10-Q

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, 2017

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

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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 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 ☑

APPLICABLE ONLY TO CORPORATE ISSUERS

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

Common stock $.01 par value – 10,722,401 shares outstanding as of November 7, 2017.

CREDITRISKMONITOR.COM, INC.

INDEX

			Page
PART I. FINANCIAL INFORMATION
	Item 1. Financial Statements
		Balance Sheets – September 30, 2017 (Unaudited) and December 31, 2016	2
		Statements of Operations for the Three Months Ended September 30, 2017 and 2016 (Unaudited)	3
		Statements of Operations for the Nine Months Ended September 30, 2017 and 2016 (Unaudited)	4
		Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016 (Unaudited)	5
		Condensed Notes to Financial Statements	6
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		9
	Item 4. Controls and Procedures		13
PART II. OTHER INFORMATION
	Item 6. Exhibits		13
SIGNATURES			14

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.

BALANCE SHEETS

SEPTEMBER 30, 2017 AND DECEMBER 31, 2016

	September 30, 2017			December 31, 2016
	(Unaudited)			(Note 1)
ASSETS
Current assets:
Cash and cash equivalents	$	9,284,650		$	9,222,343
Accounts receivable, net of allowance		1,512,766			2,090,676
Other current assets		554,607			487,257
Total current assets		11,352,023			11,800,276
Property and equipment, net		385,434			430,324
Goodwill		1,954,460			1,954,460
Other assets		33,599			23,763
Total assets	$	13,725,516		$	14,208,823
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Deferred revenue	$	7,891,863		$	8,088,958
Accounts payable		136,009			96,725
Accrued expenses		1,267,269			1,282,126
Total current liabilities		9,295,141			9,467,809
Deferred taxes on income, net		689,831			762,403
Other liabilities		15,709			12,574
Total liabilities		10,000,681			10,242,786
Stockholders’ equity:
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued		--			--
Common stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares		107,224			107,224
Additional paid-in capital		29,525,358			29,419,463
Accumulated deficit		(25,907,747	)		(25,560,650	)
Total stockholders’ equity		3,724,835			3,966,037
Total liabilities and stockholders’ equity	$	13,725,516		$	14,208,823

See accompanying condensed notes to financial statements.

2

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016

(Unaudited)

	2017			2016
Operating revenues	$	3,385,352		$	3,237,687
Operating expenses:
Data and product costs		1,332,759			1,254,151
Selling, general and administrative expenses		2,013,962			1,808,184
Depreciation and amortization		43,410			48,894
Total operating expenses		3,390,131			3,111,229
Income (loss) from operations		(4,779	)		126,458
Other income (expense), net		15,362			(589	)
Income before income taxes		10,583			125,869
Provision for income taxes		(29,700	)		(45,916	)
Net income (loss)	$	(19,117	)	$	79,953
Net income (loss) per share of common stock:
Basic	$	0.00		$	0.01
Diluted	$	0.00		$	0.01
Weighted average number of common shares outstanding:
Basic		10,722,401			10,722,326
Diluted		10,722,401			10,804,989

See accompanying condensed notes to financial statements.

3

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016

(Unaudited)

	2017			2016
Operating revenues	$	9,963,078		$	9,530,462
Operating expenses:
Data and product costs		4,058,940			3,682,612
Selling, general and administrative expenses		6,200,518			5,781,867
Depreciation and amortization		143,132			148,026
Total operating expenses		10,402,590			9,612,505
Loss from operations		(439,512	)		(82,043	)
Other income, net		29,932			33,592
Loss before income taxes		(409,580	)		(48,451	)
Benefit from income taxes		62,483			17,424
Net loss	$	(347,097	)	$	(31,027	)
Net loss per share – Basic and diluted	$	(0.03	)	$	(0.00	)
Weighted average number of common shares outstanding:
Basic and diluted		10,722,401			10,722,322

See accompanying condensed notes to financial statements.

