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 | |||
Item 2. | 10 | ||
Item 4. | |||
PART II. OTHER INFORMATION | |||
Item 6. | |||
September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
(Unaudited) | (Note 1) | (Unaudited) | (Note 1) | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 13,605,966 | $ | 12,381,521 | $ | 9,643,897 | $ | 9,866,628 | ||||||||
Held-to-maturity securities – treasury bills | 4,054,252 | 4,028,565 | ||||||||||||||
Accounts receivable, net of allowance of $30,000 | 2,950,862 | 2,803,236 | 3,412,135 | 3,500,259 | ||||||||||||
Other current assets | 738,263 | 581,149 | 656,501 | 656,379 | ||||||||||||
Total current assets | 17,295,091 | 15,765,906 | 17,766,785 | 18,051,831 | ||||||||||||
Property and equipment, net | 501,446 | 606,193 | 593,644 | 481,804 | ||||||||||||
Operating lease right-to-use asset | 1,866,163 | 2,012,155 | 1,766,319 | 1,816,505 | ||||||||||||
Goodwill | 1,954,460 | 1,954,460 | 1,954,460 | 1,954,460 | ||||||||||||
Other assets | 81,182 | 86,714 | 18,110 | 163,470 | ||||||||||||
Total assets | $ | 21,698,342 | $ | 20,425,428 | $ | 22,099,318 | $ | 22,468,070 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Unexpired subscription revenue | $ | 9,946,750 | $ | 9,520,226 | $ | 10,496,126 | $ | 9,980,092 | ||||||||
Accounts payable | 186,191 | 358,307 | 122,095 | 245,854 | ||||||||||||
Current portion of operating lease liability | 189,717 | 177,485 | 198,237 | 193,953 | ||||||||||||
Accrued expenses | 1,742,796 | 1,745,290 | 1,193,657 | 2,216,376 | ||||||||||||
Total current liabilities | 12,065,454 | 11,801,308 | 12,010,115 | 12,636,275 | ||||||||||||
Deferred taxes on income, net | 625,118 | 407,805 | 332,566 | 332,566 | ||||||||||||
Unexpired subscription revenue, less current portion | 158,568 | 127,124 | 168,646 | 163,320 | ||||||||||||
Operating lease liability, less current portion | 1,816,697 | 1,960,127 | 1,715,075 | 1,766,174 | ||||||||||||
Total liabilities | 14,665,837 | 14,296,364 | 14,226,402 | 14,898,335 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
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 | 29,877,917 | 29,824,242 | 29,932,576 | 29,904,675 | ||||||||||||
Accumulated deficit | (22,952,636 | ) | (23,802,402 | ) | (22,166,884 | ) | (22,442,164 | ) | ||||||||
Total stockholders’ equity | 7,032,505 | 6,129,064 | 7,872,916 | 7,569,735 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 21,698,342 | $ | 20,425,428 | $ | 22,099,318 | $ | 22,468,070 |
2022 | 2021 | 2023 | 2022 | |||||||||||||
Operating revenues | $ | 4,547,708 | $ | 4,323,676 | $ | 4,590,744 | $ | 4,338,202 | ||||||||
Operating expenses: | ||||||||||||||||
Data and product costs | 1,644,489 | 1,519,860 | 1,920,371 | 1,748,164 | ||||||||||||
Selling, general and administrative expenses | 2,230,553 | 2,024,562 | 2,359,041 | 2,300,849 | ||||||||||||
Depreciation and amortization | 100,448 | 75,067 | 97,521 | 94,209 | ||||||||||||
Total operating expenses | 3,975,490 | 3,619,489 | 4,376,933 | 4,143,222 | ||||||||||||
Income from operations | 572,218 | 704,187 | 213,811 | 194,980 | ||||||||||||
Other income | 54,581 | 263 | 140,978 | 697 | ||||||||||||
Income before income taxes | 626,799 | 704,450 | 354,789 | 195,677 | ||||||||||||
Provision for income taxes | (140,822 | ) | (209,098 | ) | (79,509 | ) | (44,556 | ) | ||||||||
Net income | $ | 485,977 | $ | 495,352 | $ | 275,280 | $ | 151,121 | ||||||||
Net income per share – Basic and diluted | $ | 0.05 | $ | 0.05 | $ | 0.03 | $ | 0.01 | ||||||||
Weighted average number of common shares outstanding – | ||||||||||||||||
Basic | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 | ||||||||||||
Diluted | 10,758,349 | 10,756,727 | 10,797,101 | 10,748,568 |
2022 | 2021 | |||||||
Operating revenues | $ | 13,335,927 | $ | 12,704,756 | ||||
Operating expenses: | ||||||||
