What are some of the Reg A+ qualifications?

Getting qualified for your Regulation A+ offering can be both tedious and take significant time. Below are some of the most frequently asked questions about filing your Form 1-A and getting qualified with the SEC:

How long does it generally take to get qualified by the SEC

 

  • 30 Days to compile the required documents.
  • 30 Days to complete and submit the forms.
  • 30-45 Days to get SEC appeal.

 

What is a Form 1-A and what does it cover?

The Form 1-A is the offering statement form for Regulation A of the JOBS act of the SEC another name for this is Title IV. 

What are all of the things I need to include in my Form 1-A?

  • Issuer Information
  • Contact Information
  • Financial Statements
  • Issuer Eligibility
  • Rule 262 Application (Bad Actor Rules)
  • Summary Information Regarding the Offering and Other Current or Proposed Offerings
  • Jurisdictions in Which Securities are to be Offered
  • Unregistered Securities Issued or Sold Within One Year
  • Offering Circular
  • Summary and Risk Factors
  • Dilution
  • Plan of Distribution and Selling Security Holders
  • Use of Proceeds to Issuer
  • Description of Business
  • Description of Property
  • Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • Directors, Executive Officers and Significant Employees
  • Compensation of Directors and Executive Officers
  • Security Ownership of Management and Certain Security Holders
  • Interest of Management and Others in Certain Transactions
  • Securities Being Offered
  • Part F/S
  • Financial Statements for Tier 1 Offerings
  • Financial Statement Requirements for Tier 2 Offerings  
  • Index to Exhibits (P. 26)
  • Description of Exhibits (P. 26)
  • Signatures

Do I include StartEngine in the Form 1-A?

No, StartEngine is not a promoter and thus should not be included in the offering. Please note that StartEngine will not review the offering circular and advise the company on their valuation -- we are not allowed to provide any sort of legal advice for Regulation A+ offerings.

Can I submit the Form 1-A online?

Yes, linked to the word “yes” is the website where one must login to submit it on EDGAR. Usually the attorney that your company is working with will be familiar in how to maneuver the EDGAR filing website. working 

How much does it cost in total to file a Form 1-A?

Cost varies depending on if you use agents or not. The filing fees with EDGAR change as well. The current price to submit an EDGAR form can be found here. The fee is calculated by multiplying the aggregate offering amount by .0001007.

What will the SEC review committee look for first with my Form 1-A?

  • All fields on the form must be completed.
  • Properly audited financial statements must be included. The staff will stop reviewing if the financial talents are not valid.
  • Reports must cover financial periods between the most recent period included in a qualified Form 1-A offering statement and the issuer’s first required reporting period.

How long should I expect it take for the entire Form 1-A filing process?

According to the SEC, the estimated Burden Hours is 608 hours.

 

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