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Front Cover Page and Summary Information
Before filing a Registration Statement with the Securities and Exchange Commission (SEC), a company must prepare a front cover page. It should not use its own discretion creating this page. The SEC specifies front cover page requirements under items 501 and 502 of Regulation S-K. Disclosure information should not extend beyond one page and be limited to the required disclosure information. Be sure to follow SEC writing style requirements and prepare the statement in plain English. Since the SEC emphasizes the importance of plain English while preparing this statement, refer to Rule 421 and the Plain English Handbook as resources. The information provided should be limited to the following: • Quantity and price of shares being registered for sale, • Offering commissions and expenses • Existence and non-existence of a securities’ trading market, • Warning of risk factors, (including a warning about the possibility of loss of the entire investment), and date of the prospectus which is a statement detailing company information for prospective investors Summarize the information provided in the prospectus in plain English. However, do not merely copy information from the prospectus. Provide an abbreviated summary of the following information: • Positive and negative aspects of the business and offering • Organizational history of the company • Any company changes, such as name changes resulting from mergers or acquisitions • Products or services to be offered • Information about revenue, and if the company is not generating any revenue, detail any resources the company needs to acquire or steps to be taken to generate revenue • Information regarding any going concern opinions issued by an auditing firm regarding the implementation of the business plan • Summary financial statements revealing the major line items of the balance sheet and income statement |
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