Nevada | 36-2972588 | |
(State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |
704 Executive Boulevard, Suite A |
Valley Cottage, New York 10989 |
(Address of principal executive offices, including zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | N/A | N/A |
Large accelerated filer ☐ | Accelerated filer | ☐ | ||
Non-accelerated filer ☑ | Smaller reporting company | ☑ | Emerging growth company ☐ |
Page | |||
PART I. FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | ||
2 | |||
3 | |||
Condensed Statements of Operations for the Nine Months Ended September 30, 2022 and 2021 (Unaudited) | 4 | ||
Condensed Statements of Stockholders’ Equity for the Nine Months Ended September 30, 2022 and 2021 (Unaudited) | 6 | ||
Item 2. | |||
Item 4. | |||
PART II. OTHER INFORMATION | |||
Item 6. | |||
March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Note 1) | (Unaudited) | (Note 1) | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 12,195,390 | $ | 12,381,521 | $ | 13,605,966 | $ | 12,381,521 | ||||||||
Accounts receivable, net of allowance of $30,000 | 3,118,270 | 2,803,236 | 2,950,862 | 2,803,236 | ||||||||||||
Other current assets | 522,210 | 581,149 | 738,263 | 581,149 | ||||||||||||
Total current assets | 15,835,870 | 15,765,906 | 17,295,091 | 15,765,906 | ||||||||||||
Property and equipment, net | 582,346 | 606,193 | 501,446 | 606,193 | ||||||||||||
Operating lease right-to-use asset | 1,963,999 | 2,012,155 | 1,866,163 | 2,012,155 | ||||||||||||
Goodwill | 1,954,460 | 1,954,460 | 1,954,460 | 1,954,460 | ||||||||||||
Other assets | 77,384 | 86,714 | 81,182 | 86,714 | ||||||||||||
Total assets | $ | 20,414,059 | $ | 20,425,428 | $ | 21,698,342 | $ | 20,425,428 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Unexpired subscription revenue | $ | 10,053,989 | $ | 9,520,226 | $ | 9,946,750 | $ | 9,520,226 | ||||||||
Accounts payable | 170,747 | 358,307 | 186,191 | 358,307 | ||||||||||||
Current portion of operating lease liability | 181,520 | 177,485 | 189,717 | 177,485 | ||||||||||||
Accrued expenses | 1,201,576 | 1,745,290 | 1,742,796 | 1,745,290 | ||||||||||||
Total current liabilities | 11,607,832 | 11,801,308 | 12,065,454 | 11,801,308 | ||||||||||||
Deferred taxes on income, net | 401,130 | 407,805 | 625,118 | 407,805 | ||||||||||||
Unexpired subscription revenue, less current portion | 192,268 | 127,124 | 158,568 | 127,124 | ||||||||||||
Operating lease liability, less current portion | 1,913,312 | 1,960,127 | 1,816,697 | 1,960,127 | ||||||||||||
Total liabilities | 14,114,542 | 14,296,364 | 14,665,837 | 14,296,364 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.01 par value; authorized 5,000,000 shares; 0ne issued | 0 | 0 | ||||||||||||||
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none issued | - | - | ||||||||||||||
Common stock, $0.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares | 107,224 | 107,224 | 107,224 | 107,224 | ||||||||||||
Additional paid-in capital | 29,843,574 | 29,824,242 | 29,877,917 | 29,824,242 | ||||||||||||
Accumulated deficit | (23,651,281 | ) | (23,802,402 | ) | (22,952,636 | ) | (23,802,402 | ) | ||||||||
Total stockholders’ equity | 6,299,517 | 6,129,064 | 7,032,505 | 6,129,064 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 20,414,059 | $ | 20,425,428 | $ | 21,698,342 | $ | 20,425,428 |
2022 | 2021 | |||||||
Operating revenues | $ | 4,547,708 | $ | 4,323,676 | ||||
Operating expenses: | ||||||||
Data and product costs | 1,644,489 | 1,519,860 | ||||||
Selling, general and administrative expenses | 2,230,553 | 2,024,562 | ||||||
Depreciation and amortization | 100,448 | 75,067 | ||||||
Total operating expenses | 3,975,490 | 3,619,489 | ||||||
