SEC Info - Creditriskmonitor Com Inc. - ‘10-Q’ for 9/30/22

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		Alternative Formats (Word, et al.) Condensed Balance Sheets -- September 30, 2022 (Unaudited) and December 31, 2021 Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited) Condensed Statements of Operations for the Nine Months Ended September 30, 2022 and 2021 (Unaudited) Condensed Statements of Operations for the Three Months Ended September 30, 2022 and 2021 (Unaudited) Condensed Statements of Stockholders' Equity for the Nine Months Ended September 30, 2022 and 2021 (Unaudited) Condensed Statements of Stockholders' Equity for the Three Months Ended September 30, 2022 and 2021 (Unaudited) Controls and Procedures Exhibits Index Management's Discussion and Analysis of Financial Condition and Results of Operations Notes to Condensed Financial Statements (Unaudited) September 30, 2022 (Unaudited) and December 31, 2021 Signatures
1	1st Page – Filing Submission
"	Index
"	Condensed Balance Sheets -- September 30, 2022 (Unaudited) and December 31, 2021
"	Condensed Statements of Operations for the Three Months Ended September 30, 2022 and 2021 (Unaudited)
"	Condensed Statements of Operations for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)
"	Condensed Statements of Stockholders' Equity for the Three Months Ended September 30, 2022 and 2021 (Unaudited)
"	Condensed Statements of Stockholders' Equity for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)
"	Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)
"	Notes to Condensed Financial Statements (Unaudited)
"	Management's Discussion and Analysis of Financial Condition and Results of Operations
"	Controls and Procedures
"	Exhibits
"	Signatures

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM i 10-Q

(Mark One)

i ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended i September 30, 2022

i ☐ 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: i 1-8601

i CreditRiskMonitor.com, Inc.

(Exact name of registrant as specified in its charter)

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

i 704 Executive Boulevard, i Suite A

i Valley Cottage, i New York i 10989

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: ( i 845) i 230-3000

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

i Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

i 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	☐
i Non-accelerated filer ☑		Smaller reporting company	i ☑	Emerging growth company i ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes i ☐ No ☑

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

Common stock $.01 par value – i 10,722,401 shares outstanding as of November 10, 2022. The aggregate market value of the registrant’s common stock held by non-affiliates as of June 30, 2021 and June 30, 2022 was $11,869,949 and $10,037,090 respectively.

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

CREDITRISKMONITOR.COM, INC.

CONDENSED BALANCE SHEETS

SEPTEMBER 30, 2022 AND DECEMBER 31, 2021

	September 30, 2022			December 31, 2021
	(Unaudited)			(Note 1)

ASSETS
Current assets:
Cash and cash equivalents	$	i 13,605,966		$	i 12,381,521
Accounts receivable, net of allowance of $ i i 30,000 /		i 2,950,862			i 2,803,236
Other current assets		i 738,263			i 581,149

Total current assets		i 17,295,091			i 15,765,906

Property and equipment, net		i 501,446			i 606,193
Operating lease right-to-use asset		i 1,866,163			i 2,012,155
Goodwill		i 1,954,460			i 1,954,460
Other assets		i 81,182			i 86,714

Total assets	$	i 21,698,342		$	i 20,425,428

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue	$	i 9,946,750		$	i 9,520,226
Accounts payable		i 186,191			i 358,307
Current portion of operating lease liability		i 189,717			i 177,485
Accrued expenses		i 1,742,796			i 1,745,290

Total current liabilities		i 12,065,454			i 11,801,308

Deferred taxes on income, net		i 625,118			i 407,805
Unexpired subscription revenue, less current portion		i 158,568			i 127,124
Operating lease liability, less current portion		i 1,816,697			i 1,960,127

Total liabilities		i 14,665,837			i 14,296,364

Stockholders’ equity:
Preferred stock, $ i i 0.01 / par value; authorized i i 5,000,000 / shares; i i no / ne issued		i -			i -
Common stock, $ i i 0.01 / par value; authorized i i 32,500,000 / shares; issued and outstanding i i i i 10,722,401 / / / shares		i 107,224			i 107,224
Additional paid-in capital		i 29,877,917			i 29,824,242
Accumulated deficit		( i 22,952,636	)		( i 23,802,402	)

