{"url_path":"/sec/crmz/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-12","source_url":"https://www.sec.gov/Archives/edgar/data/315958/0001140361-26-020775-index.html","accession_number":"0001140361-26-020775","cik":"0000315958","ticker":"CRMZ","issuer_name":"CREDITRISKMONITOR COM INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/315958/0001140361-26-020775-index.html","primary_entity_key":"0000315958","primary_entity_name":"CREDITRISKMONITOR COM INC"},"word_count":2379,"has_tables":true,"body_markdown":"Item 1.\n\nFinancial Statements.\n\n \n\nCREDITRISKMONITOR.COM, INC.\n\nCONDENSED BALANCE SHEETS\n\nMARCH 31, 2026 AND DECEMBER 31, 2025\n\n \n\n         \n\n \n \n\nMarch 31,\n \n \n\nDecember 31,\n \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n \n\n(Unaudited)\n \n \n\n(Note 1)\n \n\nASSETS\n\n    \n    \n\nCurrent assets:\n\n    \n    \n\nCash and cash equivalents\n\n $5,715,460 \n $6,248,223 \n\nHeld-to-maturity securities\n\n  11,680,204 \n  10,618,881 \n\nAccounts receivable, net of allowance for credit losses of $30,000\n\n  3,210,317 \n  3,786,681 \n\nOther current assets\n\n  1,098,287 \n  1,131,686 \n\n \n    \n    \n\nTotal current assets\n\n  21,704,268 \n  21,785,471 \n\n \n    \n    \n\nHeld-to-maturity securities\n\n  971,000 \n  1,997,000 \n\nProperty and equipment, net\n\n  442,746 \n  415,859 \n\nOperating lease right-of-use asset, net\n\n  76,695 \n  84,525 \n\nGoodwill\n\n  1,954,460 \n  1,954,460 \n\n \n    \n    \n\nTotal assets\n\n $25,149,169 \n $26,237,315 \n\n \n    \n    \n\nLIABILITIES AND STOCKHOLDERS’ EQUITY\n\n    \n    \n\nCurrent liabilities:\n\n    \n    \n\nUnexpired subscription revenue\n\n $10,755,411 \n $10,933,761 \n\nAccounts payable\n\n  151,184 \n  169,988 \n\nOperating lease liability\n\n  29,859 \n  29,364 \n\nAccrued expenses\n\n  1,171,783 \n  2,160,366 \n\n \n    \n    \n\nTotal current liabilities\n\n  12,108,237 \n  13,293,479 \n\n \n    \n    \n\nDeferred tax liabilities, net\n\n  355,646 \n  355,646 \n\nUnexpired subscription revenue, less current portion\n\n  200,379 \n  178,936 \n\nOperating lease liability, less current portion\n\n  46,836 \n  55,161 \n\n \n    \n    \n\nTotal liabilities\n\n  12,711,098 \n  13,883,222 \n\n \n    \n    \n\nStockholders’ equity:\n\n    \n    \n\nPreferred stock, $.01 par value; authorized 5,000,000 shares; none issued\n\n   -  \n   -  \n\nCommon stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,767,501 shares\n\n  107,675 \n  107,675 \n\nAdditional paid-in capital\n\n  30,326,362 \n  30,300,696 \n\nAccumulated deficit\n\n  (17,995,966) \n  (18,054,278) \n\n \n    \n    \n\nTotal stockholders’ equity\n\n  12,438,071 \n  12,354,093 \n\n \n    \n    \n\nTotal liabilities and stockholders’ equity\n\n $25,149,169 \n $26,237,315 \n\n \n\nSee accompanying notes to condensed financial statements.\n\n \n\n3\n\n[Index](#INDEX)\n\nCREDITRISKMONITOR.COM, INC.\n\nCONDENSED STATEMENTS OF OPERATIONS\n\nFOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025\n\n(Unaudited)\n\n \n\n         \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n    \n    \n\nOperating revenues\n\n $4,986,878 \n $4,871,412 \n\n \n    \n    \n\nOperating expenses:\n\n    \n    \n\nData and product costs\n\n  2,520,905 \n  2,283,374 \n\nSelling, general and administrative expenses\n\n  2,505,880 \n  2,476,951 \n\nDepreciation and amortization\n\n  53,820 \n  85,720 \n\n \n    \n    \n\nTotal operating expenses\n\n  5,080,605 \n  4,846,045 \n\n \n    \n    \n\n(Loss) income from