|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
(Address of principal executive offices, including zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
None
|
N/A
|
N/A
|
Large accelerated filer ☐
|
Accelerated filer
|
☐
|
||
|
Smaller reporting company
|
|
Emerging growth company
|
|
Page
|
||
PART I. FINANCIAL INFORMATION
|
|
||
|
|
|
|
|
Item 1.
|
Financial Statements
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
3
|
|
Condensed Statements of Operations for the Six Months Ended June 30, 2023 and 2022 (Unaudited) | 4 | ||
|
|
|
|
|
|
5
|
|
Condensed Statements of Stockholders’ Equity for the Six Months Ended June 30, 2023 and 2022 (Unaudited) |
6 | ||
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
8
|
|
|
|
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|
|
Item 2.
|
12 |
|
|
|
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|
|
Item 4.
|
16 | |
|
|
|
|
PART II. OTHER INFORMATION
|
|
||
|
|
|
|
|
Item 6.
|
17 | |
|
|
|
|
18 |
Item 1.
|
Financial Statements
|
June 30,
2023
|
December 31,
2022
|
|||||||
(Unaudited)
|
(Note 1)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Held-to-maturity securities – treasury bills
|
||||||||
Accounts receivable, net of allowance of $
|
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Operating lease right-to-use asset
|
|
|
||||||
Goodwill
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Unexpired subscription revenue
|
$
|
|
$
|
|
||||
Accounts payable
|
|
|
||||||
Current portion of operating lease liability
|
|
|
||||||
Accrued expenses
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred taxes on income, net
|
|
|
||||||
Unexpired subscription revenue, less current portion
|
|
|
||||||
Operating lease liability, less current portion
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
2023
|
2022
|
|||||||
Operating revenues
|
$
|
|
$
|
|
||||
Operating expenses:
|
||||||||
Data and product costs
|
|
|
||||||
Selling, general and administrative expenses
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Total operating expenses
|
|
|
||||||
Income from operations
|
|
|
||||||
Other income
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Provision for income taxes
|
(
|
)
|
(
|
)
|
||||
Net income
|
$
|
|
$
|
|
||||
Net income per share – Basic and diluted
|
$
|
|
$
|
|
||||
Weighted average number of common shares outstanding –
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
2023
|
2022
|
|||||||
Operating revenues
|
$
|
|
$
|
|
||||
Operating expenses:
|
||||||||
Data and product costs
|
|
|
||||||
Selling, general and administrative expenses
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Total operating expenses
|
|
|
||||||
Income from operations
|
|
|
||||||
Other income
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Provision for income taxes
|
(
|
)
|
(
|
)
|
||||
Net income
|
$
|
|
$
|
|
||||
Net income per share – Basic and diluted
|
$ |
$
|
|
|||||
Weighted average number of common shares outstanding –
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
Common Stock |
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
|||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||
Balance April 1, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance June 30, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance April 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance June 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
|||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||
Balance January 1, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance June 30, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance January 1, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|||||||||||||||
Balance June 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Amortization of bond discount
|
( |
) | ||||||
Deferred income taxes
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Operating lease right-to-use asset, net
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
|
(
|
)
|
|||||
Other current assets
|
(
|
)
|
(
|
)
|
||||
Other assets
|
|
|
||||||
Unexpired subscription revenue
|
|
|
||||||
Accounts payable
|
(
|
)
|
(
|
)
|
||||
Accrued expenses
