Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-8601

CreditRiskMonitor.com, Inc.

(Exact name of registrant as specified in its charter)

Nevada		36-2972588
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

704 Executive Boulevard, Suite A

Valley Cottage, New York 10989

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (845) 230-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer	☐
Non-accelerated filer ☑		Smaller reporting company	☑	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The Company’s common stock is traded on the OTC Markets. There were 10,722,401 shares of common stock $.01 par value outstanding as of August 10, 2023.

CREDITRISKMONITOR.COM, INC.

INDEX

			Page
PART I. FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Condensed Balance Sheets – June 30, 2023 (Unaudited) and December 31, 2022	2

		Condensed Statements of Operations for the Three Months Ended June 30, 2023 and 2022 (Unaudited)	3

		Condensed Statements of Operations for the Six Months Ended June 30, 2023 and 2022 (Unaudited)	4

		Condensed Statements of Stockholders’ Equity for the Three Months Ended June 30, 2023 and 2022 (Unaudited)	5

		Condensed Statements of Stockholders’ Equity for the Six Months Ended June 30, 2023 and 2022 (Unaudited)	6

		Condensed Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (Unaudited)	7

		Notes to Condensed Financial Statements (Unaudited)	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

	Item 4.	Controls and Procedures	16

PART II. OTHER INFORMATION

	Item 6.	Exhibits	17

SIGNATURES			18

Index

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

CREDITRISKMONITOR.COM, INC.

CONDENSED BALANCE SHEETS

JUNE 30, 2023 AND DECEMBER 31, 2022

	June 30, 2023			December 31, 2022
	(Unaudited)			(Note 1)

ASSETS
Current assets:
Cash and cash equivalents	$	10,449,960		$	9,866,628
Held-to-maturity securities – treasury bills		4,062,946			4,028,565
Accounts receivable, net of allowance of $30,000		2,920,938			3,500,259
Other current assets		950,993			656,379

Total current assets		18,384,837			18,051,831

Property and equipment, net		561,235			481,804
Operating lease right-to-use asset		1,715,600			1,816,505
Goodwill		1,954,460			1,954,460
Other assets		18,110			163,470

Total assets	$	22,634,242		$	22,468,070

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue	$	10,161,850		$	9,980,092
Accounts payable		91,639			245,854
Current portion of operating lease liability		202,570			193,953
Accrued expenses		1,720,633			2,216,376

Total current liabilities		12,176,692			12,636,275

Deferred taxes on income, net		332,566			332,566
Unexpired subscription revenue, less current portion		111,699			163,320
Operating lease liability, less current portion		1,663,395			1,766,174

Total liabilities		14,284,352			14,898,335

Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none 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		29,958,199			29,904,675
Accumulated deficit		(21,715,533	)		(22,442,164	)

Total stockholders’ equity		8,349,890			7,569,735

Total liabilities and stockholders’ equity	$	22,634,242		$	22,468,070

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	2023			2022

Operating revenues	$	4,682,499		$	4,450,017

Operating expenses:
Data and product costs		1,934,425			1,715,574
Selling, general and administrative expenses		2,252,514			2,342,699
Depreciation and amortization		94,566			107,000

Total operating expenses		4,281,505			4,165,273

Income from operations		400,994			284,744
Other income		192,569			11,090

Income before income taxes		593,563			295,834
Provision for income taxes		(142,212	)		(83,166	)

Net income	$	451,351		$	212,668

Net income per share – Basic and diluted	$	0.04		$	0.02

Weighted average number of common shares outstanding –
Basic		10,722,401			10,722,401
Diluted		10,807,318			10,775,373

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	2023			2022

Operating revenues	$	9,273,243		$	8,788,220

Operating expenses:
Data and product costs		3,854,796			3,473,486
Selling, general and administrative expenses		4,611,555			4,633,801
Depreciation and amortization		192,087			201,209

Total operating expenses		8,658,438			8,308,496

Income from operations		614,805			479,724
Other income		333,547			11,787

Income before income taxes		948,352			491,511
Provision for income taxes		(221,721	)		(127,722	)