operations\n\n  (93,727) \n  25,367 \n\nOther income, net\n\n  169,803 \n  180,833 \n\n \n    \n    \n\nIncome before income taxes\n\n  76,076 \n  206,200 \n\nProvision for income taxes\n\n  (17,764) \n  (47,138) \n\n \n    \n    \n\nNet income\n\n $58,312 \n $159,062 \n\n \n    \n    \n\nNet income per share – Basic and diluted\n\n $0.01 \n $0.01 \n\n \n    \n    \n\nWeighted average number of common shares outstanding\n\n    \n    \n\nBasic\n\n  10,767,501 \n  10,722,401 \n\nDiluted\n\n  10,847,137 \n  10,831,979 \n\n \n\nSee accompanying notes to condensed financial statements.\n\n \n\n4\n\n[Index](#INDEX)\n\nCREDITRISKMONITOR.COM, INC.\n\nCONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY\n\nFOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025\n\n(Unaudited)\n\n \n\n                     \n\n \n    \n    \n  \n\nAdditional\n \n    \n  \n\nTotal\n \n\n \n \n\nCommon Stock\n \n \n  \n\nPaid-in\n \n  \n\nAccumulated\n \n  \n\nStockholders' \n\n \n \n\nShares\n \n \n\nAmount\n \n  Capital \n  Deficit \n  Equity \n\n \n    \n    \n    \n    \n    \n\nBalance January 1, 2025\n\n  10,722,401 \n $107,224 \n $30,106,731 \n $(19,072,209) \n $11,141,746 \n\n \n    \n    \n    \n    \n    \n\nNet income\n\n   -  \n   -  \n   -  \n  159,062 \n  159,062 \n\nStock-based compensation\n\n   -  \n   -  \n  27,285 \n   -  \n  27,285 \n\n \n    \n    \n    \n    \n    \n\nBalance March 31, 2025\n\n  10,722,401 \n $107,224 \n $30,134,016 \n $(18,913,147) \n $11,328,093 \n\n \n    \n    \n    \n    \n    \n\nBalance January 1, 2026\n\n  10,767,501 \n $107,675 \n $30,300,696 \n $(18,054,278) \n $12,354,093 \n\n \n    \n    \n    \n    \n    \n\nNet income\n\n   -  \n   -  \n   -  \n  58,312 \n  58,312 \n\nStock-based compensation\n\n   -  \n   -  \n  25,666 \n   -  \n  25,666 \n\n \n    \n    \n    \n    \n    \n\nBalance March 31, 2026\n\n  10,767,501 \n $107,675 \n $30,326,362 \n $(17,995,966) \n $12,438,071 \n\n \n\nSee accompanying notes to condensed financial statements.\n\n \n\n5\n\n[Index](#INDEX)\n\nCREDITRISKMONITOR.COM, INC.\n\nCONDENSED STATEMENTS OF CASH FLOWS\n\nFOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025\n\n(Unaudited)\n\n \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n    \n    \n\nCash flows from operating activities:\n\n    \n    \n\nNet income\n\n$58,312 \n$159,062 \n\nAdjustments to reconcile net income to net cash used by operating activities:\n\n    \n    \n\nAmortization of bond discount\n\n  (35,323) \n  (53,499) \n\nDepreciation and amortization\n\n  53,820 \n  85,720 \n\nStock-based compensation\n\n  25,666 \n  27,285 \n\nChanges in operating assets and liabilities:\n\n    \n    \n\nAccounts receivable, net\n\n  576,364 \n  (265,932) \n\nOther current assets\n\n  33,399 \n  (127,090) \n\nUnexpired subscription revenue\n\n  (156,907) \n  237,412 \n\nAccounts payable\n\n  (18,804) \n  (131,262) \n\nAccrued expenses\n\n  (988,583) \n  (769,283) \n\n \n    \n    \n\nNet cash used in operating activities\n\n  (452,056) \n  (837,587) \n\n \n    \n    \n\nCash flows from investing activities:\n\n    \n    \n\nProceeds from held-to-maturity securities\n\n   -  \n  985,000 \n\nPurchase of held-to-maturity securities\n\n   -  \n  (978,691) \n\nPurchase of property and equipment\n\n  (80,707) \n  (6,000) \n\n \n    \n    \n\nNet cash (used in) provided by investing activities\n\n  (80,707) \n  309 \n\n \n    \n    \n\nNet decrease in cash and cash equivalents\n\n  (532,763) \n  (837,278) \n\nCash and cash equivalents at beginning of period\n\n  6,248,223 \n  6,674,473 \n\n \n    \n    \n\nCash and cash equivalents at end of period\n\n $5,715,460 \n $5,837,195 \n\n \n\nSee accompanying notes to condensed financial statements.