Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity Registrant Name | CREDITRISKMONITOR COM INC | |
Entity Address, State or Province | NY | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 10,722,401 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000315958 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,403,179 | $ 8,066,899 |
Accounts receivable, net of allowance | 1,928,960 | 2,454,585 |
Other current assets | 832,965 | 561,861 |
Total current assets | 11,165,104 | 11,083,345 |
Property and equipment, net | 554,820 | 543,762 |
Operating lease right-of-use asset | 2,469,025 | 0 |
Goodwill | 1,954,460 | 1,954,460 |
Other assets | 31,607 | 35,613 |
Total assets | 16,175,016 | 13,617,180 |
Current liabilities: | ||
Unexpired subscription revenue | 8,860,837 | 8,560,316 |
Accounts payable | 126,553 | 94,767 |
Current portion of operating lease liability | 140,217 | 0 |
Accrued expenses | 1,131,349 | 1,311,218 |
Total current liabilities | 10,258,956 | 9,966,301 |
Deferred taxes on income, net | 473,194 | 490,381 |
Unexpired subscription revenue, less current portion | 229,524 | 178,129 |
Operating lease liability, less current portion | 2,375,451 | 0 |
Other liabilities | 0 | 24,537 |
Total liabilities | 13,337,125 | 10,659,348 |
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 | 29,678,817 | 29,650,760 |
Accumulated deficit | (26,948,150) | (26,800,152) |
Total stockholders' equity | 2,837,891 | 2,957,832 |
Total liabilities and stockholders' equity | $ 16,175,016 | $ 13,617,180 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||||
Operating revenues | $ 3,567,531 | $ 3,477,823 | $ 7,063,340 | $ 6,849,747 |
Operating expenses: | ||||
Data and product costs | 1,426,497 | 1,413,694 | 2,895,490 | 2,897,685 |
Selling, general and administrative expenses | 2,147,733 | 2,150,490 | 4,315,144 | 4,338,614 |
Depreciation and amortization | 50,045 | 42,039 | 101,034 | 89,087 |
Total operating expenses | 3,624,275 | 3,606,223 | 7,311,668 | 7,325,386 |
Loss from operations | (56,744) | (128,400) | (248,328) | (475,639) |
Other income, net | 43,209 | 30,602 | 84,099 | 51,644 |
Loss before income taxes | (13,535) | (97,798) | (164,229) | (423,995) |
Benefit from income taxes | 2,005 | 10,961 | 16,231 | 81,722 |
Net loss | $ (11,530) | $ (86,837) | $ (147,998) | $ (342,273) |
Net loss per share - Basic and diluted (in dollars per share) | $ 0 | $ (0.01) | $ (0.01) | $ (0.03) |
Weighted average number of common shares outstanding - Basic and diluted (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 107,224 | $ 29,559,784 | $ (26,084,700) | $ 3,582,308 |
Balance (in shares) at Dec. 31, 2017 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ 0 | 0 | (342,273) | (342,273) |
Stock-based compensation | 0 | 50,987 | 0 | 50,987 |
Balance at Jun. 30, 2018 | $ 107,224 | 29,610,771 | (26,426,973) | 3,291,022 |
Balance (in shares) at Jun. 30, 2018 | 10,722,401 | |||
Balance at Mar. 31, 2018 | $ 107,224 | 29,585,277 | (26,340,136) | 3,352,365 |
Balance (in shares) at Mar. 31, 2018 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ 0 | 0 | (86,837) | (86,837) |
Stock-based compensation | 0 | 25,494 | 0 | 25,494 |
Balance at Jun. 30, 2018 | $ 107,224 | 29,610,771 | (26,426,973) | 3,291,022 |
Balance (in shares) at Jun. 30, 2018 | 10,722,401 | |||
Balance at Dec. 31, 2018 | $ 107,224 | 29,650,760 | (26,800,152) | $ 2,957,832 |
Balance (in shares) at Dec. 31, 2018 | 10,722,401 | 10,722,401 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ 0 | 0 | (147,998) | $ (147,998) |
Stock-based compensation | 0 | 28,057 | 0 | 28,057 |
Balance at Jun. 30, 2019 | $ 107,224 | 29,678,817 | (26,948,150) | $ 2,837,891 |
Balance (in shares) at Jun. 30, 2019 | 10,722,401 | 10,722,401 | ||
Balance at Mar. 31, 2019 | $ 107,224 | 29,665,024 | (26,936,620) | $ 2,835,628 |
Balance (in shares) at Mar. 31, 2019 | 10,722,401 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ 0 | 0 | (11,530) | (11,530) |
Stock-based compensation | 0 | 13,793 | 0 | 13,793 |
Balance at Jun. 30, 2019 | $ 107,224 | $ 29,678,817 | $ (26,948,150) | $ 2,837,891 |
Balance (in shares) at Jun. 30, 2019 | 10,722,401 | 10,722,401 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (147,998) | $ (342,273) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Deferred income taxes | (17,187) | (89,092) |
Depreciation and amortization | 101,034 | 89,087 |
Deferred rent | 0 | 78 |
Operating lease right-of-use asset, net | 22,106 | 0 |
Stock-based compensation | 28,057 | 50,987 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 525,625 | 334,443 |
Other current assets | (271,104) | (339,433) |
Other assets | 4,006 | (15,855) |
Unexpired subscription revenue | 351,916 | 453,520 |
Accounts payable | 31,786 | 38,095 |
Accrued expenses | (179,869) | (138,024) |
Net cash provided by operating activities | 448,372 | 41,533 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (112,092) | (12,435) |
