10-Q Filing Requirements

The delay would affect not only the SEC, but also government markets – as delayed quarterly reports have been shown to coincide with a negative market reaction in the form of stock price declines. Disclosures in periodic filings must meet a variety of SEC requirements and are publicly available on the SEC`s website. The Nt 10-Q filing can be associated with sudden significant events such as a merger/acquisition, as well as auditors who delay the process due to accounting updates that have a disproportionate impact on businesses. After all, shareholders own the company, and if quarterly deposits are not required, it can result in additional distance between insiders (i.e., CEO, CFO, board of directors) and shareholders. The 10-Q is one of the many reports that public companies must file with the SEC. The issuer`s first quarterly return must be filed either within 45 days of the effective date of the registration return or no later than the date on which such a report should have been filed if the issuer had to file reports on Form 10-Q beginning with its last fiscal quarter; depending on what is later. For example, Warren Buffett criticized the quarterly filing requirement in his 2018 letter to shareholders, as outlined below. Form 10-Q credentials depend on the category of issuer. The categories are listed below: The late submission rules are different for OTC issuers. OTC companies can also take advantage of the five-day extension granted by filing an NT-10Q, but if they miss the due date a second time, an “E” will be added to their ticker symbol for 30 days; If the bid is made during this period, the “E” will be withdrawn and the stock will continue to trade as before. However, if the grace period expires without a deposit, the stock will be demoted to OTC Pinks, which can affect the company`s prestige and ability to raise funds.

In both scenarios, the “E” disappears from the issuer`s ticker symbol after 30 days. The Form 10-Q and filing requirement were determined by the Securities and Exchange Act of 1934. The aim was to promote transparency in the business activities of listed companies by continuously communicating the financial situation of companies to investors. Issuers may extend the applicable maturity date for their Form 10-Q by filing a Form 12b25 (also known as NT-10Q) with the SEC. A Form 12b-25 must be filed no later than the business day following the expiry of the initial filing deadline of 10-Q and must indicate in reasonable detail the issuer`s inability to file the report in a timely manner and the reasons for doing so. The 12b-25 extends the transmitter`s 10-Q period up to 5 days. As long as a company has a reasonable explanation, the SEC allows late filings within a certain period of time. Common reasons why companies are unable to file a filing request in a timely manner include mergers and acquisitions (M&A), corporate litigation, ongoing review by corporate auditors, or the ongoing impact of insolvency. At DFIN, we have systems in place that streamline the SEC reporting process to better help organizations manage the complexity of filing. Our flagship product, ActiveDisclosure℠, is a simpler collaborative submission tool for 10-Q and other SEC financial reports. A 10-Q filing is a report that all publicly traded companies must file with the Securities and Exchange Commission (SEC) after the end of each of their first three tax quarters (hence the “Q”).