What Is a S-1?

The S-1 is the registration statement a company files with the SEC when it intends to go public. It is the most detailed financial and business disclosure a company ever produces — often running hundreds of pages. It includes audited financial history, business description, risk factors, use of proceeds, and details about the offering itself.

Why It Matters

The S-1 is the public's first look inside a private company. Before an IPO, there is no public financial data. The S-1 reveals revenue, profitability (or losses), growth rates, major customers, and the business model in full detail for the first time.

Key Sections

• › Prospectus summary
• › Risk factors
• › Use of proceeds
• › Management's discussion and analysis (MD&A)
• › Audited financial statements (2–3 years)
• › Principal shareholders and selling shareholders
• › Description of capital stock

Questions This Filing Answers

• ? Is this company profitable?
• ? How fast is revenue growing?
• ? Who are the major shareholders before the IPO?
• ? What will the company do with the money raised?
• ? What are the biggest risks?