The SEC wants to make reporting more of a choose-your-own-adventure.

On May 5, it announced a proposal that would enable public companies to file semiannually rather than quarterly. Companies that opt to file twice a year would use a new form, 10-S, rather than Form 10-Q, the agency said, and their filing deadline would be either 40 or 45 days after the end of their first semiannual period, depending on their filing status.

The change would give companies greater flexibility over reporting, SEC Chair Paul Atkins said.

“[T]he rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors,” he wrote in a statement. “A company might consider factors such as the costs and management time of preparing quarterly reports versus semiannual reports, expectations of its investors, potential effects on its cost of capital, the stage of its business development, the nature of its business model, other avenues of disclosure including earnings calls and current reports on Form 8-K, and prospects of increased research coverage.”

Keep reading.—CV

When the Justice Department and the Drug Enforcement Administration issued an order on April 23 to reschedule medical cannabis as a Schedule III drug, it was a day that modern corporate plugs like Curaleaf and Green Thumb Industries had been waiting for a long while.

“It’s the biggest move by the federal government in 50 years, since the Controlled Substance Act, to acknowledge this product, which they’ve said, if you read it technically, that it’s as bad as heroin,” Green Thumb Industries’ Founder and CEO Ben Kovler told CFO Brew.

“And now they’re saying, ‘Wait a minute, it has medical properties.’ We’ve known for a long, long time it’s a positive product, so it’s good that the federal government is coming along.”

The aspect of rescheduling with arguably the largest implications for both companies is an IRS code called 280E, which prohibits companies from deducting business expenses from income tied to Schedule I (heroin, LSD, or ecstasy, for example) and Schedule II substances (for instance, cocaine, oxycodone, or fentanyl).

Keep reading.—DL

When we talked with CJ Combs, he had 13 hours and 54 minutes before he could use his AI tool of choice, Claude Design, and start working again.

The senior AI business consultant, who focuses on AI and data for Columbus Global, employs Claude Design—a product currently in research preview—to support digital aspects of his business, like his website and marketing materials. He also uses Claude Cowork to run tasks like pulling together reports and organizing files at scheduled times. That means he’s sometimes hitting his limits of sessions and tokens.

AI users and IT pros like Combs face session limits and weekly caps, and must decide if they want to pay extra to extend a limit, wait out the time, or find an alternative AI tool. The decision isn’t easy when your AI-heavy workflow is on hold.

Token for granted. Tokens are tiny units of data processed by large language models. That processing isn’t free, even if it seems zero-cost to the user (like in the free tiers offered by many AI services).

Keep reading on IT Brew.—BH