\n\n \n\n6\n\n[Index](#INDEX)\n\nCREDITRISKMONITOR.COM, INC.\n\nNOTES TO CONDENSED FINANCIAL STATEMENTS\n\n(Unaudited)\n\n \n\n(1) Overview and Basis of Presentation\n\n \n\nCreditRiskMonitor.com, Inc. (the “Company” or “CreditRiskMonitor.com”) provides interactive business-to-business Software-as-a-Service (“SaaS”) subscription products designed specifically for credit and supply chain risk managers. These products are sold predominantly to corporations located in the United States.\n\n \n\nThe accompanying unaudited condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures 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 (“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, 2025.\n\n \n\nThe results of operations for the three months ended March 31, 2026 and 2025 are not necessarily indicative of the results for an entire fiscal year.\n\n \n\nThe December 31, 2025 condensed balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP for complete financial statements. These condensed financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K.\n\n \n\n(2) Recently Issued Accounting Standards\n\n \n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which provides for improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid by jurisdiction. The Company adopted ASU 2023-09 on a prospective basis effective January 1, 2025 and the adoption of this update did not have a significant impact on the Company’s financial statements.\n\n \n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), to improve disclosures about a public entity’s expenses by requiring disclosure of additional information about the types of expenses commonly presented in the financial statements on an annual and interim basis. This guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of adoption of this pronouncement on its financial statements.\n\n \n\n(3) Revenue Recognition\n\n \n\nThe Company applies FASB Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (Topic 606) (“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.\n\n \n\n \n\n7\n\n[Index](#INDEX)\n\n(4) Stock-Based Compensation\n\n \n\nThe Company applies ASC 718, Compensation–Stock Compensation (Topic 718) (“ASC 718”), to account for stock-based compensation.\n\n \n\nThe table below 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 months ended March 31, 2026 and 2025, respectively, as follows:\n\n \n\n \n \n\n3 Months Ended\n \n \n\n \n \n\nMarch 31,\n \n \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n    \n    \n\nData and product costs\n\n$9,319 \n$8,546 \n\nSelling, general and administrative expenses\n\n  16,347 \n  18,739 \n\n \n    \n    \n\n \n $25,666 \n $27,285 \n\n \n\n(5) Fair Value Measurements\n\n \n\nThe Company’s cash, cash equivalents and marketable securities are stated at amortized cost, which approximate fair value. The carrying values of accounts receivable, other current assets, accounts payable, and accrued expenses approximate fair market value because of the short maturity of these financial instruments.\n\n \n\nThe Company’s cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.\n\n \n\nAll held-to-maturity securities as of March 31, 2026 and December 31, 2025 were U.S. Treasury securities. Investments in these government securities are based on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy.