What updates am I entitled to after the close, and what if the company stops reporting?

If you invested in a Regulation Crowdfunding (Reg CF) offering, the update you are entitled to under SEC rules is the company’s annual report. An issuer that sold securities under Reg CF must file an annual report on Form C-AR with the SEC and post it on its own website no later than 120 days after the end of its fiscal year. The report includes updated company information, financial statements, and a description of the company’s financial condition.

That is the baseline: an annual cycle, not monthly or quarterly updates. Companies may choose to communicate more often, but Reg CF does not require it. Our investor education page explains what these reports cover in more detail.

When reporting can lawfully end

The obligation does not necessarily last for the life of your investment. Under SEC rules, a company may stop filing annual reports once any one of the following occurs:

• It becomes required to file reports under the Securities Exchange Act, for example after going public.
• It has filed at least one annual report since its most recent Reg CF sale and has fewer than 300 holders of record.
• It has filed, since its most recent Reg CF sale, the required annual reports for at least the three most recent years and has total assets of no more than $10 million.
• The company or another party repurchases all the securities sold in the Reg CF offering, including paying off debt securities in full or completely redeeming redeemable securities.
• It liquidates or dissolves under state law.

A company that becomes eligible to stop must file Form C-TR with the SEC within five business days to advise investors that it will cease reporting under Reg CF.

What if the company just goes quiet?

Check the SEC’s EDGAR database and the company’s website first: a Form C-AR or Form C-TR may have been filed even if you were not contacted directly. If you find neither, ask the company whether one of the termination conditions above applies. A company that skips required annual reports generally cannot rely on Reg CF for a new offering until it catches up on them.

Limited ongoing information is a disclosed risk of Reg CF investing: annual reports may contain limited information and may stop once a company becomes eligible to terminate reporting. These rules apply to Reg CF; Rule 506(c) and Regulation A offerings follow different frameworks, and your offering documents control. For questions about an offering you invested in through Invown, contact support. Issuers can read how the filing itself works in our annual reporting article and this post-close checklist.