Creditriskmonitor Com Inc 10-Q for FY2021 Q2

Creditriskmonitor Com Inc (CRMZ)

10-Q 2021-08-12 For: 2021-06-30

Added on April 06, 2026

About this 10-Q

Creditriskmonitor Com Inc filed this 10-Q on August 12, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.25M; up 10.3% from $3.85M a year earlier
Net income: $322.71K; up 1015.8% from net income of $28.92K a year earlier
Diluted EPS: $0.03; compared with $0.00 a year earlier

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Nevada		36-2972588
(State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

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

Large accelerated filer ☐		Accelerated filer	☐
Non-accelerated filer ☑		Smaller reporting company	☑	Emerging growth company ☐

			Page

PART I. FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Condensed Balance Sheets – June 30, 2021 (Unaudited) and December 31, 2020	2

		Condensed Statements of Operations for the Three Months Ended June 30, 2021 and 2020 (Unaudited)	3

		Condensed Statements of Operations for the Six Months Ended June 30, 2021 and 2020 (Unaudited)	4

		Condensed Statements of Stockholders’ Equity for the Three Months Ended June 30, 2021 and 2020 (Unaudited)	5

		Condensed Statements of Stockholders’ Equity for the Six Months Ended June 30, 2021 and 2020 (Unaudited)	6

		Condensed Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 (Unaudited)	7

		Notes to Condensed Financial Statements (Unaudited)	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

	Item 4.	Controls and Procedures	16


PART II. OTHER INFORMATION

	Item 6.	Exhibits	17

SIGNATURES			18

	June 30, 2021			December 31, 2020
	(Unaudited)			(Note 1)

ASSETS
Current assets:
Cash and cash equivalents	$	10,903,794		$	10,302,732
Available-for-sale securities – municipal bonds		-			458,237
Accounts receivable, net of allowance of $30,000		2,945,382			2,557,443
Other current assets		804,329			589,072

Total current assets		14,653,505			13,907,484

Property and equipment, net		597,393			545,675
Operating lease right-to-use asset		2,106,977			2,200,031
Goodwill		1,954,460			1,954,460
Other assets		41,611			84,892

Total assets	$	19,353,946		$	18,692,542

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue	$	9,972,001		$	9,646,407
Accounts payable		181,914			130,089
Current portion of operating lease liability		169,516			161,874
Current portion of bank loan		1,561,500			1,299,007
Accrued expenses		1,687,076			1,822,485

Total current liabilities		13,572,007			13,059,862

Deferred taxes on income, net		332,897			333,432
Unexpired subscription revenue, less current portion		159,066			197,545
Bank loan, less current portion		-			262,493
Operating lease liability, less current portion		2,051,513			2,137,559

Total liabilities		16,115,483			15,990,891

Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none issued		-			-
Common stock, $0.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares		107,224			107,224
Additional paid-in capital		29,786,923			29,760,533
Accumulated deficit		(26,655,684	)		(27,166,106	)

Total stockholders’ equity		3,238,463			2,701,651

Total liabilities and stockholders’ equity	$	19,353,946		$	18,692,542

	2021			2020

Operating revenues	$	4,248,179		$	3,852,003

Operating expenses:
Data and product costs		1,573,686			1,515,469
Selling, general and administrative expenses		2,190,382			2,394,266
Depreciation and amortization		66,503			53,693

Total operating expenses		3,830,571			3,963,428

Income (loss) from operations		417,608			(111,425	)
Other income		246			3,417

Income (loss) before income taxes		417,854			(108,008	)
(Provision for) benefit from income taxes		(95,146	)		136,929

Net income	$	322,708		$	28,921

Net income per share – Basic and diluted	$	0.03		$	0.00

Weighted average number of common shares outstanding –
Basic		10,722,401			10,722,401
Diluted		10,792,744			10,722,401

					Additional					Total
	Common Stock				Paid-in Capital		Accumulated Deficit			Stockholders’ Equity
	Shares		Amount		Paid-in Capital		Accumulated Deficit			Stockholders’ Equity
Balance April 1, 2020		10,722,401	$	107,224	$	29,720,901	$	(27,317,026	)	$	2,511,099

Net income		-		-		-		28,921			28,921
Stock-based compensation		-		-		15,228		-			15,228

