☑ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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)
|
Large accelerated filer ☐
|
Accelerated filer ☐ | |
Non-accelerated filer ☐
|
Smaller reporting company ☑ | Emerging growth company ☐ |
Page
|
|||
PART I. FINANCIAL INFORMATION
|
|||
Item 1.
|
Financial Statements | ||
2
|
|||
3
|
|||
4
|
|||
5 | |||
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
|
|
14
|
PART I.
|
FINANCIAL INFORMATION
|
Item 1.
|
Financial Statements
|
June 30,
2018
|
December 31,
2017 |
|||||||
(Unaudited)
|
(Note 1)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
8,764,246
|
$
|
8,735,148
|
||||
Accounts receivable, net of allowance
|
1,805,264
|
2,139,707
|
||||||
Other current assets
|
870,132
|
530,699
|
||||||
Total current assets
|
11,439,642
|
11,405,554
|
||||||
Property and equipment, net
|
360,564
|
437,216
|
||||||
Goodwill
|
1,954,460
|
1,954,460
|
||||||
Other assets
|
39,318
|
23,463
|
||||||
Total assets
|
$
|
13,793,984
|
$
|
13,820,693
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Deferred revenue
|
$
|
8,758,397
|
$
|
8,304,877
|
||||
Accounts payable
|
96,996
|
58,901
|
||||||
Accrued expenses
|
1,206,502
|
1,344,526
|
||||||
Total current liabilities
|
10,061,895
|
9,708,304
|
||||||
Deferred taxes on income, net
|
425,241
|
514,333
|
||||||
Other liabilities
|
15,826
|
15,748
|
||||||
Total liabilities
|
10,502,962
|
10,238,385
|
||||||
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
|
29,610,771
|
29,559,784
|
||||||
Accumulated deficit
|
(26,426,973
|
)
|
(26,084,700
|
)
|
||||
Total stockholders’ equity
|
3,291,022
|
3,582,308
|
||||||
Total liabilities and stockholders’ equity
|
$
|
13,793,984
|
$
|
13,820,693
|
2018
|
2017
|
|||||||
Operating revenues
|
$
|
3,477,823
|
$
|
3,341,476
|
||||
Operating expenses:
|
||||||||
Data and product costs
|
1,413,694
|
1,330,021
|
||||||
Selling, general and administrative expenses
|
2,150,490
|
2,073,311
|
||||||
Depreciation and amortization
|
42,039
|
49,716
|
||||||
Total operating expenses
|
3,606,223
|
3,453,048
|
||||||
Loss from operations
|
(128,400
|
)
|
(111,572
|
)
|
||||
Other income, net
|
30,602
|
9,763
|
||||||
Loss before income taxes
|
(97,798
|
)
|
(101,809
|
)
|
||||
Benefit from income taxes
|
10,961
|
18,122
|
||||||
Net loss
|
$
|
(86,837
|
)
|
$
|
(83,687
|
)
|
||
Net loss per share – Basic and diluted
|
$ |
(0.01
|
) | $ | (0.01 | ) | ||
Weighted average number of common shares outstanding – | ||||||||
Basic and diluted
|
10,722,401
|
10,722,401
|
2018
|
2017
|
|||||||
Operating revenues
|
$
|
6,849,747
|
$
|
6,577,726
|
||||
Operating expenses:
|
||||||||
Data and product costs
|
2,897,685
|
2,726,181
|
||||||
Selling, general and administrative expenses
|
4,338,614
|
4,186,556
|
||||||
Depreciation and amortization
|
89,087
|
99,722
|
||||||
Total operating expenses
|
7,325,386
|
7,012,459
|
||||||
Loss from operations
|
(475,639
|
)
|
(434,733
|
)
|
||||
Other income, net
|
51,644
|
14,570
|
||||||
Loss before income taxes
|
(423,995
|
)
|
(420,163
|
)
|
||||
Benefit from income taxes
|
81,722
|
92,183
|
||||||
Net loss
|
$
|
(342,273
|
)
|
$
|
(327,980
|
)
|
||
Net loss per share – Basic and diluted
|
$ | (0.03 |
)
|
$ | (0.03 | ) | ||
Weighted average number of common shares outstanding – | ||||||||
Basic and diluted
|
10,722,401
|
10,722,401
|
2018
|
2017
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(342,273
|
)
|
$
|
(327,980
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Deferred income taxes
|
(89,092
|
)
|
(100,825
|
)
|
||||
Depreciation and amortization
|
89,087
|
99,722
|
||||||
Stock-based compensation
|
50,987
|
70,266
|
||||||
Deferred rent
|
78
|
2,666
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
334,443
|
297,370
|
||||||
Other current assets
|
(339,433
|
)
|
(165,483
|
)
|
||||
Other assets
|
(15,855
|
)
|
(14,873
|
)
|
||||
Deferred revenue
|
453,520
