Equibles

10-Q

CREDITRISKMONITOR COM INC (CRMZ)

10-Q 2024-11-14 For: 2024-09-30
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 September 30, 2024

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 ☑

The Company’s common stock is traded on the OTC Markets. There were 10,722,401 shares of common stock $.01 par value outstanding as of November 14, 2024.

CREDITRISKMONITOR.COM, INC.

INDEX

Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets – September 30, 2024 (Unaudited) and December 31, 2023 2
Condensed Statements of Operations for the Three Months Ended September 30, 2024 and 2023 (Unaudited) 3
Condensed Statements of Operations for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4
Condensed Statements of Stockholders’ Equity for the Three Months Ended September 30, 2024 and 2023 (Unaudited) 5
Condensed Statements of Stockholders’ Equity for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6
Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 7
Notes to Condensed Financial Statements (Unaudited) 8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 12
Item 4. Controls and Procedures 16
PART II. OTHER INFORMATION
Item 6. Exhibits 17
SIGNATURES 18

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.

CONDENSED

                  BALANCE SHEETS

SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

December 31,<br><br> <br>2023
(Note 1)
ASSETS
Current assets:
Cash and cash equivalents 7,888,033 $ 11,004,937
Held-to-maturity securities 2,481,973 3,494,958
Accounts receivable, net of allowance of 30,000 3,566,066 3,941,182
Other current assets 916,279 788,722
Total current assets 14,852,351 19,229,799
Held-to-maturity securities 6,908,000 700,000
Property and equipment, net 544,097 557,634
Operating lease right-of-use asset 1,453,548 1,612,512
Goodwill 1,954,460 1,954,460
Other assets 18,110 18,110
Total assets 25,730,566 $ 24,072,515
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue 10,855,818 $ 10,272,352
Accounts payable 72,890 141,956
Current portion of operating lease liability 225,325 211,488
Accrued expenses 2,396,638 2,105,019
Total current liabilities 13,550,671 12,730,815
Deferred taxes on income, net 350,605 350,605
Unexpired subscription revenue, less current portion 194,959 68,523
Operating lease liability, less current portion 1,384,378 1,554,686
Total liabilities 15,480,613 14,704,629
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><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><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 30,081,665 30,007,773
Accumulated deficit (19,938,936 ) (20,747,111 )
Total stockholders’ equity 10,249,953 9,367,886
Total liabilities and stockholders’ equity 25,730,566 $ 24,072,515

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 SEPTEMBER 30, 2024 AND 2023

(Unaudited)

2024 2023
Operating revenues $ 5,009,370 $ 4,792,869
Operating expenses:
Data and product costs 2,205,871 1,951,360
Selling, general and administrative expenses 2,256,732 2,439,147
Depreciation and amortization 97,513 96,216
Total operating expenses 4,560,116 4,486,723
Income from operations 449,254 306,146
Other income 267,092 188,083
Income before income taxes 716,346 494,229
Provision for income taxes (164,764 ) (115,552 )
Net income $ 551,582 $ 378,677
Net income per share – Basic and diluted $ 0.05 $ 0.04
Weighted average number of common shares outstanding –
Basic 10,722,401 10,722,401
Diluted 10,770,383 10,799,481

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

  OPERATIONS

FOR THE

    NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)

2024 2023
Operating revenues $ 14,751,845 $ 14,066,112
Operating expenses:
Data and product costs 6,566,750 5,806,156
Selling, general and administrative expenses 7,505,751 7,050,702
Depreciation and amortization 291,576 288,303
Total operating expenses 14,364,077 13,145,161
Income from operations 387,768 920,951
Other income 664,587 521,630
Income before income taxes 1,052,355 1,442,581
Provision for income taxes (244,180 ) (337,273 )
Net income $ 808,175 $ 1,105,308
Net income per share – Basic and diluted $ 0.08 $ 0.10
Weighted average number of common shares outstanding –
Basic 10,722,401 10,722,401
Diluted 10,764,587 10,801,243

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

  STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)

Common Stock Additional<br> <br>Paid-in<br><br> <br>Capital Accumulated<br><br> <br>Deficit Total<br><br> <br>Stockholders’<br><br> <br>Equity
Shares Amount
Balance July 1, 2023 10,722,401 $ 107,224 $ 29,958,199 $ (21,715,533 ) $ 8,349,890
Net income - - - 378,677 378,677
Stock-based compensation - - 22,329 - 22,329
Balance September 30, 2023 10,722,401 $ 107,224 $ 29,980,528 $ (21,336,856 ) $ 8,750,896
Balance July 1, 2024 10,722,401 $ 107,224 $ 30,055,386 $ (20,490,518 ) $ 9,672,092
Net income - - - 551,582 551,582
Stock-based compensation - - 26,279 - 26,279
Balance September 30, 2024 10,722,401 $ 107,224 $ 30,081,665 $ (19,938,936 ) $ 10,249,953