Total stockholders’ equity		i 7,032,505			i 6,129,064

Total liabilities and stockholders’ equity	$	i 21,698,342		$	i 20,425,428

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

	2022			2021

Operating revenues	$	i 4,547,708		$	i 4,323,676

Operating expenses:
Data and product costs		i 1,644,489			i 1,519,860
Selling, general and administrative expenses		i 2,230,553			i 2,024,562
Depreciation and amortization		i 100,448			i 75,067

Total operating expenses		i 3,975,490			i 3,619,489

Income from operations		i 572,218			i 704,187
Other income		i 54,581			i 263

Income before income taxes		i 626,799			i 704,450
Provision for income taxes		( i 140,822	)		( i 209,098	)

Net income	$	i 485,977		$	i 495,352

Net income per share – Basic and diluted	$	i i 0.05 /		$	i i 0.05 /

Weighted average number of common shares outstanding –
Basic		i 10,722,401			i 10,722,401
Diluted		i 10,758,349			i 10,756,727

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

	2022			2021

Operating revenues	$	i 13,335,927		$	i 12,704,756

Operating expenses:
Data and product costs		i 5,117,975			i 4,721,331
Selling, general and administrative expenses		i 6,864,354			i 6,415,736
Depreciation and amortization		i 301,656			i 206,083

Total operating expenses		i 12,283,985			i 11,343,150

Income from operations		i 1,051,942			i 1,361,606
Other income		i 66,368			i 3,756

Income before income taxes		i 1,118,310			i 1,365,362
Provision for income taxes		( i 268,544	)		( i 359,588	)

Net income	$	i 849,766		$	i 1,005,774

Net income per share – Basic and diluted	$	i i 0.08 /		$	i i 0.09 /

Weighted average number of common shares outstanding –
Basic		i 10,722,401			i 10,722,401
Diluted		i 10,760,397			i 10,772,447

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

Additional

Total

Common Stock

Paid-in

Capital

Accumulated

Deficit

Stockholders’ Equity

Amount

Balance July 1, 2021

i 10,722,401

i 107,224

i 29,786,923

( i 26,655,684

)

i 3,238,463

Net income

i -

i 495,352

Stock-based compensation

i -

i 18,651

i -

i 18,651

Balance September 30, 2021

i 10,722,401

i 107,224

i 29,805,574

( i 26,160,332

)

i 3,752,466

Balance July 1, 2022

i 10,722,401

i 107,224

i 29,859,233

( i 23,438,613

)

i 6,527,844

Net income

i -

i 485,977

Stock-based compensation

i -

i 18,684

i -

i 18,684

Balance September 30, 2022

i 10,722,401

i 107,224

i 29,877,917

( i 22,952,636

)

i 7,032,505

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

Additional

Total

Common Stock

Paid-in

Capital

Accumulated

Deficit

Stockholders’

Equity

Amount

Balance January 1, 2021

i 10,722,401

i 107,224

i 29,760,533

( i 27,166,106

)

i 2,701,651

Net income

i -

i 1,005,774

Stock-based compensation

i -

i 45,041

i -

i 45,041

Balance September 30, 2021

i 10,722,401

i 107,224

i 29,805,574

( i 26,160,332

)

i 3,752,466

Balance January 1, 2022

i 10,722,401

i 107,224

i 29,824,242

( i 23,802,402

)

i 6,129,064

Net income

i -

i 849,766

Stock-based compensation

i -

i 53,675

i -

i 53,675

Balance September 30, 2022

i 10,722,401

i 107,224

i 29,877,917

( i 22,952,636

)

i 7,032,505

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

	2022			2021

Cash flows from operating activities:
Net income	$	i 849,766		$	i 1,005,774
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes		i 217,313			i 100,557
Depreciation and amortization		i 301,656			i 206,083
Operating lease right-to-use asset, net		i 14,795			i 20,678
Stock-based compensation		i 53,675			i 45,041
Changes in operating assets and liabilities:
Accounts receivable		( i 147,626	)		i 284,589
Other current assets		( i 157,112	)		i 94,607
Other assets		i 5,530			i 1,588
Unexpired subscription revenue		i 457,968			( i 432,411	)
Accounts payable		( i 172,116	)		( i 56,622	)
Accrued expenses		( i 2,494	)		( i 65,095	)

