CreditRiskMonitor.com Inc. Files Q3 2024 10-Q

TL;DR

CRKM 10-Q filed for Q3 2024. Financials are in.

AI Summary

CreditRiskMonitor.com Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as New Generation Foods Inc., is based in Valley Cottage, NY, and operates in consumer credit reporting. Financial details for the reporting period and comparative periods are included in the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational details for CreditRiskMonitor.com Inc. during the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

• 20240930 — Reporting Period End Date (The 10-Q covers financial data up to this date.)
• 20241114 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2024-01-01 — Year-to-Date Start Date (The beginning of the fiscal year for which Q3 data is reported.)
• 2023-09-30 — Prior Year Comparable Period End Date (Used for comparing financial performance.)

Key Players & Entities

• CREDITRISKMONITOR COM INC (company) — Filer
• NEW GENERATION FOODS INC (company) — Former company name
• 704 EXECUTIVE BOULEVARD (location) — Business and mailing address
• VALLEY COTTAGE (location) — City for business and mailing address
• NY (location) — State for business and mailing address
• 10989 (location) — ZIP code for business and mailing address
• 845-230-3000 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $7.9 million — 30, 2024, the Company had approximately $7.9 million in cash and cash equivalents, a decreas
• $3.1 million — quivalents, a decrease of approximately $3.1 million from December 31, 2023. This decrease w
• $5.3 million — ash equivalents, totaling approximately $5.3 million offset by the net cash provided by oper
• $2.2 million — y operating activities of approximately $2.2 million. The main component of current liabili
• $10.9 m — d subscription revenue of approximately $10.9 million, which should not require signifi
• $217 — rating revenues increased approximately $217 thousand, or 5%, for the third quarter
• $255 — d product costs increased approximately $255 thousand, or 13%, for the third quarter
• $182 — rative expenses decreased approximately $182 thousand, or 7%, for the third quarter
• $79 thousand — . Other income increased approximately $79 thousand for the third quarter of fiscal 2024 co
• $686 — rating revenues increased approximately $686 thousand, or 5%, for the nine months en
• $761 — d product costs increased approximately $761 thousand, or 13%, for the nine months e
• $455 — rative expenses increased approximately $455 thousand, or 6%, for the nine months en
• $143 thousand — . Other income increased approximately $143 thousand for the nine months ended September 30,

Filing Documents

• ef20034558_10q.htm (10-Q) — 710KB
• ef20034558_ex31-1.htm (EX-31.1) — 10KB
• ef20034558_ex31-2.htm (EX-31.2) — 10KB
• ef20034558_ex32-1.htm (EX-32.1) — 4KB
• ef20034558_ex32-2.htm (EX-32.2) — 4KB
• 0001140361-24-046898.txt ( ) — 2788KB
• crmz-20240930.xsd (EX-101.SCH) — 16KB
• crmz-20240930_cal.xml (EX-101.CAL) — 32KB
• crmz-20240930_def.xml (EX-101.DEF) — 41KB
• crmz-20240930_lab.xml (EX-101.LAB) — 208KB
• crmz-20240930_pre.xml (EX-101.PRE) — 132KB
• ef20034558_10q_htm.xml (XML) — 361KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Balance Sheets – September 30, 2024 (Unaudited) and December 31, 2023 2 Condensed Statements of Operations for the Three Months Ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Statements of Operations for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Condensed Statements of Stockholders' Equity for the Three Months Ended September 30, 2024 and 2023 (Unaudited) 5 Condensed Statements of Stockholders' Equity for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 7 Notes to Condensed Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 4.

Controls and Procedures

Controls and Procedures 16

OTHER INFORMATION

PART II. OTHER INFORMATION Item 6. Exhibits 17

SIGNATURES

SIGNATURES 18 1 Index

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements CREDITRISKMONITOR.COM, INC. CONDENSED BALANCE SHEETS SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 September 30, 2024 December 31, 2023 (Unaudited) (Note 1) ASSETS Current assets: Cash and cash equivalents $ 7,888,033 $ 11,004,937 Held-to-maturity securities 2,481,973 3,494,958 Accounts receivable, net of allowance of $ 30,000 3,566,066 3,941,182 Other current assets 916,279 788,722 Total current assets 14,852,351 19,229,799 Held-to-maturity securities 6,908,000 700,000 Property and equipment, net 544,097 557,634 Operating lease right-of-use asset 1,453,548 1,612,512 Goodwill 1,954,460 1,954,460 Other assets 18,110 18,110 Total assets $ 25,730,566 $ 24,072,515 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Unexpired subscription revenue $ 10,855,818 $ 10,272,352 Accounts payable 72,890 141,956 Current portion of operating lease liability 225,325 211,488 Accrued expenses 2,396,638 2,105,019 Total current liabilities 13,550,671 12,730,815 Deferred taxes on income, net 350,605 350,605 Unexpired subscription revenue, less current portion 194,959 68,523 Operating lease liability, less current portion 1,384,378 1,554,686 Total liabilities 15,480,613 14,704,629 Stockholders' equity: Preferred stock, $ 0.01 par value; authorized 5,000,000 shares; no ne issued - - Common stock , $ 0.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,401 shares 107,224 107,224 Additional paid-in capital 30,081,665 30,007,773 Accumulated deficit ( 19,938,936 ) ( 20,747,111 ) Total stockholders' equity 10,249,953 9,367,886 Total liabilities and stockholders' equity $ 25,730,566 $ 24,072,515 See accompanying notes to condensed financial statements. 2 Index CREDITRISKMONITOR.COM, INC. CONDENSED OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudi

Management's Discussion and Analysis of Financial Condition and Results of Operations

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 subscribers' discretionary spending for financial risk information, or even their solvency, but we cannot predict whether or to what extent this will occur. Our strategic priorities and plans for 2024 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. Financial Condition, Liquidity and Capital Resources The following table presents selected financial information and statistics as September 30, 2024 and December 31, 2023 (dollars in thousands): September 30, 2024 December 31, 2023 Cash and cash equivalents $ 7,888 $ 11,005 Held-to-maturity securities $ 2,482 $ 3,495 Accounts receivable, net $ 3,566 $ 3,941 Working capital $ 1,302 $ 6,499 Cash ratio 0.58 0.86 Quick ratio 1.03 1.45 Current ratio 1.10 1.51 As of September 30, 2024, the Company had approximately $7.9 million in cash and cash equivalents, a decrease of approximately $3.1 million from December 31, 2023. This decrease was primarily the result of net cash used in investing activities, with a shift towards longer duration US Treasury securities relative to cash and cash equivalents, totaling approximately $5.3 million offset by the net cash provided by operating activities of approximately $2.2 million. The main component of current liabilities at September 30, 2024 was unexpired subscription revenue of approximately $10.9 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 i

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