CREDITRISKMONITOR COM INC, 10-Q filed on 14 May 24
 | XBRL Documents
v3.24.1.1.u2
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2024
May 14, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
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
v3.24.1.1.u2
CONDENSED BALANCE SHEETS - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 11,416,118 $ 11,004,937
Held-to-maturity securities - treasury bills 3,538,990 3,494,958
Accounts receivable, net of allowance of $30,000 3,792,728 3,941,182
Other current assets 806,697 788,722
Total current assets 19,554,533 19,229,799
Held-to-maturity securities - treasury bills 700,000 700,000
Property and equipment, net 661,728 557,634
Operating lease right-to-use asset 1,560,109 1,612,512
Goodwill 1,954,460 1,954,460
Other assets 18,110 18,110
Total assets 24,448,940 24,072,515
Current liabilities:    
Unexpired subscription revenue 11,114,177 10,272,352
Accounts payable 238,181 141,956
Current portion of operating lease liability 216,035 211,488
Accrued expenses 1,314,751 2,105,019
Total current liabilities 12,883,144 12,730,815
Deferred taxes on income, net 350,605 350,605
Unexpired subscription revenue, less current portion 195,864 68,523
Operating lease liability, less current portion 1,499,041 1,554,686
Total liabilities 14,928,654 14,704,629
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 30,032,766 30,007,773
Accumulated deficit (20,619,704) (20,747,111)
Total stockholders' equity 9,520,286 9,367,886
Total liabilities and stockholders' equity $ 24,448,940 $ 24,072,515
v3.24.1.1.u2
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
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
v3.24.1.1.u2
CONDENSED STATEMENTS OF OPERATIONS - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CONDENSED STATEMENTS OF OPERATIONS [Abstract]    
Operating revenues $ 4,808,707 $ 4,590,744
Operating expenses:    
Data and product costs 2,197,777 1,920,371
Selling, general and administrative expenses 2,553,601 2,359,041
Depreciation and amortization 93,170 97,521
Total operating expenses 4,844,548 4,376,933
(Loss) income from operations (35,841) 213,811
Other income 201,759 140,978
Income before income taxes 165,918 354,789
Provision for income taxes (38,511) (79,509)
Net income $ 127,407 $ 275,280
Net income per share - Basic (in dollars per share) $ 0.01 $ 0.03
Net income per share - Diluted (in dollars per share) $ 0.01 $ 0.03
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) 10,766,909 10,797,101
v3.24.1.1.u2
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Total
Balance at Dec. 31, 2022 $ 107,224 $ 29,904,675 $ (22,442,164) $ 7,569,735
Balance (in shares) at Dec. 31, 2022 10,722,401      
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income $ 0 0 275,280 275,280
Stock-based compensation 0 27,901 0 27,901
Balance at Mar. 31, 2023 $ 107,224 29,932,576 (22,166,884) 7,872,916
Balance (in shares) at Mar. 31, 2023 10,722,401      
Balance at Dec. 31, 2023 $ 107,224 30,007,773 (20,747,111) $ 9,367,886
Balance (in shares) at Dec. 31, 2023 10,722,401     10,722,401
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income $ 0 0 127,407 $ 127,407
Stock-based compensation 0 24,993 0 24,993
Balance at Mar. 31, 2024 $ 107,224 $ 30,032,766 $ (20,619,704) $ 9,520,286
Balance (in shares) at Mar. 31, 2024 10,722,401     10,722,401
v3.24.1.1.u2
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net income $ 127,407 $ 275,280
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Amortization of bond discount (43,704) (36,932)
Depreciation and amortization 93,170 97,521
Operating lease right-to-use asset, net 1,305 3,371
Stock-based compensation 24,993 27,901
Changes in operating assets and liabilities:    
Accounts receivable 148,454 93,364
Other current assets (17,975) (10,461)
Unexpired subscription revenue 969,166 521,358
Accounts payable 96,225 (123,759)
Accrued expenses (790,267) (1,022,718)
Net cash provided by (used in) operating activities 608,774 (175,075)
Cash flows from investing activities:    
Proceeds from held-to-maturity securities - treasury bills 940,000 1,450,000
Purchase of held-to-maturity securities - treasury bills (940,329) (1,443,995)
Purchase of property and equipment (197,264) (53,661)
Net cash used in investing activities (197,593) (47,656)
Net increase (decrease) in cash and cash equivalents 411,181 (222,731)
Cash and cash equivalents at beginning of period 11,004,937 9,866,628
Cash and cash equivalents at end of period $ 11,416,118 $ 9,643,897
v3.24.1.1.u2
Basis of Presentation
 3 Months Ended
Mar. 31, 2024
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 of America 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, 2023.
The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results for an entire fiscal year.
The December 31, 2023 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, 2023 included in the Company’s Annual Report on Form 10-K.
v3.24.1.1.u2
Recently Issued Accounting Standards
 3 Months Ended
Mar. 31, 2024
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 condensed 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.
v3.24.1.1.u2
Revenue Recognition
 3 Months Ended
Mar. 31, 2024
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.
v3.24.1.1.u2
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
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,
  
   
2024
    
2023
  
             
Data and product costs
  
$
7,594
    
$
10,272
  
Selling, general and administrative expenses
    
17,399
      
17,629
  
                 
   
$
24,993
    
$
27,901
  
v3.24.1.1.u2
Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Fair Value Measurements [Abstract]  
Fair Value Measurements
(5) Fair Value Measurements

The Company’s cash, cash equivalents and marketable securities are stated at fair value. The carrying value of accounts receivable, other current assets, accrued expenses, 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.

