As noted above, Section 601, point b) (10) of Regulation S-K, which is included in the instructions on Form 8-K, treats asset sales contracts as essential contracts when the consideration exceeds 15% of the Company`s assets on a consolidated basis. This is the only digital test specifically mentioned in Form 8-Rules K that deals with notification of hardware contracts. However, there are other measures that may be relevant to essential provisions. Like what. (b) Article 601, Point 4, of Regulation S-K, which regulates the submission as exhibitions of instruments defining the rights of security holders, authorizes the exclusion of any instrument with respect to the non-registration of long-term debt securities when the total amount of securities it approves does not exceed 10% of the company`s total assets. Section 404, point b) of Regulation S-K requires the publication of certain transactions with related persons that exceed 5% of the consolidated gross revenues of one of the parties (although other transactions with related parties may be disclosed in 404 a) of the S-K settlement if they exceed $60,000). Under the conditions required for the narrative description of the transaction, Item 101 of the S-K Regulation requires the disclosure of products or services representing 10% or more of consolidated revenue (or 15% or more of consolidated sales if the total annual turnover does not exceed USD 50,000,000). Similarly, customers must be identified if they represent a total turnover of 10% or more of the company`s consolidated turnover and if the loss of that customer would have a major negative impact on the company and its subsidiaries as a whole. Section 103 of the S-K Regulation requires disclosure of claims only if they exceed 10% of the short-term assets of the company and its subsidiaries on a consolidated basis. With the exception of the 15% of asset control in S-K Regulation 601 B (10) for asset transactions, exceeding one of these thresholds under SEC rules in other contexts does not necessarily mean that a contract is essential.
However, these comparison measures may support the conclusion that a contract is not essential if the over-bill amount falls below those values. While these measures provide a useful context for an analysis of what constitutes a material contract, any reporting company must take into account the particular circumstances applicable to it in determining whether a contract is essential to it. It will, by its very nature, be a fact-rich study and must take into account factors that should not be purely numerical. Buyer preference: The buyer wishes to carefully evaluate what a hardware contract is in the industry and the activity of the target and incorporate these attributes into the definition of hardware contracts. In addition to the list of attributes, the buyer wants to include a Catchall category that uses a service standard to promote disclosure in border situations. Since unassigned contracts may affect the value of the contracts awarded, it is preferable for the purchaser not to limit equipment contracts to awarded contracts. A buyer can also ask for assurances that no party is violating a hardware contract or is late. A piece of evidence is considered essential if it has a logical connection to an important fact for the outcome of a case. The essential character, as well as the value of the evidence, is one of two characteristics that make specific evidence relevant.  Much depends on the evidence of the applicant`s plea or whether the prosecutor must prove in criminal proceedings to obtain a conviction.