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Trusted by 40% of Fortune 1000
VALLEY COTTAGE, N.Y. – March 24, 2023 – CreditRiskMonitor (OTCQX: CRMZ) reported that operating revenues of $18 million, an increase of approximately $1 million or 5%, for the year ended December 31, 2022, as compared to 2021. The Company reported a pre-tax operating income of approximately $1.75 million in 2022 compared to a pre-tax operating income of approximately $3.9 million in 2021, which included approximately $1.6 million in non-taxable income recognized due to the forgiveness of the Company’s PPP loan by the Small Business Administration in December 2021. Net income for 2022 was approximately $1.4 million compared to a net income of approximately $3.4 million for 2021, which included that non-taxable income recognized from the loan forgiveness. The decrease in pre-tax operating income and net income in 2022 relative to 2021, excluding the income related to loan forgiveness was primarily driven by increased expenses related to employee salaries, employee benefits, commissions, and third-party content due to inflation.
Mike Flum, President & COO, said, “2022 was a transformative year for CreditRiskMonitor. We completed quite a few multi-year development initiatives including the launch of our new supply chain risk platform, SupplyChainMonitor™ in May, the updated PAYCE® score which improved accuracy and expanded coverage, and solidified our European Private Company Data Enhancement as a product add-on. These initiatives will support increased revenue and profitability for years to come and we are excited about our 2023 product roadmap. We have already launched our new marketing website and Credit Limit Ranges tool and will be working toward releasing an updated version of the FRISK® score, potentially a third-party ESG add-on, business certification data, and our new financial statement recognition engine, which will automatically standardize, spread, and score financial statement confidentially for our clients.
The economic environment in 2023 seems primed to provide a tailwind for our business. Concerns about bank solvency, inflation, rising interest rates, as well as hot and cold wars coupled with the reversal of long-term trends such as globalization, just-in-time inventory, and offshoring clearly present a need to monitor counterparty risk with an emphasis on financial stability. As in past recessionary environments, we expect our counter-cyclicality to shine given the mounting financial distress in corporations worldwide. As always, we remain committed to reinvestment in the business with new product development, data acquisition, and employee growth through retention and hiring in support of delivering subscription services whose value exceeds the cost to our clients.”
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