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF

  STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)

Common Stock Additional<br> <br>Paid-in<br><br> <br>Capital Accumulated<br><br> <br>Deficit Total<br> <br>Stockholders’<br><br> <br>Equity
Shares Amount
Balance January 1, 2023 10,722,401 $ 107,224 $ 29,904,675 $ (22,442,164 ) $ 7,569,735
Net income - - - 1,105,308 1,105,308
Stock-based compensation - - 75,853 - 75,853
Balance September 30, 2023 10,722,401 $ 107,224 $ 29,980,528 $ (21,336,856 ) $ 8,750,896
Balance January 1, 2024 10,722,401 $ 107,224 $ 30,007,773 $ (20,747,111 ) $ 9,367,886
Net income - - - 808,175 808,175
Stock-based compensation - - 73,892 - 73,892
Balance September 30, 2024 10,722,401 $ 107,224 $ 30,081,665 $ (19,938,936 ) $ 10,249,953

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

CONDENSED

                  STATEMENTS
                  OF

                  CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)

2024 2023
Cash flows from operating activities:
Net income $ 808,175 $ 1,105,308
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of bond discount (146,697 ) (121,798 )
Depreciation and amortization 291,576 288,303
Operating lease right-of-use asset, net 2,494 8,735
Stock-based compensation 73,892 75,853
Changes in operating assets and liabilities:
Accounts receivable, net 375,116 630,732
Other current assets (127,557 ) (434,901 )
Unexpired subscription revenue 709,902 (202,185 )
Accounts payable (69,066 ) (149,715 )
Accrued expenses 291,619 168,073
Net cash provided by operating activities 2,209,454 1,368,405
Cash flows from investing activities:
Proceeds from held-to-maturity securities 2,850,000 3,630,000
Purchase of held-to-maturity securities (7,898,319 ) (3,628,741 )
Purchase of property and equipment (278,039 ) (148,259 )
Net cash used in investing activities (5,326,358 ) (147,000 )
Net (decrease) increase in cash and cash equivalents (3,116,904 ) 1,221,405
Cash and cash equivalents at beginning of period 11,004,937 9,866,628
Cash and cash equivalents at end of period $ 7,888,033 $ 11,088,033

See accompanying notes to condensed financial statements.

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CREDITRISKMONITOR.COM, INC.

NOTES

                    TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

(1) Overview and Basis of Presentation

CreditRiskMonitor.com, Inc. (the “Company”) provides interactive business-to-business SaaS subscription products designed specifically for credit and supply chain managers. These products are sold predominantly to corporations located in the United States.

The accompanying unaudited condensed financial statements of 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 disclosures 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 and nine months ended September 30, 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.

(2) Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU

        2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss,
        an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single
        reportable segment. The guidance is effective for the fiscal year ending December 31, 2024, and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its
        consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

            Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for annual periods beginning
          after December 15, 2024, and the adoption of this standard is not anticipated to have a significant impact on the Company’s consolidated financial statements other than adding new disclosures, which the Company is currently evaluating.

(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.

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(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 and nine months ended September 30:

3 Months Ended<br><br> <br>September 30, 9 Months Ended<br><br> <br>September 30,
2024 2023 2024 2023
Data and product costs $ 8,213 $ 8,489 $ 23,764 $ 28,974
Selling, general and administrative expenses 18,066 13,840 50,128 46,879
$ 26,279 $ 22,329 $ 73,892 $ 75,853

(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 September 30, 2024 were US Treasury securities. Investments in these government securities 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 September 30, 2024 and December 31, 2023, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

September 30, 2024
Level 1 Level 2 Level 3 Total
Cash and cash equivalents $ 7,888,033 $ - $ - $ 7,888,033
Held-to-maturity securities 9,389,973 - - 9,389,973
$ 17,278,006 $ - $ - $ 17,278,006
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 September 30, 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.

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(6) Marketable Securities

Based upon the Company’s intent and ability to hold its US Treasury securities to maturity (which maturities range up to 25 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 September 30, 2024 is $91,220.

