Equibles

10-Q

CREDITRISKMONITOR COM INC (CRMZ)

10-Q 2022-08-10 For: 2022-06-30
View Original
Added on April 06, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to

Commission File Number: 1-8601

CreditRiskMonitor.com, Inc.

(Exact name of registrant as specified in its charter)

Nevada 36-2972588
(State or other jurisdiction of incorporation or organization (I.R.S. Employer Identification No.)
704 Executive Boulevard, Suite A
---
Valley Cottage, New York  10989
(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (845) 230-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
None N/A N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer   ☑ Smaller reporting company ☑ 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.  ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).   Yes ☐    No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common stock $.01 par value – 10,722,401 shares outstanding as of August 10, 2022. The aggregate market value of the registrant’s common stock held by non-affiliates as of June 30, 2021 and 2022 was $11,869,949 and $10,037,090 respectively.

CREDITRISKMONITOR.COM, INC.

INDEX

Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets – June 30, 2022 (Unaudited) and December 31, 2021 2
Condensed Statements of Operations for the Three Months Ended June 30, 2022 and 2021 (Unaudited) 3
Condensed Statements of Operations for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 4
Condensed Statements of Stockholders’ Equity for the Three Months Ended June 30, 2022 and 2021<br> (Unaudited) 5
Condensed Statements of Stockholders’ Equity for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 6
Condensed Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited) 7
Notes to Condensed Financial Statements (Unaudited) 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10
Item 4. Controls and Procedures 14
PART II. OTHER INFORMATION
Item 6. Exhibits 15
SIGNATURES 16

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.

CONDENSED BALANCE SHEETS

JUNE 30, 2022 AND DECEMBER 31, 2021

December 31,<br><br> <br>2021
(Note 1)
ASSETS
Current assets:
Cash and cash equivalents 12,627,763 $ 12,381,521
Accounts receivable, net of allowance of 30,000 3,447,149 2,803,236
Other current assets 810,289 581,149
Total current assets 16,885,201 15,765,906
Property and equipment, net 572,615 606,193
Operating lease right-to-use asset 1,915,302 2,012,155
Goodwill 1,954,460 1,954,460
Other assets 49,136 86,714
Total assets 21,376,714 $ 20,425,428
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue 10,398,984 $ 9,520,226
Accounts payable 225,447 358,307
Current portion of operating lease liability 185,549 177,485
Accrued expenses 1,461,163 1,745,290
Total current liabilities 12,271,143 11,801,308
Deferred taxes on income, net 484,296 407,805
Unexpired subscription revenue, less current portion 227,467 127,124
Operating lease liability, less current portion 1,865,964 1,960,127
Total liabilities 14,848,870 14,296,364
Stockholders’ equity:
Preferred stock, 0.01 par value; authorized 5,000,000 shares; none<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br> issued - -
Common stock, 0.01<br> par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares 107,224 107,224
Additional paid-in capital 29,859,233 29,824,242
Accumulated deficit (23,438,613 ) (23,802,402 )
Total stockholders’ equity 6,527,844 6,129,064
Total liabilities and stockholders’ equity 21,376,714 $ 20,425,428

All values are in US Dollars.

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

  OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

2022 2021
Operating revenues $ 4,450,017 $ 4,248,179
Operating expenses:
Data and product costs 1,715,574 1,573,686
Selling, general and administrative expenses 2,342,699 2,190,382
Depreciation and amortization 107,000 66,503
Total operating expenses 4,165,273 3,830,571
Income from operations 284,744 417,608
Other income 11,090 246
Income before income taxes 295,834 417,854
Provision for income taxes (83,166 ) (95,146 )
Net income $ 212,668 $ 322,708
Net income per share – Basic and diluted $ 0.02 $ 0.03
Weighted average number of common shares outstanding –
Basic 10,722,401 10,722,401
Diluted 10,775,373 10,792,744