4

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016

(Unaudited)

	2017			2016
Cash flows from operating activities:
Net loss	$	(347,097	)	$	(31,027	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		143,132			148,026
Stock-based compensation		105,895			112,368
Unrealized gain on marketable securities		--			(27,777	)
Deferred income taxes		(72,572	)		(15,697	)
Deferred rent		3,135			6,928
Changes in operating assets and liabilities:
Accounts receivable		577,910			437,274
Other current assets		(67,350	)		(130,547	)
Prepaid and other assets		(9,836	)		(12,677	)
Deferred revenue		(197,095	)		420,395
Accounts payable		39,284			84,547
Accrued expenses		(14,857	)		8,441
Net cash provided by operating activities		160,549			1,000,254
Cash flows from investing activities:
Purchase of marketable securities		--			(778	)
Purchase of property and equipment		(98,242	)		(156,359	)
Net cash used in investing activities		(98,242	)		(157,137	)
Net increase in cash and cash equivalents		62,307			843,117
Cash and cash equivalents at beginning of period		9,222,343			8,717,899
Cash and cash equivalents at end of period	$	9,284,650		$	9,561,016

See accompanying condensed notes to financial statements.

5

CREDITRISKMONITOR.COM, INC.

CONDENSED NOTES TO 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, 2016.

The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2016 balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K.

(2) 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 September 30,				9 Months Ended September 30,
	2017		2016		2017		2016
Data and product costs	$	8,915	$	8,738	$	26,745	$	26,029
Selling, general and administrative expenses		26,714		26,743		79,150		86,339
	$	35,629	$	35,481	$	105,895	$	112,368

(3) Recently Issued Accounting Standards

In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. Pursuant to this standard and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of adopting this standard using either a full retrospective approach or a modified retrospective approach (i.e., through a cumulative effect adjustment directly to retained earnings at the time of adoption). The Company is in the process of identifying and implementing appropriate changes to its business processes, systems and controls to support revenue recognition and disclosure under this standard. The Company anticipates that the adoption of this standard will not have a significant impact on its financial statements. The Company expects to adopt this standard at the beginning of its 2018 fiscal year using the modified retrospective approach.

6

The Financial Accounting Standards Board and the SEC have issued certain other accounting pronouncements as of September 30, 2017 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.

(4) Fair Value Measurements

The Company records its financial instruments at fair value in accordance with accounting guidance. The determination of fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable, either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants.

The Company’s cash and cash equivalents are stated at fair value. The carrying value of accounts receivable, other current assets, accounts payable and other current liabilities 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 table below sets forth the Company’s cash and cash equivalents as of September 30, 2017 and December 31, 2016, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	Level 1		Level 2		Level 3		Total
September 30, 2017:
Cash and cash equivalents	$	9,284,650	$	-	$	-	$	9,284,650
December 31, 2016:
Cash and cash equivalents	$	9,222,343	$	-	$	-	$	9,222,343

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of either September 30, 2017 or December 31, 2016.

(5) Net Income (Loss) per Share

Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options:

7

	3 Months Ended September 30,					9 Months Ended September 30,
	2017		2016			2017		2016
Weighted average number of common shares outstanding – basic		10,722,401		10,722,326			10,722,401		10,722,322
Potential shares exercisable under stock option plans		--		360,450			--		--
LESS: Shares which could be repurchased under treasury stock method		--		(277,787	)		--		--
Weighted average number of common shares outstanding – diluted		10,722,401		10,804,989			10,722,401		10,722,322

All outstanding stock options were excluded from the computation of diluted net income per share for the 3 and 9 months ended September 30, 2017 as they were anti-dilutive. Potential common shares of 60,900 related to the Company's outstanding stock options were excluded from the computation of diluted income per share for the 3 months ended September 30, 2016 as inclusion of these shares would have been anti-dilutive. All outstanding stock options were excluded from the computation of diluted loss per share for the 9 months ended September 30, 2016 as they were anti-dilutive.

8

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 2017 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. Global market conditions, however, may affect the level and timing of resources deployed in pursuit of these initiatives in 2017.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of September 30, 2017 and December 31, 2016 (dollars in thousands):

	September 30, 2017		December 31, 2016
Cash and cash equivalents	$	9,285	$	9,222
Accounts receivable, net	$	1,513	$	2,091
Working capital	$	2,057	$	2,332
Cash ratio		1.00		0.97
Quick ratio		1.16		1.19
Current ratio		1.22		1.25

The Company has invested some of its excess cash in cash equivalents. All highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents, while those with maturities in excess of three months when purchased are reflected as marketable securities.

