CREDITRISKMONITOR COM INC, 10-Q filed on 10 Nov 22
 | XBRL Documents
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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.
v3.22.2.2
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.
v3.22.2.2
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 (“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.
v3.22.2.2
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 (“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,
  
   
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
  
v3.22.2.2
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.
v3.22.2.2
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.
v3.22.2.2
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.
v3.22.2.2
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
  
v3.22.2.2
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
  
v3.22.2.2
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
  
v3.22.2.2
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
v3.22.2.2
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
v3.22.2.2
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