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

2022 2021
Operating revenues $ 8,788,220 $ 8,381,081
Operating expenses:
Data and product costs 3,473,486 3,201,472
Selling, general and administrative expenses 4,633,801 4,391,174
Depreciation and amortization 201,209 131,016
Total operating expenses 8,308,496 7,723,662
Income from operations 479,724 657,419
Other income 11,787 3,494
Income before income taxes 491,511 660,913
Provision for income taxes (127,722 ) (150,491)
Net income $ 363,789 $ 510,422
Net income per share – Basic and diluted $ 0.03 $ 0.05
Weighted average number of common shares outstanding –
Basic 10,722,401 10,722,401
Diluted 10,761,851 10,779,726

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

  STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

Additional Total
Common Stock Paid-in<br><br> <br>Capital Accumulated<br><br> <br>Deficit Stockholders’ Equity
Shares Amount
Balance April 1, 2021 10,722,401 $ 107,224 $ 29,769,955 $ (26,978,392 ) $ 2,898,787
Net income - - - 322,708 322,708
Stock-based compensation - - 16,968 - 16,968
Balance June 30, 2021 10,722,401 $ 107,224 $ 29,786,923 $ (26,655,684 ) $ 3,238,463
Balance April 1, 2022 10,722,401 $ 107,224 $ 29,843,574 $ (23,651,281 ) $ 6,299,517
Net income - - - 212,668 212,668
Stock-based compensation - - 15,659 - 15,659
Balance June 30, 2022 10,722,401 $ 107,224 $ 29,859,233 $ (23,438,613 ) $ 6,527,844

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

Additional Total
Common Stock Paid-in<br><br> <br>Capital Accumulated<br><br> <br>Deficit Stockholders’<br><br> <br>Equity
Shares Amount
Balance January 1, 2021 10,722,401 $ 107,224 $ 29,760,533 $ (27,166,106 ) $ 2,701,651
Net income - - - 510,422 510,422
Stock-based compensation - - 26,390 - 26,390
Balance June 30, 2021 10,722,401 $ 107,224 $ 29,786,923 $ (26,655,684 ) $ 3,238,463
Balance January 1, 2022 10,722,401 $ 107,224 $ 29,824,242 $ (23,802,402 ) $ 6,129,064
Net income - - - 363,789 363,789
Stock-based compensation - - 34,991 - 34,991
Balance June 30, 2022 10,722,401 $ 107,224 $ 29,859,233 $ (23,438,613 ) $ 6,527,844

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

                  CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(Unaudited)

2022 2021
Cash flows from operating activities:
Net income $ 363,789 $ 510,422
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes 76,491 (535 )
Depreciation and amortization 201,209 131,016
Operating lease right-to-use asset, net 10,755 14,652
Stock-based compensation 34,991 26,390
Changes in operating assets and liabilities:
Accounts receivable (643,913 ) (387,939 )
Other current assets (229,139 ) (215,261 )
Other assets 37,576 43,282
Unexpired subscription revenue 979,101 287,115
Accounts payable (132,860 ) 51,826
Accrued expenses (284,127 ) (135,409 )
Net cash provided by operating activities 413,873 325,559
Cash flows from investing activities:
Sale of available-for-sale securities – municipal bonds - 458,237
Purchase of property and equipment (167,631 ) (182,734 )
Net cash (used in) provided by investing activities (167,631 ) 275,503
Net increase in cash and cash equivalents 246,242 601,062
Cash and cash equivalents at beginning of period 12,381,521 10,302,732
Cash and cash equivalents at end of period $ 12,627,763 $ 10,903,794

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

(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 six months ended June 30, 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.

(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.

(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.

(4) Stock-Based Compensation

The Company applies ASC 718, Compensation-Stock

    Compensation \(“ASC 718”\) to account for stock-based compensation.