Income from operations | 572,218 | 704,187 | ||||||
Other income | 54,581 | 263 | ||||||
Income before income taxes | 626,799 | 704,450 | ||||||
Provision for income taxes | (140,822 | ) | (209,098 | ) | ||||
Net income | $ | 485,977 | $ | 495,352 | ||||
Net income per share – Basic and diluted | $ | 0.05 | $ | 0.05 | ||||
Weighted average number of common shares outstanding – | ||||||||
Basic | 10,722,401 | 10,722,401 | ||||||
Diluted | 10,758,349 | 10,756,727 |
2022 | 2021 | 2022 | 2021 | |||||||||||||
Operating revenues | $ | 4,338,202 | $ | 4,132,901 | $ | 13,335,927 | $ | 12,704,756 | ||||||||
Operating expenses: | ||||||||||||||||
Data and product costs | 1,748,164 | 1,627,786 | 5,117,975 | 4,721,331 | ||||||||||||
Selling, general and administrative expenses | 2,300,849 | 2,200,792 | 6,864,354 | 6,415,736 | ||||||||||||
Depreciation and amortization | 94,209 | 64,512 | 301,656 | 206,083 | ||||||||||||
Total operating expenses | 4,143,222 | 3,893,090 | 12,283,985 | 11,343,150 | ||||||||||||
Income from operations | 194,980 | 239,811 | 1,051,942 | 1,361,606 | ||||||||||||
Other income | 697 | 3,248 | 66,368 | 3,756 | ||||||||||||
Income before income taxes | 195,677 | 243,059 | 1,118,310 | 1,365,362 | ||||||||||||
Provision for income taxes | (44,556 | ) | (55,345) | (268,544 | ) | (359,588 | ) | |||||||||
Net income | $ | 151,121 | $ | 187,714 | $ | 849,766 | $ | 1,005,774 | ||||||||
Net income per share – Basic and diluted | $ | 0.01 | $ | 0.02 | $ | 0.08 | $ | 0.09 | ||||||||
Weighted average number of common shares outstanding – | ||||||||||||||||
Basic | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 | ||||||||||||
Diluted | 10,748,568 | 10,764,640 | 10,760,397 | 10,772,447 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid-in Capital | Accumulated Deficit | Stockholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance July 1, 2021 | 10,722,401 | $ | 107,224 | $ | 29,786,923 | $ | (26,655,684 | ) | $ | 3,238,463 | ||||||||||
Net income | - | - | - | 495,352 | 495,352 | |||||||||||||||
Stock-based compensation | - | - | 18,651 | - | 18,651 | |||||||||||||||
Balance September 30, 2021 | 10,722,401 | $ | 107,224 | $ | 29,805,574 | $ | (26,160,332 | ) | $ | 3,752,466 | ||||||||||
Balance July 1, 2022 | 10,722,401 | $ | 107,224 | $ | 29,859,233 | $ | (23,438,613 | ) | $ | 6,527,844 | ||||||||||
Net income | - | - | - | 485,977 | 485,977 | |||||||||||||||
Stock-based compensation | - | - | 18,684 | - | 18,684 | |||||||||||||||
Balance September 30, 2022 | 10,722,401 | $ | 107,224 | $ | 29,877,917 | $ | (22,952,636 | ) | $ | 7,032,505 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance January 1, 2021 | 10,722,401 | $ | 107,224 | $ | 29,760,533 | $ | (27,166,106 | ) | $ | 2,701,651 | ||||||||||
Net income | - | 0 | 0 | 187,714 | 187,714 | |||||||||||||||
Stock-based compensation | - | 0 | 9,422 | 0 | 9,422 | |||||||||||||||
Balance March 31, 2021 | 10,722,401 | $ | 107,224 | $ | 29,769,955 | $ | (26,978,392 | ) | $ | 2,898,787 | ||||||||||
Balance January 1, 2022 | 10,722,401 | $ | 107,224 | $ | 29,824,242 | $ | (23,802,402 | ) | $ | 6,129,064 | ||||||||||
Net income | - | 0 | 0 | 151,121 | 151,121 | |||||||||||||||
Stock-based compensation | - | 0 | 19,332 | 0 | 19,332 | |||||||||||||||
Balance March 31, 2022 | 10,722,401 | $ | 107,224 | $ | 29,843,574 | $ | (23,651,281 | ) | $ | 6,299,517 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid-in Capital | Accumulated Deficit | Stockholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance January 1, 2021 | 10,722,401 | $ | 107,224 | $ | 29,760,533 | $ | (27,166,106 | ) | $ | 2,701,651 | ||||||||||
Net income | - | - | - | 1,005,774 | 1,005,774 | |||||||||||||||