Net income	$	726,631		$	363,789

Net income per share – Basic and diluted	$	0.07		$	0.03

Weighted average number of common shares outstanding –
Basic		10,722,401			10,722,401
Diluted		10,802,176			10,761,851

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	Common Stock				Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Equity
	Common Stock
	Shares		Amount
Balance April 1, 2022		10,722,401	$	107,224	$	29,843,574	$	(23,651,281	)	$	6,299,517

Net income		-		-		-		212,668			212,668
Stock-based compensation		-		-		15,659		-			15,659

Balance June 30, 2022		10,722,401	$	107,224	$	29,859,233	$	(23,438,613	)	$	6,527,844

Balance April 1, 2023		10,722,401	$	107,224	$	29,932,576	$	(22,166,884	)	$	7,872,916

Net income		-		-		-		451,351			451,351
Stock-based compensation		-		-		25,623		-			25,623

Balance June 30, 2023		10,722,401	$	107,224	$	29,958,199	$	(21,715,533	)	$	8,349,890

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	Common Stock				Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Equity
	Common Stock
	Shares		Amount
Balance January 1, 2022		10,722,401	$	107,224	$	29,824,242	$	(23,802,402	)	$	6,129,064

Net income		-		-		-		363,789			363,789
Stock-based compensation		-		-		34,991		-			34,991

Balance June 30, 2022		10,722,401	$	107,224	$	29,859,233	$	(23,438,613	)	$	6,527,844

Balance January 1, 2023		10,722,401	$	107,224	$	29,904,675	$	(22,442,164	)	$	7,569,735

Net income		-		-		-		726,631			726,631
Stock-based compensation		-		-		53,524		-			53,524

Balance June 30, 2023		10,722,401	$	107,224	$	29,958,199	$	(21,715,533	)	$	8,349,890

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	2023			2022

Cash flows from operating activities:
Net income	$	726,631		$	363,789
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of bond discount		(77,349	)		-
Deferred income taxes		-			76,491
Depreciation and amortization		192,087			201,209
Operating lease right-to-use asset, net		6,742			10,755
Stock-based compensation		53,524			34,991
Changes in operating assets and liabilities:
Accounts receivable		584,564			(643,913	)
Other current assets		(304,955	)		(229,139	)
Other assets		-			37,576
Unexpired subscription revenue		130,136			979,101
Accounts payable		(154,216	)		(132,860	)
Accrued expenses		(495,743	)		(284,127	)

Net cash provided by operating activities		661,421			413,873

Cash flows from investing activities:
Proceeds from held-to-maturity securities – treasury bills		2,170,000			-
Purchase of held-to-maturity securities – treasury bills		(2,132,272	)		-
Purchase of property and equipment		(115,817	)		(167,631	)

Net cash used in investing activities		(78,089	)		(167,631	)

Net increase in cash and cash equivalents		583,332			246,242
Cash and cash equivalents at beginning of period		9,866,628			12,381,521

Cash and cash equivalents at end of period	$	10,449,960		$	12,627,763

See accompanying notes to condensed financial statements.

Index

CREDITRISKMONITOR.COM, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

(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 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 six months ended June 30, 2023 and 2022 are not necessarily indicative of the results for an entire fiscal year.

The December 31, 2022 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.

(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 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.

(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.

(4) Stock-Based Compensation

The Company applies ASC 718, Compensation-Stock Compensation (“ASC 718”) to account for stock-based compensation.

Index

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 six months ended June 30:

	3 Months Ended June 30,				6 Months Ended June 30,
	2023		2022		2023		2022

Data and product costs	$	10,213	$	3,754	$	20,486	$	11,041
Selling, general and administrative expenses		15,410		11,905		33,038		23,950

	$	25,623	$	15,659	$	53,524	$	34,991

(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 expensed, 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 June 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 June 30, 2023 and December 31, 2022, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	June 30, 2023
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	10,449,960	$	-	$	-	$	10,449,960
Held-to-maturity securities		4,062,946		-		-		4,062,946
	$	14,512,906	$	-	$	-	$	14,512,906

	December 31, 2022
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	9,866,628	$	-	$	-	$	9,866,628
Held-to-maturity securities		4,028,565		-		-		4,028,565
	$	13,895,193	$	-	$	-	$	13,895,193

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of June 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.

