UPDATES, AMENDMENTS AND REPORTS OF A CROWDFUNDING OFFERING
Any changes, updates, or additions to information provided in the offer document has to be filed by amendment with the SEC. Any person investing prior to the update or amendment must have the chance to reaffirm his or her investment, or the investment has to be returned. The company is also required to file an update with the SEC when it reaches 50% and again when it reaches 100% of its target offering amount. There is also a requirement to file a final report reflecting the full amount of securities sold in the offering.
Unless a company has more than 300 shareholders, or assets exceeding $10 million, it generally only has to file one annual report following the close of the offering. This report is filed with the SEC on EDGAR, and posted on the issuer’s website. However, there is no requirement that this annual report actually be sent to shareholders.
State corporation statutes, however, often require that in the company send annual reports to its shareholders.