OTC: CRMZ

Company Description

The overall focus of the Company’s Software-as-a-Service (“SaaS”) subscription products is on facilitating the analysis of business-to-business (“B2B”) corporate financial risk in the context of (a) the extension of trade credit from a supplier to a buyer, (b) the management by buyers of important supplier relationships, and (c) the management of significant counterparty (i.e., buying and selling) relationships.

CreditRiskMonitor.com (see our website at www.creditriskmonitor.com; the contents of our website are not incorporated in, or otherwise to be regarded as part of this Annual Report on Form 10-K) 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, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the Company’s timely bankruptcy prediction scores, proactive email alerts, and business-level reports on public and private companies to make important financial risk decisions. The Company’s comprehensive commercial financial risk information is published through its web-based platforms and features detailed analyses of financial statements, including ratio analyses & trend reports, and peer analyses.

An example of a B2B trade credit transaction is the purchase and sale of $20,000 of merchandise. The seller will usually ship before the buyer pays, which is an extension of trade credit by the seller. The seller assumes a financial risk by extending this credit, commonly referred to as “trade credit risk.” There are a variety of negative outcomes that can occur when extending trade credit: the buyer may pay late causing the seller to incur increased borrowing costs, the seller may incur extra costs in attempting to collect the $20,000, or the buyer may never pay the full $20,000. Amounts unlikely to be repaid are referred to as “bad debts.” If buyers fail to pay, the seller can suffer substantial losses (e.g., assuming the seller averages a 10% pre-tax margin, it will require about $10 of sales to offset each $1 of bad debt).

Academic research has found that about a quarter of U.S. corporate debt is issued as trade credit and trade credit underwriting is roughly three times the size of bank loans. Trade credit financing is typically interest-free or even offered at a discount (negative interest) for expedited payments. Therefore, U.S. corporations tend to rely on trade credit to finance their working capital needs rather than alternative sources that normally carry interest. Typical alternative sources include public securities (commercial paper, notes, and bonds) and direct investments from third parties (hedge funds, private credit funds, banks, etc.). Additionally, many corporations find securing financing from such alternative sources difficult when showing signs of elevated risk including poor performance, high leverage ratios, or lack of sustainable cash flows. Consequently, a corporation’s need for trade credit financing is highest during financial distress, specifically when interest expenses are most burdensome and the availability of alternatives is most limited.

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The Company’s SaaS product platforms are CreditRiskMonitor® and SupplyChainMonitor™. To help subscribers prioritize and monitor counterparty financial risk, our SaaS product platforms offer the proprietary FRISK® and PAYCE® scores, 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. The sentiment of this expert-informed group is particularly important during financial distress situations when trade credit can become scarce and other interest-free financing options are limited. Trained on over 15 years of proprietary usage data, the Company believes the FRISK® score is the only analytic featuring such a deep sentiment input. The FRISK® score accurately identifies 96%1 of public companies that file for bankruptcy at least three months before filing. Given the importance of trade credit and supply relationships for corporations, CreditRiskMonitor.com’s SaaS subscription products, featuring its 96%-predictive FRISK® bankruptcy analytic for public companies and its 80%1-predictive PAYCE® bankruptcy analytic for private companies, are critical for subscribers to accurately identify, evaluate, monitor, and mitigate counterparty bankruptcy risk.

CreditRiskMonitor.com’s commercial credit reports, on either platform, include company background information, trade payment information, as well as public filings (i.e., suits, liens, judgments, and bankruptcy information) on millions of companies around the world. To alert subscribers of changing risk conditions, the Company uses email to “push” selected information to subscribers on businesses of their choosing. These emails include continuously filtered news monitoring that keeps subscribers current on events affecting the financial stability of these subscriber-selected businesses. Subscribers also receive alerts covering such topics as FRISK® score changes, changes to a credit limit, financial statement updates, U.S. Securities and Exchange Commission (“SEC”) filings, and changes in agency ratings. All news items are filtered to ensure the stories have financial relevance and materiality. On U.S. banks, reports include financial data from the Federal Financial Institutions Examination Council (“FFIEC”) call reports.

