Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 11-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CREDITRISKMONITOR COM INC | |
Entity Central Index Key | 315958 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,181,855 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
BALANCE_SHEETS_Unaudited
BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $7,764,607 | $7,529,468 |
Marketable securities | 1,367,892 | 1,363,439 |
Accounts receivable, net of allowance | 1,440,510 | 2,078,710 |
Other current assets | 573,744 | 516,585 |
Total current assets | 11,146,753 | 11,488,202 |
Property and equipment, net | 302,447 | 337,339 |
Goodwill | 1,954,460 | 1,954,460 |
Prepaid and other assets | 51,827 | 23,682 |
Total assets | 13,455,487 | 13,803,683 |
Current liabilities: | ||
Deferred revenue | 7,713,807 | 7,612,836 |
Accounts payable | 43,241 | 137,258 |
Accrued expenses | 741,369 | 1,230,966 |
Total current liabilities | 8,498,417 | 8,981,060 |
Deferred taxes on income | 743,691 | 743,691 |
Other liabilities | 1,455 | 2,546 |
Total liabilities | 9,243,563 | 9,727,297 |
Stockholders' equity: | ||
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $.01 par value; authorized 25,000,000 shares; issued and outstanding 8,112,530 shares and 8,055,365, respectively | 81,125 | 80,553 |
Additional paid-in capital | 29,274,485 | 29,176,040 |
Accumulated deficit | -25,143,686 | -25,180,207 |
Total stockholders' equity | 4,211,924 | 4,076,386 |
Total liabilities and stockholders' equity | $13,455,487 | $13,803,683 |
BALANCE_SHEETS_Unaudited_Paren
BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 8,112,530 | 8,055,365 |
Common stock, outstanding (in shares) | 8,112,530 | 8,055,365 |
STATEMENTS_OF_OPERATIONS_Unaud
STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||
Operating revenues | $3,070,206 | $2,969,388 |
Operating expenses: | ||
Data and product costs | 1,229,736 | 1,301,445 |
Selling, general and administrative expenses | 1,730,813 | 1,746,410 |
Depreciation and amortization | 52,747 | 56,672 |
Total operating expenses | 3,013,296 | 3,104,527 |
Income (loss) from operations | 56,910 | -135,139 |
Other income (expense), net | 4,956 | 8,575 |
Income (loss) before income taxes | 61,866 | -126,564 |
Provision for income taxes | 25,345 | 12,628 |
Net income (loss) | $36,521 | ($139,192) |
Net income (loss) per share of common stock: | ||
Basic (in dollars per share) | $0 | ($0.02) |
Diluted (in dollars per share) | $0 | ($0.02) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 8,062,358 | 7,958,653 |
Diluted (in shares) | 8,232,862 | 7,958,653 |
STATEMENTS_OF_CASH_FLOWS_Unaud
STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $36,521 | ($139,192) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 52,747 | 56,672 |
Deferred rent | -1,091 | -315 |
Stock-based compensation | 31,412 | 31,969 |
Deferred income taxes | 0 | 10,626 |
Unrealized (gain) on marketable securities | -4,453 | -8,309 |
Tax benefit from stock option plans | -37,522 | -596 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 638,200 | 136,735 |
Other current assets | -19,637 | 127,288 |
Prepaid and other assets | -28,145 | -27,146 |
Deferred revenue | 100,971 | 350,484 |
Accounts payable | -94,017 | -27,177 |
Accrued expenses | -489,597 | -535,742 |
Net cash provided by (used in) operating activities | 185,389 | -24,703 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -17,855 | -49,298 |
Net cash used in investing activities | -17,855 | -49,298 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 30,083 | 0 |
Tax benefits from stock option plans | 37,522 | 596 |
Net cash provided by financing activities | 67,605 | 596 |
Net increase (decrease) in cash and cash equivalents | 235,139 | -73,405 |
Cash and cash equivalents at beginning of period | 7,529,468 | 6,649,432 |
Cash and cash equivalents at end of period | $7,764,607 | $6,576,027 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation |
The accompanying unaudited condensed financial statements of CreditRiskMonitor.com, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosure required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed financial statements reflect all material adjustments, including normal recurring accruals, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented, and have been prepared in a manner consistent with the audited financial statements for the fiscal year ended December 31, 2014. | |
The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of a full fiscal year. | |
The December 31, 2014 balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stock-Based Compensation [Abstract] | |||||||||
Stock-Based Compensation | (2) Stock-Based Compensation | ||||||||
The Company applies ASC 718, “Compensation-Stock Compensation” (“ASC 718”) to account for stock-based compensation. | |||||||||
The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the three months ended March 31: | |||||||||
3 Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Data and product costs | $ | 2,945 | $ | 2,945 | |||||
Selling, general and administrative expenses | 28,467 | 29,024 | |||||||
$ | 31,412 | $ | 31,969 |
Other_Recently_Issued_Accounti
Other Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
Other Recently Issued Accounting Standards [Abstract] | |
Other Recently Issued Accounting Standards | (3) Other Recently Issued Accounting Standards |
The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of March 31, 2015 that will become effective in subsequent periods; however, management does not believe that any of those pronouncements would have significantly affected the Company’s financial accounting measurements or disclosures had they been in effect during the interim periods for which financial statements are included in this quarterly report. Management also believes those pronouncements will not have a significant effect on the Company’s future financial position or results of operations |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Fair Value Measurements | (4) Fair Value Measurements | ||||||||||||||||||||