All held-to-maturity securities as of March 31, 2024 were US Treasury and federal bonds. Investments in these bonds are based on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy.
The tables below set forth the Company’s cash and cash equivalents, as well as marketable securities as of March 31, 2024 and December 31, 2023, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.
   
March 31, 2024
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Cash and cash equivalents
  
$
11,416,118
    
$
-
    
$
-
    
$
11,416,118
  
Held-to-maturity securities
     4,238,990       -       -       4,238,990  
    $ 15,655,108     $ -     $ -     $ 15,655,108  

   
December 31, 2023
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Cash and cash equivalents
  
$
11,004,937
    
$
-
    
$
-
    
$
11,004,937
  
Held-to-maturity securities     4,194,958       -       -       4,194,958  
    $ 15,199,895     $ -     $ -     $ 15,199,895  

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of March 31, 2024.

The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
v3.24.1.1.u2
Marketable Securities
 3 Months Ended
Mar. 31, 2024
Marketable Securities [Abstract]  
Marketable Securities
(6) Marketable Securities
Based upon the Company’s intent and ability to hold its US Treasury and federal bond securities to maturity (which maturities range up to 22 months at purchase), such securities have been classified as held-to-maturity and are carried at amortized cost, which approximates fair market value.  Accrued bond interest receivable as of March 31, 2024 is $3,043.
The following table summarizes the cost and fair value of marketable securities at March 31, 2024 as follows:
   
Amortized Cost
    
Gross Unrealized Gain (Loss)
    
Fair Value
  
                   
Held-to-maturity securities
                  
US Treasuries
  
$
4,238,990
    
$
78,010
    
$
4,317,000
  

Maturities of marketable securities were as follows at March 31, 2024:
Held-to-maturity securities:
      
Due in one year or less
  
$
3,538,990
  
Due in 12 – 24 months
     700,000  
    $ 4,238,990  

The Company’s investments in marketable securities consist primarily of investments in US Treasury securities and federal bonds. Market values were determined for each individual security in the investment portfolio.
Management evaluates securities for other-than-temporary impairment at least on an annual basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management has determined that no other-than-temporary impairment exists as of March 31, 2024.
v3.24.1.1.u2
Net Income per Share
 3 Months Ended
Mar. 31, 2024
Net Income per Share [Abstract]  
Net Income per Share
(7) 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
  
   
2024
   
2023
 
             
Weighted average number of common shares outstanding – basic
    
10,722,401
      
10,722,401
  
Potential shares exercisable under stock option plans
    
258,000
      
306,650
  
LESS: Shares which could be repurchased under treasury stock method
    
(213,492
)
    
(231,950
)
                 
Weighted average number of common shares outstanding – diluted
    
10,766,909
      
10,797,101
  

For the three months ended March 31, 2024, the computation of diluted net income per share excludes the effects of the assumed exercise of 529,900 since their inclusion would be anti-dilutive as their exercise prices were above market value.

For the three months ended March 31, 2023, the computation of diluted net income per share excludes the effects of the assumed exercise of 379,900 options since their inclusion would be anti-dilutive as their exercise prices were above market value.
v3.24.1.1.u2
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
(8) 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 condensed financial statements of the Company.
v3.24.1.1.u2
Related Party Transactions
 3 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions
(9) Related Party Transactions

On May 1, 2023, the Company’s Board of Directors appointed Michael Flum, age 36, to serve as Chief Executive Officer and President.  Michael Flum joined the Company in June 2018 as Vice President of Operations & Alternative Data. He was appointed Chief Operating Officer in October 2019 and subsequently President in October 2020. Mr. Flum is the son of Jerome S. Flum, the Company’s former Chief Executive Officer and current Chairman of the Board of Directors, and the brother of Joshua Flum, a Director of the Company.
v3.24.1.1.u2
Supplemental Disclosures of Noncash Investing Activities
 3 Months Ended
Mar. 31, 2024
Supplemental Disclosures of Noncash Investing Activities [Abstract]  
Supplemental Disclosures of Noncash Investing Activities
(10) Supplemental Disclosures of Noncash Investing Activities

For the three months ended March 31, 2023, there was a noncash transfer of deposits from operating activities to property and equipment in the amount of $155,700.
v3.24.1.1.u2
Insider Trading Arrangement
 3 Months Ended
Mar. 31, 2024
Insider Trading Arrangements [Line Items]  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.1.u2
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
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,
  
   
2024
    
2023
  
             
Data and product costs
  
$
7,594
    
$
10,272
  
Selling, general and administrative expenses
    
17,399
      
17,629
  
                 
   
$
24,993
    
$
27,901
  
v3.24.1.1.u2
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Measurements [Abstract]  
Cash and Cash Equivalents and Marketable Securities 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, 2024 and December 31, 2023, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.
   