Stock-based compensation | - | - | 45,041 | - | 45,041 | |||||||||||||||
Balance September 30, 2021 | 10,722,401 | $ | 107,224 | $ | 29,805,574 | $ | (26,160,332 | ) | $ | 3,752,466 | ||||||||||
Balance January 1, 2022 | 10,722,401 | $ | 107,224 | $ | 29,824,242 | $ | (23,802,402 | ) | $ | 6,129,064 | ||||||||||
Net income | - | - | - | 849,766 | 849,766 | |||||||||||||||
Stock-based compensation | - | - | 53,675 | - | 53,675 | |||||||||||||||
Balance September 30, 2022 | 10,722,401 | $ | 107,224 | $ | 29,877,917 | $ | (22,952,636 | ) | $ | 7,032,505 |
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 151,121 | $ | 187,714 | $ | 849,766 | $ | 1,005,774 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Deferred income taxes | (6,675) | (56,260 | ) | 217,313 | 100,557 | |||||||||||
Depreciation and amortization | 94,209 | 64,512 | 301,656 | 206,083 | ||||||||||||
Operating lease right-to-use asset, net | 5,377 | 7,325 | 14,795 | 20,678 | ||||||||||||
Stock-based compensation | 19,332 | 9,422 | 53,675 | 45,041 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (315,035) | (151,922) | (147,626 | ) | 284,589 | |||||||||||
Other current assets | 58,939 | 10,619 | (157,112 | ) | 94,607 | |||||||||||
Other assets | 9,330 | 52,015 | 5,530 | 1,588 | ||||||||||||
Unexpired subscription revenue | 598,907 | 227,565 | 457,968 | (432,411 | ) | |||||||||||
Accounts payable | (187,560 | ) | (2,851 | ) | (172,116 | ) | (56,622 | ) | ||||||||
Accrued expenses | (543,714 | ) | (541,110 | ) | (2,494 | ) | (65,095 | ) | ||||||||
Net cash used in operating activities | (115,769) | (192,971) | ||||||||||||||
Net cash provided by operating activities | 1,421,355 | 1,204,789 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Sale of available-for-sale securities – municipal bonds | 0 | 458,237 | - | 458,237 | ||||||||||||
Purchase of property and equipment | (70,362 | ) | (103,585 | ) | (196,910 | ) | (271,712 | ) | ||||||||
Net cash (used in) provided by investing activities | (70,362) | 354,652 | (196,910 | ) | 186,525 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (186,131) | 161,681 | ||||||||||||||
Net increase in cash and cash equivalents | 1,224,445 | 1,391,314 | ||||||||||||||
Cash and cash equivalents at beginning of period | 12,381,521 | 10,302,732 | 12,381,521 | 10,302,732 | ||||||||||||
Cash and cash equivalents at end of period | $ | 12,195,390 | $ | 10,464,413 | $ | 13,605,966 | $ | 11,694,046 |
3 Months Ended March 31, | 3 Months Ended September 30, | 9 Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Data and product costs | $ | 7,288 | $ | 3,851 | $ | 6,792 | $ | 7,093 | $ | 17,834 | $ | 17,855 | ||||||||||||
Selling, general and administrative expenses | 12,044 | 5,571 | 11,892 | 11,558 | 35,841 | 27,186 | ||||||||||||||||||
$ | 19,332 | $ | 9,422 | $ | 18,684 | $ | 18,651 | $ | 53,675 | $ | 45,041 |
March 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 12,195,390 | $ | 0 | $ | 0 | $ | 12,195,390 |
September 30, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 13,605,966 | $ | - | $ | - | $ | 13,605,966 |
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 12,381,521 | $ | 0 | $ | 0 | $ | 12,381,521 |
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 12,381,521 | $ | - | $ | - | $ | 12,381,521 |
3 Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Weighted average number of common shares outstanding – basic | 10,722,401 | 10,722,401 | ||||||
Potential shares exercisable under stock option plans | 239,100 | 278,100 | ||||||
LESS: Shares which could be repurchased under treasury stock method | (212,933 | ) | (235,861) | |||||
Weighted average number of common shares outstanding – diluted | 10,748,568 | 10,764,640 |