The following table summarizes the cost and fair value of marketable securities at September 30, 2024 as follows:

Amortized Cost Gross Unrealized Gain (Loss) Fair Value
Held-to-maturity securities
US Treasury securities $ 9,389,973 $ 235,027 $ 9,625,000

Maturities of marketable securities were as follows at September 30, 2024:

Held-to-maturity securities:
Due in one year or less $ 2,481,973
Due in 12 – 24 months 6,908,000
$ 9,389,973

The Company’s investments in marketable securities consist of investments in US Treasury securities. 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 September 30, 2024.

(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<br><br> <br>September 30, 9 Months Ended<br><br> <br>September 30,
2024 2023 2024 2023
Weighted average number of common shares outstanding –<br> basic 10,722,401 10,722,401 10,722,401 10,722,401
Potential shares exercisable under stock option plans 255,500 311,950 257,133 320,697
LESS: Shares which could be repurchased under treasury stock method (207,518 ) (234,870 ) (214,947 ) (241,855 )
Weighted average number of common shares outstanding –<br> diluted 10,770,383 10,799,481 10,764,587 10,801,243

For the three and nine months ended September 30, 2024, the computation of diluted net income per share excludes the effects of the assumed exercise of 590,550 and 615,050 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

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For the three and nine months ended September 30, 2023, the computation of diluted net income per share excludes the effects of the assumed exercise of 402,100 and 402,100 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

(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.

(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.

(10) Supplemental Disclosures of Noncash Investing Activities

For the nine months ended September 30, 2023, there was a noncash transfer of deposits from operating activities to property and equipment in the amount of $155,700.

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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 subscribers’ discretionary spending for financial risk information, or even their solvency, but we cannot predict whether or to what extent this will occur.

Our strategic priorities and plans for 2024 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as September 30, 2024 and December 31, 2023 (dollars in thousands):

September 30,<br><br> <br>2024 December 31,<br><br> <br>2023
Cash and cash equivalents $ 7,888 $ 11,005
Held-to-maturity securities $ 2,482 $ 3,495
Accounts receivable, net $ 3,566 $ 3,941
Working capital $ 1,302 $ 6,499
Cash ratio 0.58 0.86
Quick ratio 1.03 1.45
Current ratio 1.10 1.51

As of September 30, 2024, the Company had approximately $7.9 million in cash and cash equivalents, a decrease of approximately $3.1 million from December 31, 2023. This decrease was primarily the result of net cash used in investing activities, with a shift towards longer duration US Treasury securities relative to cash and cash equivalents, totaling approximately $5.3 million offset by the net cash provided by operating activities of approximately $2.2 million.

The main component of current liabilities at September 30, 2024 was unexpired subscription revenue of approximately $10.9 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 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 as well as investment in higher skilled employees, 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 September 30,
2024 2023
Amount % of Total<br><br> <br>Operating<br><br> <br>Revenues Amount % of Total<br><br> <br>Operating<br><br> Revenues
Operating revenues $ 5,009,370 100 % $ 4,792,869 100 %
Operating expenses:
Data and product costs 2,205,871 44 % 1,951,360 41 %
Selling, general and administrative expenses 2,256,732 45 % 2,439,147 51 %
Depreciation and amortization 97,513 2 % 96,216 2 %
Total operating expenses 4,560,116 91 % 4,486,723 94 %
Income from operations 449,254 9 % 306,146 6 %
Other income 267,092 5 % 188,083 4 %
Income before income taxes 716,346 14 % 494,229 10 %
Provision for income taxes (164,764 ) (3 %) (115,552 ) (2 %)
Net income $ 551,582 11 % $ 378,677 8 %

Operating revenues increased approximately $217 thousand, or 5%, for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. This overall revenue growth resulted from an increase in SaaS subscription product revenue, attributable to increased sales to new and existing subscribers, as well as related price increases for subscriptions.

Data and product costs increased approximately $255 thousand, or 13%, for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. This increase was due primarily to (1) higher salary and related expenses due to new hires, pay raises to existing staff, and expansion of the expert network and (2) higher costs of third-party content due to price increases instituted by some suppliers.

Selling, general and administrative expenses decreased approximately $182 thousand, or 7%, for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. This decrease was due to (1) lower salary and related expenses and (2) lower customer acquisition costs.

Other income increased approximately $79 thousand for the third quarter of fiscal 2024 compared to the same period of fiscal 2023. This increase was due to a higher interest rate earned on the held-to-maturity securities balance.