Index

(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 June 30, 2023 is $3,283.

The following table summarizes the cost and fair value of marketable securities at June 30, 2023 is as follows:

	Amortized Cost		Gross Unrealized Gain (Loss)		Fair Value

Held-to-maturity securities
US Treasuries	$	4,062,946	$	67,054	$	4,130,000

Maturities of marketable securities were as follows at June 30, 2023:

Held-to-maturity securities
Due in one year or less		$	4,062,946

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 June 30, 2023.

(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.

	3 Months Ended June 30,						6 Months Ended June 30,
	2023			2022			2023			2022

Weighted average number of common shares outstanding – basic		10,722,401			10,722,401			10,722,401			10,722,401
Potential shares exercisable under stock option plans		335,137			277,300			305,236			276,391
LESS: Shares which could be repurchased under treasury stock method		(250,220	)		(224,328	)		(225,461	)		(236,941	)

Weighted average number of common shares outstanding – diluted		10,807,318			10,775,373			10,802,176			10,761,851

For the three and six months ended June 30, 2023, the computation of diluted net income per share excludes the effects of the assumed exercise of 392,600 and 423,900 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

Index

For the three and six months ended June 30, 2022, the computation of diluted net income per share excludes the effects of the assumed exercise of 351,600 and 354,200 options, respectively, since their inclusion would be anti-dilutive as their exercise prices were above market value.

(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.

(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.

(10) Supplemental Disclosures of Noncash Investing Activities

For the six months ended June 30, 2023, there was a noncash transfer of deposits from operating activities to property and equipment in the amount of $155,700.

Index

Item 2.

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 2023 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 of June 30, 2023 and December 31, 2022 (dollars in thousands):

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	10,450	$	9,867
Held-to-maturity securities	$	4,063	$	4,028
Accounts receivable, net	$	2,921	$	3,500
Working capital	$	6,208	$	5,416
Cash ratio		0.86		0.78
Quick ratio		1.43		1.38
Current ratio		1.51		1.43

Index

As of June 30, 2023, the Company had $10.45 million in cash and cash equivalents, an increase of approximately $583 thousand from December 31, 2022. This increase was primarily the result of cash provided by operating activities of approximately $661 thousand offset by the purchase of equipment and held-to-maturity securities totaling approximately $78 thousand.

The main component of current liabilities at June 30, 2023 was unexpired subscription revenue of approximately $10.2 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 income over the subscription term, which approximates 12 months.

The Company has no bank lines of credit or other currently available credit sources.

The Company believes that its existing balances of cash and cash equivalents and cash generated from operations will be sufficient to satisfy its anticipated cash requirements through at least the next 12 months and the foreseeable future. Moreover, the Company has no long-term debt. However, the Company’s liquidity could be negatively affected if it were to make an acquisition or license products or technologies, which may necessitate the need to raise additional capital through future debt or equity financing. Additional financing may not be available at all or on terms favorable to the Company.

Off-Balance Sheet Arrangements

The Company is not a party to any off-balance sheet arrangements.

Results of Operations

	3 Months Ended June 30,
	2023					2022
	Amount			% of Total Operating Revenues		Amount			% of Total Operating Revenues

Operating revenues	$	4,682,499		100	%	$	4,450,017		100	%

Operating expenses:
Data and product costs		1,934,425		41	%		1,715,574		39	%
Selling, general and administrative expenses		2,252,514		48	%		2,342,699		52	%
Depreciation and amortization		94,566		2	%		107,000		2	%
Total operating expenses		4,281,505		91	%		4,165,273		93	%

Income from operations		400,994		9	%		284,744		7	%
Other income, net		192,569		4	%		11,090		0	%

Income before income taxes		593,563		13	%		295,834		7	%
Provision for income taxes		(142,212	)	(3	%)		(83,166	)	(2	%)

Net income	$	451,351		10	%	$	212,668		5	%

Operating revenues increased approximately $232 thousand, or 5%, for the second quarter of fiscal 2023 compared to the same period of fiscal 2022. This overall revenue growth resulted from price increases, and an increase in subscription service revenue from sales to new and existing subscribers.

