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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Credit Risk Monitor Com Inc (QX) | USOTC:CRMZ | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.005 | 0.25% | 2.04 | 2.01 | 2.20 | 2.04 | 2.025 | 2.03 | 1,906 | 21:07:51 |
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices, including zip code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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None
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N/A
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N/A
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Large accelerated filer ☐
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Accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page
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PART I. FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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2
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3
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4
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5
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6 | |||
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7
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8
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Item 2.
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12 | |
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Item 4.
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16 | |
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PART II. OTHER INFORMATION
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Item 6.
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17 | |
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18 |
September 30,
2023
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December 31,
2022
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|||||||
(Unaudited)
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(Note 1)
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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$
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||||
Held-to-maturity securities – treasury bills
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||||||||
Accounts receivable, net of allowance of $
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||||||
Other current assets
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||||||
Total current assets
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||||||
Property and equipment, net
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||||||
Operating lease right-to-use asset
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||||||
Goodwill
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||||||
Other assets
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||||||
Total assets
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$
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$
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Unexpired subscription revenue
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$
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$
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||||
Accounts payable
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||||||
Current portion of operating lease liability
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||||||
Accrued expenses
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||||||
Total current liabilities
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||||||
Deferred taxes on income, net
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||||||
Unexpired subscription revenue, less current portion
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||||||
Operating lease liability, less current portion
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||||||
Total liabilities
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||||||
Stockholders’ equity:
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||||||||
Preferred stock, $
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||||||
Common stock, $
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||||||
Additional paid-in capital
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||||||
Accumulated deficit
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(
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)
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(
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)
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||||
Total stockholders’ equity
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||||||
Total liabilities and stockholders’ equity
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$
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$
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2023
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2022
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|||||||
Operating revenues
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$
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$
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||||
Operating expenses:
|
||||||||
Data and product costs
|
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|
||||||
Selling, general and administrative expenses
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||||||
Depreciation and amortization
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|
||||||
Total operating expenses
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||||||
Income from operations
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||||||
Other income
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||||||
Income before income taxes
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|
||||||
Provision for income taxes
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(
|
)
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(
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)
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||||
Net income
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$
