Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 07, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CREDITRISKMONITOR COM INC | |
Entity Central Index Key | 315,958 | |
Current Fiscal Year End Date | --12-31 | |
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 | 10,722,401 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 9,284,650 | $ 9,222,343 |
Accounts receivable, net of allowance | 1,512,766 | 2,090,676 |
Other current assets | 554,607 | 487,257 |
Total current assets | 11,352,023 | 11,800,276 |
Property and equipment, net | 385,434 | 430,324 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 33,599 | 23,763 |
Total assets | 13,725,516 | 14,208,823 |
Current liabilities: | ||
Deferred revenue | 7,891,863 | 8,088,958 |
Accounts payable | 136,009 | 96,725 |
Accrued expenses | 1,267,269 | 1,282,126 |
Total current liabilities | 9,295,141 | 9,467,809 |
Deferred taxes on income, net | 689,831 | 762,403 |
Other liabilities | 15,709 | 12,574 |
Total liabilities | 10,000,681 | 10,242,786 |
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 | 29,525,358 | 29,419,463 |
Accumulated deficit | (25,907,747) | (25,560,650) |
Total stockholders' equity | 3,724,835 | 3,966,037 |
Total liabilities and stockholders' equity | $ 13,725,516 | $ 14,208,823 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||||
Operating revenues | $ 3,385,352 | $ 3,237,687 | $ 9,963,078 | $ 9,530,462 |
Operating expenses: | ||||
Data and product costs | 1,332,759 | 1,254,151 | 4,058,940 | 3,682,612 |
Selling, general and administrative expenses | 2,013,962 | 1,808,184 | 6,200,518 | 5,781,867 |
Depreciation and amortization | 43,410 | 48,894 | 143,132 | 148,026 |
Total operating expenses | 3,390,131 | 3,111,229 | 10,402,590 | 9,612,505 |
Income (loss) from operations | (4,779) | 126,458 | (439,512) | (82,043) |
Other income (expense), net | 15,362 | (589) | 29,932 | 33,592 |
Income (loss) before income taxes | 10,583 | 125,869 | (409,580) | (48,451) |
(Provision) benefit for income taxes | (29,700) | (45,916) | 62,483 | 17,424 |
Net income (loss) | $ (19,117) | $ 79,953 | $ (347,097) | $ (31,027) |
Net loss per share - Basic and diluted (in dollars per share) | $ (0.03) | $ 0 | ||
Net income (loss) per share of common stock: | ||||
Basic (in dollars per share) | $ 0 | $ 0.01 | ||
Diluted (in dollars per share) | $ 0 | $ 0.01 | ||
Weighted average number of common shares outstanding: | ||||
Basic and diluted (in shares) | 10,722,401 | 10,722,322 | ||
Basic (in shares) | 10,722,401 | 10,722,326 | 10,722,401 | 10,722,322 |
Diluted (in shares) | 10,722,401 | 10,804,989 | 10,722,401 | 10,722,322 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (347,097) | $ (31,027) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 143,132 | 148,026 |
Stock-based compensation | 105,895 | 112,368 |
Unrealized gain on marketable securities | 0 | (27,777) |
Deferred income taxes | (72,572) | (15,697) |
Deferred rent | 3,135 | 6,928 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 577,910 | 437,274 |
Other current assets | (67,350) | (130,547) |
Prepaid and other assets | (9,836) | (12,677) |
Deferred revenue | (197,095) | 420,395 |
Accounts payable | 39,284 | 84,547 |
Accrued expenses | (14,857) | 8,441 |
Net cash provided by operating activities | 160,549 | 1,000,254 |
Cash flows from investing activities: | ||
Purchase of marketable securities | 0 | (778) |
Purchase of property and equipment | (98,242) | (156,359) |
Net cash used in investing activities | (98,242) | (157,137) |
Net increase in cash and cash equivalents | 62,307 | 843,117 |
Cash and cash equivalents at beginning of period | 9,222,343 | 8,717,899 |
Cash and cash equivalents at end of period | $ 9,284,650 | $ 9,561,016 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of a full fiscal year. The December 31, 2016 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, 2016 included in the Company’s Annual Report on Form 10-K. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
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 and nine months ended September 30: 3 Months Ended September 30, 9 Months Ended September 30, 2017 2016 2017 2016 Data and product costs $ 8,915 $ 8,738 $ 26,745 $ 26,029 Selling, general and administrative expenses 26,714 26,743 79,150 86,339 $ 35,629 $ 35,481 $ 105,895 $ 112,368 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | (3) Recently Issued Accounting Standards In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. Pursuant to this standard and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of adopting this standard using either a full retrospective approach or a modified retrospective approach (i.e., through a cumulative effect adjustment