Net cash used in investing activities | (112,092) | (12,435) |
Net increase in cash and cash equivalents | 336,280 | 29,098 |
Cash and cash equivalents at beginning of period | 8,066,899 | 8,735,148 |
Cash and cash equivalents at end of period | $ 8,403,179 | $ 8,764,246 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results for an entire fiscal year. The December 31, 2018 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, 2018 included in the Company’s Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation. The noncurrent portion of unexpired subscription revenue was reclassified to noncurrent liabilities, which had no effect on previously reported net loss or total stockholders’ equity. |
Adoption of ASC 842
Adoption of ASC 842 | 6 Months Ended |
Jun. 30, 2019 | |
Adoption of ASC 842 [Abstract] | |
Adoption of ASC 842 | (2) Adoption of ASC 842 On January 1, 2019, the Company adopted FASB Accounting Standards Codification (“ASC”) Topic 842, Leases Leases The Company adopted ASC 842 using a modified retrospective approach for all leases existing at January 1, 2019. The adoption of ASC 842 had a substantial impact on its balance sheet. The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and the Company recorded an adjustment of $2.59 million to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments. As permitted under ASC 842, the Company elected several practical expedients that permits it to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability. The impact of the adoption of ASC 842 on the balance sheet at January 1, 2019 was: As reported Dec. 31, 2018 Adoption of ASC 842 Increase Balance Jan. 1, 2019 Operating lease right-to-use asset $ - $ 2,589,875 $ 2,589,875 Total assets 13,617,180 2,589,875 16,207,055 Current portion of operating lease liability - 143,213 143,213 Operating lease liability - 2,446,662 2,446,662 Total liabilities and stockholders’ equity 13,617,180 2,589,875 16,207,055 For all leases, at the lease commencement date, a right-of-use asset and a lease liability are recognized. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the remaining lease payments under the lease. Lease payments included in the measurement of the lease liability comprise the following: the fixed noncancelable lease payments and payments for optional renewal periods where it is reasonably certain the renewal period will be exercised. Lease expense for operating leases consists of the lease payments plus any initial direct costs, and is recognized on a straight-line basis over the lease term. The Company’s operating lease right-of-use asset and operating lease liability represents the lease for the office space used to conduct its business. The following table reconciles the undiscounted cash flows for the Company’s operating lease at June 30, 2019 to the operating lease liability recorded on the balance sheet: 2019 Remainder $ 125,468 2020 255,311 2021 262,970 2022 270,859 2023 278,985 2024 287,355 Thereafter 1,769,054 Total undiscounted lease payments 3,250,002 LESS: Imputed interest at 4.54% (734,334 ) Present value of lease payments $ 2,515,668 Current portion of operating lease liability $ 140,217 Operating lease liability 2,375,451 $ 2,515,668 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | (3) Recently Issued Accounting Standards The FASB and the SEC have issued certain other accounting pronouncements as of June 30, 2019 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (4) Revenue Recognition The Company applies ASC 606, Revenue from Contract with Customers primary source of revenue is subscription income which is recognized ratably over the subscription term |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | (5) 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 for the three and six months ended June 30: 3 Months Ended June 30, 6 Months Ended June 30, 2019 2018 2019 2018 Data and product costs $ 5,969 $ 8,914 $ 12,409 $ 17,828 Selling, general and administrative expenses 7,824 16,580 15,648 33,159 $ 13,793 $ 25,494 $ 28,057 $ 50,987 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (6) 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 June 30, 2019 and December 31, 2018, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Total Cash and cash equivalents $ 8 ,403,179 $ - $ - $ 8,403,179 $ 8,066,899 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 June 30, 2019 or December 31, 2018. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Loss per Share [Abstract] | |
Net Loss per Share | (7) Net Loss per Share During the three and six months ended June 30, 2019 and 2018 the Company recorded a net loss. Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share, as the effect of utilizing the fully diluted share count would have reduced the net loss per share. Therefore, all outstanding stock options were excluded from the computation of diluted net loss per share because their effect was anti-dilutive for each of the periods presented. |