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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 six months ended June 30:

3 Months Ended<br><br> <br>June 30, 6 Months Ended<br><br> <br>June 30,
2022 2021 2022 2021
Data and product costs $ 3,754 $ 5,393 $ 11,041 $ 9,245
Selling, general and administrative expenses 11,905 11,575 23,950 17,145
$ 15,659 $ 16,968 $ 34,991 $ 26,390

(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 June 30, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

June 30, 2022
Level 1 Level 2 Level 3 Total
Cash and cash equivalents $ 12,627,763 $ - $ - $ 12,627,763
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 June 30, 2021.

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(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<br><br> <br>June 30, 6 Months Ended<br><br> <br>June 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 277,300 278,100 276,391 278,100
LESS: Shares which could be repurchased under treasury stock method (224,328 ) (207,757 ) (236,941 ) (220,775 )
Weighted average number of common shares outstanding – diluted 10,775,373 10,792,744 10,761,851 10,779,726

For the three and six months ended June 30, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of 351,600 and 354,200 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

For the three and six months ended June 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.

(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.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business Environment

The continuing uncertainty in the worldwide financial system has negatively impacted general business conditions. It is possible that a weakened economy could adversely affect our clients’ need for credit information, or even their solvency, but we cannot predict whether or to what extent this will occur.

Our strategic priorities and plans for 2022 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. The Company’s top priority is the sale of our newly launched procurement risk platform, SupplyChainMonitor™, which was officially launched during the second quarter of 2022.

Due to COVID-19 variants, the Company has elected to voluntarily close in-office personnel functions for the safety of our employees. Only a limited number of IT and other personnel are periodically visiting our office to ensure the integrity of our computer network, retrieve physical files, and any other function that cannot be done remotely. This has allowed our employee base to work remotely and the Company’s operations to continue normally. Nevertheless, the long-term impact the pandemic will have on the Company’s subscriber base is unknown at this time. The Company may face loss of contracts and/or customers, customer credit risk, and general economic calamities. Accordingly, these global market conditions will affect the level and timing of resources deployed in pursuit of these initiatives in 2022.

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Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of June 30, 2022 and December 31, 2021 (dollars in thousands):

June 30,<br><br> <br>2022 December 31,<br><br> <br>2021
Cash and cash equivalents $ 12,628 $ 12,382
Accounts receivable, net $ 3,447 $ 2,803
Working capital $ 4,614 $ 3,964
Cash ratio 1.03 1.05
Quick ratio 1.31 1.29
Current ratio 1.38 1.34

As of June 30, 2022, the Company had $12.63 million in cash and cash equivalents, an increase of approximately $246 thousand from December 31, 2021. This increase was primarily the result of cash provided by operating activities of approximately $413 thousand and the purchase of equipment totaling approximately $167 thousand.

The main component of current liabilities at June 30, 2022 was unexpired subscription revenue of $10 million, which should not require significant future cash outlay, as this is annual reoccurring revenue, other than the cost of preparation and delivery of the applicable commercial credit reports, which cost much less than the unexpired subscription revenue shown. Unexpired subscription revenue is recognized as income over the subscription term, which approximates 12 months.

The Company has no bank lines of credit or other currently available credit sources.

The Company believes that its existing balances of cash and cash equivalents and cash generated from operations will be sufficient to satisfy its currently anticipated cash requirements through at least the next 12 months and the foreseeable future. Moreover, the Company has no long-term debt. However, the Company’s liquidity could be negatively affected if it were to make an acquisition or license products or technologies, which may necessitate the need to raise additional capital through future debt or equity financing. Additional financing may not be available at all or on terms favorable to the Company.

Off-Balance Sheet Arrangements

The Company is not a party to any off-balance sheet arrangements.

