CreditRiskMonitor com : CreditRiskMonitor 1Q Results
May 12, 2020 at 10:06 am EDT
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Valley Cottage, NY, May 12, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CreditRiskMonitor (CRMZ) reported that revenues for the 3 months ended March 31, 2020 increased 6% to $3.71 million compared to $3.50 million in last year’s first quarter. Net loss for the quarter was approximately $198,300 compared to a net loss of approximately $136,500 in the prior year period. Cash and cash equivalents increased approximately $22,500 since 2019 year-end, to $8.30 million, and were down $91,700 from the balance at March 31, 2019.
Jerry Flum, CEO, said, “Our net loss increased despite growing sales as the Company continues to invest in an enhanced infrastructure and additional content, which is in addition to strengthening our customer service staff. These strategic investments adversely impact our short-term profits; however, our balance sheet provides us the flexibility to manage our company for long-term shareholder value. Since the COVID-19 pandemic emerged, our team has demonstrated resiliency and fortitude in navigating through this challenge.”
CREDITRISKMONITOR.COM, INC.
STATEMENTS OF INCOME
FOR THE 3 MONTHS ENDED MARCH 31, 2020 AND 2019
(Unaudited)
2020
2019
Operating revenues
$3,708,751
$3,495,809
Operating expenses:
Data and product costs
1,526,328
1,468,993
Selling, general and administrative expenses
2,415,258
2,167,411
Depreciation and amortization
54,112
50,989
Total operating expenses
3,995,698
3,687,393
Loss from operations
(286,947)
(191,584)
Other income, net
22,684
40,890
Loss before income taxes
(264,263)
(150,694)
Benefit from income taxes
65,915
14,226
Net loss
$(198,348)
$(136,468)
Net loss per common share of stock:
Basic and diluted
$(0.02)
$(0.01)
Weighted average number of common shares outstanding:
Basic and diluted
10,722,401
10,722,401
CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
MARCH 31, 2020 AND DECEMBER 31, 2019
March 31,
December 31,
2020
2019
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$8,298,301
$8,275,836
Accounts receivable, net of allowance of $30,000
2,195,081
2,287,921
Other current assets
624,148
549,821
Total current assets
11,117,530
11,113,578
Property and equipment, net
461,907
477,973
Operating lease right-to-use asset
2,336,354
2,380,974
Goodwill
1,954,460
1,954,460
Other assets
46,654
35,723
Total assets
$15,916,905
$15,962,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription income
$9,186,434
$8,651,843
Accounts payable
186,747
137,500
Current portion of operating lease liability
150,805
147,229
Accrued expenses
929,891
1,344,550
Total current liabilities
10,453,877
10,281,122
Deferred taxes on income, net
455,850
521,765
Unexpired subscription income, less current portion
235,626
166,169
Operating lease liability, less current portion
2,260,453
2,299,433
Total liabilities
13,405,806
13,268,489
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
29,720,901
29,705,673
Accumulated deficit
(27,317,026)
(27,118,678)
Total stockholders’ equity
2,511,099
2,694,219
Total liabilities and stockholders’ equity
$15,916,905
$15,962,708
Overview
CreditRiskMonitor (http://www.crmz.com) is a web-based publisher of financial information that helps corporate credit and procurement professionals stay ahead of business financial risk quickly, accurately and cost effectively. The service offers comprehensive commercial credit reports and financial risk analysis covering public companies worldwide. Unlike other commercial credit bureaus like Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies.
The Company also collects a significant amount of trade receivable data on both public and a select group of private companies every month, to help subscribers determine payment performance.
Over 35% of the Fortune 1000 plus over 1,000 other large companies worldwide depend on CreditRiskMonitor’s timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, crowdsourcing of risk professionals as well as the Company’s proprietary FRISK® and PAYCE® scores.
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, risks associated with the COVID-19 pandemic and those risks, uncertainties and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
CreditRiskMonitor.com, Inc. is engaged in selling a suite of Web-based, software as a service (SaaS) subscription product providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies. The Company focuses on facilitating the analysis of corporate financial risk, in the context of the extension of trade credit from one business to another; the management by businesses of important relationships with suppliers, and/or the management by businesses of significant counterparty (i.e., buying and selling) relationships. Its comprehensive commercial credit reports covering both public and private companies worldwide are published through its Web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, and peer analysis. Its platform, SupplyChainMonitor, leverages its financial risk analytics to create a risk management solution.
CREDITRISKMONITOR.COM, INC. 