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|
$
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|
||||
Net income per share – Basic and diluted
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$
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$
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|
||||
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
|
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|
||||||
Total operating expenses
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|
||||||
Income from operations
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|
|
||||||
Other income
|
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|
||||||
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 July 1, 2022
|
|
$
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|
$
|
|
$
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(
|
)
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$
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||||||||||
Net income
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-
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|||||||||||||||
Stock-based compensation
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-
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|||||||||||||||
Balance September 30, 2022
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|
$
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|
$
|
|
$
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(
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)
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$
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|
||||||||||
Balance July 1, 2023
|
|
$
|
|
$
|
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$
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(
|
)
|
$
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|
||||||||||
Net income
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-
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|
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|
|||||||||||||||
Stock-based compensation
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-
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|||||||||||||||
Balance September 30, 2023
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|
$
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|
$
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|
$
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(
|
)
|
$
|
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
|||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||
Balance January 1, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
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||||||||||
Net income
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-
|
|
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|
|||||||||||||||
Stock-based compensation
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-
|
|
|
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|
|||||||||||||||
Balance September 30, 2022
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|
$
|
|
$
|
|
$
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(
|
)
|
$
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|
||||||||||
Balance January 1, 2023
|
|
$
|
|
$
|
|
$
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(
|
)
|
$
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|
||||||||||
Net income
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-
|
|
|
|
|
|||||||||||||||
Stock-based compensation
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-
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|
|||||||||||||||
Balance September 30, 2023
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization of bond discount
|
( |
) | ||||||
Deferred income taxes
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|
|
||||||
Depreciation and amortization
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|
||||||
Operating lease right-to-use asset, net
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|
||||||
Stock-based compensation
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|
||||||
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
September 30,
|
9 Months Ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Data and product costs
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Selling, general and administrative expenses
|
|
|
|
|
||||||||||||
$ |
|
$ |
|
$ |
|
$ |
|
September 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
September 30,
|
9 Months Ended
September 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
|
September 30,
2023
|
December 31,
2022
|
|||||||
Cash and cash equivalents
|
$
|
11,088
|
$
|
9,867
|
||||
Held-to-maturity securities
|
$
|
4,144
|
$
|
4,028
|
||||
Accounts receivable, net
|
$
|
2,875
|
$
|
3,500
|
||||
Working capital
|
$
|
6,633
|
$
|
5,416
|
||||
Cash ratio
|
0.88
|
0.78
|
||||||
Quick ratio
|
1.44
|
1.38
|
||||||
Current ratio
|
1.53
|
1.43
|
3 Months Ended September 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
Amount
|
% of Total
Operating
Revenues
|
Amount
|
% of Total
Operating
Revenues
|
|||||||||||||
Operating revenues
|
$
|
4,792,869
|
100
|
%
|
$
|
4,547,708
|
100
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
1,951,360
|
41
|
%
|
1,644,489
|
36
|
%
|
||||||||||
Selling, general and administrative expenses
|
2,439,147
|
51
|
%
|
2,230,553
|
49
|
%
|
||||||||||
Depreciation and amortization
|
96,216
|
2
|
%
|
100,448
|
2
|
%
|
||||||||||
Total operating expenses
|
4,486,723
|
94
|
%
|
3,975,490
|
87
|
%
|
||||||||||
Income from operations
|
306,146
|
6
|
%
|
572,218
|
13
|
%
|
||||||||||
Other income, net
|
188,083
|
4
|
%
|
54,581
|
1
|
%
|
||||||||||
Income before income taxes
|
494,229
|
10
|
%
|
626,799
|
14
|
%
|
||||||||||
Provision for income taxes
|
(115,552
|
)
|
(2
|
%)
|
(140,822
|
)
|
(3
|
%)
|
||||||||
Net income
|
$
|
378,677
|
8
|
%
|
$
|
485,977
|
11
|
%
|
9 Months Ended September 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
Amount
|
% of Total
Operating
Revenues
|
Amount
|
% of Total
Operating
Revenues
|
|||||||||||||
Operating revenues
|
$
|
14,066,112
|
100
|
%
|
$