3 Months Ended September 30, | 9 Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Weighted average number of common shares outstanding – basic | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 | ||||||||||||
Potential shares exercisable under stock option plans | 237,000 | 278,100 | 237,692 | 278,100 | ||||||||||||
LESS: Shares which could be repurchased under treasury stock method | (201,052 | ) | (243,774 | ) | (199,696 | ) | (228,054 | ) | ||||||||
Weighted average number of common shares outstanding – diluted | 10,758,349 | 10,756,727 | 10,760,397 | 10,772,447 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
Cash and cash equivalents | $ | 12,195 | $ | 12,382 | $ | 13,606 | $ | 12,382 | ||||||||
Accounts receivable, net | $ | 3,118 | $ | 2,803 | $ | 2,951 | $ | 2,803 | ||||||||
Working capital | $ | 4,228 | $ | 3,964 | $ | 5,230 | $ | 3,964 | ||||||||
Cash ratio | 1.05 | 1.05 | 1.13 | 1.05 | ||||||||||||
Quick ratio | 1.32 | 1.29 | 1.37 | 1.29 | ||||||||||||
Current ratio | 1.36 | 1.34 | 1.43 | 1.34 |
3 Months Ended March 31, | 3 Months Ended September 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | |||||||||||||||||||||||||
Operating revenues | $ | 4,338,202 | 100 | % | $ | 4,132,901 | 100 | % | $ | 4,547,708 | 100 | % | $ | 4,323,676 | 100 | % | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Data and product costs | 1,748,164 | 40 | % | 1,627,786 | 39 | % | 1,644,489 | 36 | % | 1,519,860 | 35 | % | ||||||||||||||||||||
Selling, general and administrative expenses | 2,300,849 | 53 | % | 2,200,792 | 53 | % | 2,230,553 | 49 | % | 2,024,562 | 47 | % | ||||||||||||||||||||
Depreciation and amortization | 94,209 | 2 | % | 64,512 | 2 | % | 100,448 | 2 | % | 75,067 | 2 | % | ||||||||||||||||||||
Total operating expenses | 4,143,222 | 95 | % | 3,893,090 | 94 | % | 3,975,490 | 87 | % | 3,619,489 | 84 | % | ||||||||||||||||||||
Income from operations | 194,980 | 5 | % | 239,811 | 6 | % | 572,218 | 13 | % | 704,187 | 16 | % | ||||||||||||||||||||
Other income, net | 697 | 0 | % | 3,248 | 0 | % | 54,581 | 1 | % | 263 | 0 | % | ||||||||||||||||||||
Income before income taxes | 195,677 | 5 | % | 243,059 | 6 | % | 626,799 | 14 | % | 704,450 | 16 | % | ||||||||||||||||||||
Provision for income taxes | (44,556 | ) | (1 | %) | (55,345 | ) | (1 | %) | (140,822 | ) | (3 | %) | (209,098 | ) | (5 | %) | ||||||||||||||||
Net income | $ | 151,121 | 4 | % | $ | 187,714 | 5 | % | $ | 485,977 | 11 | % | $ | 495,352 | 11 | % |
9 Months Ended September 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | |||||||||||||
Operating revenues | $ | 13,335,927 | 100 | % | $ | 12,704,756 | 100 | % | ||||||||
Operating expenses: | ||||||||||||||||
Data and product costs | 5,117,975 | 38 | % | 4,721,331 | 37 | % | ||||||||||
Selling, general and administrative expenses | 6,864,354 | 52 | % | 6,415,736 | 50 | % | ||||||||||
Depreciation and amortization | 301,656 | 2 | % | 206,083 | 2 | % | ||||||||||
Total operating expenses | 12,283,985 | 92 | % | 11,343,150 | 89 | % | ||||||||||
Income from operations | 1,051,942 | 8 | % | 1,361,606 | 11 | % | ||||||||||
Other income, net | 66,368 | 0 | % | 3,756 | 0 | % | ||||||||||
Income before income taxes | 1,118,310 | 8 | % | 1,365,362 | 11 | % | ||||||||||
Provision for income taxes | (268,544 | ) | (2 | %) | (359,588 | ) | (3 | %) | ||||||||
Net income | $ | 849,766 | 6 | % | $ | 1,005,774 | 8 | % |
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
CREDITRISKMONITOR.COM, INC. | |||||
(REGISTRANT) | |||||
Date: | By: | /s/ Steven Gargano | |||
Steven Gargano | |||||
Senior Vice President & Chief Financial Officer | |||||
(Principal Accounting Officer) |