Legal Definitions - accelerated filer

An accelerated filer is a specific classification given by the U.S. Securities and Exchange Commission (SEC) to certain publicly traded companies. This classification means these companies must submit their regular financial reports to the SEC on a faster schedule than other companies. The purpose is to ensure that investors receive timely financial information from larger, more established companies.

To qualify as an accelerated filer, a company must meet several criteria established by SEC Rule 12b-2:

• It must have a "public float" (the total market value of its shares held by non-affiliates, meaning shares not owned by company insiders or large controlling shareholders) between $75 million and $700 million.
• It must have been publicly reporting its financial information for at least 12 months.
• It must have already filed at least one annual report (such as a Form 10-K) with the SEC.
• It must not be categorized as a "smaller reporting company," which has different, often more lenient, reporting requirements.

Once a company is designated an accelerated filer, its deadlines for submitting key financial reports become shorter:

• Annual reports (Form 10-K) must be filed within 75 days after the company's fiscal year-end.
• Quarterly reports (Form 10-Q) must be filed within 40 days after the end of each fiscal quarter.

Examples:

• Fast-Growing Software Company:InnovateSoft Inc. went public two years ago. Initially, its public float was below $75 million, so it wasn't an accelerated filer. However, due to rapid growth and increased investor interest, its public float recently surged to $250 million. It has consistently filed its periodic reports for over 12 months and has submitted two annual reports. InnovateSoft now meets all the criteria: its public float is between $75 million and $700 million, it has a sufficient filing history, and it's not a smaller reporting company. Consequently, it must now file its Form 10-K within 75 days and its Form 10-Q within 40 days, providing investors with quicker access to its financial performance.

• Mid-Sized Pharmaceutical Manufacturer:MediCure Pharma has been a publicly traded company for over a decade, with a stable public float consistently around $400 million. It has a long history of filing all required SEC reports on time. MediCure Pharma exemplifies a typical accelerated filer because its substantial public float places it firmly within the required range, and its extensive history of public reporting ensures it meets the experience criteria. As such, MediCure Pharma regularly adheres to the 75-day deadline for its annual 10-K and the 40-day deadline for its quarterly 10-Q reports, reflecting its ongoing commitment to timely disclosure.

• Regional Bank Holding Company:Community Bancorp, a holding company for several regional banks, has been publicly traded for five years. Its public float has fluctuated but generally stays within the $100 million to $300 million range. It has always met its reporting obligations. Community Bancorp qualifies as an accelerated filer because its public float falls within the specified range, it has been filing reports for more than a year, and it has filed multiple annual reports. This classification means that Community Bancorp's investors and the public can expect its financial updates, such as its quarterly earnings, to be released within the accelerated 40-day timeframe, ensuring prompt access to crucial financial health indicators.