Data and product costs increased approximately $219 thousand, or 13%, for the second quarter of 2023 compared to the same period of fiscal 2022. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers, and additional or expanded data coverage costs.

Index

Selling, general and administrative expenses decreased approximately $90 thousand, or 4%, for the second quarter of fiscal 2023 compared to the same period of fiscal 2022. This decrease was primarily due to: higher salary and related employee benefits due to pay raises to staff, being offset by lower commission expense due to a shift in sales mix toward existing subscribers upgrading and adding new products.

Other income increased approximately $181 thousand for the second quarter of fiscal 2023 compared to the same period of fiscal 2022. This increase was primarily due to an increase in interest earned on our cash and marketable securities balance.

6 Months Ended June 30,

	2023						2022
	Amount			% of Total Operating Revenues			Amount			% of Total Operating Revenues

Operating revenues	$	9,273,243			100	%	$	8,788,220			100	%

Operating expenses:
Data and product costs		3,854,796			42	%		3,473,486			40	%
Selling, general and administrative expenses		4,611,555			50	%		4,633,801			53	%
Depreciation and amortization		192,087			2	%		201,209			2	%
Total operating expenses		8,658,438			94	%		8,308,496			95	%

Income from operations		614,805			6	%		479,724			5	%
Other income, net		333,547			4	%		11,787			0	%

Income before income taxes		948,352			10	%		491,511			5	%
Provision for income taxes		(221,721	)		(2	%)		(127,722	)		(1	%)

Net income	$	726,631			8	%	$	363,789			4	%

Operating revenues increased approximately $485 thousand, or 6%, for the first half of fiscal 2023 compared to the same period of fiscal 2022. This overall revenue growth resulted from price increases, and an increase in subscription service revenue from sales to new and existing subscribers.

Data and product costs increased approximately $381 thousand, or 11%, for the first half of 2023 compared to the same period of fiscal 2022. This increase was due primarily to: (1) higher salary and related employee benefits due to pay raises to staff, and (2) higher costs of third-party content, due to inflationary increases instituted by some of the Company’s suppliers, and additional or expanded data coverage costs.

Selling, general and administrative expenses decreased approximately $22 thousand, or 0.5%, for the first half of fiscal 2023 compared to the same period of fiscal 2022. This decrease was primarily due to: higher salary and related employee benefits due to pay raises to staff, being offset by lower commission expense due to a shift in sales mix toward existing subscribers upgrading and adding new products.

Other income increased approximately $322 thousand for the first half of fiscal 2023 compared to the same period of fiscal 2022. This increase was primarily due to an increase in interest earned on our cash and marketable security balance.

Index

Future Operations

The Company over time intends to expand its operations by expanding the breadth and depth of its product and service offerings and introducing new and complementary products. Gross margins attributable to new business areas may be lower than those associated with the Company’s existing business activities.

The Company’s current and future expense levels are based largely on its investment plans and estimates of future revenues. To a large extent these costs do not vary with revenue. Sales and operating results generally depend on the Company’s ability to attract and retain subscribers and the volume of and timing of the subscriptions for the Company’s products, which are difficult to forecast. The Company may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues in relation to the Company’s planned expenditures would have an immediate adverse effect on the Company’s business, prospects, financial condition and results of operations. Further, as a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service, marketing or acquisition decisions that could have a material adverse effect on its business, prospects, financial condition and results of operations.

