8-K
CREDITRISKMONITOR COM INC (CRMZ)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 2020
CreditRiskMonitor.com, Inc.
(Exact name of registrant as specified in its charter)
| Nevada | 1-8601 | 36-2972588 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
704 Executive Boulevard
Valley Cottage, NY 10989
(Address of principal executive offices, including zip code)
(845) 230-3000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $.01 | CRMZ | OTC Markets OTCQX U.S. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On May 12, 2020, CreditRiskMonitor.com, Inc. issued a press release relating to, among other things, its financial results for the quarter ended March 31, 2020. This press release is filed as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits |
| --- | --- |
| Exhibit No. | Description |
| --- | --- |
| 99.1 | Press Release dated May 12, 2020. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CREDITRISKMONITOR.COM, INC. | ||
|---|---|---|
| Date: May 12, 2020 | By: | /s/ Lawrence Fensterstock |
| Lawrence Fensterstock | ||
| Senior Vice President |
Exhibit 99.1
NEWS RELEASE
CONTACT:
CreditRiskMonitor.com, Inc.
Jerry Flum, CEO
(845) 230-3030
ir@creditriskmonitor.com
FOR IMMEDIATE RELEASE
CreditRiskMonitor 1Q Results
VALLEY COTTAGE, NY—May 12, 2020—CreditRiskMonitor (OTCQX: CRMZ) reported that revenues for the 3 months ended March 31, 2020 increased 6% to $3.71 million compared to $3.50 million in last year’s first quarter. Net loss for the quarter was approximately $198,300 compared to a net loss of approximately $136,500 in the prior year period. Cash and cash equivalents increased approximately $22,500 since 2019 year-end, to $8.30 million, and was down $91,700 from the balance at March 31, 2019.
Jerry Flum, CEO, said, “Our net loss increased despite growing sales as the Company continues to invest in an enhanced infrastructure and additional content, which is in addition to strengthening our customer service staff. These strategic investments adversely impact our short-term profits; however, our balance sheet provides us the flexibility to manage our company for long-term shareholder value. Since the COVID-19 pandemic emerged, our team has demonstrated resiliency and fortitude in navigating through this challenge.”
CREDITRISKMONITOR.COM, INC.
STATEMENTS OF OPERATIONS
FOR THE 3 MONTHS ENDED MARCH 31, 2020 AND 2019
(Unaudited)
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| Operating revenues | $ | 3,708,751 | $ | 3,495,809 | ||
| Operating expenses: | ||||||
| Data and product costs | 1,526,328 | 1,468,993 | ||||
| Selling, general and administrative expenses | 2,415,258 | 2,167,411 | ||||
| Depreciation and amortization | 54,112 | 50,989 | ||||
| Total operating expenses | 3,995,698 | 3,687,393 | ||||
| Loss from operations | (286,947 | ) | (191,584 | ) | ||
| Other income, net | 22,684 | 40,890 | ||||
| Loss before income taxes | (264,263 | ) | (150,694 | ) | ||
| Benefit from income taxes | 65,915 | 14,226 | ||||
| Net loss | $ | (198,348 | ) | $ | (136,468 | ) |
| Net loss per common share of stock: | ||||||
| Basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) |
| Weighted average number of common shares outstanding: | ||||||
| Basic and diluted | 10,722,401 | 10,722,401 |
CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
MARCH 31, 2020 AND DECEMBER 31, 2019
| Dec. 31,<br><br> <br>2019 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 8,298,301 | $ | 8,275,836 | ||
| Accounts receivable, net of allowance | 2,195,081 | 2,287,921 | |||
| Other current assets | 624,148 | 549,821 | |||
| Total current assets | 11,117,530 | 11,113,578 | |||
| Property and equipment, net | 461,907 | 477,973 | |||
| Operating lease right-to-use asset | 2,336,354 | 2,380,974 | |||
| Goodwill | 1,954,460 | 1,954,460 | |||
| Other assets | 46,654 | 35,723 | |||
| Total assets | 15,916,905 | $ | 15,962,708 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Unexpired subscription revenue | 9,186,434 | $ | 8,651,843 | ||
| Accounts payable | 186,747 | 137,500 | |||
| Current portion of operating lease liability | 150,805 | 147,229 | |||
| Accrued expenses | 929,891 | 1,344,550 | |||
| Total current liabilities | 10,453,877 | 10,281,122 | |||
| Deferred taxes on income, net | 455,850 | 521,765 | |||
| Unexpired subscription revenue, less current portion | 235,626 | 166,169 | |||
| Operating lease liability, less current liability | 2,260,453 | 2,299,433 | |||
| Total liabilities | 13,405,806 | 13,268,489 | |||
| Stockholders’ equity: | |||||
| Preferred stock, .01 par value; authorized 5,000,000 shares; none issued | - | - | |||
| 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 | 29,720,901 | 29,705,673 | |||
| Accumulated deficit | (27,317,026 | ) | (27,118,678 | ) | |
| Total stockholders’ equity | 2,511,099 | 2,694,219 | |||
| Total liabilities and stockholders’ equity | 15,916,905 | $ | 15,962,708 |
All values are in US Dollars.
Overview
CreditRiskMonitor (http://www.crmz.com) is a web-based publisher of financial information that helps corporate credit and procurement professionals stay ahead of business financial risk quickly, accurately and cost effectively. The service offers comprehensive commercial credit reports and financial risk analysis covering public companies worldwide. Unlike other commercial credit bureaus like Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies.
The Company also collects a significant amount of trade receivable data on both public and a select group of private companies every month, to help subscribers determine payment performance.
Over 35% of the Fortune 1000 plus over 1,000 other large companies worldwide depend on CreditRiskMonitor’s timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, crowdsourcing of risk professionals as well as the Company’s proprietary FRISK® and PAYCE® scores.
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, risks associated with the COVID-19 pandemic and those risks, uncertainties and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.