|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
(Address of principal executive offices, including zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
None
|
N/A
|
N/A
|
Large accelerated filer ☐
|
Accelerated filer
|
☐
|
||
|
Smaller reporting company
|
|
Emerging growth company
|
|
Page
|
||
PART I. FINANCIAL INFORMATION
|
|
||
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|
|
Item 1.
|
Financial Statements
|
|
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|
|
|
|
2
|
|
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|
|
|
|
3
|
|
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4
|
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5
|
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6 | |
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Item 2.
|
10 | |
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Item 4.
|
13 | |
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PART II. OTHER INFORMATION
|
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||
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Item 6.
|
14 | |
|
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|
15 |
March 31,
2024
|
December 31,
2023
|
|||||||
(Unaudited)
|
(Note 1)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Held-to-maturity securities – treasury bills
|
||||||||
Accounts receivable, net of allowance of $
|
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Held-to-maturity securities – treasury bills
|
||||||||
Property and equipment, net
|
|
|
||||||
Operating lease right-to-use asset
|
|
|
||||||
Goodwill
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Unexpired subscription revenue
|
$
|
|
$
|
|
||||
Accounts payable
|
|
|
||||||
Current portion of operating lease liability
|
|
|
||||||
Accrued expenses
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred taxes on income, net
|
|
|
||||||
Unexpired subscription revenue, less current portion
|
|
|
||||||
Operating lease liability, less current portion
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
2024
|
2023
|
|||||||
Operating revenues
|
$
|
|
$
|
|
||||
Operating expenses:
|
||||||||
Data and product costs
|
|
|
||||||
Selling, general and administrative expenses
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Total operating expenses
|
|
|
||||||
(Loss) income from operations
|
(
|
)
|
|
|||||
Other income
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Provision for income taxes
|
(
|
)
|
(
|
)
|
||||
Net income
|
$
|
|
$
|
|
||||
Net income per share – Basic and diluted
|
$
|
|
$
|
|
||||
Weighted average number of common shares outstanding –
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity |
|||||||||||||||||
Shares | Amount |
|||||||||||||||||||
Balance January 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance March 31, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance January 1, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance March 31, 2024
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
2024
|
2023
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Amortization of bond discount
|
( |
) | ( |
) | ||||
Depreciation and amortization
|
|
|
||||||
Operating lease right-to-use asset, net
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
|
|
||||||
Other current assets
|
(
|
)
|
(
|
)
|
||||
Unexpired subscription revenue
|
|
|
||||||
Accounts payable
|
|
(
|
)
|
|||||
Accrued expenses
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Proceeds from held-to-maturity securities – treasury bills
|
||||||||
Purchase of held-to-maturity securities – treasury bills
|
( |
) | ( |
) | ||||
Purchase of property and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
3 Months Ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Data and product
costs
|
$
|
|
$
|
|
||||
Selling, general
and administrative expenses
|
|
|
||||||
$
|
|
$
|
|
March 31, 2024
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Held-to-maturity securities |
||||||||||||||||
$ | $ | $ | $ |
December 31, 2023
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Held-to-maturity securities | ||||||||||||||||
$ | $ | $ | $ |
Amortized Cost
|
Gross Unrealized Gain (Loss)
|
Fair Value
|
||||||||||
Held-to-maturity securities
|
||||||||||||
US Treasuries
|
$
|
|
$
|
|
$
|
|
Held-to-maturity securities:
|
||||
Due in one year or less
|
$
|
|
||
Due in 12 – 24 months |
||||
$ |
3 Months Ended
March 31
|
||||||||
2024
|
2023
|
|||||||
Weighted average
number of common shares outstanding – basic
|
|
|
||||||
Potential shares
exercisable under stock option plans
|
|
|
||||||
LESS: Shares which
could be repurchased under treasury stock method
|
(
|
)
|
(
|
)
|
||||
Weighted average
number of common shares outstanding – diluted
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
March 31,
2024
|
December 31,
2023
|
|||||||
Cash and cash equivalents
|
$
|
11,416
|
$
|
11,005
|
||||
Held-to-maturity securities
|
$
|
3,539
|
$
|
3,495
|
||||
Accounts receivable, net
|
$
|
3,793
|
$
|
3,941
|
||||
Working capital
|
$
|
6,671
|
$
|
6,499
|
||||
Cash ratio
|
0.89
|
0.86
|
||||||
Quick ratio
|
1.46
|
1.45
|
||||||
Current ratio
|
1.52
|
1.51
|
3 Months Ended March 31,
|
||||||||||||||||
2024
|
2023
|
|||||||||||||||
Amount
|
% of Total
Operating
Revenues
|
Amount
|
% of Total
Operating
Revenues
|
|||||||||||||
Operating revenues
|
$
|
4,808,707
|
100
|
%
|
$
|
4,590,744
|
100
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
2,197,777
|
46
|
%
|
1,920,371
|
42
|
%
|
||||||||||
Selling, general and administrative expenses
|
2,553,601
|
53
|
%
|
2,359,041
|
51
|
%
|
||||||||||
Depreciation and amortization
|
93,170
|
2
|
%
|
97,521
|
2
|
%
|
||||||||||
Total operating expenses
|
4,844,548
|
101
|
%
|
4,376,933
|
95
|
%
|
||||||||||
(Loss) income from operations
|
(35,841
|
)
|
(1
|
%)
|
213,811
|
5
|
%
|
|||||||||
Other income, net
|
201,759
|
4
|
%
|
140,978
|
3
|
%
|
||||||||||
Income before income taxes
|
165,918
|
3
|
%
|
354,789
|
8
|
%
|
||||||||||
Provision for income taxes
|
(38,511
|
)
|
(1
|
%)
|
(79,509
|
)
|
(2
|
%)
|
||||||||
Net income
|
$
|
127,407
|
2
|
%
|
$
|
275,280
|
6
|
%
|
Item 4. |
Controls and Procedures
|
Item 6. |
Exhibits
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
CREDITRISKMONITOR.COM, INC.
|
||
(REGISTRANT)
|
||
Date: May 14, 2024
|
By: /s/ Steven Gargano
|
|
Steven Gargano
|
||
Senior Vice President & Chief Financial Officer
|
||
(Principal Accounting Officer)
|