CREDITRISKMONITOR COM INC, 10-Q filed on 13 May 22
v3.22.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2022
May 13, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity Registrant Name CreditRiskMonitor.com, Inc.  
Entity Incorporation, State or Country Code NV  
Entity File Number 1-8601  
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 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 2022  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000315958  
v3.22.1
CONDENSED BALANCE SHEETS - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 12,195,390 $ 12,381,521
Accounts receivable, net of allowance of $30,000 3,118,270 2,803,236
Other current assets 522,210 581,149
Total current assets 15,835,870 15,765,906
Property and equipment, net 582,346 606,193
Operating lease right-of-use asset 1,963,999 2,012,155
Goodwill 1,954,460 1,954,460
Other assets 77,384 86,714
Total assets 20,414,059 20,425,428
Current liabilities:    
Unexpired subscription revenue 10,053,989 9,520,226
Accounts payable 170,747 358,307
Current portion of operating lease liability 181,520 177,485
Accrued expenses 1,201,576 1,745,290
Total current liabilities 11,607,832 11,801,308
Deferred taxes on income, net 401,130 407,805
Unexpired subscription revenue, less current portion 192,268 127,124
Operating lease liability, less current portion 1,913,312 1,960,127
Total liabilities 14,114,542 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 29,843,574 29,824,242
Accumulated deficit (23,651,281) (23,802,402)
Total stockholders' equity 6,299,517 6,129,064
Total liabilities and stockholders' equity $ 20,414,059 $ 20,425,428
v3.22.1
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)
Mar. 31, 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
v3.22.1
CONDENSED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
STATEMENTS OF OPERATIONS [Abstract]    
Operating revenues $ 4,338,202 $ 4,132,901
Operating expenses:    
Data and product costs 1,748,164 1,627,786
Selling, general and administrative expenses 2,300,849 2,200,792
Depreciation and amortization 94,209 64,512
Total operating expenses 4,143,222 3,893,090
Income from operations 194,980 239,811
Other income 697 3,248
Income before income taxes 195,677 243,059
Provision for income taxes (44,556) (55,345)
Net income (loss) $ 151,121 $ 187,714
Net income per share - Basic (in dollars per share) $ 0.01 $ 0.02
Net income per share - Diluted (in dollars per share) $ 0.01 $ 0.02
Weighted average number of common shares outstanding - Basic (in shares) 10,722,401 10,722,401
Weighted average number of common shares outstanding - Diluted (in shares) 10,748,568 10,764,640
v3.22.1
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 0 187,714 187,714
Stock-based compensation 0 9,422 0 9,422
Balance at Mar. 31, 2021 $ 107,224 29,769,955 (26,978,392) 2,898,787
Balance (in shares) at Mar. 31, 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 0 151,121 $ 151,121
Stock-based compensation 0 19,332 0 19,332
Balance at Mar. 31, 2022 $ 107,224 $ 29,843,574 $ (23,651,281) $ 6,299,517
Balance (in shares) at Mar. 31, 2022 10,722,401     10,722,401
v3.22.1
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities:    
Net income $ 151,121 $ 187,714
Adjustments to reconcile net income to net cash used in operating activities:    
Deferred income taxes (6,675) (56,260)
Depreciation and amortization 94,209 64,512
Operating lease right-to-use asset, net 5,377 7,325
Stock-based compensation 19,332 9,422
Changes in operating assets and liabilities:    
Accounts receivable (315,035) (151,922)
Other current assets 58,939 10,619
Other assets 9,330 52,015
Unexpired subscription revenue 598,907 227,565
Accounts payable (187,560) (2,851)
Accrued expenses (543,714) (541,110)
Net cash used in operating activities (115,769) (192,971)
Cash flows from investing activities:    
Sale of available-for-sale securities - municipal bonds 0 458,237
Purchase of property and equipment (70,362) (103,585)
Net cash (used in) provided by investing activities (70,362) 354,652
Net (decrease) increase in cash and cash equivalents (186,131) 161,681
Cash and cash equivalents at beginning of period 12,381,521 10,302,732
Cash and cash equivalents at end of period $ 12,195,390 $ 10,464,413
v3.22.1
Basis of Presentation
3 Months Ended
Mar. 31, 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 months ended March 31, 2022 and 2021 are not necessarily indicative of the results for an entire fiscal year.