The Company’s namesake SaaS product, CreditRiskMonitor®, is most often purchased to review the risks of extending trade credit by a company to its corporate customers. The platform features business reports and group dashboard views of counterparty risk, trade credit and financial information, as well as news notifications. Within a midsized or large corporation, there is often a professional whose responsibility is managing this credit (often together with managing collections of the accounts receivable). CreditRiskMonitor.com believes that corporate credit professionals have been tasked with doing more with less, under reduced departmental budgets and personnel, while still making trade credit decisions under intense time pressure. Simultaneously, the Company believes that credit professionals are often faced with an overwhelming amount of available data concerning their most important customers, which makes decision-making based on deep research extremely time-consuming. CreditRiskMonitor.com’s products are designed to save subscribers time, money, and effort by prioritizing their attention and actions toward risky counterparties through its bankruptcy analytic scores, standardized financial reporting, and material alerts.

The Company’s SaaS product, SupplyChainMonitor™, leverages its expertise in financial risk analytics to create a risk management solution specifically built for procurement, sourcing, supply chain, and finance personnel to support supplier lifecycle decisions, risk assessment, and ongoing risk monitoring. Subscribers can assess counterparty risks at aggregate and granular levels under a variety of lenses including geography, industry, and other customer-specified categories. The platform features supplier location mapping capabilities with real-time weather, natural disasters, and power outage event overlays. SupplyChainMonitor™ offers customizable news notifications, business risk reports, interactive charts, and more. The Company believes the driving forces for the adoption of SupplyChainMonitor™ are material shifts away from globalization, offshoring, and logistical complexity mandated to support “just-in-time” inventory models arising from geopolitical and macroeconomic pressures. As businesses look to “nearshore,” “friendshore,” and relocate supply hubs away from regions with national security or concentration concerns, supply chain decision-makers will need extensive data on alternative suppliers and their financial stability. The financial distress of a key supplier can shut down a factory and jeopardize a corporation’s entire revenue stream. To assist in strategic planning and save procurement resources, subscribers can limit bids and site inspections to financially durable suppliers by applying the intelligence of SupplyChainMonitor™. Financially durable suppliers ensure a more robust supply chain overall, as they have the necessary resources to invest in key initiatives that support supply continuity and excellence, such as Research & Development (“R&D”); Quality Assurance/Quality Control (“QA/QC”); Capital Expenditure (maintenance and capacity expansion); Cybersecurity; and Environmental, Social, & Governance (“ESG”).

Dun & Bradstreet Holdings, Inc. (“Dun & Bradstreet”), our major competitor, had segmented its revenue between the Finance & Risk and Sales & Marketing verticals prior to acquisition by Clearlake Capital Group, L.P. We believe the Finance & Risk vertical, covering the credit, supply chain, and legal/regulatory information services, can be used for market comparisons to CreditRiskMonitor.com. Dun & Bradstreet’s Finance & Risk vertical generated approximately $891.0 million in North America (i.e., U.S. and Canada) and $484.5 million in the rest of the world for a total of approximately $1,375.5 million for 20242. The remainder of the market is extremely fragmented with numerous other vendors, notably the commercial credit offerings of Experian plc and Equifax Inc. On that basis, we estimate that our operating revenues represent a little more than 1% of the Total Addressable Market (“TAM”), a market that management believes will grow based on trends in corporate bankruptcy rates.

1 Claim based on back testing of the model on U.S. companies and continued performance checks to validate if the score indicated “high risk” (a score of 5 or less indicated a probability of bankruptcy above the long-term average rate) at least three months prior to a subject company bankruptcy filing.

