Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 1-8601 | |
Entity Registrant Name | CreditRiskMonitor.com, Inc. | |
Entity Central Index Key | 0000315958 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 36-2972588 | |
Entity Address, Address Line One | 704 Executive Boulevard | |
Entity Address, Address Line Two | Suite A | |
Entity Address, City or Town | Valley Cottage | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10989 | |
City Area Code | 845 | |
Local Phone Number | 230-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,722,401 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 13,605,966 | $ 12,381,521 |
Accounts receivable, net of allowance of $30,000 | 2,950,862 | 2,803,236 |
Other current assets | 738,263 | 581,149 |
Total current assets | 17,295,091 | 15,765,906 |
Property and equipment, net | 501,446 | 606,193 |
Operating lease right-of-use asset | 1,866,163 | 2,012,155 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 81,182 | 86,714 |
Total assets | 21,698,342 | 20,425,428 |
Current liabilities: | ||
Unexpired subscription revenue | 9,946,750 | 9,520,226 |
Accounts payable | 186,191 | 358,307 |
Current portion of operating lease liability | 189,717 | 177,485 |
Accrued expenses | 1,742,796 | 1,745,290 |
Total current liabilities | 12,065,454 | 11,801,308 |
Deferred taxes on income, net | 625,118 | 407,805 |
Unexpired subscription revenue, less current portion | 158,568 | 127,124 |
Operating lease liability, less current portion | 1,816,697 | 1,960,127 |
Total liabilities | 14,665,837 | 14,296,364 |
Stockholders' equity: | ||
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares | 107,224 | 107,224 |
Additional paid-in capital | 29,877,917 | 29,824,242 |
Accumulated deficit | (22,952,636) | (23,802,402) |
Total stockholders' equity | 7,032,505 | 6,129,064 |
Total liabilities and stockholders' equity | $ 21,698,342 | $ 20,425,428 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Accounts receivable, allowance | $ 30,000 | $ 30,000 |
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) | 32,500,000 | 32,500,000 |
Common stock, issued (in shares) | 10,722,401 | 10,722,401 |
Common stock, outstanding (in shares) | 10,722,401 | 10,722,401 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
STATEMENTS OF OPERATIONS [Abstract] | ||||
Operating revenues | $ 4,547,708 | $ 4,323,676 | $ 13,335,927 | $ 12,704,756 |
Operating expenses: | ||||
Data and product costs | 1,644,489 | 1,519,860 | 5,117,975 | 4,721,331 |
Selling, general and administrative expenses | 2,230,553 | 2,024,562 | 6,864,354 | 6,415,736 |
Depreciation and amortization | 100,448 | 75,067 | 301,656 | 206,083 |
Total operating expenses | 3,975,490 | 3,619,489 | 12,283,985 | 11,343,150 |
Income from operations | 572,218 | 704,187 | 1,051,942 | 1,361,606 |
Other income | 54,581 | 263 | 66,368 | 3,756 |
Income before income taxes | 626,799 | 704,450 | 1,118,310 | 1,365,362 |
Provision for income taxes | (140,822) | (209,098) | (268,544) | (359,588) |
Net income | $ 485,977 | $ 495,352 | $ 849,766 | $ 1,005,774 |
Net income per share - Basic (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.08 | $ 0.09 |
Net income per share - Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.08 | $ 0.09 |
Weighted average number of common shares outstanding - Basic (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
Weighted average number of common shares outstanding - Diluted (in shares) | 10,758,349 | 10,756,727 | 10,760,397 | 10,772,447 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2020 | $ 107,224 | $ 29,760,533 | $ (27,166,106) | $ 2,701,651 |
Balance (in shares) at Dec. 31, 2020 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 1,005,774 | 1,005,774 |
Stock-based compensation | 0 | 45,041 | 0 | 45,041 |
Balance at Sep. 30, 2021 | $ 107,224 | 29,805,574 | (26,160,332) | 3,752,466 |
Balance (in shares) at Sep. 30, 2021 | 10,722,401 | |||
Balance at Jun. 30, 2021 | $ 107,224 | 29,786,923 | (26,655,684) | 3,238,463 |
Balance (in shares) at Jun. 30, 2021 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 495,352 | 495,352 |
Stock-based compensation | 0 | 18,651 | 0 | 18,651 |
Balance at Sep. 30, 2021 | $ 107,224 | 29,805,574 | (26,160,332) | 3,752,466 |
Balance (in shares) at Sep. 30, 2021 | 10,722,401 | |||
Balance at Dec. 31, 2021 | $ 107,224 | 29,824,242 | (23,802,402) | $ 6,129,064 |
Balance (in shares) at Dec. 31, 2021 | 10,722,401 | 10,722,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 849,766 | $ 849,766 |
Stock-based compensation | 0 | 53,675 | 0 | 53,675 |
Balance at Sep. 30, 2022 | $ 107,224 | 29,877,917 | (22,952,636) | $ 7,032,505 |
Balance (in shares) at Sep. 30, 2022 | 10,722,401 | 10,722,401 | ||
Balance at Jun. 30, 2022 | $ 107,224 | 29,859,233 | (23,438,613) | $ 6,527,844 |
Balance (in shares) at Jun. 30, 2022 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 0 | 485,977 | 485,977 |
Stock-based compensation | 0 | 18,684 | 0 | 18,684 |
Balance at Sep. 30, 2022 | $ 107,224 | $ 29,877,917 | $ (22,952,636) | $ 7,032,505 |
Balance (in shares) at Sep. 30, 2022 | 10,722,401 | 10,722,401 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 849,766 | $ 1,005,774 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 217,313 | 100,557 |
Depreciation and amortization | 301,656 | 206,083 |
Operating lease right-to-use asset, net | 14,795 | 20,678 |
Stock-based compensation | 53,675 | 45,041 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (147,626) | 284,589 |
Other current assets | (157,112) | 94,607 |
Other assets | 5,530 | 1,588 |
Unexpired subscription revenue | 457,968 | (432,411) |
Accounts payable | (172,116) | (56,622) |
Accrued expenses | (2,494) | (65,095) |
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 |
Purchase of property and equipment | (196,910) | (271,712) |