\n\n \n\nThe tables below set forth the Company’s cash and cash equivalents, as well as marketable securities as of March 31, 2026 and December 31, 2025, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.\n\n \n\n \n \n\nMarch 31, 2026\n     \n\n \n\n \n \n\nLevel 1\n \n \n\nLevel 2\n \n \n\nLevel 3\n \n \n\nTotal\n \n\nCash and cash equivalents\n\n$5,715,460 \n$ −  \n$ −  \n$5,715,460 \n\nHeld-to-maturity securities\n\n  12,651,204 \n   −  \n   −  \n  12,651,204 \n\n \n $18,366,664 \n $ −  \n $ −  \n $18,366,664 \n\n \n\n \n \n\nDecember 31, 2025\n     \n\n \n\n \n \n\nLevel 1\n \n \n\nLevel 2\n \n \n\nLevel 3\n \n \n\nTotal\n \n\n \n    \n    \n    \n    \n\nCash and cash equivalents\n\n$6,248,223 \n$ −  \n$ −  \n$6,248,223 \n\nHeld-to-maturity securities\n\n  12,615,881 \n   −  \n   −  \n  12,615,881 \n\n \n $18,864,104 \n $ −  \n $ −  \n $18,864,104 \n\n \n\nThe Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of March 31, 2026 or December 31, 2025, respectively.\n\n \n\nThe preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.\n\n \n\n8\n\n[Index](#INDEX)\n\n(6) Marketable Securities\n\n \n\nBased upon the Company’s intent and ability to hold its U.S. Treasury securities to maturity, such securities have been classified as held-to-maturity and are carried at amortized cost, which approximates fair market value. Maturities on these U.S. Treasury security holdings range from 19 to 25 months from the date of purchase. Accrued bond interest receivable as of March 31, 2026 and December 31, 2025 was $96,197 and $97,024, respectively, and is included in other current assets on the Condensed Balance Sheets.\n\n \n\nThe tables below summarize the Company’s cost and fair value of marketable securities as of March 31, 2026 and December 31, 2025, respectively, as follows:\n\n \n\n             \n\n \n   \n March 31, 2026 \n   \n\n \n \n\nAmortized Cost\n \n \n\nGross Unrealized Gain\n \n \n\nFair Value\n \n\nHeld-to-maturity securities\n\n    \n    \n    \n\nU.S. Treasury securities\n\n $12,651,204 \n $37,796 \n $12,689,000 \n\n \n\n \n \n\nDecember 31, 2025\n\n \n\n \n \n\nAmortized Cost\n\n \n \n\nGross Unrealized Gain\n\n \n \n\nFair Value\n\n \n\nHeld-to-maturity securities\n\n    \n    \n    \n\nU.S. Treasury securities\n\n $12,615,881 \n $73,119 \n $12,689,000 \n\n \n\nMaturities of marketable securities as of March 31, 2026 and December 31, 2025, respectively, are as follows:\n\n \n\n \n \n\nMarch 31,\n\n2026\n \n \n\nDecember 31,\n\n2025\n \n\n \n    \n    \n\nHeld-to-maturity securities:\n\n    \n    \n\nDue in one year or less\n\n$11,680,204 \n$10,618,881 \n\nDue in 12 – 24 months\n\n  971,000 \n  1,997,000 \n\n \n    \n    \n\n \n $12,651,204 \n $12,615,881 \n\n \n\nThe Company’s investments in marketable securities consist of investments in U.S. Treasury securities. Market values were determined for each individual security in the investment portfolio.\n\n \n\nManagement evaluates securities for other-than-temporary impairment at least on an annual basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management has determined that no other-than-temporary impairment exists as of March 31, 2026.\n\n \n\n(7) Net Income per Share\n\n \n\nBasic 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.