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Results of Operations

3 Months Ended June 30,
2022 2021
Amount % of Total<br><br> <br>Operating<br><br> <br>Revenues Amount % of Total<br><br> <br>Operating<br><br> <br>Revenues
Operating revenues $ 4,450,017 100 % $ 4,248,179 100 %
Operating expenses:
Data and product costs 1,715,574 39 % 1,573,686 37 %
Selling, general and administrative expenses 2,342,699 52 % 2,190,382 52 %
Depreciation and amortization 107,000 2 % 66,503 1 %
Total operating expenses 4,165,273 93 % 3,830,571 90 %
Income from operations 284,744 7 % 417,608 10 %
Other income, net 11,090 0 % 246 0 %
Income before income taxes 295,834 7 % 417,854 10 %
Provision for income taxes (83,166 ) (2 %) (95,146 ) (2 %)
Net income $ 212,668 5 % $ 322,708 8 %

Operating revenues increased approximately $202 thousand, or 5%, for the three months ended June 30, 2022 compared to the second quarter of fiscal 2021. This overall revenue growth resulted from price increases, an increase in subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased approximately $142 thousand, or 9%, for the second quarter of 2022 compared to the same period of fiscal 2021. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers.

Selling, general and administrative expenses increased approximately $152 thousand, or 7%, for the second quarter of fiscal 2022 compared to the same period of fiscal 2021. This increase was primarily due to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher commission expense due to increased sales.

6 Months Ended June 30,
2022 2021
Amount % of Total<br><br> <br>Operating<br><br> <br>Revenues Amount % of Total<br><br> <br>Operating<br><br> <br>Revenues
Operating revenues $ 8,788,220 100 % $ 8,381,081 100 %
Operating expenses:
Data and product costs 3,473,486 40 % 3,201,472 38 %
Selling, general and administrative expenses 4,633,801 53 % 4,391,174 52 %
Depreciation and amortization 201,209 2 % 131,016 2 %
Total operating expenses 8,308,496 95 % 7,723,662 92 %
Income from operations 479,724 5 % 657,419 8 %
Other income, net 11,787 0 % 3,494 0 %
Income before income taxes 491,511 5 % 660,913 8 %
Provision for income taxes (127,722 ) (1 %) (150,491 ) (2 %)
Net income $ 363,789 4 % $ 510,422 6 %

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Operating revenues increased approximately $407 thousand, or 5%, for the six months ended June 30, 2022 compared to the first half of fiscal 2021. This overall revenue growth resulted from price increases, an increase in subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased approximately $272 thousand, or 8%, for the first half of 2022 compared to the same period of fiscal 2021. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers.

Selling, general and administrative expenses increased approximately $243 thousand, or 6%, for the first half of fiscal 2022 compared to the same period of fiscal 2021. This increase was primarily due to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher commission expense due to increased sales.

Future Operations

The Company over time intends to expand its operations by expanding the breadth and depth of its product and service offerings and introducing new and complementary products. Gross margins attributable to new business areas may be lower than those associated with the Company’s existing business activities.

As a result of the evolving nature of the markets in which it competes, the Company’s ability to accurately forecast its revenues, gross profits, and operating expenses as a percentage of net sales is limited. The Company’s current and future expense levels are based largely on its investment plans and estimates of future revenues. To a large extent these costs do not vary with revenue. Sales and operating results generally depend on the Company’s ability to attract and retain customers and the volume of and timing of customer subscriptions for the Company’s services, which are difficult to forecast. The Company may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues in relation to the Company’s planned expenditures would have an immediate adverse effect on the Company’s business, prospects, financial condition and results of operations. Further, as a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service, marketing or acquisition decisions that could have a material adverse effect on its business, prospects, financial condition and results of operations.

Achieving greater profitability depends on the Company’s ability to generate and sustain increased revenue levels. The Company believes that its success will depend in large part on its ability to (i) increase its brand awareness, (ii) provide its customers with outstanding value, thus encouraging customer renewals, and (iii) achieve sufficient sales volume to realize economies of scale. Accordingly, the Company intends to continue to increase the size of its sales force and service staff, and to invest in product development, operating infrastructure, marketing and promotion.

