What Is SEC Form 10-KT?

SEC Form 10-KT is a filing with the Securities and Exchange Commission (SEC) submitted in lieu of or in addition to a standard 10-K annual report when a company changes the end of its fiscal year. For example, certain mergers or acquisitions can leave the new company with a shorter or elongated reporting period.

Here, a new transitional report is required until the new 12-month fiscal year goes into effect. The report provides a comprehensive overview of the company's business activities and financial operations just as an annual 10-K form. Companies return to filing a standard 10-K report once the transition to the new fiscal year is complete.

Key Takeaways

  • SEC Form 10-KT is a transitional report a company files when it is changing the end date of its fiscal year. 
  • The form is filed instead of the usual 10-K annual report, as a bridge until the new 12-month fiscal year begins.
  • Once the newly dated fiscal year is in effect, the company returns to filling out a standard 10-K form.
  • Just like a 10-K, SEC Form 10-KT provides regulators with details about the company's business and balance sheet.

Understanding SEC Form 10-KT

SEC Form 10-KT is required when a company alters its reporting calendar. There are a number of reasons that a company may choose to change the end of its fiscal year, including to be consistent with the reporting periods of industry peers, to coincide with the tax year of investors, and to align its business cycle more closely with its customers.

The requirement for reporting a transitional report is covered by Rules 13a-10 and 15d-10 of the Securities Exchange Act of 1934 and filed on a traditional 10-K form. In the case that the reporting period falls below three months, the company would file the SEC Form 10-QT, an offshoot of the quarterly 10-Q report.

For investors, form 10-KT can provide novel insights about company finances but it's on a different timeframe that makes year-over-year comparisons difficult.

SEC Form 10-KT Examples

While 10-KT forms aren't used that often, they are used at times. In 2010, Burger King approved a change to the end of the fiscal year, moving it from June 30 to December 31. The transition period of July 1, 2010, through December 31, 2010, was covered on the form 10-KT.

In 2018, Beyond Air, a NASDAQ-traded medical device biopharmaceutical company, approved a change to the end of the fiscal year, moving it from December 31 to March 31. As a result, it filed a Form 10-KT to cover the transition period from January 1, 2018, through March 31, 2018.

Challenges of Using a Form 10-KT

A transitional report is often difficult to analyze. Usually, it covers a variable amount of time, making the information difficult to compare against previous reports. Furthermore, companies change their fiscal calendar following a corporate event like a merger or acquisition that drastically change corporate fundamentals.

The new financial information may be a better indicator of future performance than previous quarters. It can reveal material news about a company's operations or financial activities. That not only includes forward-looking statements about financial growth, but any new ventures on the horizon. For instance, Burger King indicated they would focus on improving the customer experience and rolling out renovations across existing franchises during the transition period.