|
13,335,927
|
100
|
%
|
||||||||
Operating expenses:
|
||||||||||||||||
Data and product costs
|
5,806,156
|
41
|
%
|
5,117,975
|
38
|
%
|
||||||||||
Selling, general and administrative expenses
|
7,050,702
|
50
|
%
|
6,864,354
|
52
|
%
|
||||||||||
Depreciation and amortization
|
288,303
|
2
|
%
|
301,656
|
2
|
%
|
||||||||||
Total operating expenses
|
13,145,161
|
93
|
%
|
12,283,985
|
92
|
%
|
||||||||||
Income from operations
|
920,951
|
6
|
%
|
1,051,942
|
8
|
%
|
||||||||||
Other income, net
|
521,630
|
4
|
%
|
66,368
|
0
|
%
|
||||||||||
Income before income taxes
|
1,442,581
|
10
|
%
|
1,118,310
|
8
|
%
|
||||||||||
Provision for income taxes
|
(337,273
|
)
|
(2
|
%)
|
(268,544
|
)
|
(2
|
%)
|
||||||||
Net income
|
$
|
1,105,308
|
8
|
%
|
$
|
849,766
|
6
|
%
|
||||||||
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: November 14, 2023
|
By: /s/ Steven Gargano
|
|
Steven Gargano |
|
Senior Vice President & 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: November 14, 2023
|
By: |
/s/ Michael Flum
|
Michael 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: November 14, 2023
|
By: |
/s/ Steven Gargano
|
Steven Gargano
|
||
Senior Vice President & 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/ Michael Flum
|
|
Michael Flum
|
||
Chief Executive Officer
|
||
November 14, 2023
|
(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/ Steven Gargano
|
|
Steven Gargano
|
||
Senior Vice President & Chief Financial Officer
|
||
November 14, 2023
|
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Current assets: | ||
Accounts receivable, allowance | $ 30,000 | $ 30,000 |
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 |
CONDENSED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||
Operating revenues | $ 4,792,869 | $ 4,547,708 | $ 14,066,112 | $ 13,335,927 |
Operating expenses: | ||||
Data and product costs | 1,951,360 | 1,644,489 | 5,806,156 | 5,117,975 |
Selling, general and administrative expenses | 2,439,147 | 2,230,553 | 7,050,702 | 6,864,354 |
Depreciation and amortization | 96,216 | 100,448 | 288,303 | 301,656 |
Total operating expenses | 4,486,723 | 3,975,490 | 13,145,161 | 12,283,985 |
Income from operations | 306,146 | 572,218 | 920,951 | 1,051,942 |
Other income | 188,083 | 54,581 | 521,630 | 66,368 |
Income before income taxes | 494,229 | 626,799 | 1,442,581 | 1,118,310 |
Provision for income taxes | (115,552) | (140,822) | (337,273) | (268,544) |
Net income | $ 378,677 | $ 485,977 | $ 1,105,308 | $ 849,766 |
Net income per share - Basic (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.1 | $ 0.08 |
Net income per share - Diluted (in dollars per share) | $ 0.04 | $ 0.05 | $ 0.1 | $ 0.08 |
Weighted average number of common shares outstanding - Basic (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
Weighted average number of common shares outstanding - Diluted (in shares) | 10,799,481 | 10,758,349 | 10,801,243 | 10,760,397 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation |
(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 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 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, 2022.
The results of operations for the three and
nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results for an entire fiscal year.
The December 31, 2022 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, 2022 included in the Company’s Annual Report on Form 10-K.
|
Recently Issued Accounting Standards |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards |
(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 have significantly affected the Company’s financial accounting measurements or disclosures had they been in effect during the interim periods for which condensed
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.
|
Revenue Recognition |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition |
(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.
|
Stock-Based Compensation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
(4) Stock-Based Compensation
The Company applies ASC 718, Compensation-Stock
Compensation (“ASC 718”) to account for 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 in accordance with ASC 718 for the three and nine months ended September 30:
|
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
(5) Fair Value Measurements
The Company’s cash, cash equivalents and
marketable securities are stated at fair value. The carrying value of accounts receivable, other current assets, accrued expenses, 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.
All held-to-maturity securities as of September 30, 2023 were US Treasury and federal bonds. Investments in these bonds are based
on quoted market prices in active markets, and are included in the Level 1 fair value hierarchy.
The tables below set forth the Company’s cash
and cash equivalents, as well as marketable securities as of September 30, 2023 and December 31, 2022, 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
September 30, 2023.
The 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.
|
Marketable Securities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities |
(6) Marketable Securities
Based upon the Company’s intent and ability to hold its US Treasury and federal bond securities to maturity (which maturities range up to 12
months at purchase), such securities have been classified as held-to-maturity and are carried at amortized cost, which approximates market value. Accrued bond interest receivable as of September 30, 2023 is $8,964.
The following table summarizes the cost and fair value of marketable securities at September 30, 2023 as follows:
Maturities of marketable securities were as follows at September 30, 2023:
The Company’s investments in marketable securities consist primarily of investments in US Treasury securities and federal bonds. Market values
were determined for each individual security in the investment portfolio.
Management 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 September 30, 2023.
|
Net Income per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share |
(7) 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.