|
226,919
|
||||||
Accounts payable
|
38,095
|
(14,064
|
)
|
|||||
Accrued expenses
|
(138,024
|
)
|
(28,737
|
)
|
||||
Net cash provided by operating activities
|
41,533
|
44,981
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(12,435
|
)
|
(68,792
|
)
|
||||
Net cash used in investing activities
|
(12,435
|
)
|
(68,792
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
29,098
|
(23,811
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
8,735,148
|
9,222,343
|
||||||
Cash and cash equivalents at end of period
|
$
|
8,764,246
|
$
|
9,198,532
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid for:
|
||||||||
Income taxes
|
$
|
8,188
|
$
|
80,645
|
(1) |
Basis of Presentation
|
(2) |
Recently Issued Accounting Standards
|
(3) |
Deferred Revenue
|
(4) |
Stock-Based Compensation
|
|
3 Months Ended
June 30, |
6 Months Ended
June 30,
|
||||||||||||||
|
2018 |
2017
|
2018
|
2017
|
||||||||||||
Data and product costs
|
$
|
8,914
|
$
|
8,915
|
$
|
17,828
|
$
|
17,830
|
||||||||
Selling, general and administrative expenses
|
16,580
|
26,350
|
33,159
|
52,436
|
||||||||||||
$ |
25,494
|
$
|
35,265 |
$
|
50,987 |
$
|
70,266 |
(5) |
Fair Value Measurements
|
June 30, 2018
|
December 31, 2017
|
|||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Total
|
||||||||||||||||
Cash and cash equivalents
|
$
|
8,764,246
|
$
|
-
|
$
|
-
|
$
|
8,764,246
|
$
|
8,735,148
|
(6) |
Net Loss per Share
|
June 30,
2018
|
December 31,
2017
|
|||||||
Cash and cash equivalents
|
$
|
8,764
|
$
|
8,735
|
||||
Accounts receivable, net
|
$
|
1,805
|
$
|
2,140
|
||||
Working capital
|
$
|
1,378
|
$
|
1,697
|
||||
Cash ratio
|
0.87
|
0.90
|
||||||
Quick ratio
|
1.05
|
1.12
|
||||||
Current ratio
|
1.14
|
1.17
|
3 Months Ended June 30,
|
||||||||||||||||
2018 |
2017
|
|||||||||||||||
Amount
|
% of Total
Operating |
Amount
|
% of Total
Operating |
|||||||||||||
Operating revenues
|
$
|
3,477,823
|
100.00
|
%
|
$
|
3,341,476
|
100.00
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
1,413,694
|
40.65
|
%
|
1,330,021
|
39.80
|
%
|
||||||||||
Selling, general and administrative expenses
|
2,150,490
|
61.83
|
%
|
2,073,311
|
62.05
|
%
|
||||||||||
Depreciation and amortization
|
42,039
|
1.21
|
%
|
49,716
|
1.49
|
%
|
||||||||||
Total operating expenses
|
3,606,223
|
103.69
|
%
|
3,453,048
|
103.34
|
%
|
||||||||||
Loss from operations
|
(128,400
|
)
|
(3.69
|
%)
|
(111,572
|
)
|
(3.34
|
%)
|
||||||||
Other income, net
|
30,602
|
0.88
|
%
|
9,763
|
0.29
|
%
|
||||||||||
Loss before income taxes
|
(97,798
|
)
|
(2.81
|
%)
|
(101,809
|
)
|
(3.05
|
%)
|
||||||||
Benefit from income taxes
|
10,961
|
0.31
|
%
|
18,122
|
0.55
|
%
|
||||||||||
Net loss
|
$
|
(86,837
|
)
|
(2.50
|
%)
|
$
|
(83,687
|
)
|
(2.50
|
%)
|
6 Months Ended June 30,
|
||||||||||||||||
2018 |
2017
|
|||||||||||||||
Amount
|
% of Total
Operating |
Amount
|
% of Total
Operating
Revenues
|
|||||||||||||
Operating revenues
|
$
|
6,849,747
|
100.00
|
%
|
$
|
6,577,726
|
100.00
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
2,897,685
|
42.30
|
%
|
2,726,181
|
41.44
|
%
|
||||||||||
Selling, general and administrative expenses
|
4,338,614
|
63.34
|
%
|
4,186,556
|
63.65
|
%
|
||||||||||
Depreciation and amortization
|
89,087
|
1.30
|
%
|
99,722
|
1.52
|
%
|
||||||||||
Total operating expenses
|
7,325,386
|
106.94
|
%
|
7,012,459
|
106.61
|
%
|
||||||||||
Loss from operations
|
(475,639
|
)
|
(6.94
|
%)
|
(434,733
|
)
|
(6.61
|
%)
|
||||||||
Other income, net
|
51,644
|
0.75
|
%
|
14,570
|
0.22
|
%
|
||||||||||
Loss before income taxes
|
(423,995
|
)
|
(6.19
|
%)
|
(420,163
|
)
|
(6.39
|
%)
|
||||||||
Benefit from income taxes
|
81,722
|
1.19
|
%
|
92,183
|
1.40
|
%
|
||||||||||
Net loss
|
$
|
(342,273
|
)
|
(5.00
|
%)
|
$
|
(327,980
|
)
|
(4.99
|
%)
|
PART II. |
OTHER INFORMATION
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
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.