Net cash (used in) provided by investing activities | (196,910) | 186,525 |
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 |
Cash and cash equivalents at end of period | $ 13,605,966 | $ 11,694,046 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results for an entire fiscal year. The December 31, 2021 condensed balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These condensed financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2022 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | (2) Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) and the SEC have issued certain accounting pronouncements that will become effective in subsequent periods; however, management does not believe that any of those pronouncements would significantly affect 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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (3) Revenue Recognition The Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contract with Customers |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | (4) Stock-Based Compensation The Company applies ASC 718, Compensation-Stock 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 and nine months ended September 30: 3 Months Ended September 30, 9 Months Ended September 30, 2022 2021 2022 2021 Data and product costs $ 6,792 $ 7,093 $ 17,834 $ 17,855 Selling, general and administrative expenses 11,892 11,558 35,841 27,186 $ 18,684 $ 18,651 $ 53,675 $ 45,041 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements The Company’s cash and cash equivalents are stated at fair value. The carrying value of accounts receivable, other current assets, and accounts payable approximates fair market value because of the short maturity of these financial instruments. The Company’s cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The tables below set forth the Company’s cash and cash equivalents as of September 30, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. 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 $ - $ - $ 12,381,521 There were cash proceeds of $458,237 from the sale of available-for-sale securities for the period ended September 30, 2021. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 30, 2022 | |
Net Income per Share [Abstract] | |
Net Income per Share | (6) Net Income per Share Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options. 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 For the three and nine months ended September 30, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of 393,200 and 393,200 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value. For the three and nine months ended September 30, 2021, the computation of diluted net income per share excludes the effects of the assumed exercise of 290,650 and 290,650 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (7) Commitments and Contingencies From time to time, the Company is involved in legal proceedings arising in the ordinary course of business. The Company records a liability when it believes that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. Based on the currently available information, the Company does not believe that there are claims or legal proceedings that would have a material adverse effect on the business, or the condensed financial statements of the Company. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and nine months ended September 30: 3 Months Ended September 30, 9 Months Ended September 30, 2022 2021 2022 2021 Data and product costs $ 6,792 $ 7,093 $ 17,834 $ 17,855 Selling, general and administrative expenses 11,892 11,558 35,841 27,186 $ 18,684 $ 18,651 $ 53,675 $ 45,041 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Cash and Cash Equivalents Measured at Fair Value on Recurring Basis | The tables below set forth the Company’s cash and cash equivalents as of September 30, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. 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 $ - $ - $ 12,381,521 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Net Income per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Share | Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options. 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 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 18,684 | $ 18,651 | $ 53,675 | $ 45,041 |
Data and Product Costs [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | 6,792 | 7,093 | 17,834 | 17,855 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 11,892 | $ 11,558 | $ 35,841 | $ 27,186 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | |||
Proceeds from the sale of available-for-sale securities | $ 0 | $ 458,237 | |
Recurring [Member] | |||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | |||
Cash and cash equivalents | 13,605,966 | $ 12,381,521 | |
Recurring [Member] | Level 1 [Member] | |||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | |||
Cash and cash equivalents | 13,605,966 | 12,381,521 | |
Recurring [Member] | Level 2 [Member] | |||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | |||
Cash and cash equivalents | $ 0 | $ 0 |
Net Income per Share (Details)
Net Income per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income per Share [Abstract] | ||||
Weighted average number of common shares outstanding - basic (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
Potential shares exercisable under stock option plans (in shares) | 237,000 | 278,100 | 237,692 | 278,100 |
Less: Shares which could be repurchased under treasury stock method (in shares) | (201,052) | (243,774) | (199,696) | (228,054) |
Weighted average number of common shares outstanding - diluted (in shares) | 10,758,349 | 10,756,727 | 10,760,397 | 10,772,447 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 393,200 | 290,650 | 393,200 | 290,650 |