March 31, 2024
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Cash and cash equivalents
  
$
11,416,118
    
$
-
    
$
-
    
$
11,416,118
  
Held-to-maturity securities
     4,238,990       -       -       4,238,990  
    $ 15,655,108     $ -     $ -     $ 15,655,108  

   
December 31, 2023
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Cash and cash equivalents
  
$
11,004,937
    
$
-
    
$
-
    
$
11,004,937
  
Held-to-maturity securities     4,194,958       -       -       4,194,958  
    $ 15,199,895     $ -     $ -     $ 15,199,895  
v3.24.1.1.u2
Marketable Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Marketable Securities [Abstract]  
Cost and Fair Value of Marketable Securities
The following table summarizes the cost and fair value of marketable securities at March 31, 2024 as follows:
   
Amortized Cost
    
Gross Unrealized Gain (Loss)
    
Fair Value
  
                   
Held-to-maturity securities
                  
US Treasuries
  
$
4,238,990
    
$
78,010
    
$
4,317,000
  
Maturities of Marketable Securities
Maturities of marketable securities were as follows at March 31, 2024:
Held-to-maturity securities:
      
Due in one year or less
  
$
3,538,990
  
Due in 12 – 24 months
     700,000  
    $ 4,238,990  
v3.24.1.1.u2
Net Income per Share (Tables)
 3 Months Ended
Mar. 31, 2024
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
  
   
2024
   
2023
 
             
Weighted average number of common shares outstanding – basic
    
10,722,401
      
10,722,401
  
Potential shares exercisable under stock option plans
    
258,000
      
306,650
  
LESS: Shares which could be repurchased under treasury stock method
    
(213,492
)
    
(231,950
)
                 
Weighted average number of common shares outstanding – diluted
    
10,766,909
      
10,797,101
  
v3.24.1.1.u2
Stock-Based Compensation (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Stock-Based Compensation Expense for Stock Options [Abstract]    
Stock-based compensation expense $ 24,993 $ 27,901
Data and Product Costs [Member]    
Stock-Based Compensation Expense for Stock Options [Abstract]    
Stock-based compensation expense 7,594 10,272
Selling, General and Administrative Expenses [Member]    
Stock-Based Compensation Expense for Stock Options [Abstract]    
Stock-based compensation expense $ 17,399 $ 17,629
v3.24.1.1.u2
Fair Value Measurements (Details) - Recurring [Member] - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract]    
Cash and cash equivalents $ 11,416,118 $ 11,004,937
Held-to-maturity securities 4,238,990 4,194,958
Fair Value 15,655,108 15,199,895
Level 1 [Member]    
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract]    
Cash and cash equivalents 11,416,118 11,004,937
Held-to-maturity securities 4,238,990 4,194,958
Fair Value 15,655,108 15,199,895
Level 2 [Member]    
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract]    
Cash and cash equivalents 0 0
Held-to-maturity securities 0 0
Fair Value 0 0
Level 3 [Member]    
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract]    
Cash and cash equivalents 0 0
Held-to-maturity securities 0 0
Fair Value $ 0 $ 0
v3.24.1.1.u2
Marketable Securities, Cost and Fair Value of Marketable Securities (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Held-to-Maturity, Fair Value [Abstract]    
Amortized Cost $ 3,538,990 $ 3,494,958
Accrued bond interest receivable 3,043  
US Treasuries [Member]    
Debt Securities, Held-to-Maturity, Fair Value [Abstract]    
Amortized Cost 4,238,990  
Gross Unrealized Gain (Loss) 78,010  
Fair Value $ 4,317,000  
v3.24.1.1.u2
Marketable Securities, Maturities of Marketable Securities (Details)
 3 Months Ended
Mar. 31, 2024
USD ($)
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date [Abstract]  
Due in one year or less $ 3,538,990
Due in 12 - 24 months 700,000
Held-to-maturity securities 4,238,990
Other-than-temporary impairment loss $ 0
v3.24.1.1.u2
Net Income per Share (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
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) 258,000 306,650
Less: Shares which could be repurchased under treasury stock method (in shares) (213,492) (231,950)
Weighted average number of common shares outstanding - diluted (in shares) 10,766,909 10,797,101
Stock Options [Member]    
Antidilutive Securities Excluded from Computation [Abstract]    
Antidilutive securities excluded from computation of earnings per share (in shares) 529,900 379,900
v3.24.1.1.u2
Supplemental Disclosures of Noncash Investing Activities (Details)
 3 Months Ended
Mar. 31, 2023
USD ($)
Supplemental Disclosures of Noncash Investing Activities [Abstract]  
Noncash transfer of prepaids $ 155,700