with an experienced audit firm. Let’s look at each of the documents required by SEC Form S-1 so you can begin preparing your documents.
Audited Balance Sheet
You’ll need a copy of your business’s most recent balance sheets. A balance sheet is a financial document that shows a general overview of your company’s assets, liabilities, and equity.
You will need to submit audited balance sheets (consolidated if you have subsidiaries) as of the end of the two most recent fiscal years. This document helps to prove your business’s performance, and it must be audited by an independent PCAOB auditor to be accepted by the SEC filing.
Audited Statement of Income & Cash Flow
A statement of income is an overview of your business’s revenues and expenses. It helps describe the cash that comes into your business and the money that flows out. You’ll also need to provide a shareholder’s equity statement. This statement describes the amount of capital your stakeholders have invested in your company and the amount of money left over if you sold your business and paid its debts.
These financial statements of income and cash flows are required to be audited for each of the two to three fiscal years (depending on the size of your company) before the most recent audited balance sheet date or for the shorter time your company has been in operation.
Reviewed Financial Statements
Your business’s financial statements are one of the most important documents required by Form S-1. A financial statement contains information about your state and federal tax filings, employee benefit programs, and any assets held by the company. A reviewed financial statement also includes your independent contractor’s detailed opinions about your business, which is necessary to determine the validation and approval of your filing.
Prepare Your Form S-1 SEC Filing with Assurance Dimensions
Deciding to open your company to public funding can be an exciting time for your business. However, it can also be hectic, as Form S-1 requires significant time to prepare and file. With the help of experienced audit partners, filing your public registration can be done reliably.
At Assurance Dimensions, we are your trusted audit and assurance service partners. With over 75 years of industry experience, we are ready to help guide you with PCAOB audits. If you’re ready to begin filing, contact us today to learn more about our services.