Harness Money

A 10-Q is a quarterly report that public companies are required to file with the U.S. Securities and Exchange Commission (SEC). It provides a comprehensive update on a company’s financial performance and activities during the preceding three months. The 10-Q is one of the key financial documents that investors and analysts use to assess a company’s health and prospects.

Here are some key points about the 10-Q form:

1. Frequency:
   • The 10-Q is filed quarterly, following the end of the first three quarters of the company’s fiscal year. The filing deadlines are typically 40 to 45 days after the close of each quarter.
2. Content:
   • The 10-Q includes unaudited financial statements for the quarter, along with management’s discussion and analysis (MD&A) of the financial condition and results of operations. It provides insights into a company’s performance, risks, and future plans.
3. Financial Statements:
   • The financial statements within the 10-Q typically include the balance sheet, income statement, statement of cash flows, and statement of stockholders’ equity. These statements compare the current quarter’s performance to previous periods.
4. MD&A Section:
   • The MD&A section is a narrative from the company’s management that explains the financial statements and provides context for understanding the company’s financial health and performance. It often includes discussions about market conditions, risks, and future outlook.
5. Disclosure of Events:
   • Companies are required to disclose any material events or changes that occurred during the quarter, such as significant contracts, lawsuits, changes in management, or other events that could impact the company’s financial position.
6. Comparisons to Previous Periods:
   • The 10-Q allows investors to compare the current quarter’s performance to the same quarter in the previous year and to the preceding quarter. This helps in identifying trends and assessing the company’s financial stability and growth.
7. Limited Review:
   • Unlike the annual report (10-K), which undergoes a more thorough external audit, the 10-Q receives a limited review by external auditors. This is why the financial statements in the 10-Q are labeled as unaudited.
8. Electronic Filing:
   • Companies file the 10-Q electronically through the SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system, making the information readily accessible to the public.

Investors and analysts closely analyze the information in the 10-Q to make informed decisions about a company’s stock. It provides a more frequent update compared to the annual report and helps stakeholders stay informed about a company’s financial performance throughout the year.