As of September 30, 2017, the Company had $9.28 million in cash and cash equivalents, an increase of approximately $62,300 from December 31, 2016. The reason for this increase was that cash generated by operating activities ($160,500) exceeded the cash used to acquire property and equipment ($98,200).

The Company’s cash provided by operating activities was positive despite its net loss for the nine months primarily due to the 28% decrease in accounts receivable.Additionally, the main component of current liabilities at September 30, 2017 is deferred revenue of $7.89 million, which should not require significant future cash outlay other than the cost of preparation and delivery of the applicable commercial credit reports which cost much less than the deferred revenue shown. The deferred revenue is recognized as income over the subscription term, which approximates twelve 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 been cash flow positive for 9 of the last 10 fiscal years and 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.

9

Results of Operations

	3 Months Ended September 30,
	2017						2016
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues
Operating revenues	$	3,385,352			100.00	%	$	3,237,687			100.00	%
Operating expenses:
Data and product costs		1,332,759			39.37	%		1,254,151			38.73	%
Selling, general and administrative expenses		2,013,962			59.49	%		1,808,184			55.85	%
Depreciation and amortization		43,410			1.28	%		48,894			1.51	%
Total operating expenses		3,390,131			100.14	%		3,111,229			96.09	%
Income (loss) from operations		(4,779	)		(0.14	%)		126,458			3.91	%
Other income (expense), net		15,362			0.45	%		(589	)		(0.02	%)
Income before income taxes		10,583			0.31	%		125,869			3.89	%
Provision for income taxes		(29,700	)		(0.87	%)		(45,916	)		(1.42	%)
Net income (loss)	$	(19,117	)		(0.56	%)	$	79,953			2.47	%

Operating revenues increased $147,665, or 5%, for the three months ended September 30, 2017 compared to the same period of fiscal 2016. This overall revenue growth resulted from an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased $78,608, or 6%, for the third quarter of 2017 compared to the same period of fiscal 2016. This increase was due primarily to higher salary and related employee benefits, as the Company increased its headcount in 2017.

Selling, general and administrative expenses increased $205,778, or 11%, for the third quarter of fiscal 2017 compared to the same period of fiscal 2016. This increase was due to higher salary and related employee benefits, higher marketing expenditures and higher executive recruiting fees paid. The increase in marketing expenses is part of our 2017 plan to drive increased traffic to the Company’s website and improve customers’ experience using the website, with the hope of incremental future sales. The executive recruiting fees paid relate to the cost of staffing the Company’s marketing department.

Depreciation and amortization decreased $5,484, or 11%, for the third quarter of fiscal 2017 compared to the same period of fiscal 2016. This decrease was due to a lower depreciable asset base reflecting the continued use of certain items that have been fully depreciated.

Other income (expense), net increased $15,951 for third quarter of fiscal 2017 compared to the same period last year. This increase was due to a higher income from cash equivalents recorded in 2017 compared to 2016 and a negative mark-to-market adjustment related to the Company’s investments recorded in last year’s third quarter, which were liquidated in 2016’s fourth quarter.

Provision for income taxes decreased $16,216 for the third quarter of fiscal 2017 compared to the same period of fiscal 2016. This decrease was due to the Company having lower pre-tax income because of the reasons enumerated above.

10

	9 Months Ended September 30,
	2017						2016
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues
Operating revenues	$	9,963,078			100.00	%	$	9,530,462			100.00	%
Operating expenses:
Data and product costs		4,058,940			40.74	%		3,682,612			38.64	%
Selling, general and administrative expenses		6,200,518			62.23	%		5,781,867			60.67	%
Depreciation and amortization		143,132			1.44	%		148,026			1.55	%
Total operating expenses		10,402,590			104.41	%		9,612,505			100.86	%
Loss from operations		(439,512	)		(4.41	%)		(82,043	)		(0.86	%)
Other income, net		29,932			0.30	%		33,592			0.35	%
Loss before income taxes		(409,580	)		(4.11	%)		(48,451	)		(0.51	%)
Benefit from income taxes		62,483			0.63	%		17,424			0.18	%
Net loss	$	(347,097	)		(3.48	%)	$	(31,027	)		(0.33	%)

Operating revenues increased $432,616, or 5%, for the nine months ended September 30, 2017 compared to the same period of fiscal 2016. This overall revenue growth resulted from an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased $376,328, or 10%, for the first nine months of 2017 compared to the same period of fiscal 2016. This increase was due primarily to higher salary and related employee benefits, as the Company increased its headcount, as well as higher data costs due to price increases of certain critical feeds.