Net cash provided by operating activities		i 1,421,355			i 1,204,789

Cash flows from investing activities:
Sale of available-for-sale securities – municipal bonds		i -			i 458,237
Purchase of property and equipment		( i 196,910	)		( i 271,712	)

Net cash (used in) provided by investing activities		( i 196,910	)		i 186,525

Net increase in cash and cash equivalents		i 1,224,445			i 1,391,314
Cash and cash equivalents at beginning of period		i 12,381,521			i 10,302,732

Cash and cash equivalents at end of period	$	i 13,605,966		$	i 11,694,046

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

NOTES TO CONDENSED 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, 2021.

The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results for an entire fiscal year.

The December 31, 2021 condensed balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These condensed financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K.

(2) Recently Issued Accounting Standards

The Financial Accounting Standards Board (“FASB”) and the SEC have issued certain accounting pronouncements that will become effective in subsequent periods; however, management does not believe that any of those pronouncements would significantly affect 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.

(3) Revenue Recognition

The Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contract with Customers (“ASC 606”) to recognize revenue. ASC 606 requires an entity to apply the following five-step approach: (1) identify the contract(s) with a customer; (2) identify each performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as each performance obligation is satisfied. The Company’s primary source of revenue is subscription income which is recognized ratably over the subscription term.

(4) Stock-Based Compensation

The Company applies ASC 718, Compensation-Stock Compensation (“ASC 718”) to account for stock-based compensation.

Index

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,
	2022		2021		2022		2021

Data and product costs	$	i 6,792	$	i 7,093	$	i 17,834	$	i 17,855
Selling, general and administrative expenses		i 11,892		i 11,558		i 35,841		i 27,186

	$	i 18,684	$	i 18,651	$	i 53,675	$	i 45,041

(5) Fair Value Measurements

The Company’s cash and cash equivalents are stated at fair value. The carrying value of accounts receivable, other current assets, and accounts payable approximates fair market value because of the short maturity of these financial instruments.

The Company’s cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

The tables below set forth the Company’s cash and cash equivalents as of September 30, 2022 and December 31, 2021, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

September 30, 2022

Level 1

Level 2

Level 3

Total

Cash and cash equivalents

i 13,605,966

i -

i 13,605,966

December 31, 2021

Level 1

Level 2

Level 3

Total

Cash and cash equivalents

i 12,381,521

i -

i 12,381,521

There were cash proceeds of $ i 458,237 from the sale of available-for-sale securities for the period ended September 30, 2021.

Index

(6) Net Income per Share

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

3 Months Ended

September 30,

9 Months Ended

September 30,

2022

2021

2022

2021

Weighted average number of common shares outstanding – basic

i 10,722,401

Potential shares exercisable under stock option plans

i 237,000

i 278,100

i 237,692

i 278,100

LESS: Shares which could be repurchased under treasury stock method

( i 201,052

)

( i 243,774

)

( i 199,696

)

( i 228,054

)

Weighted average number of common shares outstanding – diluted

i 10,758,349

i 10,756,727

i 10,760,397

i 10,772,447

For the three and nine months ended September 30, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of i 393,200 and i 393,200 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

For the three and nine months ended September 30, 2021, the computation of diluted net income per share excludes the effects of the assumed exercise of i 290,650 and i 290,650 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

(7) Commitments and Contingencies

From time to time, the Company is involved in legal proceedings arising in the ordinary course of business. The Company records a liability when it believes that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. Based on the currently available information, the Company does not believe that there are claims or legal proceedings that would have a material adverse effect on the business, or the condensed financial statements of the Company.

