UPDATE: CreditRiskMonitor 1Q Results

Valley Cottage, NY - (NewMediaWire) - May 12, 2020 - 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.”

   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 

MARCH 31, 2020 AND DECEMBER 31, 2019
   March 31, December 31,
   2020 2019
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
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


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.

Jerry Flum

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