Issuance costs are those expenditures associated with underwriting and issuing debt and equity securities. Issuance costs include the following:
- Audit fees
- Investment banking fees
- Legal fees
- Marketing expenses
- Securities and Exchange Commission (SEC) registration fees
Issuance costs do not include any expenditures that must be made by a publicly-held company on an ongoing basis, such as control audits, annual financial statement audits, quarterly reviews, stock exchange fees, or ongoing SEC filings.