ERHC Energy Inc (ERHE)

[emdyal]

Which Companies File Reports With the SEC?

In general, the federal securities laws require all but the smallest of public companies to file reports with the SEC. A company can become "public" in one of two ways - by issuing securities in an offering or transaction that's registered with the SEC or by registering a class of the company’s securities with the SEC. Both types of registration trigger ongoing reporting obligations, meaning the company must file periodic reports that disclose important information to investors about its business, financial condition, and management.

This information is a treasure trove for investors: it tells you whether a company is making money or losing money and why. You'll find this information in the company's quarterly reports on Form 10-Q, annual reports (with audited financial statements) on Form 10-K, and periodic reports of significant events on Form 8-K.

A company must file reports with the SEC if:
•it has 2,000 or more investors or more than 500 investors that do not qualify as 'accredited investors,' and $10 million or more in assets; or

•it lists its securities on any 'national securities exchange,'; or

•its securities are quoted on the OTCBB or in the OTCQB marketplace of OTC Link; or it has registered an offering of its securities under the Securities Act of 1933 and has more than 300 holders of record or more than 1,200 holders of record if a bank or bank holding company.

If you'd like to learn more about the SEC's registration and reporting requirements, read Small Business and the SEC.

All OTCBB and OTCQB companies must file updated financial reports with the SEC or with their banking or insurance regulator. Any company that does not file timely reports with the SEC or their banking or insurance regulator is removed from the OTCBB OTCQB.

Tip: Tip: When an OTCBB company fails to file its reports on time, filed an incomplete filing or for those companies that file with a banking or insurance regulator, has not provided FINRA a copy of the report, FINRA will add a fifth letter "E" to the OTCBB trading symbol. The company then has 30 days to file with the SEC or 60 days to file with its banking or insurance regulator. If it's still delinquent after the grace period, the company will be removed from the OTCBB. You'll find a list of securities that have been removed from the OTCBB at http://www.otcbb.com/DailyListContent/delistings/OTCBBDelOpenReport.pdf.