Achieving greater profitability depends on the Company’s ability to generate and sustain increased revenue levels. The Company believes that its success will depend in large part on its ability to (i) increase its brand awareness, (ii) provide its subscribers with outstanding value, thus encouraging renewals, and (iii) achieve sufficient sales volume to realize economies of scale. Accordingly, the Company intends to continue to increase the size of its sales force and service staff, and to invest in product development, operating infrastructure, marketing and promotion. The Company believes that these expenditures will help it to sustain the revenue growth it has experienced over the last several years. We anticipate that sales and marketing expenses will continue to increase in dollar amount and as a percentage of revenues into 2024 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses will also continue to increase in dollar amount and may increase as a percentage of revenues into 2024 and future periods because it expects to employ more development personnel on average compared to prior periods and build the infrastructure required to support the development of new and improved products and services. However, as some of these expenditures are discretionary in nature, the Company expects that the actual amounts incurred will be in line with its projections of future cash flows in order not to negatively impact its future liquidity and capital needs. There can be no assurance that the Company will be able to achieve these objectives within a meaningful time frame.

The Company expects to experience fluctuations in its future quarterly operating results due to a variety of factors, some of which are outside the Company’s control. Factors that may adversely affect the Company’s quarterly operating results include, among others, (i) the Company’s ability to retain existing subscribers, attract new subscribers at a steady rate and maintain customer satisfaction, (ii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iii) the development of new services and products by the Company and its competitors, (iv) price competition, (v) the Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vi) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (vii) the Company’s ability to attract and retain personnel in a timely and effective manner, (viii) the Company’s ability to manage effectively its development of new business segments and markets, (ix) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (x) technical difficulties, system downtime, cybersecurity breaches, or Internet brownouts, (xi) the amount and timing of operating costs and capital expenditures relating the Company’s business, operations and infrastructure, (xii) governmental regulation and taxation policies, (xiii) disruptions in service by common carriers due to strikes or otherwise, (xiv) risks of fire or other casualty, (xv) litigation costs or other unanticipated expenses, (xvi) interest rate risks and inflationary pressures, and (xvii) general economic conditions and economic conditions specific to the Internet and online commerce.

Due to the foregoing factors, the Company believes that period-to-period comparisons of its revenues and operating results are not necessarily meaningful and should not be relied on as an indication of future performance.

Index

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements, including statements regarding future prospects, industry trends, competitive conditions and litigation issues. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “expects”, “anticipates”, “plans” or words of similar meaning are intended to identify forward-looking statements. This notice is intended to take advantage of the “safe harbor” provided by the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Among others, factors that could cause actual results to differ materially from the Company’s beliefs or expectations are those listed under “Business Environment” and “Results of Operations” and other factors referenced herein or from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission reports. The Company disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, a future event or otherwise.

Item 4.

Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective to ensure that all material information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to them as appropriate to allow timely decisions regarding required disclosure and that all such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations of the Effectiveness of Internal Control

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.

Index

PART II. OTHER INFORMATION

Item 6.

Exhibits

	31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1	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
	32.2	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

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CREDITRISKMONITOR.COM, INC.
			(REGISTRANT)

Date: August 10, 2023	By:	/s/ Steven Gargano
			Steven Gargano
			Senior Vice President & Chief Financial Officer
			(Principal Accounting Officer)

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Flum, certify that:

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;

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:

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;

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;

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

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):

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

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: August 10, 2023	By:	/s/ Michael Flum
			Michael Flum
			Chief Executive Officer

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven Gargano, certify that:

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;

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):

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: August 10, 2023	By:	/s/ Steven Gargano
			Steven Gargano
			Senior Vice President & Chief Financial Officer

EXHIBIT 32.1

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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Flum, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(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

August 10, 2023

This certification is being furnished to the SEC with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section.