The December 31, 2021 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.
v3.22.1
Recently Issued Accounting Standards
3 Months Ended
Mar. 31, 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 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.
v3.22.1
Revenue Recognition
3 Months Ended
Mar. 31, 2022
Revenue Recognition [Abstract]  
Revenue Recognition
(3) Revenue Recognition

The Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contract with Customers (“ASC 606”) to recognize revenue. ASC 606 requires an entity to apply the following five-step approach: (1) identify the contract(s) with a customer; (2) identify each performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as each performance obligation is satisfied. The Company’s primary source of revenue is subscription income which is recognized ratably over the subscription term.
v3.22.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2022
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
(4) 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,
 
   
2022
   
2021
 
             
Data and product costs
 
$
7,288
   
$
3,851
 
Selling, general and administrative expenses
   
12,044
     
5,571
 
                 
   
$
19,332
   
$
9,422
 
v3.22.1
Fair Value Measurements
3 Months Ended
Mar. 31, 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 well as marketable securities as of March 31, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

   
March 31, 2022
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
Cash and cash equivalents
 
$
12,195,390
   
$
-
   
$
-
   
$
12,195,390
 

   
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 March 31, 2021.
v3.22.1
Net Income per Share
3 Months Ended
Mar. 31, 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
March 31,
 
   
2022
   
2021
 
             
Weighted average number of common shares outstanding – basic
   
10,722,401
     
10,722,401
 
Potential shares exercisable under stock option plans
   
239,100
     
278,100
 
LESS: Shares which could be repurchased under treasury stock method
   
(212,933
)
   
(235,861)
 
                 
Weighted average number of common shares outstanding – diluted
   
10,748,568
     
10,764,640
 

For the three months ended March 31, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of 400,550 options since their inclusion would be anti-dilutive as their exercise prices were above market value.

For the three months ended March 31, 2021, the computation of diluted net income per share excludes the effects of the assumed exercise of 290,650 options since their inclusion would be anti-dilutive as their exercise prices were above market value.
v3.22.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
(7) Commitments and Contingencies

From time to time, the Company is involved in various 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 consolidated financial statements of the Company.
v3.22.1
Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 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 months ended March 31:
 
   
3 Months Ended
March 31,
 
   
2022
   
2021
 
             
Data and product costs
 
$
7,288
   
$
3,851
 
Selling, general and administrative expenses
   
12,044
     
5,571
 
                 
   
$
19,332
   
$
9,422
 
v3.22.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 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 well as marketable securities as of March 31, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

   
March 31, 2022
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
Cash and cash equivalents
 
$
12,195,390
   
$
-
   
$
-
   
$
12,195,390
 

   
December 31, 2021
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
Cash and cash equivalents
 
$
12,381,521
   
$
-
   
$
-
   
$
12,381,521
 
v3.22.1
Net Income per Share (Tables)
3 Months Ended
Mar. 31, 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
March 31,
 
   
2022
   
2021
 
             
Weighted average number of common shares outstanding – basic
   
10,722,401
     
10,722,401
 
Potential shares exercisable under stock option plans
   
239,100
     
278,100
 
LESS: Shares which could be repurchased under treasury stock method
   
(212,933
)
   
(235,861)
 
                 
Weighted average number of common shares outstanding – diluted
   
10,748,568
     
10,764,640
 
v3.22.1
Stock-Based Compensation (Details) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Stock-based compensation expense for stock options [Abstract]    
Stock-based compensation expense $ 19,332 $ 9,422
Data and Product Costs [Member]    
Stock-based compensation expense for stock options [Abstract]    
Stock-based compensation expense 7,288 3,851
Selling, General and Administrative Expenses [Member]    
Stock-based compensation expense for stock options [Abstract]    
Stock-based compensation expense $ 12,044 $ 5,571
v3.22.1
Fair Value Measurements (Details) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 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 12,195,390   $ 12,381,521
Recurring [Member] | Level 1 [Member]      
Cash and cash equivalents measured at fair value on recurring basis [Abstract]      
Cash and cash equivalents 12,195,390   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
v3.22.1
Net Income per Share (Details) - shares
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Net Income per Share [Abstract]    
Weighted average number of common shares outstanding - basic (in shares) 10,722,401 10,722,401
Potential shares exercisable under stock option plans (in shares) 239,100 278,100
Less: Shares which could be repurchased under treasury stock method (in shares) (212,933) (235,861)
Weighted average number of common shares outstanding - diluted (in shares) 10,748,568 10,764,640
Stock Options [Member]    
Antidilutive Securities Excluded from Computation [Abstract]    
Antidilutive securities excluded from computation of earnings per share (in shares) 400,550 290,650