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 2022 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. The Company’s top priority is the sale of our newly launched procurement risk platform, SupplyChainMonitor™, which was officially launched during the second quarter of 2022.

Index

Due to COVID-19 variants, the Company has elected to voluntarily close in-office personnel functions for the safety of our employees. Only a limited number of IT and other personnel are periodically visiting our office to ensure the integrity of our computer network, retrieve physical files, and any other function that cannot be done remotely. This has allowed our employee base to work remotely and the Company’s operations to continue normally. Nevertheless, the long-term impact the pandemic will have on the Company’s subscriber base is unknown at this time. The Company may face loss of contracts and/or customers, customer credit risk, and general economic calamities. Accordingly, these global market conditions will affect the level and timing of resources deployed in pursuit of these initiatives in 2022.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of September 30, 2022 and December 31, 2021 (dollars in thousands):

	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	13,606	$	12,382
Accounts receivable, net	$	2,951	$	2,803
Working capital	$	5,230	$	3,964
Cash ratio		1.13		1.05
Quick ratio		1.37		1.29
Current ratio		1.43		1.34

As of September 30, 2022, the Company had $13.60 million in cash and cash equivalents, an increase of approximately $1.2 million from December 31, 2021. This increase was primarily the result of cash provided by operating activities of approximately $1.4 million and the purchase of equipment totaling approximately $197 thousand.

The main component of current liabilities at September 30, 2022 was unexpired subscription revenue of approximately $10 million, which should not require significant future cash outlay, as this is annual reoccurring revenue, other than the cost of preparation and delivery of the applicable commercial credit reports, which cost much less than the unexpired subscription revenue shown. Unexpired subscription revenue is recognized as income over the subscription term, which approximates 12 months.

The Company has no bank lines of credit or other currently available credit sources.

The Company believes that its existing balances of cash and cash equivalents and cash generated from operations will be sufficient to satisfy its currently anticipated cash requirements through at least the next 12 months and the foreseeable future. Moreover, the Company has no long-term debt. However, the Company’s liquidity could be negatively affected if it were to make an acquisition or license products or technologies, 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.

Index

Results of Operations

	3 Months Ended September 30,
	2022						2021
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues

Operating revenues	$	4,547,708			100	%	$	4,323,676			100	%

Operating expenses:
Data and product costs		1,644,489			36	%		1,519,860			35	%
Selling, general and administrative expenses		2,230,553			49	%		2,024,562			47	%
Depreciation and amortization		100,448			2	%		75,067			2	%
Total operating expenses		3,975,490			87	%		3,619,489			84	%

Income from operations		572,218			13	%		704,187			16	%
Other income, net		54,581			1	%		263			0	%

Income before income taxes		626,799			14	%		704,450			16	%
Provision for income taxes		(140,822	)		(3	%)		(209,098	)		(5	%)

Net income	$	485,977			11	%	$	495,352			11	%

Operating revenues increased approximately $224 thousand, or 5%, for the three months ended September 30, 2022 compared to the third quarter of fiscal 2021. This overall revenue growth resulted from price increases, an increase in subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased approximately $125 thousand, or 8%, for the third quarter of 2022 compared to the same period of fiscal 2021. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers.

Selling, general and administrative expenses increased approximately $206 thousand, or 10%, for the third quarter of fiscal 2022 compared to the same period of fiscal 2021. This increase was primarily due to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher commission expense due to increased sales.

	9 Months Ended September 30,
	2022						2021
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues

Operating revenues	$	13,335,927			100	%	$	12,704,756			100	%

Operating expenses:
Data and product costs		5,117,975			38	%		4,721,331			37	%
Selling, general and administrative expenses		6,864,354			52	%		6,415,736			50	%
Depreciation and amortization		301,656			2	%		206,083			2	%
Total operating expenses		12,283,985			92	%		11,343,150			89	%

Income from operations		1,051,942			8	%		1,361,606			11	%
Other income, net		66,368			0	%		3,756			0	%

Income before income taxes		1,118,310			8	%		1,365,362			11	%
Provision for income taxes		(268,544	)		(2	%)		(359,588	)		(3	%)

Net income	$	849,766			6	%	$	1,005,774			8	%

Index

Operating revenues increased approximately $631 thousand, or 5%, for the nine months ended September 30, 2022 compared to the same period of fiscal 2021. This overall revenue growth resulted from price increases, an increase in subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased approximately $397 thousand, or 8%, for the nine months ended September 30, 2022 compared to the same period of fiscal 2021. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers.

