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Trusted by 40% of Fortune 1000
VALLEY COTTAGE, N.Y. – August 10, 2023 – CreditRiskMonitor® (OTCQX: CRMZ) reported operating revenues of $4.7 million, an increase of approximately $232 thousand or 5%, for the second quarter of fiscal 2023 compared to the same period of fiscal 2022. The Company reported pre-tax income of approximately $594 thousand, an increase of approximately $298 thousand, for the second quarter of fiscal 2023 compared to the same period of fiscal 2022.
Mike Flum, CEO, said, “Corporate bankruptcy filings within our coverage universe of FRISK® and PAYCE® scored businesses have almost doubled year-to-date in 2023 relative to 2022. The seven-month figure for 2023 is also 8% higher relative to the 2020 comparable, without pandemic-induced shutdowns or a bear market to blame. This trend reversal is a harbinger of tumultuous times ahead, especially considering the persistent strength in labor markets and the subsequent need for sustained higher interest rates to contain inflation. Without quick and significant reductions in interest rates, there is potential for a major wave of bankruptcies in the next two years with highly leveraged businesses leveled by their refinancing costs.
We have also accelerated our work on generative AI applications, specifically Large Language Models, with assistance from Hugging Face. There are already some specific use cases in production with more in various stages of ideation, development, and testing. Our investment in such new technologies will reinforce and support our commitment to deliver subscription services whose value exceeds their cost.”
A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com.
Overview
CreditRiskMonitor.com, Inc. (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. Our primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor® and SupplyChainMonitor™. These products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively. Our subscribers include nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide.
To help subscribers prioritize and monitor counterparty financial risk, our SaaS platforms offer the proprietary FRISK® and PAYCE® Scores as well as the FAST Rating, the well-known Altman Z”-Score, agency ratings from key Nationally Recognized Statistical Rating Organizations (“NRSROs”), curated news, and detailed financial spreads & ratios. Our FRISK® and PAYCE® Scores are financial distress classification models that measure a business’s probability of bankruptcy within a year. The FRISK® score also includes a risk signal based on the aggregate research behaviors of our subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations.
Through its Trade Contributor Program, the Company receives monthly confidential accounts receivables data from hundreds of subscribers and non-subscribers, which it parses, processes, aggregates, and reports to summarize the invoice payment behavior of B2B counterparties without disclosing the specific contributors of this information. The size of the Trade Contributor Program’s current annualized trade credit transaction data is approximately $3 trillion.
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. Forward-looking statements include details of the accounting restatement, the expected impact of the accounting restatement and the remediation of the related material weakness in internal control over financial reporting. 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, 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. There can be no assurance that (i) the consequences of the Company’s restated results will be as anticipated above and (ii) the Company will be able to promptly and efficiently implement the appropriate remediation steps into its financial reporting. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
Contact
CreditRiskMonitor.com, Inc.
Mike Flum, Chief Executive Officer
(845) 230-3037
ir@creditriskmonitor.com