Selling, general and administrative expenses increased $418,651, or 7%, for the first nine months of fiscal 2017 compared to the same period of fiscal 2016. This increase was due to higher salary and related employee benefits, higher marketing expenditures and higher executive recruiting fees paid. The increase in marketing expenses is part of our 2017 plan to drive increased traffic to the Company’s website and improve customers’ experience using the website, with the hope of incremental future sales. The executive recruiting fees paid relate to the cost of staffing the Company’s marketing department.

Depreciation and amortization decreased $4,894 or 3%, for the first nine months of fiscal 2017 compared to the same period of fiscal 2016. This decrease was due to a lower depreciable asset base reflecting the continued use of certain items that have been fully depreciated.

Other income, net decreased $3,660 for first nine months of fiscal 2017 compared to the same period last year. This decrease was due to the mark-to-market adjustment recorded in the first 9 months of 2016 related to the Company’s investment in marketable securities which have since been liquidated.

Benefit from income taxes increased $45,059 for the first nine months of fiscal 2017 compared to the same period of fiscal 2016. This increase was due to the Company being in a greater pre-tax loss position in 2017 versus 2016 because of the reasons enumerated above.

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.

11

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 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 increase in dollar amount and as a percentage of revenues during the remainder of 2017 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses and data costs will also continue to increase in dollar amount and may increase as a percentage of revenues during the remainder of 2017 and future periods because it expects to employ more development personnel on average compared to prior periods, obtain additional data and build the infrastructure required to support the development of new and improved products and services. However, as these expenditures are largely 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 customers, attract new customers 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 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.

12

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 “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.

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.

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	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows, and (iv) the Notes to Financial Statements.

13

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 13, 2017	By: /s/	Lawrence Fensterstock
		Lawrence Fensterstock
		Chief Financial Officer &
		Principal Accounting Officer

14

EX-31.1

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 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 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 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, 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 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 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) 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 (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 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 13, 2017	By: /s/	Jerome S. Flum
		Jerome S. Flum
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lawrence Fensterstock, 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 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 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 (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 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 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 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) 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 (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 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 13, 2017	By: /s/	Lawrence Fensterstock
		Lawrence Fensterstock
		Chief Financial Officer

EX-32.1

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, 2017, 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
November 13, 2017

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.

EX-32.2

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, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence Fensterstock, 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/	Lawrence Fensterstock
		Lawrence Fensterstock
		Chief Financial Officer
November 13, 2017

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.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	CREDITRISKMONITOR COM INC
Entity Central Index Key	0000315958
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,722,401
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017

XML

BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,284,650	$ 9,222,343
Accounts receivable, net of allowance	1,512,766	2,090,676
Other current assets	554,607	487,257
Total current assets	11,352,023	11,800,276
Property and equipment, net	385,434	430,324
Goodwill	1,954,460	1,954,460
Other assets	33,599	23,763
Total assets	13,725,516	14,208,823
Current liabilities:
Deferred revenue	7,891,863	8,088,958
Accounts payable	136,009	96,725
Accrued expenses	1,267,269	1,282,126
Total current liabilities	9,295,141	9,467,809
Deferred taxes on income, net	689,831	762,403
Other liabilities	15,709	12,574
Total liabilities	10,000,681	10,242,786
Stockholders' equity:
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued	0	0
Common stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares	107,224	107,224
Additional paid-in capital	29,525,358	29,419,463
Accumulated deficit	(25,907,747)	(25,560,650)
Total stockholders' equity	3,724,835	3,966,037
Total liabilities and stockholders' equity	$ 13,725,516	$ 14,208,823

XML

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	32,500,000	32,500,000
Common stock, issued (in shares)	10,722,401	10,722,401
Common stock, outstanding (in shares)	10,722,401	10,722,401