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9 Months Ended September 30,
2024 2023
Amount % of Total<br><br> Operating<br><br> <br>Revenues Amount % of Total<br><br> Operating<br><br> <br>Revenues
Operating revenues $ 14,751,845 100 % $ 14,066,112 100 %
Operating expenses:
Data and product costs 6,566,750 44 % 5,806,156 41 %
Selling, general and administrative expenses 7,505,751 51 % 7,050,702 50 %
Depreciation and amortization 291,576 2 % 288,303 2 %
Total operating expenses 14,364,077 97 % 13,145,161 93 %
Income from operations 387,768 3 % 920,951 6 %
Other income 664,587 4 % 521,630 4 %
Income before income taxes 1,052,355 7 % 1,442,581 10 %
Provision for income taxes (244,180 ) (2 %) (337,273 ) (2 %)
Net income $ 808,175 5 % $ 1,105,308 8 %

Operating revenues increased approximately $686 thousand, or 5%, for the nine months ended September 30, 2024 compared to the same period of fiscal 2023. This overall revenue growth resulted from an increase in SaaS subscription product revenue, attributable to increased sales to new and existing subscribers, as well as related price increases for subscriptions.

Data and product costs increased approximately $761 thousand, or 13%, for the nine months ended September 30, 2024 compared to the same period of fiscal 2023. This increase was due primarily to (1) higher salary and related expenses from new hires, pay raises to existing staff, and expansion of the expert network and (2) higher costs of third-party content due to price increases instituted by some suppliers.

Selling, general and administrative expenses increased approximately $455 thousand, or 6%, for the nine months ended September 30, 2024 compared to the same period of fiscal 2023. This increase was primarily due to (1) overall higher salary and related employee benefits to staff and (2) higher customer acquisition costs for the first half of the fiscal year.

Other income increased approximately $143 thousand for the nine months ended September 30, 2024 compared to the same period of fiscal 2023. This increase was due to a higher interest rate earned on the held-to-maturity securities balance.

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.

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 subscribers as well as the volume and timing of the subscriptions for the Company’s products, 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.

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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 subscribers with outstanding value, thus encouraging 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 as well as invest in product development, operating infrastructure, marketing and promotion. The Company believes that these expenditures will help it to sustain the revenue growth it has experienced over the last several years. We anticipate that sales and marketing expenses will continue to increase in dollar amount and as a percentage of revenues into 2025 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses will also continue to increase in dollar amount and may increase as a percentage of revenues into 2025 and future periods because it expects to employ more development personnel on average compared to prior periods and build the infrastructure required to support the development of new and improved products and services. However, as some of these expenditures are discretionary in nature, the Company expects that the actual amounts incurred will be in line with its projections of future cash flows in order not to negatively impact its future liquidity and capital needs. There can be no assurance that the Company will be able to achieve these objectives within a meaningful time frame.

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) the Company’s ability to retain existing subscribers, attract new subscribers at a steady rate and maintain customer satisfaction, (ii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iii) the development of new services and products by the Company and its competitors, (iv) price competition, (v) the Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vi) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (vii) the Company’s ability to attract and retain personnel in a timely and effective manner, (viii) the Company’s ability to manage effectively its development of new business segments and markets, (ix) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (x) technical difficulties, system downtime, cybersecurity breaches, or Internet brownouts, (xi) the amount and timing of operating costs and capital expenditures relating the Company’s business, operations and infrastructure, (xii) governmental regulation and taxation policies, (xiii) disruptions in service by common carriers due to strikes or otherwise, (xiv) risks of fire or other casualty, (xv) litigation costs or other unanticipated expenses, (xvi) interest rate risks and inflationary pressures, and (xvii) general economic conditions and economic conditions specific to the Internet and online commerce.

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.

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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 Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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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: November 14, 2024 By:/s/ Jennifer Gerold
Jennifer Gerold
Chief Financial Officer
(Principal Accounting Officer)

18

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael 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 such statements were made, not<br> 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 of the registrant as of, and<br> 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 control over financial reporting<br> (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, including its consolidated<br> 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 of the period covered by this<br> 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 the case of an annual report)<br> 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, process, summarize and report<br> 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: November 14, 2024 By: /s/ Michael Flum
--- --- ---
Michael Flum
Chief Executive Officer and President

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jennifer Gerold, 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 such statements were made, not<br> 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 of the registrant as of, and<br> 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 control over financial reporting<br> (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, including its consolidated<br> 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 of the period covered by this<br> 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 the case of an annual report)<br> 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, process, summarize and report<br> 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: November 14, 2024 By: /s/ Jennifer Gerold
--- --- ---
Jennifer Gerold
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 September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Flum, Chief Executive Officer and President 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/ Michael Flum
Michael Flum
Chief Executive Officer and President
November 14, 2024

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 September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jennifer Gerold, 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/ Jennifer Gerold
Jennifer Gerold
Chief Financial Officer
November 14, 2024

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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