Balance June 30, 2020		10,722,401	$	107,224	$	29,736,129	$	(27,288,105	)	$	2,555,248

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

	2021			2020

Cash flows from operating activities:
Net income (loss)	$	510,422		$	(169,427	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income taxes		(535	)		(203,657	)
Depreciation and amortization		131,016			107,805
Operating lease right-to-use asset, net		14,652			18,434
Stock-based compensation		26,390			30,456
Changes in operating assets and liabilities:
Accounts receivable		(387,939	)		17,895
Other current assets		(215,261)			(248,805	)
Other assets		43,282			2,273
Unexpired subscription revenue		287,115			748,936
Accounts payable		51,826			(50,131)
Accrued expenses		(135,409	)		(66,334	)

Net cash provided by operating activities		325,559			187,445

Cash flows from investing activities:
Sale of available-for-sale securities – municipal bonds		458,237			-
Purchase of property and equipment		(182,734	)		(69,131	)

Net cash provided by (used in) investing activities		275,503			(69,131	)

Cash flows from financing activities:
Proceeds from bank loan		-			1,561,500

Net cash provided by financing activities		-			1,561,500

Net increase in cash and cash equivalents		601,062			1,679,814
Cash and cash equivalents at beginning of period		10,302,732			8,275,836

Cash and cash equivalents at end of period	$	10,903,794		$	9,955,650

	3 Months Ended June 30,				6 Months Ended June 30,
	2021		2020		2021		2020

Data and product costs	$	5,393	$	5,583	$	9,245	$	11,166
Selling, general and administrative expenses		11,575		9,645		17,145		19,290

	$	16,968	$	15,228	$	26,390	$	30,456

	June 30, 2021
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	10,903,794	$	-	$	-	$	10,903,794

	December 31, 2020
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	10,302,732	$	-	$	-	$	10,302,732

Available-for-sale securities	$	-	$	458,237	$	-	$	458,237

	3 Months Ended June 30,
	2021						2020
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues

Operating revenues	$	4,248,179			100.00	%	$	3,852,003			100.00	%

Operating expenses:
Data and product costs		1,573,686			37.04	%		1,515,469			39.34	%
Selling, general and administrative expenses		2,190,382			51.56	%		2,394,266			62.16	%
Depreciation and amortization		66,503			1.57	%		53,693			1.39	%
Total operating expenses		3,830,571			90.17	%		3,963,428			102.89	%

Income (loss) from operations		417,608			9.83	%		(111,425	)		(2.89	%)
Other income, net		246			0.01	%		3,417			0.09	%

Income (loss) before income taxes		417,854			9.84	%		(108,008	)		(2.80	%)
Provision for income taxes		(95,146	)		(2.24	%)		136,929			3.55	%

Net income	$	322,708			7.60	%	$	28,921			0.75	%

	6 Months Ended June 30,
	2021						2020
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues

Operating revenues	$	8,381,081			100.00	%	$	7,560,754			100.00	%

Operating expenses:
Data and product costs		3,201,472			38.20	%		3,041,797			40.23	%
Selling, general and administrative expenses		4,391,174			52.39	%		4,809,524			63.61	%
Depreciation and amortization		131,016			1.56	%		107,805			1.43	%
Total operating expenses		7,723,662			92.16	%		7,959,126			105.27	%

Income (loss) from operations		657,419			7.84	%		(398,372	)		(5.27	%)
Other income, net		3,494			0.04	%		26,101			0.35	%

Income (loss) before income taxes		660,913			7.89	%		(372,271	)		(4.92	%)
Provision for income taxes		(150,491	)		(1.80	%)		202,844			2.68	%

Net income (loss)	$	510,422			6.09	%	$	(169,427	)		(2.24	%)

	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

	CREDITRISKMONITOR.COM, INC.
		(REGISTRANT)

Date: August 12, 2021	By: /s/	Steven Gargano
		Steven Gargano
		Senior Vice President & Chief Financial Officer
		(Principal Finance and Accounting Officer)

	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	10,904	$	10,303
Accounts receivable, net	$	2,945	$	2,557
Working capital	$	1,081	$	848
Cash ratio		0.80		0.79
Quick ratio		1.02		0.98
Current ratio		1.08		1.06