The Securities and Exchange Commission has proposed to amend the definition of a smaller reporting company to a registrant with either a public float (i.e. the market value of the registrant’s common equity held by non-affiliates) of less than $250 million, or a public float of zero (meaning that all of the registrant’s common equity is held by affiliates) and revenues of less than $100 million in the prior year. However, if a registrant does not initially qualify as a smaller reporting company, the registrant will not be eligible to qualify as a smaller reporting company unless or until the registrant either has a public float of less than $200 million, or a public float of zero and revenues of less than $80 million in the prior year. Under the current rules, a smaller reporting company is defined as a registrant with either a public float of less than $75 million, or a public float of zero and revenues of less than $50 million in the prior year.

Registrants that qualify as smaller reporting companies are eligible to avail themselves of scaled disclosure obligations for their periodic reports and financial statements filed with the SEC. Smaller reporting companies are also not required to provide an independent registered public accounting firm’s attestation report on their internal controls over financial reporting in their annual reports.

The SEC will be accepting comments on the proposed amendments through August 30, 2016.