Selling, general and administrative expenses increased approximately $449 thousand, or 7%, for the nine months ended September 30, 2022 compared to the same period of fiscal 2021. This increase was primarily due to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher commission expense due to increased sales.

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.

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 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) new variants of COVID-19 and government related restrictions on our subscribers and their ongoing businesses and how those effects may impact our sales to them, (ii) the Company’s ability to retain existing subscribers, attract new subscribers at a steady rate and maintain customer satisfaction, (iii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iv) the development of new services and products by the Company and its competitors, (v) price competition, (vi) the Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vii) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (viii) the Company’s ability to attract and retain personnel in a timely and effective manner, (ix) the Company’s ability to manage effectively its development of new business segments and markets, (x) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (xi) technical difficulties, system downtime, cybersecurity breaches, or Internet brownouts, (xii) the amount and timing of operating costs and capital expenditures relating the Company’s business, operations and infrastructure, (xiii) governmental regulation and taxation policies, (xiv) disruptions in service by common carriers due to strikes or otherwise, (xv) risks of fire or other casualty, (xvi) litigation costs or other unanticipated expenses, (xvii) interest rate risks and inflationary pressures, and (xviii) general economic conditions and economic conditions specific to the Internet and online commerce.

Index

Due to the foregoing factors, the Company believes that period-to-period comparisons of its revenues and operating results are not necessarily meaningful and should not be relied on as an indication of future performance.

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements, including statements regarding future prospects, industry trends, competitive conditions and litigation issues. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “expects”, “anticipates”, “plans” or words of similar meaning are intended to identify forward-looking statements. This notice is intended to take advantage of the “safe harbor” provided by the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Among others, factors that could cause actual results to differ materially from the Company’s beliefs or expectations are those listed under “Business Environment” and “Results of Operations” and other factors referenced herein or from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission reports. The Company disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, a future event or otherwise.

Item 4.

Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective to ensure that all material information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to them as appropriate to allow timely decisions regarding required disclosure and that all such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of the Effectiveness of Internal Control

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.

Index

PART II. OTHER INFORMATION

Item 6.

Exhibits

	31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	101.INS	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

Index

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 10, 2022	By:	/s/ *Steven Gargano*
			Steven Gargano
			Senior Vice President & Chief Financial Officer
			(Principal Accounting Officer)

This ‘10-Q’ Filing	Date	Other Filings

Filed on:	11/10/22
For Period end:	9/30/22
	7/1/22
	6/30/22	10-Q
	1/1/22
	12/31/21	10-K
	9/30/21	10-Q
	7/1/21
	6/30/21	10-Q
	1/1/21
		List all Filings

Creditriskmonitor Com Inc. – ‘10-Q’ for 9/30/22

On: Thursday, 11/10/22, at 10:37am ET · For: 9/30/22 · Accession #: 1140361-22-40833 · File #: 1-08601

Previous ‘10-Q’: ‘10-Q’ on 8/10/22 for 6/30/22 · Next: ‘10-Q’ on 5/12/23 for 3/31/23 · Latest: ‘10-Q’ on 11/14/23 for 9/30/23

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Creditriskmonitor Com Inc. – ‘10-Q’ for 9/30/22

On: Thursday, 11/10/22, at 10:37am ET · For: 9/30/22 · Accession #: 1140361-22-40833 · File #: 1-08601

Previous ‘10-Q’: ‘10-Q’ on 8/10/22 for 6/30/22 · Next: ‘10-Q’ on 5/12/23 for 3/31/23 · Latest: ‘10-Q’ on 11/14/23 for 9/30/23

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