18 NCAC 06A .2012         CIRCUMSTANCES WHEN ADDITIONAL DISCLOSURE DOCUMENT CONTENT REQUIRED

(a)  If the issuer has chosen a target offering amount that exceeds one million dollars ($1,000,000) and is no more than two million dollars ($2,000,000), the issuer shall include in its disclosure document a copy of its financial statements for its most recently completed full fiscal year (or the immediately preceding 12 months).

(b)  The financial statements shall:

(1)           have been audited or reviewed and prepared in accordance with generally accepted accounting principles ("GAAP"); and

(2)           include:

(A)          balance sheets;

(B)          comprehensive statement of consolidated income;

(C)          statements of cash flows;

(D)          statements of changes in stockholders' equity; and

(E)           notes to the financial statements.

(c)  If the financial statements required by Paragraph (a) of this Rule are more than four months old, then the issuer shall also provide interim financial statements for the preceding four or more months. The interim financial statements are not subject to Paragraph (b)(1) of this Rule.

History Note:        Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a);

Eff. April 1, 2017.