A trial balloon aimed at exempting most small filers from XBRL was almost floated today at a Congressional hearing. See the Data Transparency Coalition’s blog for the details. It would seem that several Congressmen found the testimony of Kenneth Moch, from Chimerix, to be influential. Let’s look closer at that testimony.
Moch’s comments at the July hearing stated the following:
At Chimerix, we have estimated that compliance with XBRL will cost us approximately $50,000 annually.
Well. Chimerix is a $26 million (assets) company. Sounds like a lot to spend.
Yes, way too much, in fact. So I did some digging. Chimerix, at the time of Mr. Moch’s comments, had filed exactly one XBRL document with the SEC, an unaudited 10-Q.
Chmerix has also never filed a proxy statement, so we can’t check directly how much they are spending on audit fees. But we can look at other small biopharm startups to compare. (Hint, that is the value of all these filings, Mr. Moch!)
Companies that are 100 times the size of Chimerix have spent between $100,000 and $200,000 in recent years on audit fees. Should we believe that Chimerix is going to spend half that just on XBRL tagging?
XBRL filing is a net positive for small filers, as this little story shows in a somewhat roundabout way. I was able to do direct comparisons to similar companies of similar size in the same industry, because they are all filing standardized data. I hope Mr. Moch and Chimerix will come to understand this, and support more tagging, not less, at the SEC.
The proxy is here http://ir.chimerix.com/secfiling.cfm?filingid=1144204-14-25749&cik=1117480 and reveals over $1.2m in audit fees. The S-1 revealed over $10m in underwriter fees and costs.
Thank you! I was hoping a vendor would step up and estimate what their costs really should be.
Without giving away too much information, I can safely say that we would have done it for a 4-figure amount for the year.
I’m waiting with bated breath for their proxy statement. I’d also love to hear from their tagging vendor (you can look in the instance to see whose software was used.) or other vendors to see how much they would bid to tag this company!
You have to wonder how much was paid in fees to go public in the first place?