How are the size groups determined?
We basically have 2 types of groups based on the way we calculate the audit fee as percentage of revenue or percentage of operating expenses.(Click to view a detailed group size explanation). Revenue group is determined by revenue, where we divide the companies by their revenue: $100K-$1M, $1M-5M, $5M-$25M, $25M-$50M. Companies that have revenue that is less than 10% of their operating expenses (or that they have less than $100K of revenue) are put in the non-revenue group. Operating expenses group: in this group we determine the size groups by the sum of their operating expenses: under $100K (shells usually), $100K-$1M, $1M-$5M, over $5M.
