Investors Knowledge Base

After You Invest

After you invest, the Issuer is generally required to file annual reports with the SEC and post them on its own website within 120 days after the end of the fiscal year. The annual report will typically include:

  • The same types of information included on the Form C you saw when you invested;
  • Updated financial statements certified by the principal executive officer of the Issuer (the financial statements don’t have to be reviewed or audited, but if the Issuer already has reviewed or audited financial statements, they must be provided); and
  • Updated disclosures about the Issuer’s financial condition.

The Issuer is allowed to stop filing annual reports upon the earlier to occur of:

  • The date the Issuer has filed at least one annual report and has fewer than 300 shareholders of record;
  • The date the Issuer has filed at least three annual reports and has total assets no greater than $10 million;
  • The date the Issuer or someone else buys all of the securities issued in the Title III offering;
  • The date the Issuer registers its securities and is required to file reports under the Securities Exchange Act of 1934; or
  • The date the Issuer is dissolved under state law.

At best, you will have current information about the Issuer once per year. If the Issuer stops providing annual reports, you won’t have current financial information about the Issuer at all.