What is 10-Q SEC Form

The10-Q Sec Form is a detailed report on the performance of a company required by all publicly owned companies to be submitted quarterly to the Securities and Exchange Commission(SEC). Unlike its other counterpart 10-k,  10-Q Sec is unaudited.

The main information contained in the 10-Q Sec is the financial position of the company,  management discussions, and analysis, internal controls and disclosure among others.

Points To Note About 10-Q Sec

• 10-Q is a well-detailed report on the financial performance and overall performance of a company expected of every public company to be submitted quarterly to the Securities and Exchange Commission (SEC).

• The form helps keep investors up to date with the ongoing financial condition of the company.

• 10-Q is processed upon completion of each quarter, hence the number of 10-Qs expected in a year is three. There is no 10-Q report in the final quarter of the year because this is when the 10-K is filled. 10-Q is usually filed unaudited but 10-K is more comprehensive and audited.

• To check out a company's 10-Q, one can easily locate this at the  SEC's EDGAR database.

Information In The 10-Q Sec Form

There are two major parts in the 10-Q form. The first includes relevant financial information from the previous quarter to the present. Also in the first part, management and financial analysis on entities are explained. It also contains information on the present market risk and internal control measures are given.

The second part of the 10-Q contains other relevant information ranging from unregistered sales of equity securities, legal proceedings, how proceeds from the sales of unregistered sales of equity are used and default upon senior securities. Other information such as the exhibit is also explained in this section.

Advantages of 10-Q Sec Form

The major advantage of 10-Q Sec Form is to keep investors abreast of the financial system of the company. The 10-Q help investors to know the changes going on in the company.

Also, 10-Q examined the key areas that are of interest to investors. This area includes share buybacks, working capital and/or accounts receivables, company inventory and so on.

What Happens When A Company Fails To Meet The Deadline?

When a company fails to meet up with the deadline of filing, the company simply filed with the use of a non-timely form (NT 10-Q). In this form, the company would explain the reasons why it could not meet up with the deadline. Based on how valid the reasons are, the company would be given an extra five days.

Among the reasons companies usually fail to meet up with deadlines are mergers and acquisitions (M&A), ongoing reviews by corporate auditors, corporate litigations and so on.

If after the extended deadline, the company could still not meet up with the submission, the company would face consequences ranging from loss of the SEC registration, legal ramifications, exemption from exchanges and so on.