Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Item 503 -- Summary Information and Risk Factors

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1. Summary. Provide a summary of the information in the prospectus where the length or complexity of the prospectus makes a summary useful. The summary should be brief. The summary should not contain, and is not required to contain, all of the detailed information in the prospectus. If you provide summary business or financial information, even if you do not caption it as a summary, you still must provide that information in plain English.
   
   

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   Instruction to paragraph 503(a):
   
   The summary should not merely repeat the text of the prospectus but should provide a brief overview of the key aspects of the offering. Carefully consider and identify those aspects of the offering that are the most significant and determine how best to highlight those points in clear, plain language.

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2. Address and phone number. Include, either on the cover page or in the summary section of the prospectus, the complete mailing address and telephone number of your principal executive offices.
   
   
3. Risk factors.
   
   
   1. Discuss in a section captioned "Risk Factors" any factors that make the offering speculative or risky. The factors may include, among other things, the following:
      
      
      1. Your lack of an operating history;
         
         
      2. Your lack of recent profits from operations;
         
         
      3. Your poor financial position;
         
         
      4. Your business or proposed business; or
         
         
      5. The lack of a market for your common equity securities.
         
         
   2. The risk factor discussion must immediately follow the summary section. If you do not include a summary section, the risk factor discussion must immediately follow the cover page or the pricing information that immediately follows the cover page. Pricing information means price and price-related information that you may omit from the prospectus in an effective registration statement based on Rule 430A(a) of this chapter.
      
      

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