Splunk Inc. Form 424B4 on 4/20/12 (SEC file no. 333-178988)
Infoblox Inc. Form 424B4 on 4/20/12 (file no. 333-178925)
Midstates Petroleum Company Form 424B4 on 4/20/12 (333-177966)
Proofpoint Inc. Form 424B4 on 4/20/12 (file no. 333-178479)
Essentially, emerging growth companies are exempted from certain regulatory requirements until the earliest of three dates: (1) five years from the date of the emerging growth company’s initial public offering; (2) the date an emerging growth company has $1 billion in annual gross revenue; or (3) the date an emerging growth company becomes a large accelerated filer, which is defined by the SEC as a company that has a worldwide public float of $700 million or more.
The JOBS Act allows emerging growth companies to provide audited financial statements for the two years prior to registration, rather than three years as is now required of other public companies. This two-year period already applies to companies with a public float under $75 million, which are known as non-accelerated filers.
In addition, emerging growth companies:
- are not required to comply with Sarbanes-Oxley Act Section 404(b) requirements for auditor attestation of internal control over financial reporting;
- have reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements;
- are not required to hold shareholder advisory votes on executive compensation, or obtain shareholder approval of any golden parachute payments not previously approved;
- are not required to comply with any new audit rules adopted by the Public Company Accounting Oversight Board after April 5, 2012, unless the SEC determines otherwise,
- can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards, thus can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
