Everyone involved with equity crowdfunding and specifically Title III, Regulation Crowdfunding (“Reg CF”) has May 16, 2016 marked in their calendars. Now we are just a few weeks away from that magical date and there are still many unknowns. One of the biggest unknowns is if the funding portals will be approved by FINRA to start Reg CF. While that variable might not be known until very close to May 16, there are steps that issuers can take to prepare for Reg CF filings. Start by organizing your information for the Form C filing (see page 603 of 685 of the link). One of the lengthiest steps to preparing for a Reg CF raise is getting your financial statements reviewed by a CPA, which is where we (dbbmckennon) come in.
One of the biggest misconceptions about the financial statement review process is how long it takes and what is involved. The financial statements being presented in the Form C are virtually no different than what any US public company files with the SEC. The financials and notes, which can be lengthy, are held to similar disclosure standards. For very early stage companies, reviews can be done in about a week. For business that have been around for one, two, or many years, the review process can take 2-3 weeks or longer depending on how organized the Company is.
So what does that mean. If you plan to do a Reg CF capital raise at the very start of when it becomes available (May 16), you should contact us today to get your Reg CF financial statement review started. With only a few weeks left, time is running out to make sure everything is complete for filing.
dbbmckennon is a full service CPA firm with offices in Orange County, San Diego and Santa Monica, focused on providing quality accounting and consulting services at reasonable rates. We specialize in companies filing with the SEC and utilizing equity crowdfunding through Reg A+ and Regulation Crowdfunding. For additional complimentary information regarding this topic or other questions you may have please call one of dbbmckennon‘s offices located in Southern California or contact us here.