XML

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Operating revenues	$ 3,385,352	$ 3,237,687	$ 9,963,078	$ 9,530,462
Operating expenses:
Data and product costs	1,332,759	1,254,151	4,058,940	3,682,612
Selling, general and administrative expenses	2,013,962	1,808,184	6,200,518	5,781,867
Depreciation and amortization	43,410	48,894	143,132	148,026
Total operating expenses	3,390,131	3,111,229	10,402,590	9,612,505
Income (loss) from operations	(4,779)	126,458	(439,512)	(82,043)
Other income (expense), net	15,362	(589)	29,932	33,592
Income (loss) before income taxes	10,583	125,869	(409,580)	(48,451)
(Provision) benefit for income taxes	(29,700)	(45,916)	62,483	17,424
Net income (loss)	$ (19,117)	$ 79,953	$ (347,097)	$ (31,027)
Net loss per share - Basic and diluted (in dollars per share)			$ (0.03)	$ 0
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ 0	$ 0.01
Diluted (in dollars per share)	$ 0	$ 0.01
Weighted average number of common shares outstanding:
Basic and diluted (in shares)			10,722,401	10,722,322
Basic (in shares)	10,722,401	10,722,326	10,722,401	10,722,322
Diluted (in shares)	10,722,401	10,804,989	10,722,401	10,722,322

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (347,097)	$ (31,027)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	143,132	148,026
Stock-based compensation	105,895	112,368
Unrealized gain on marketable securities	0	(27,777)
Deferred income taxes	(72,572)	(15,697)
Deferred rent	3,135	6,928
Changes in operating assets and liabilities:
Accounts receivable	577,910	437,274
Other current assets	(67,350)	(130,547)
Prepaid and other assets	(9,836)	(12,677)
Deferred revenue	(197,095)	420,395
Accounts payable	39,284	84,547
Accrued expenses	(14,857)	8,441
Net cash provided by operating activities	160,549	1,000,254
Cash flows from investing activities:
Purchase of marketable securities	0	(778)
Purchase of property and equipment	(98,242)	(156,359)
Net cash used in investing activities	(98,242)	(157,137)
Net increase in cash and cash equivalents	62,307	843,117
Cash and cash equivalents at beginning of period	9,222,343	8,717,899
Cash and cash equivalents at end of period	$ 9,284,650	$ 9,561,016

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2017

Basis of Presentation [Abstract]

Basis of Presentation

(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, 2016.

The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2016 balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K.

XML

Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(2) 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 September 30,				9 Months Ended September 30,
	2017		2016		2017		2016
Data and product costs	$	8,915	$	8,738	$	26,745	$	26,029
Selling, general and administrative expenses		26,714		26,743		79,150		86,339
	$	35,629	$	35,481	$	105,895	$	112,368

XML

Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2017

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

(3) Recently Issued Accounting Standards

In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. Pursuant to this standard and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of adopting this standard using either a full retrospective approach or a modified retrospective approach (i.e., through a cumulative effect adjustment directly to retained earnings at the time of adoption). The Company is in the process of identifying and implementing appropriate changes to its business processes, systems and controls to support revenue recognition and disclosure under this standard. The Company anticipates that the adoption of this standard will not have a significant impact on its financial statements. The Company expects to adopt this standard at the beginning of its 2018 fiscal year using the modified retrospective approach.

The Financial Accounting Standards Board and the SEC have issued certain other accounting pronouncements as of September 30, 2017 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.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Measurements [Abstract]

Fair Value Measurements

(4) Fair Value Measurements

The Company records its financial instruments at fair value in accordance with accounting guidance. The determination of fair value assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable, either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable, thus, reflecting assumptions about the market participants.

The Company’s cash and cash equivalents are stated at fair value. The carrying value of accounts receivable, other current assets, accounts payable and other current liabilities 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 table below sets forth the Company’s cash and cash equivalents as of September 30, 2017 and December 31, 2016, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	Level 1		Level 2		Level 3		Total
September 30, 2017:
Cash and cash equivalents	$	9,284,650	$	-	$	-	$	9,284,650
December 31, 2016:
Cash and cash equivalents	$	9,222,343	$	-	$	-	$	9,222,343

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of either September 30, 2017 or December 31, 2016.