directly to retained earnings at the time of adoption). The Company is in the process of identifying and implementing appropriate changes to its business processes, systems and controls to support revenue recognition and disclosure under this standard. The Financial Accounting Standards Board and the SEC have issued certain other accounting pronouncements as of September 30, 2017 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 | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements The Company records its financial instruments at fair value in accordance with accounting guidance. The determination of fair value 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 and cash equivalents 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 are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The table below sets forth the Company’s cash and cash equivalents as of September 30, 2017 and December 31, 2016, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. Level 1 Level 2 Level 3 Total September 30, 2017: Cash and cash equivalents $ 9 ,284,650 $ - $ - $ 9,284,650 December 31, 2016: Cash and cash equivalents $ 9 ,222,343 $ - $ - $ 9,222,343 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 September 30, 2017 or December 31, 2016. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Income (Loss) per Share [Abstract] | |
Net Income (Loss) 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 September 30, 9 Months Ended September 30, 2017 2016 2017 2016 Weighted average number of common shares outstanding – basic 10,722,401 10,722,326 10,722,401 10,722,322 Potential shares exercisable under stock option plans -- 360,450 -- -- LESS: Shares which could be repurchased under treasury stock method -- (277,787 ) -- -- Weighted average number of common shares outstanding – diluted 10,722,401 10,804,989 10,722,401 10,722,322 All outstanding stock options were excluded from the computation of diluted net income per share for the 3 and 9 months ended September 30, 2017 as they were anti-dilutive. Potential common shares of 60,900 related to the Company's outstanding stock options were excluded from the computation of diluted income per share for the 3 months ended September 30, 2016 as inclusion of these shares would have been anti-dilutive. All outstanding stock options were excluded from the computation of diluted loss per share for the 9 months ended September 30, 2016 as they were anti-dilutive. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Data and product costs $ 8,915 $ 8,738 $ 26,745 $ 26,029 Selling, general and administrative expenses 26,714 26,743 79,150 86,339 $ 35,629 $ 35,481 $ 105,895 $ 112,368 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Cash and Cash Equivalents Measured at Fair Value on Recurring Basis | The table below sets forth the Company’s cash and cash equivalents as of September 30, 2017 and December 31, 2016, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. Level 1 Level 2 Level 3 Total September 30, 2017: Cash and cash equivalents $ 9 ,284,650 $ - $ - $ 9,284,650 December 31, 2016: Cash and cash equivalents $ 9 ,222,343 $ - $ - $ 9,222,343 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 9 Months Ended September 30, 2017 2016 2017 2016 Weighted average number of common shares outstanding – basic 10,722,401 10,722,326 10,722,401 10,722,322 Potential shares exercisable under stock option plans -- 360,450 -- -- LESS: Shares which could be repurchased under treasury stock method -- (277,787 ) -- -- Weighted average number of common shares outstanding – diluted 10,722,401 10,804,989 10,722,401 10,722,322 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 35,629 | $ 35,481 | $ 105,895 | $ 112,368 |
Data and Product Costs [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | 8,915 | 8,738 | 26,745 | 26,029 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 26,714 | $ 26,743 | $ 79,150 | $ 86,339 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | $ 9,284,650 | $ 9,222,343 |
Level 1 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 9,284,650 | 9,222,343 |
Level 2 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Income (Loss) per Share [Abstract] | ||||
Weighted average number of common shares outstanding - basic (in shares) | 10,722,401 | 10,722,326 | 10,722,401 | 10,722,322 |
Potential shares exercisable under stock option plans (in shares) | 0 | 360,450 | 0 | 0 |
LESS: Shares which could be repurchased under treasury stock method (in shares) | 0 | (277,787) | 0 | 0 |
Weighted average number of common shares outstanding - diluted (in shares) | 10,722,401 | 10,804,989 | 10,722,401 | 10,722,322 |
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) | 60,900 |