EXHIBIT 32.2

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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven Gargano, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(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

August 10, 2023

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 10, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	1-8601
Entity Registrant Name	CreditRiskMonitor.com, Inc.
Entity Central Index Key	0000315958
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	36-2972588
Entity Address, Address Line One	704 Executive Boulevard
Entity Address, Address Line Two	Suite A
Entity Address, City or Town	Valley Cottage
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10989
City Area Code	845
Local Phone Number	230-3000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,722,401

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 10,449,960	$ 9,866,628
Held-to-maturity securities - treasury bills	4,062,946	4,028,565
Accounts receivable, net of allowance of $30,000	2,920,938	3,500,259
Other current assets	950,993	656,379
Total current assets	18,384,837	18,051,831
Property and equipment, net	561,235	481,804
Operating lease right-to-use asset	1,715,600	1,816,505
Goodwill	1,954,460	1,954,460
Other assets	18,110	163,470
Total assets	22,634,242	22,468,070
Current liabilities:
Unexpired subscription revenue	10,161,850	9,980,092
Accounts payable	91,639	245,854
Current portion of operating lease liability	202,570	193,953
Accrued expenses	1,720,633	2,216,376
Total current liabilities	12,176,692	12,636,275
Deferred taxes on income, net	332,566	332,566
Unexpired subscription revenue, less current portion	111,699	163,320
Operating lease liability, less current portion	1,663,395	1,766,174
Total liabilities	14,284,352	14,898,335
Stockholders' equity:
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued	0	0
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	29,958,199	29,904,675
Accumulated deficit	(21,715,533)	(22,442,164)
Total stockholders' equity	8,349,890	7,569,735
Total liabilities and stockholders' equity	$ 22,634,242	$ 22,468,070

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 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 ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED STATEMENTS OF OPERATIONS [Abstract]
Operating revenues	$ 4,682,499	$ 4,450,017	$ 9,273,243	$ 8,788,220
Operating expenses:
Data and product costs	1,934,425	1,715,574	3,854,796	3,473,486
Selling, general and administrative expenses	2,252,514	2,342,699	4,611,555	4,633,801
Depreciation and amortization	94,566	107,000	192,087	201,209
Total operating expenses	4,281,505	4,165,273	8,658,438	8,308,496
Income from operations	400,994	284,744	614,805	479,724
Other income	192,569	11,090	333,547	11,787
Income before income taxes	593,563	295,834	948,352	491,511
Provision for income taxes	(142,212)	(83,166)	(221,721)	(127,722)
Net income	$ 451,351	$ 212,668	$ 726,631	$ 363,789
Net income per share - Basic (in dollars per share)	$ 0.04	$ 0.02	$ 0.07	$ 0.03
Net income per share - Diluted (in dollars per share)	$ 0.04	$ 0.02	$ 0.07	$ 0.03
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)	10,807,318	10,775,373	10,802,176	10,761,851

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2021	$ 107,224	$ 29,824,242	$ (23,802,402)	$ 6,129,064
Balance (in shares) at Dec. 31, 2021	10,722,401
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	363,789	363,789
Stock-based compensation	0	34,991	0	34,991
Balance at Jun. 30, 2022	$ 107,224	29,859,233	(23,438,613)	6,527,844
Balance (in shares) at Jun. 30, 2022	10,722,401
Balance at Mar. 31, 2022	$ 107,224	29,843,574	(23,651,281)	6,299,517
Balance (in shares) at Mar. 31, 2022	10,722,401
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	212,668	212,668
Stock-based compensation	0	15,659	0	15,659
Balance at Jun. 30, 2022	$ 107,224	29,859,233	(23,438,613)	6,527,844
Balance (in shares) at Jun. 30, 2022	10,722,401
Balance at Dec. 31, 2022	$ 107,224	29,904,675	(22,442,164)	$ 7,569,735
Balance (in shares) at Dec. 31, 2022	10,722,401			10,722,401
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	726,631	$ 726,631
Stock-based compensation	0	53,524	0	53,524
Balance at Jun. 30, 2023	$ 107,224	29,958,199	(21,715,533)	$ 8,349,890
Balance (in shares) at Jun. 30, 2023	10,722,401			10,722,401
Balance at Mar. 31, 2023	$ 107,224	29,932,576	(22,166,884)	$ 7,872,916
Balance (in shares) at Mar. 31, 2023	10,722,401
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	451,351	451,351
Stock-based compensation	0	25,623	0	25,623
Balance at Jun. 30, 2023	$ 107,224	$ 29,958,199	$ (21,715,533)	$ 8,349,890
Balance (in shares) at Jun. 30, 2023	10,722,401			10,722,401