|
(
|
)
|
(
|
)
|
||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from held-to-maturity securities – treasury bills
|
||||||||
Purchase of held-to-maturity securities – treasury bills
|
( |
) | ||||||
Purchase of property and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Net increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
3 Months Ended
June 30,
|
6 Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Data and product costs
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Selling, general and administrative expenses
|
|
|
|
|
||||||||||||
$ |
|
$ |
|
$ |
|
$ |
|
June 30, 2023
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Held-to-maturity securities |
||||||||||||||||
$ |
$ |
$ |
$ |
December 31, 2022
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Held-to-maturity securities | ||||||||||||||||
$ |
$ |
$ |
$ |
Amortized Cost
|
Gross Unrealized Gain (Loss)
|
Fair Value
|
||||||||||
Held-to-maturity securities
|
||||||||||||
US Treasuries
|
$ |
|
$ |
|
$ |
|
Held-to-maturity securities
|
||||
Due in one year or less
|
$
|
|
3 Months Ended
June 30,
|
6 Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Weighted average number of common shares outstanding –
basic
|
|
|
|
|
||||||||||||
Potential shares exercisable under stock option plans
|
|
|
|
|
||||||||||||
LESS: Shares which could be repurchased under treasury stock method
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
||||||||||||||||
Weighted average number of common shares outstanding –
diluted
|
|
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
June 30,
2023
|
December 31,
2022
|
|||||||
Cash and cash equivalents
|
$
|
10,450
|
$
|
9,867
|
||||
Held-to-maturity securities
|
$
|
4,063
|
$
|
4,028
|
||||
Accounts receivable, net
|
$
|
2,921
|
$
|
3,500
|
||||
Working capital
|
$
|
6,208
|
$
|
5,416
|
||||
Cash ratio
|
0.86
|
0.78 | ||||||
Quick ratio
|
1.43
|
1.38 | ||||||
Current ratio
|
1.51
|
1.43 |
3 Months Ended June 30,
|
||||||||||||||
2023
|
2022
|
|||||||||||||
Amount
|
% of Total
Operating |
Amount
|
% of Total
Operating |
|||||||||||
Operating revenues
|
$
|
4,682,499
|
100
|
%
|
$
|
4,450,017
|
100
|
%
|
||||||
Operating expenses:
|
||||||||||||||
Data and product costs
|
1,934,425
|
41
|
%
|
1,715,574
|
39
|
%
|
||||||||
Selling, general and administrative expenses
|
2,252,514
|
48
|
%
|
2,342,699
|
52
|
%
|
||||||||
Depreciation and amortization
|
94,566
|
2
|
%
|
107,000
|
2
|
%
|
||||||||
Total operating expenses
|
4,281,505
|
91
|
%
|
4,165,273
|
93
|
%
|
||||||||
Income from operations
|
400,994
|
9
|
%
|
284,744
|
7
|
%
|
||||||||
Other income, net
|
192,569
|
4
|
%
|
11,090
|
0
|
%
|
||||||||
Income before income taxes
|
593,563
|
13
|
%
|
295,834
|
7
|
%
|
||||||||
Provision for income taxes
|
(142,212
|
)
|
(3
|
%)
|
(83,166
|
)
|
(2
|
%)
|
||||||
Net income
|
$
|
451,351
|
10
|
%
|
$
|
212,668
|
5
|
%
|
2023
|
2022
|
|||||||||||||||
Amount
|
% of Total
Operating |
Amount
|
% of Total
Operating |
|||||||||||||
Operating revenues
|
$
|
9,273,243
|
100
|
%
|
$
|
8,788,220
|
100
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
3,854,796
|
42
|
%
|
3,473,486
|
40
|
%
|
||||||||||
Selling, general and administrative expenses
|
4,611,555
|
50
|
%
|
4,633,801
|
53
|
%
|
||||||||||
Depreciation and amortization
|
192,087
|
2
|
%
|
201,209
|
2
|
%
|
||||||||||
Total operating expenses
|
8,658,438
|
94
|
%
|
8,308,496
|
95
|
%
|
||||||||||
Income from operations
|
614,805
|
6
|
%
|
479,724
|
5
|
%
|
||||||||||
Other income, net
|
333,547
|
4
|
%
|
11,787
|
0
|
%
|
||||||||||
Income before income taxes
|
948,352
|
10
|
%
|
491,511
|
5
|
%
|
||||||||||
Provision for income taxes
|
(221,721
|
)
|
(2
|
%)
|
(127,722
|
)
|
(1
|
%)
|
||||||||
Net income
|
$
|
726,631
|
8
|
%
|
$
|
363,789
|
4
|
%
|
Item 4. |
Controls and Procedures
|
Item 6. |
Exhibits
|
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.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
CREDITRISKMONITOR.COM, INC.
|
|||
|
(REGISTRANT) | ||
Date: August 10, 2023
|
By:
|
/s/ Steven Gargano
|
|
|
Steven Gargano | ||
|
Senior Vice President & Chief Financial Officer | ||
|
(Principal Accounting Officer) |