SEC Extends Reporting Headache for Tiny Wall Street Wannabes
Published Date: 9/3/2025
Notice
Summary
The SEC is asking to keep using Form 1-SA, which Tier 2 companies must file twice a year to share financial updates after raising up to $75 million. About 464 companies spend lots of time and money preparing these reports, with some help from outside pros costing millions annually. You’ve got until October 6, 2025, to share your thoughts on this paperwork extension!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Semiannual Form 1‑SA Filing Required
If your company is a Tier 2 issuer under Regulation A that conducted offerings of up to $75,000,000 within a 12‑month period, you must file Form 1‑SA as a semiannual report. The SEC estimates each Form 1‑SA takes about 188.04 hours to prepare (about 159.834 hours done internally), and 464 issuers file Form 1‑SA annually; the form is mandatory and is posted publicly on the SEC’s EDGAR system.
Millions Spent on Outside Professionals
The SEC estimates that 15% of the 188.04 hours per Form 1‑SA (28.206 hours per response) is performed by outside professionals at an estimated $600 per hour. That outside professional time totals an estimated $7,852,550 in annual cost burden across 464 responses.
Public Access to Semiannual Financial Updates
Form 1‑SA provides semiannual interim financial statements and information about an issuer’s liquidity, capital resources, and operations after the issuer’s second fiscal quarter so the public is better informed. These Form 1‑SA reports are publicly available on the SEC’s EDGAR system.
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