How do I complete the financial review?
The financial disclosure requirements vary depending on the amount of money that has been raised by the issuing company via Regulation CrowdFunding (Small OPO) in the past 12 months, plus the target amount for the current offering. Please review the overview and chart below to determine what you need to provide, and what age of financial statements are required.
Companies that have not hit their fiscal year end
If you have not hit your first fiscal year-end (Example: A January 2017 (or later) incorporation) you only need to include a balance sheet with your financial review.
$107,000 or less
If the current offer plus previous Small OPO raises amounts to $107,000 or less, the company must provide information from its tax returns (but not the tax returns themselves) certified by the principal executive officer. You must disclose your company's total income, taxable income and total tax, or the equivalent line items from your federal income tax documentation. If financial statements have been audited then they must be provided, too, certified by the principal executive officer.
We have provided templates below make this process as streamlined as possible. Please note that these are only templates, and should be adjusted to fit the needs your company. *The templates provided should not be represented as GAAP compliant, should not be relied on for accuracy, or should not be considered complete to meet the requirements of SEC or other filing requirements. Anyone using such templates does so at their own risk and should take responsibility the document. Using these documents does not represent that we have reviewed the contained information in any way.
Up to $107,000 Financial Review Templates
$107,000.01 up to $535,000
If the current offering plus previous Small OPO raises is between $107,000.01 and up to $535,000, financial statements reviewed by an independent CPA are required. If audited financial statements are available, they must be provided as well. The review must be for the shorter of the two most recently completed fiscal years or the period since your company's inception.
$535,000.01 up to $1,070,000
If the current offer plus previous Small OPO raises amounts to $535,000.01 or more, the required financial statements must be audited by an independent CPA. However, if the company has never previously sold securities under Regulation Crowdfunding, the financial statements will only be required to be reviewed by an independent CPA.
Note: If a company receives over-subscriptions on its raise that put it into a different tier and wants to keep the over-subscriptions, the company will need to provide financial disclosures as required by the new tier and file an amendment.
If you would like us to refer you to a CPA, please email email@example.com.