\n\n \n\n \n \n\n3 Months Ended\n \n \n\n \n \n\nMarch 31,\n \n \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n    \n    \n\nWeighted average common shares outstanding – basic\n\n 10,767,501 \n 10,722,401 \n\nPotential shares exercisable under stock option plans\n\n  268,301 \n  341,950 \n\nLess: Shares which could be repurchased under treasury stock method\n\n  (188,665) \n  (232,372) \n\n \n    \n    \n\nWeighted average common shares outstanding – diluted\n\n  10,847,137 \n  10,831,979 \n\n \n\n9\n\n[Index](#INDEX)\n\nFor the three months ended March 31, 2026, the computation of diluted net income per share excludes the effects of the assumed exercise of 604,300 options, since their inclusion would be anti-dilutive as their exercise prices were above the average market value.\n\n \n\nFor the three months ended March 31, 2025, the computation of diluted net income per share excludes the effects of the assumed exercise of 611,850 options, since their inclusion would be anti-dilutive as their exercise prices were above the average market value.\n\n \n\n(8) Commitments and Contingencies\n\n \n\nFrom time to time, the Company is involved in various 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.\n\n \n\n(9) Segment Reporting\n\n \n\nThe Company has a single operating and reportable segment: SaaS subscription products. This segment includes add-ons and enhancements that can only be accessed with an active base subscription to its SaaS subscription products. The products are used mainly by subscribers to analyze commercial financial risk for the purpose of extending trade credit, evaluating supply chains, and managing the counterparty risk associated with these relationships.\n\n \n\nThe Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer and President. The CODM makes operating decisions, assesses performance and allocates resources using the entity-wide revenue and expense information reported on the Condensed Statements of Operations and the more detailed significant expense categories disclosed in the table below. The primary measure of segment profit is net income as reported on the Condensed Statements of Operations.\n\n \n\n \n \n\n3 Months Ended\n\nMarch 31,\n \n \n\n \n \n\n2026\n \n \n\n2025\n \n\n \n    \n    \n\nSegment operating revenues\n\n$4,986,878 \n$4,871,412 \n\n \n    \n    \n\nLess: Significant segment expenses\n\n    \n    \n\nData and product costs\n\n    \n    \n\nEmployee expenses\n\n  1,700,701 \n  1,498,114 \n\nData feed expenses\n\n  522,623 \n  534,901 \n\nHosting and computer services expenses\n\n  150,198 \n  58,714 \n\nOther data and product costs\n\n  147,383 \n  191,645 \n\nData and product costs subtotal\n\n  2,520,905 \n  2,283,374 \n\n \n    \n    \n\nSelling, general and administrative expenses\n\n    \n    \n\nEmployee expenses\n\n  1,868,786 \n  1,914,112 \n\nProfessional fee expenses\n\n  331,945 \n  103,106 \n\nMarketing expenses\n\n  168,954 \n  208,791 \n\nOccupancy expenses (1)\n\n  10,183 \n  110,344 \n\nOther general and administrative expenses\n\n  126,012 \n  140,598 \n\nSelling, general and administrative expenses subtotal\n\n  2,505,880 \n  2,476,951 \n\n \n    \n    \n\nOther significant segment items\n\n    \n    \n\nDepreciation and amortization\n\n  53,820 \n  85,720 \n\nOther (income), net\n\n  (169,803) \n  (180,833) \n\nProvision for income taxes\n\n  17,764 \n  47,138 \n\n \n    \n    \n\nSegment net income\n\n $58,312 \n $159,062 \n\n \n\n(1) Prior to the expiration of the Company’s leased office space on July 31, 2025, occupancy expenses included rent, utilities, repairs, and office supplies. Post expiration, occupancy expenses included the rental of virtual office space for Company meetings.\n\n \n\n10\n\n[Index](#INDEX)"}