CreditRiskMonitor Announces 2022 Results

VALLEY COTTAGE, NY / ACCESSWIRE / 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 mulit-year development initiatives include the launch 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 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."