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 726,631	$ 363,789
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of bond discount	(77,349)	0
Deferred income taxes	0	76,491
Depreciation and amortization	192,087	201,209
Operating lease right-to-use asset, net	6,742	10,755
Stock-based compensation	53,524	34,991
Changes in operating assets and liabilities:
Accounts receivable	584,564	(643,913)
Other current assets	(304,955)	(229,139)
Other assets	0	37,576
Unexpired subscription revenue	130,136	979,101
Accounts payable	(154,216)	(132,860)
Accrued expenses	(495,743)	(284,127)
Net cash provided by operating activities	661,421	413,873
Cash flows from investing activities:
Proceeds from held-to-maturity securities - treasury bills	2,170,000	0
Purchase of held-to-maturity securities - treasury bills	(2,132,272)	0
Purchase of property and equipment	(115,817)	(167,631)
Net cash used in investing activities	(78,089)	(167,631)
Net increase in cash and cash equivalents	583,332	246,242
Cash and cash equivalents at beginning of period	9,866,628	12,381,521
Cash and cash equivalents at end of period	$ 10,449,960	$ 12,627,763

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 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 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 six months ended June 30, 2023 and 2022 are not necessarily indicative of the results for an entire fiscal year. The December 31, 2022 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	6 Months Ended
Recently Issued Accounting Standards	Jun. 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 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	6 Months Ended
Revenue Recognition	Jun. 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

6 Months Ended

Jun. 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.

	3 Months Ended June 30,				6 Months Ended June 30,
	2023		2022		2023		2022

Data and product costs	$	10,213	$	3,754	$	20,486	$	11,041
Selling, general and administrative expenses		15,410		11,905		33,038		23,950

	$	25,623	$	15,659	$	53,524	$	34,991

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Measurements [Abstract]

Fair Value Measurements

(5) Fair Value Measurements

The Company’s cash equivalents are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

	June 30, 2023
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	10,449,960	$	-	$	-	$	10,449,960
Held-to-maturity securities		4,062,946		-		-		4,062,946
	$	14,512,906	$	-	$	-	$	14,512,906

	December 31, 2022
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	9,866,628	$	-	$	-	$	9,866,628
Held-to-maturity securities		4,028,565		-		-		4,028,565
	$	13,895,193	$	-	$	-	$	13,895,193

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of June 30, 2023.

Marketable Securities

6 Months Ended

Jun. 30, 2023

Marketable Securities [Abstract]

Marketable Securities

(6) Marketable Securities

The following table summarizes the cost and fair value of marketable securities at June 30, 2023 is as follows:

	Amortized Cost		Gross Unrealized Gain (Loss)		Fair Value

Held-to-maturity securities
US Treasuries	$	4,062,946	$	67,054	$	4,130,000

Maturities of marketable securities were as follows at June 30, 2023:

Held-to-maturity securities
Due in one year or less		$	4,062,946

Net Income per Share

6 Months Ended

Jun. 30, 2023

Net Income per Share [Abstract]

Net Income per Share

(7) Net Income per Share

	3 Months Ended June 30,						6 Months Ended June 30,
	2023			2022			2023			2022

Weighted average number of common shares outstanding – basic		10,722,401			10,722,401			10,722,401			10,722,401
Potential shares exercisable under stock option plans		335,137			277,300			305,236			276,391
LESS: Shares which could be repurchased under treasury stock method		(250,220	)		(224,328	)		(225,461	)		(236,941	)

Weighted average number of common shares outstanding – diluted		10,807,318			10,775,373			10,802,176			10,761,851

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 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	6 Months Ended
Related Party Transactions	Jun. 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	6 Months Ended
	Jun. 30, 2023
Supplemental Disclosures of Noncash Investing Activities [Abstract]
Supplemental Disclosures of Noncash Investing Activities	(10) Supplemental Disclosures of Noncash Investing Activities For the six months ended June 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)

6 Months Ended

Jun. 30, 2023

Stock-Based Compensation [Abstract]