XML

Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2017

Net Income (Loss) per Share [Abstract]

Net Income (Loss) per Share

(5) Net Income (Loss) per Share

Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options:

	3 Months Ended September 30,					9 Months Ended September 30,
	2017		2016			2017		2016
Weighted average number of common shares outstanding – basic		10,722,401		10,722,326			10,722,401		10,722,322
Potential shares exercisable under stock option plans		--		360,450			--		--
LESS: Shares which could be repurchased under treasury stock method		--		(277,787	)		--		--
Weighted average number of common shares outstanding – diluted		10,722,401		10,804,989			10,722,401		10,722,322

All outstanding stock options were excluded from the computation of diluted net income per share for the 3 and 9 months ended September 30, 2017 as they were anti-dilutive. Potential common shares of 60,900 related to the Company's outstanding stock options were excluded from the computation of diluted income per share for the 3 months ended September 30, 2016 as inclusion of these shares would have been anti-dilutive. All outstanding stock options were excluded from the computation of diluted loss per share for the 9 months ended September 30, 2016 as they were anti-dilutive.

XML

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Stock-Based Compensation [Abstract]

Stock-based Compensation Expense for Stock Options

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 September 30,				9 Months Ended September 30,
	2017		2016		2017		2016
Data and product costs	$	8,915	$	8,738	$	26,745	$	26,029
Selling, general and administrative expenses		26,714		26,743		79,150		86,339
	$	35,629	$	35,481	$	105,895	$	112,368

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Measurements [Abstract]

Cash and Cash Equivalents Measured at Fair Value on Recurring Basis

The table below sets forth the Company’s cash and cash equivalents as of September 30, 2017 and December 31, 2016, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	Level 1		Level 2		Level 3		Total
September 30, 2017:
Cash and cash equivalents	$	9,284,650	$	-	$	-	$	9,284,650
December 31, 2016:
Cash and cash equivalents	$	9,222,343	$	-	$	-	$	9,222,343

XML

Net Income (Loss) per Share (Tables)

9 Months Ended

Sep. 30, 2017

Net Income (Loss) per Share [Abstract]

Weighted Average Number of Common Shares Outstanding

Basic net income (loss) per share is based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options:

	3 Months Ended September 30,					9 Months Ended September 30,
	2017		2016			2017		2016
Weighted average number of common shares outstanding – basic		10,722,401		10,722,326			10,722,401		10,722,322
Potential shares exercisable under stock option plans		--		360,450			--		--
LESS: Shares which could be repurchased under treasury stock method		--		(277,787	)		--		--
Weighted average number of common shares outstanding – diluted		10,722,401		10,804,989			10,722,401		10,722,322

XML

Stock-Based Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation expense for stock options [Abstract]
Stock-based compensation expense	$ 35,629	$ 35,481	$ 105,895	$ 112,368
Data and Product Costs [Member]
Stock-based compensation expense for stock options [Abstract]
Stock-based compensation expense	8,915	8,738	26,745	26,029
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense for stock options [Abstract]
Stock-based compensation expense	$ 26,714	$ 26,743	$ 79,150	$ 86,339

XML

Fair Value Measurements (Details) - Recurring [Member] - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Cash and cash equivalents measured at fair value on recurring basis [Abstract]
Cash and cash equivalents	$ 9,284,650	$ 9,222,343
Level 1 [Member]
Cash and cash equivalents measured at fair value on recurring basis [Abstract]
Cash and cash equivalents	9,284,650	9,222,343
Level 2 [Member]
Cash and cash equivalents measured at fair value on recurring basis [Abstract]
Cash and cash equivalents	0	0
Level 3 [Member]
Cash and cash equivalents measured at fair value on recurring basis [Abstract]
Cash and cash equivalents	$ 0	$ 0

XML

Net Income (Loss) per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Income (Loss) per Share [Abstract]
Weighted average number of common shares outstanding - basic (in shares)	10,722,401	10,722,326	10,722,401	10,722,322
Potential shares exercisable under stock option plans (in shares)	0	360,450	0	0
LESS: Shares which could be repurchased under treasury stock method (in shares)	0	(277,787)	0	0
Weighted average number of common shares outstanding - diluted (in shares)	10,722,401	10,804,989	10,722,401	10,722,322
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		60,900