Related Party Transaction
Related Party Transaction | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transaction [Abstract] | |
Related Party Transaction | (8) Related Party Transaction Michael Flum, Vice President of Operations & Alternative Data, joined the Company on a part-time basis on June 4, 2018 and became a full-time employee on June 2, 2019. Mr. Flum is the son of Jerome Flum, the Company’s Chief Executive Officer and Chairman of the Board of Directors, and the brother of Joshua Flum, a director of the Company. |
Adoption of ASC 842 (Tables)
Adoption of ASC 842 (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Adoption of ASC 842 [Abstract] | |
Impact of Adoption of ASC 842 on Balance Sheet | The impact of the adoption of ASC 842 on the balance sheet at January 1, 2019 was: As reported Dec. 31, 2018 Adoption of ASC 842 Increase Balance Jan. 1, 2019 Operating lease right-to-use asset $ - $ 2,589,875 $ 2,589,875 Total assets 13,617,180 2,589,875 16,207,055 Current portion of operating lease liability - 143,213 143,213 Operating lease liability - 2,446,662 2,446,662 Total liabilities and stockholders’ equity 13,617,180 2,589,875 16,207,055 |
Maturity of Operating Lease Liability | The following table reconciles the undiscounted cash flows for the Company’s operating lease at June 30, 2019 to the operating lease liability recorded on the balance sheet: 2019 Remainder $ 125,468 2020 255,311 2021 262,970 2022 270,859 2023 278,985 2024 287,355 Thereafter 1,769,054 Total undiscounted lease payments 3,250,002 LESS: Imputed interest at 4.54% (734,334 ) Present value of lease payments $ 2,515,668 Current portion of operating lease liability $ 140,217 Operating lease liability 2,375,451 $ 2,515,668 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 for the three and six months ended June 30: 3 Months Ended June 30, 6 Months Ended June 30, 2019 2018 2019 2018 Data and product costs $ 5,969 $ 8,914 $ 12,409 $ 17,828 Selling, general and administrative expenses 7,824 16,580 15,648 33,159 $ 13,793 $ 25,494 $ 28,057 $ 50,987 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy. June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Total Cash and cash equivalents $ 8 ,403,179 $ - $ - $ 8,403,179 $ 8,066,899 |
Adoption of ASC 842 (Details)
Adoption of ASC 842 (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheet [Abstract] | ||
Operating lease right-to-use asset | $ 2,469,025 | $ 0 |
Total assets | 16,175,016 | 13,617,180 |
Current portion of operating lease liability | 140,217 | 0 |
Operating lease liability | 2,375,451 | 0 |
Total liabilities and stockholders' equity | 16,175,016 | 13,617,180 |
Minimum Lease Payments [Abstract] | ||
2019 Remainder | 125,468 | |
2020 | 255,311 | |
2021 | 262,970 | |
2022 | 270,859 | |
2023 | 278,985 | |
2024 | 287,355 | |
Thereafter | 1,769,054 | |
Total undiscounted lease payments | 3,250,002 | |
LESS: Imputed interest at 4.54% | (734,334) | |
Present value of lease payments | 2,515,668 | |
Current portion of operating lease liability | 140,217 | 0 |
Operating lease liability | 2,375,451 | 0 |
Present value of lease payments | $ 2,515,668 | |
Additional information of Minimum Lease Payments [Abstract] | ||
Discount rate | 4.54% | |
ASC 842 [Member] | ||
Balance Sheet [Abstract] | ||
Operating lease right-to-use asset | 2,589,875 | |
Total assets | 16,207,055 | |
Current portion of operating lease liability | 143,213 | |
Operating lease liability | 2,446,662 | |
Total liabilities and stockholders' equity | 16,207,055 | |
Minimum Lease Payments [Abstract] | ||
Current portion of operating lease liability | 143,213 | |
Operating lease liability | 2,446,662 | |
ASC 842 [Member] | Adoption of ASC 842 Increase [Member] | ||
Balance Sheet [Abstract] | ||
Operating lease right-to-use asset | 2,589,875 | |
Total assets | 2,589,875 | |
Current portion of operating lease liability | 143,213 | |
Operating lease liability | 2,446,662 | |
Total liabilities and stockholders' equity | 2,589,875 | |
Minimum Lease Payments [Abstract] | ||
Current portion of operating lease liability | 143,213 | |
Operating lease liability | $ 2,446,662 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 13,793 | $ 25,494 | $ 28,057 | $ 50,987 |
Data and Product Costs [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | 5,969 | 8,914 | 12,409 | 17,828 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense for stock options [Abstract] | ||||
Stock-based compensation expense | $ 7,824 | $ 16,580 | $ 15,648 | $ 33,159 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | $ 8,403,179 | $ 8,066,899 |
Level 1 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 8,403,179 | |
Level 2 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | 0 | |
Level 3 [Member] | ||
Cash and cash equivalents measured at fair value on recurring basis [Abstract] | ||
Cash and cash equivalents | $ 0 |