Stock-based Compensation Expense for Stock Options

	3 Months Ended June 30,				6 Months Ended June 30,
	2023		2022		2023		2022

Data and product costs	$	10,213	$	3,754	$	20,486	$	11,041
Selling, general and administrative expenses		15,410		11,905		33,038		23,950

	$	25,623	$	15,659	$	53,524	$	34,991

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Measurements [Abstract]

Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis

	June 30, 2023
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	10,449,960	$	-	$	-	$	10,449,960
Held-to-maturity securities		4,062,946		-		-		4,062,946
	$	14,512,906	$	-	$	-	$	14,512,906

	December 31, 2022
	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	9,866,628	$	-	$	-	$	9,866,628
Held-to-maturity securities		4,028,565		-		-		4,028,565
	$	13,895,193	$	-	$	-	$	13,895,193

Marketable Securities (Tables)

6 Months Ended

Jun. 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 June 30, 2023 is as follows:

	Amortized Cost		Gross Unrealized Gain (Loss)		Fair Value

Held-to-maturity securities
US Treasuries	$	4,062,946	$	67,054	$	4,130,000

Maturities of Marketable Securities

Maturities of marketable securities were as follows at June 30, 2023:

Held-to-maturity securities
Due in one year or less		$	4,062,946

Net Income per Share (Tables)

6 Months Ended

Jun. 30, 2023

Net Income per Share [Abstract]

Computation of Basic and Diluted Net Income per Share

	3 Months Ended June 30,						6 Months Ended June 30,
	2023			2022			2023			2022

Weighted average number of common shares outstanding – basic		10,722,401			10,722,401			10,722,401			10,722,401
Potential shares exercisable under stock option plans		335,137			277,300			305,236			276,391
LESS: Shares which could be repurchased under treasury stock method		(250,220	)		(224,328	)		(225,461	)		(236,941	)

Weighted average number of common shares outstanding – diluted		10,807,318			10,775,373			10,802,176			10,761,851

Stock-Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
Stock-Based Compensation (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-Based Compensation Expense for Stock Options [Abstract]
Stock-based compensation expense	$ 25,623	$ 15,659	$ 53,524	$ 34,991
Data and Product Costs [Member]
Stock-Based Compensation Expense for Stock Options [Abstract]
Stock-based compensation expense	10,213	3,754	20,486	11,041
Selling, General and Administrative Expenses [Member]
Stock-Based Compensation Expense for Stock Options [Abstract]
Stock-based compensation expense	$ 15,410	$ 11,905	$ 33,038	$ 23,950

Fair Value Measurements (Details) - Recurring [Member] - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis [Abstract]
Cash and cash equivalents	$ 10,449,960	$ 9,866,628
Held-to-maturity securities	4,062,946	4,028,565
Fair Value	14,512,906	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	10,449,960	9,866,628
Held-to-maturity securities	4,062,946	4,028,565
Fair Value	14,512,906	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 ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Held-to-Maturity, Fair Value [Abstract]
Amortized Cost	$ 4,062,946	$ 4,028,565
Accrued bond interest receivable	3,283
US Treasuries [Member]
Debt Securities, Held-to-Maturity, Fair Value [Abstract]
Amortized Cost	4,062,946
Gross Unrealized Gain (Loss)	67,054
Fair Value	$ 4,130,000

Marketable Securities, Maturities of Marketable Securities (Details)	6 Months Ended
	Jun. 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	$ 4,062,946
Other-than-temporary impairment loss	$ 0

Net Income per Share (Details) - shares	3 Months Ended		6 Months Ended
Net Income per Share (Details) - shares	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 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)	335,137	277,300	305,236	276,391
Less: Shares which could be repurchased under treasury stock method (in shares)	(250,220)	(224,328)	(225,461)	(236,941)
Weighted average number of common shares outstanding - diluted (in shares)	10,807,318	10,775,373	10,802,176	10,761,851
Stock Options [Member]
Antidilutive Securities Excluded from Computation [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	392,600	351,600	423,900	354,200