The Company expects to experience fluctuations in its future quarterly operating results due to a variety of factors, some of which are outside the Company’s control. Factors that may adversely affect the Company’s quarterly operating results include, among others, (i) new variants of COVID-19 and government related restrictions on our subscribers and their ongoing businesses and how those effects may impact our sales to them, (ii) the Company’s ability to retain existing subscribers, attract new subscribers at a steady rate and maintain customer satisfaction, (iii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iv) the development of new services and products by the Company and its competitors, (v) price competition, (vi) the Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vii) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (viii) the Company’s ability to attract and retain personnel in a timely and effective manner, (ix) the Company’s ability to manage effectively its development of new business segments and markets, (x) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (xi) technical difficulties, system downtime, cybersecurity breaches, or Internet brownouts, (xii) the amount and timing of operating costs and capital expenditures relating the Company’s business, operations and infrastructure, (xiii) governmental regulation and taxation policies, (xiv) disruptions in service by common carriers due to strikes or otherwise, (xv) risks of fire or other casualty, (xvi) litigation costs or other unanticipated expenses, (xvii) interest rate risks and inflationary pressures, and (xviii) general economic conditions and economic conditions specific to the Internet and online commerce.

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Due to the foregoing factors, the Company believes that period-to-period comparisons of its revenues and operating results are not necessarily meaningful and should not be relied on as an indication of future performance.

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements, including statements regarding future prospects, industry trends, competitive conditions and litigation issues. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “expects”, “anticipates”, “plans” or words of similar meaning are intended to identify forward-looking statements. This notice is intended to take advantage of the “safe harbor” provided by the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Among others, factors that could cause actual results to differ materially from the Company’s beliefs or expectations are those listed under “Business Environment” and “Results of Operations” and other factors referenced herein or from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission reports. The Company disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, a future event or otherwise.

Item 4. Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective to ensure that all material information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to them as appropriate to allow timely decisions regarding required disclosure and that all such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of the Effectiveness of Internal Control

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.

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PART II. OTHER INFORMATION

Item 6. Exhibits
31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
--- ---
31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 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
32.2 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

15

Index

SIGNATURES

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 thereunto duly authorized.

CREDITRISKMONITOR.COM, INC.
(REGISTRANT)
Date: August 10, 2022 By: /s/ Steven Gargano
Steven Gargano
Senior Vice President & Chief Financial Officer
(Principal Accounting Officer)

16

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jerome S. Flum, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CreditRiskMonitor.com, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which<br> such statements were made, not misleading with respect to the period covered by this report;
--- ---
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows<br> of the registrant as of, and for, the periods presented in this report;
--- ---
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal<br> control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
--- ---
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,<br> including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
--- ---
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and<br> the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
--- ---
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end<br> of the period covered by this report based on such evaluation; and
--- ---
d) Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in<br> the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
--- ---
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors<br> (or persons performing the equivalent function):
--- ---
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,<br> process, summarize and report financial information; and
--- ---
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
--- ---
Date: August 10, 2022 By: /s/ Jerome S. Flum
--- --- ---
Jerome S. Flum
Chief Executive Officer

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven Gargano, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CreditRiskMonitor.com, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which<br> such statements were made, not misleading with respect to the period covered by this report;
--- ---
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows<br> of the registrant as of, and for, the periods presented in this report;
--- ---
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal<br> control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
--- ---
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,<br> including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
--- ---
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the<br> reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
--- ---
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end<br> of the period covered by this report based on such evaluation; and
--- ---
d) Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in<br> the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
--- ---
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors<br> (or persons performing the equivalent function):
--- ---
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,<br> process, summarize and report financial information; and
--- ---
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
--- ---
Date: August 10, 2022 By: /s/ Steven Gargano
--- --- ---
Steven Gargano
Senior Vice President & Chief Financial Officer

EXHIBIT 32.1

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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jerome S. Flum, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
--- ---
By: /s/ Jerome S. Flum
--- --- ---
Jerome S. Flum
Chief Executive Officer
August 10, 2022

This certification is being furnished to the SEC with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section.

EXHIBIT 32.2

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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven Gargano, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
--- ---
By: /s/ Steven Gargano
--- --- ---
Steven Gargano
Senior Vice President & Chief Financial Officer
August 10, 2022

This certification is being furnished to the SEC with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section.

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