For the three and nine months ended September 30, 2023, the computation of diluted
net income per share excludes the effects of the assumed exercise of 402,100 and 402,100 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, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of 393,200 and 393,200 options,
respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.
|
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies |
(8) Commitments and Contingencies
From 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.
|
Related Party Transactions |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions |
(9) Related Party Transactions
On May 1, 2023, the Company’s Board of Directors appointed Michael Flum, age 36, to serve as Chief Executive Officer and President. Michael Flum joined the Company
in June 2018 as Vice President of Operations & Alternative Data. He was appointed Chief Operating Officer in October 2019 and subsequently President in October 2020. Mr. Flum is the son of Jerome S. Flum, the Company’s former Chief Executive
Officer and current Chairman of the Board of Directors, and the brother of Joshua Flum, a Director of the Company.
|
Supplemental Disclosures of Noncash Investing Activities |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Supplemental Disclosures of Noncash Investing Activities [Abstract] | |
Supplemental Disclosures of Noncash Investing Activities |
(10) Supplemental Disclosures of Noncash Investing Activities
For the nine months ended September 30, 2023, there was a noncash transfer of deposits from operating activities to property and equipment in the amount of $155,700.
|
Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 in accordance with ASC 718 for the three and nine months ended September 30:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis |
The tables below set forth the Company’s cash
and cash equivalents, as well as marketable securities as of September 30, 2023 and December 31, 2022, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.
|
Marketable Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost and Fair Value of Marketable Securities |
The following table summarizes the cost and fair value of marketable securities at September 30, 2023 as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Marketable Securities |
Maturities of marketable securities were as follows at September 30, 2023:
|
Net Income per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted 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.
|
Stock-Based Compensation (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stock-Based Compensation Expense for Stock Options [Abstract] | ||||
Stock-based compensation expense | $ 22,329 | $ 18,684 | $ 75,853 | $ 53,675 |
Data and Product Costs [Member] | ||||
Stock-Based Compensation Expense for Stock Options [Abstract] | ||||
Stock-based compensation expense | 8,489 | 6,792 | 28,974 | 17,834 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-Based Compensation Expense for Stock Options [Abstract] | ||||
Stock-based compensation expense | $ 13,840 | $ 11,892 | $ 46,879 | $ 35,841 |
Fair Value Measurements (Details) - Recurring [Member] - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | $ 11,088,033 | $ 9,866,628 |
Held-to-maturity securities | 4,143,863 | 4,028,565 |
Fair Value | 15,231,896 | 13,895,193 |
Level 1 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 11,088,033 | 9,866,628 |
Held-to-maturity securities | 4,143,863 | 4,028,565 |
Fair Value | 15,231,896 | 13,895,193 |
Level 2 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
Fair Value | 0 | 0 |
Level 3 [Member] | ||
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Marketable Securities, Cost and Fair Value of Marketable Securities (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Debt Securities, Held-to-Maturity, Fair Value [Abstract] | ||
Amortized Cost | $ 4,143,863 | $ 4,028,565 |
Accrued bond interest receivable | 8,964 | |
US Treasuries [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value [Abstract] | ||
Amortized Cost | 4,143,863 | |
Gross Unrealized Gain (Loss) | 86,137 | |
Fair Value | $ 4,230,000 |
Marketable Securities, Maturities of Marketable Securities (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date [Abstract] | |
Due in one year or less | $ 4,143,863 |
Other-than-temporary impairment loss | $ 0 |
Net Income per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Net Income per Share [Abstract] | ||||
Weighted average number of common shares outstanding - basic (in shares) | 10,722,401 | 10,722,401 | 10,722,401 | 10,722,401 |
Potential shares exercisable under stock option plans (in shares) | 311,950 | 237,000 | 320,697 | 237,692 |
Less: Shares which could be repurchased under treasury stock method (in shares) | (234,870) | (201,052) | (241,855) | (199,696) |
Weighted average number of common shares outstanding - diluted (in shares) | 10,799,481 | 10,758,349 | 10,801,243 | 10,760,397 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 402,100 | 393,200 | 402,100 | 393,200 |
Supplemental Disclosures of Noncash Investing Activities (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Supplemental Disclosures of Noncash Investing Activities [Abstract] | |
Noncash transfer of deposits | $ 155,700 |
1 Year Credit Risk Monitor Com (QX) Chart |
1 Month Credit Risk Monitor Com (QX) Chart |
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