The Company records its financial instruments that are accounted for under ASC 320, “Investments-Debt and Equity Securities” at fair value. The determination of fair value is based upon the fair value framework established by ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable, either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants. | |||||||||||||||||||||
The Company’s cash, cash equivalents and marketable securities are stated at fair value. The carrying value of accounts receivable, other current assets, accounts payable and other current liabilities approximates fair market value because of the short maturity of these financial instruments. | |||||||||||||||||||||
The Company’s cash equivalents and marketable securities are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Marketable securities include U.S. government notes and mutual funds. | |||||||||||||||||||||
The table below sets forth the Company’s cash and cash equivalents and marketable securities as of March 31, 2015 and December 31, 2014, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. | |||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Cash and cash equivalents | $ | 7,764,607 | $ | - | $ | - | $ | 7,764,607 | $ | 7,529,468 | |||||||||||
Marketable securities | 1,367,892 | - | - | 1,367,892 | 1,363,439 | ||||||||||||||||
Total | $ | 9,132,499 | $ | - | $ | - | $ | 9,132,499 | $ | 8,892,907 | |||||||||||
The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of either March 31, 2015 or December 31, 2014. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Net Income (Loss) per Share [Abstract] | |||||
Net Income per Share | (5) Net Income (Loss) per Share | ||||
Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options: | |||||
3 Months Ended | |||||
March 31, | |||||
2015 | |||||
Weighted average number of common shares outstanding – basic | 8,062,358 | ||||
Potential shares exercisable under stock option plans | 292,500 | ||||
LESS: Shares which could be repurchased under treasury stock method | (121,996 | ) | |||
Weighted average number of common shares outstanding – diluted | 8,232,862 | ||||
Potential common shares of 276,116 related to the Company's outstanding stock options were excluded from the computation of diluted loss per share for the three months ended March 31, 2014 as inclusion of these shares would have been anti-dilutive. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stock-Based Compensation [Abstract] | |||||||||
Stock-based Compensation Expense for Stock Options | The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the three months ended March 31: | ||||||||
3 Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Data and product costs | $ | 2,945 | $ | 2,945 | |||||
Selling, general and administrative expenses | 28,467 | 29,024 | |||||||
$ | 31,412 | $ | 31,969 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis | The table below sets forth the Company’s cash and cash equivalents and marketable securities as of March 31, 2015 and December 31, 2014, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. | ||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Cash and cash equivalents | $ | 7,764,607 | $ | - | $ | - | $ | 7,764,607 | $ | 7,529,468 | |||||||||||
Marketable securities | 1,367,892 | - | - | 1,367,892 | 1,363,439 | ||||||||||||||||
Total | $ | 9,132,499 | $ | - | $ | - | $ | 9,132,499 | $ | 8,892,907 |
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Net Income (Loss) per Share [Abstract] | |||||
Weighted Average Number of Common Shares Outstanding | Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options: | ||||
3 Months Ended | |||||
March 31, | |||||
2015 | |||||
Weighted average number of common shares outstanding – basic | 8,062,358 | ||||
Potential shares exercisable under stock option plans | 292,500 | ||||
LESS: Shares which could be repurchased under treasury stock method | (121,996 | ) | |||
Weighted average number of common shares outstanding – diluted | 8,232,862 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $31,412 | $31,969 |
Data and Product Costs [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | 2,945 | 2,945 |
Selling, General and Administrative Expenses [Member] | ||
Stock-based compensation expense for stock options [Abstract] | ||
Stock-based compensation expense | $28,467 | $29,024 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents and marketable securities measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | $7,764,607 | $7,529,468 |
Marketable securities | 1,367,892 | 1,363,439 |
Total | 9,132,499 | 8,892,907 |
Level 1 [Member] | ||
Cash and cash equivalents and marketable securities measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 7,764,607 | |
Marketable securities | 1,367,892 | |
Total | 9,132,499 | |
Level 2 [Member] | ||
Cash and cash equivalents and marketable securities measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 0 | |
Marketable securities | 0 | |
Total | 0 | |
Level 3 [Member] | ||
Cash and cash equivalents and marketable securities measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 0 | |
Marketable securities | 0 | |
Total | $0 |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net Income (Loss) per Share [Abstract] | ||
Weighted average number of common shares outstanding - basic (in shares) | 8,062,358 | 7,958,653 |
Potential shares exercisable under stock option plans (in shares) | 292,500 | |
LESS: Shares which could be repurchased under treasury stock method (in shares) | -121,996 | |
Weighted average number of common shares outstanding - diluted (in shares) | 8,232,862 | 7,958,653 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 276,116 |