DRS-to-S-1 Research Library

Comparing confidential and public filings to identify significant disclosure changes

Why compare the two filings

Comparing confidential DRS submissions with public S-1 filings helps identify significant changes in accounting and disclosure during the IPO process. Because SEC comment letters are generally not publicly available until after the IPO, these changes can provide early insights into issues that may have attracted SEC scrutiny. Our analysis highlights these changes and potential SEC comment topics, complementing rather than replacing a full review of the prospectus.

Our Methodology

We used AI to write code that compares IPO prospectuses, and we use AI to group the disclosure changes into buckets based on the statistical probability of the revisions being due to SEC input. To assess whether a revision resembles a response to an SEC comment, we draw on academic research, legal publications discussing common SEC comments, and our own expertise, including a manually compiled sample of disclosure revisions linked to actual SEC correspondence.

We use the output of the model as a starting point in our analysis. For our DeepQuarry publication we manually review the findings, applying our experience analyzing thousands of SEC filings and comment letters over the last twenty-plus years.

Premium Deep Quarry subscribers can get access to the raw model output that was not reviewed, nor validated by an analyst. The objective of this raw data underlying our pieces is to allow premium subscribers to use it as a starting point for their own analysis.

Limitations of the methodology

Not every revision is the result of SEC scrutiny. Companies also update disclosures to reflect new contracts, transactions, accounting developments, economic shifts, and updated financial results.

Disclaimer

Investment, Tax and Legal Disclaimer: The DeepQuarry articles and the underlying data are for informational purposes only and do not constitute investment, tax or legal advice. The content contained herein is not to be relied upon as the basis for any investment or other decision. Nothing herein should be construed as a solicitation, recommendation, endorsement, or offer to buy or sell any particular security, product, or service. The author has not taken into account the specific investment objectives, financial situation, or particular needs of any specific person who may read this material. Investing involves inherent risks, and there can be no guarantee that any investment or company mentioned will be suitable or profitable for any investor’s investment portfolio. Readers are strongly advised to conduct their own thorough research and consult with a qualified and licensed financial professional and legal counsel before making any investment decisions. Past performance is not indicative of future results.

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S1 Diff

SEC filing revisions, with estimated likelihood each change was prompted by an SEC comment.

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S1 Diff

Each row compares two filings. Diff is the heuristic comparison; Final report estimates how likely each change was prompted by an SEC comment letter.

Likelihoods are statistical estimates, not knowledge of what the SEC asked, and are not legal or investment advice.