SEC Committee on Smaller Public Cos.: Go Slow in SOX Compliance Timetable and Other Issues

A Securities and Exchange Commission press release today indicates that a Small Business Capital Formation
Forum would be held concurrently with an SEC Advisory Committee on Smaller Public Companies meeting. The Advisory Committee intends to set forth the following three proposals: [1] A one-year extension, to June 15, 2007, of required compliance with Sarbanes-Oxley (SOX) Section 404 for companies with less than $75 million in public "float", (2) definitions of "small cap" (presently about $700 million or bottom 6% of publicly-traded companies) and "micro cap" (presently about $120 million or bottom 1% of publicly-traded companies) as well as defining companies on the basis of market cap rather than public float, (3) no acceleration of the responsibility for small-caps to accelerate due dates for 10-Qs and 10-Ks. Keep in mind that these are proposals at this time.