Nev. Admin. Code § 90.475

Current through December 12, 2024

Section 90.475 - Applicability

1. The provisions of NAC 90.475 to 90.490, inclusive, are applicable to the registration pursuant to NRS 90.480 or 90.490 of any security issued by a development stage company. As used in this subsection, "development stage company" means an issuer which has no public market for its securities and no significant earnings or revenues from continuing operations during the last 5 years or any shorter period of its existence.

2. For the purposes of subsection 1:

(a) "Public market" does not include any thin market which does not result in reliable prices. In determining whether a market is a public market, the Administrator may consider:

(1) The history of the market;

(2) The public trading volume in the market;

(3) Any spread between bid and asked prices in the market;

(4) The number of market makers in the market;

(5) Public float in the market;

(6) The pricing formula used in the market;

(7) Inclusion of the market in the Nasdaq; and

(8) Any other relevant factor.

(b) An issuer shall be deemed to have significant earnings from continuing operations if, during each of any two consecutive fiscal years during the period prescribed by subsection 1, the issuer had earnings per share equal to at least 5 percent of the initial public offering price per common share. Nothing in this paragraph shall be deemed to preclude the Administrator from considering other indicators of earnings or revenues.

Nev. Admin. Code § 90.475

Added to NAC by Sec'y of State, eff. 4-22-88; A 10-16-89; 11-19-92; R016-02, 8-6-2002

NRS 90.480, 90.490, 90.750