|
||
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 June 30, 2018, 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.
|
CREDITRISKMONITOR.COM, INC.
|
||
(REGISTRANT)
|
||
Date: August 10, 2018
|
By: /s/
|
Lawrence Fensterstock |
Lawrence Fensterstock
|
||
Chief Financial Officer &
|
||
Principal Accounting Officer
|
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: August 10, 2018
|
By: /s/
|
Jerome S. Flum |
Jerome S. Flum
|
||
Chief Executive Officer
|
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: August 10, 2018
|
By: /s/
|
Lawrence Fensterstock |
Lawrence Fensterstock
|
||
Chief Financial Officer
|
(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
|
(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
|
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 06, 2018 |
|
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 | 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
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 |
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||||
Operating revenues | $ 3,477,823 | $ 3,341,476 | $ 6,849,747 | $ 6,577,726 |
Operating expenses: | ||||
Data and product costs | 1,413,694 | 1,330,021 | 2,897,685 | 2,726,181 |
Selling, general and administrative expenses | 2,150,490 | 2,073,311 | 4,338,614 | 4,186,556 |
Depreciation and amortization | 42,039 | 49,716 | 89,087 | 99,722 |
Total operating expenses | 3,606,223 | 3,453,048 | 7,325,386 | 7,012,459 |
Loss from operations | (128,400) | (111,572) | (475,639) | (434,733) |
Other income, net | 30,602 | 9,763 | 51,644 | 14,570 |
Loss before income taxes | (97,798) | (101,809) | (423,995) | (420,163) |
Benefit from income taxes | 10,961 | 18,122 | 81,722 | 92,183 |
Net loss | $ (86,837) | $ (83,687) | $ (342,273) | $ (327,980) |
Net loss per share - Basic and diluted (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.03) | $ (0.03) |
Weighted average number of common shares outstanding - Basic and diluted (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
Basis of Presentation |
6 Months Ended | ||
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Jun. 30, 2018 | |||
Basis of Presentation [Abstract] | |||
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, 2017. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results for an entire fiscal year. The December 31, 2017 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, 2017 included in the Company’s Annual Report on Form 10-K. |
Recently Issued Accounting Standards |
6 Months Ended | ||
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Jun. 30, 2018 | |||
Recently Issued Accounting Standards [Abstract] | |||
Recently Issued Accounting Standards |
In May 2014, new accounting guidance was issued that replaces most existing revenue recognition guidance under U.S. GAAP. The core principal of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Using this principle, a comprehensive framework was established for determining how much revenue to recognize and when it should be recognized. To be consistent with this core principle, an entity is required 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 adopted this standard in the first quarter of 2018 by applying the modified retrospective approach. Thus, reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The adoption of this standard did not have a significant impact on the Company’s financial statements because our primary source of revenue is subscription income which is recognized ratably over the subscription term. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The updated guidance requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and nonlease components in a contract in accordance with the new revenue guidance in ASU 2014-09. The updated guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the effect of ASU 2016-02 on its financial statements. The FASB and the SEC have issued certain other accounting pronouncements as of June 30, 2018 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. |
Deferred Revenue |
6 Months Ended | ||
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Jun. 30, 2018 | |||
Deferred Revenue [Abstract] | |||
Deferred Revenue |
The Company’s primary source of revenue is from our annual fixed-price subscription services. Our subscribers are able to access this data on a continuous basis thus representing a single performance obligation satisfied over time. Revenue is recognized ratably over the subscription period and is presented net of the taxes that are collected from subscribers and remitted to governmental authorities. |
Stock-Based Compensation |
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Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 for the three and six months ended June 30:
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Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2018 and December 31, 2017, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.
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 June 30, 2018 or December 31, 2017. |
Net Loss per Share |
6 Months Ended | ||
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Jun. 30, 2018 | |||
Net Loss per Share [Abstract] | |||
Net Loss per Share |
During the three and six months ended June 30, 2018 and 2017 the Company recorded a net loss. Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share, as the effect of utilizing the fully diluted share count would have reduced the net loss per share. Therefore, all outstanding stock options were excluded from the computation of diluted net loss per share because their effect was anti-dilutive for each of the periods presented. |
Stock-Based Compensation (Tables) |
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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 for the three and six months ended June 30:
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Fair Value Measurements (Tables) |
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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 June 30, 2018 and December 31, 2017, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.
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