Data and product costs | 5,117,975 | 4,721,331 | ||||||
Selling, general and administrative expenses | 6,864,354 | 6,415,736 | ||||||
Depreciation and amortization | 301,656 | 206,083 | ||||||
Total operating expenses | 12,283,985 | 11,343,150 | ||||||
Income from operations | 1,051,942 | 1,361,606 | ||||||
Other income | 66,368 | 3,756 | ||||||
Income before income taxes | 1,118,310 | 1,365,362 | ||||||
Provision for income taxes | (268,544 | ) | (359,588 | ) | ||||
Net income | $ | 849,766 | $ | 1,005,774 | ||||
Net income per share – Basic and diluted | $ | 0.08 | $ | 0.09 | ||||
Weighted average number of common shares outstanding – | ||||||||
Basic | 10,722,401 | 10,722,401 | ||||||
Diluted | 10,760,397 | 10,772,447 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance January 1, 2022 | 10,722,401 | $ | 107,224 | $ | 29,824,242 | $ | (23,802,402 | ) | $ | 6,129,064 | ||||||||||
Net income | - | - | - | 151,121 | 151,121 | |||||||||||||||
Stock-based compensation | - | - | 19,332 | - | 19,332 | |||||||||||||||
Balance March 31, 2022 | 10,722,401 | $ | 107,224 | $ | 29,843,574 | $ | (23,651,281 | ) | $ | 6,299,517 | ||||||||||
Balance January 1, 2023 | 10,722,401 | $ | 107,224 | $ | 29,904,675 | $ | (22,442,164 | ) | $ | 7,569,735 | ||||||||||
Net income | - | - | - | 275,280 | 275,280 | |||||||||||||||
Stock-based compensation | - | - | 27,901 | - | 27,901 | |||||||||||||||
Balance March 31, 2023 | 10,722,401 | $ | 107,224 | $ | 29,932,576 | $ | (22,166,884 | ) | $ | 7,872,916 |
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 |
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 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 849,766 | $ | 1,005,774 | $ | 275,280 | $ | 151,121 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Amortization of bond discount | (36,932 | ) | - | |||||||||||||
Deferred income taxes | 217,313 | 100,557 | - | (6,675 | ) | |||||||||||
Depreciation and amortization | 301,656 | 206,083 | 97,521 | 94,209 | ||||||||||||
Operating lease right-to-use asset, net | 14,795 | 20,678 | 3,371 | 5,377 | ||||||||||||
Stock-based compensation | 53,675 | 45,041 | 27,901 | 19,332 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (147,626 | ) | 284,589 | 93,364 | (315,035 | ) | ||||||||||
Other current assets | (157,112 | ) | 94,607 | (10,461 | ) | 58,939 | ||||||||||
Other assets | 5,530 | 1,588 | - | 9,330 | ||||||||||||
Unexpired subscription revenue | 457,968 | (432,411 | ) | 521,358 | 598,907 | |||||||||||
Accounts payable | (172,116 | ) | (56,622 | ) | (123,759 | ) | (187,560 | ) | ||||||||
Accrued expenses | (2,494 | ) | (65,095 | ) | (1,022,718 | ) | (543,714 | ) | ||||||||
Net cash provided by operating activities | 1,421,355 | 1,204,789 | ||||||||||||||
Net cash used in operating activities | (175,075 | ) | (115,769 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Sale of available-for-sale securities – municipal bonds | - | 458,237 | ||||||||||||||
Proceeds from held-to-maturity securities – treasury bills | 1,450,000 | - | ||||||||||||||
Purchase of held-to-maturity securities – treasury bills | (1,443,995 | ) | - | |||||||||||||
Purchase of property and equipment | (196,910 | ) | (271,712 | ) | (53,661 | ) | (70,362 | ) | ||||||||
Net cash (used in) provided by investing activities | (196,910 | ) | 186,525 | |||||||||||||
Net cash used in investing activities | (47,656 | ) | (70,362 | ) | ||||||||||||
Net increase in cash and cash equivalents | 1,224,445 | 1,391,314 | ||||||||||||||
Net decrease in cash and cash equivalents | (222,731 | ) | (186,131 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 12,381,521 | 10,302,732 | 9,866,628 | 12,381,521 | ||||||||||||
Cash and cash equivalents at end of period | $ | 13,605,966 | $ | 11,694,046 | $ | 9,643,897 | $ | 12,195,390 |
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 |
