SEC Form NT 10-Q

What Is SEC Form NT 10-Q?

SEC Form NT 10-Q is a Securities and Exchange Commission (SEC) filing required for companies that can not present their 10-Q filing (for quarterly financial outcomes) by the SEC cutoff time or on time. Commanded by SEC rule 12b-25, Form NT 10-Q requires the registrant's information and clarification of the justification behind why the 10-Q is delayed. The form additionally permits companies to apply for relief from the cutoff time.

Grasping SEC Form NT 10-Q

SEC Form NT 10-Q is required to be filed in no less than 45 days following the finish of every one of a company's initial three fiscal quarters. In the event that the 10-Q can't be filed sooner rather than later, the company must file a Form 10-QT with the commission.

An exceptionally common justification behind a NT 10-Q is a merger or acquisition, which prevents comes about because of being incorporated in time for the filing. The SEC accommodates "unreasonable exertion and expense," with a suitable clarification, as part of the application for relief. Late filings may likewise be a direct result of uncertainty encompassing litigation, due to a company's auditor not having yet completed its survey of the company's operations, an indication of a company in financial distress, or on the grounds that a company emerging from bankruptcy needs additional opportunity to complete the required exposures.

The Market Impact of Form NT 10-Q Filings

Late financial report filings, whether of 10-Qs or different documents, particularly 10-Ks, can be red flags to analysts following a company, as well as its regulators, investors, and lenders. While the reasons fluctuate, companies who rundown accounting issues or unexpected changes in accounting or auditor firms (particularly if these include disagreements over accounting principles or acquiescences of auditors) as the justification behind the deferral normally face considerably more examination of their late filings.

A study directed by teachers Eli Bartov, of New York University's Stern Business School, and Yaniv Konchitchki, of the University of California at Berkeley, and distributed in December 2017, checked out at financial market responses to companies with late filings. The creators found several impacts including that "(a) delayed quarterly filings significantly affect firm value than do delayed annual filings, (b) investors don't acknowledge at face value management statements about the expected filing date, (c) accounting issues play a unique job in imparting the earnestness of the postponement, and (d) delayed announcements will generally be trailed by continued poor operating and stock price performance."

Features

• Investors and analysts might observe a company's late filings as a red flag warning about underlying accounting issues or poor financial management.
• SEC Form NT 10-Q is a required notice of a firm's failure to file Form 10-Q or 10-QSB sooner rather than later.
• Form 10-Q is, thus, a complete report of a company's performance that must be submitted quarterly by all public companies to the SEC.