3 Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Data and product costs | $ | 10,272 | $ | 7,288 | ||||
Selling, general and administrative expenses | 17,629 | 12,044 | ||||||
$ | 27,901 | $ | 19,332 |
September 30, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 13,605,966 | $ | - | $ | - | $ | 13,605,966 |
March 31, 2023 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 9,643,897 | $ | - | $ | - | $ | 9,643,897 | ||||||||
Held-to-maturity securities | 4,054,252 | - | - | 4,054,252 | ||||||||||||
$ | 13,698,149 | $ | - | $ | - | $ | 13,698,149 |
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 12,381,521 | $ | - | $ | - | $ | 12,381,521 |
December 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 9,866,628 | $ | - | $ | - | $ | 9,866,628 | ||||||||
Held-to-maturity securities | 4,028,565 | - | - | 4,028,565 | ||||||||||||
$ | 13,895,193 | $ | - | $ | - | $ | 13,895,193 |
Amortized Cost | Gross Unrealized Gain (Loss) | Fair Value | ||||||||||
Held-to-maturity securities | ||||||||||||
US Treasuries | $ | 4,054,252 | $ | 75,748 | $ | 4,130,000 |
Held-to-maturity securities | ||||
Due in one year or less | $ | 4,054,252 |
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 |
3 Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Weighted average number of common shares outstanding – basic | 10,722,401 | 10,722,401 | ||||||
Potential shares exercisable under stock option plans | 306,650 | 239,100 | ||||||
LESS: Shares which could be repurchased under treasury stock method | (231,950 | ) | (212,933 | ) | ||||
Weighted average number of common shares outstanding – diluted | 10,797,101 | 10,748,568 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 13,606 | $ | 12,382 | $ | 9,644 | $ | 9,867 | ||||||||
Held-to-maturity securities | $ | 4,054 | $ | 4,028 | ||||||||||||
Accounts receivable, net | $ | 2,951 | $ | 2,803 | $ | 3,412 | $ | 3,500 | ||||||||
Working capital | $ | 5,230 | $ | 3,964 | $ | 5,757 | $ | 5,416 | ||||||||
Cash ratio | 1.13 | 1.05 | 0.80 | 0.78 | ||||||||||||
Quick ratio | 1.37 | 1.29 | 1.42 | 1.38 | ||||||||||||
Current ratio | 1.43 | 1.34 | 1.48 | 1.43 |
3 Months Ended September 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 3 Months Ended March 31, | ||||||||||||||||||||||||||||||
Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | 2023 | 2022 | |||||||||||||||||||||||||||
Amount | % of Total Operating Revenues | Amount | % of Total Operating Revenues | |||||||||||||||||||||||||||||
Operating revenues | $ | 4,547,708 | 100 | % | $ | 4,323,676 | 100 | % | $ | 4,590,744 | 100 | % | $ | 4,338,202 | 100 | % | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Data and product costs | 1,644,489 | 36 | % | 1,519,860 | 35 | % | 1,920,371 | 42 | % | 1,748,164 | 40 | % | ||||||||||||||||||||
Selling, general and administrative expenses | 2,230,553 | 49 | % | 2,024,562 | 47 | % | 2,359,041 | 51 | % | 2,300,849 | 53 | % | ||||||||||||||||||||
Depreciation and amortization | 100,448 | 2 | % | 75,067 | 2 | % | 97,521 | 2 | % | 94,209 | 2 | % | ||||||||||||||||||||
Total operating expenses | 3,975,490 | 87 | % | 3,619,489 | 84 | % | 4,376,933 | 95 | % | 4,143,222 | 95 | % | ||||||||||||||||||||
Income from operations | 572,218 | 13 | % | 704,187 | 16 | % | 213,811 | 5 | % | 194,980 | 5 | % | ||||||||||||||||||||
Other income, net | 54,581 | 1 | % | 263 | 0 | % | 140,978 | 3 | % | 697 | 0 | % | ||||||||||||||||||||
Income before income taxes | 626,799 | 14 | % | 704,450 | 16 | % | 354,789 | 8 | % | 195,677 | 5 | % | ||||||||||||||||||||
Provision for income taxes | (140,822 | ) | (3 | %) | (209,098 | ) | (5 | %) | (79,509 | ) | (2 | %) | (44,556 | ) | (1 | %) | ||||||||||||||||
Net income | $ | 485,977 | 11 | % | $ | 495,352 | 11 | % | $ | 275,280 | 6 | % | $ | 151,121 | 4 | % |
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) |