2 Source: Dun & Bradstreet Holdings, Inc. Form 10-K for the fiscal year ended December 31, 2024.

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Because of increased interventions and artificially zero-to-low interest rates in markets since the Great Recession, corporate bankruptcies have been lower on average in this period relative to long-term historical norms. The Company has long expected a reversion-to-mean in corporate bankruptcies. The current rising trend in U.S. corporate bankruptcies supports this “normalization” expectation. Based on U.S. Courts data published on Chapter 11 and Chapter 7 business bankruptcies, CreditRiskMonitor.com observed an increase of 32% in total bankruptcy filings, over the past two years, in 2025 relative to 20233. These market conditions support demand for CreditRiskMonitor.com products.

The Company’s SaaS subscription products represented over 99% of its fiscal 2025 and 2024 operating revenues and the vast majority are paid upfront annually. These products are sold to a diverse subscriber base with no single subscriber representing more than 1% of fiscal 2025 and 2024 operating revenues. Accordingly, the Company is not dependent on a single subscriber nor a few large subscribers, such that the loss of any individual subscriber would not have a material adverse effect on its financial condition or results of operations.

The Company has contractual agreements with its data suppliers, including leading NRSROs to redistribute their information as part of our services. The Company also obtains financial statements and other data from the London Stock Exchange Group plc. Although some of this “raw” data is reported directly on our web-based platforms, the critical elements of our SaaS subscription products – FRISK® score, PAYCE® score, FAST Rating, ratio analyses, trend reports, peer analyses, Altman Z”-scores, and monitoring alerts – are computed by the Company using its algorithms and weighting techniques, and delivered in formats carefully designed to support “ease of use” by subscribers.

Further, hundreds of subscribers and non-subscribers provide CreditRiskMonitor.com with confidential data from their accounts receivable systems that we parse, process, aggregate, and report to provide subscribers a view on how their counterparties are paying the invoices of other suppliers without disclosing the specific contributors of this information (the “Trade Contributor Program”). The size of the Trade Contributor Program’s current annualized trade credit transaction data is approximately $3 trillion.

CreditRiskMonitor.com’s products are the result of management’s experience in the commercial credit industry, third-party financial risk assessment, and ongoing research concerning the information needs of corporate credit and purchasing/procurement departments. These factors have enabled the Company to satisfy its subscribers’ needs for timely, efficient, and low-cost financial risk information services. CreditRiskMonitor.com sells the following SaaS subscription products for analyzing commercial financial risk: CreditRiskMonitor® and SupplyChainMonitor™. Additional products, summarized below, are add-ons or enhancements to these base subscription products, meaning that subscribers must have an active base subscription to access them.

(1)

CreditRiskMonitor®. The CreditRiskMonitor® product platform provides subscribers with unlimited usage and coverage of public and private business information featuring multi-period financial statements with ratio analyses and spreads, credit risk scores, historical payment behavior, trend and peer analyses, credit limit recommendations, as well as up-to-date material news screened specifically for credit evaluation. Another product feature is the user-customizable monitoring of subscriber-selected businesses for material changes and news, delivered automatically via email, so subscribers are always current on their counterparties. This feature is supplemented with U.S. public-record filing information (i.e., suits, liens, judgments, and bankruptcy information) covering millions of public and private U.S. companies. The payment behavior scores are generated from trade receivable data contributed through the Company’s Trade Contributor Program. The CreditRiskMonitor® product is delivered via a web platform in a highly structured way, enabling the tracking of subscribers’ usage information for over 15 years, covering many financial shifts. The CreditRiskMonitor® product is sold to subscribers through an upfront annual payment.

The flagship version of the product (the “Worldwide Service”) covers all public and millions of private non-financial companies internationally. Subscribers can purchase a more limited version of the CreditRiskMonitor® product with coverage of just U.S., Canadian, Mexican, and Caribbean companies (the “North American Service”) for a lower annual fee.

Subscribers can purchase expanded U.S. private company coverage (the “U.S. Private Company Data Enhancement”) for an additional annual fee. The U.S. Private Company Data Enhancement provides access to third-party financial distress scores on 3 million private U.S. companies.

Subscribers to the Worldwide Service can purchase expanded international private company coverage (the “International Private Company Data Enhancement”) for an additional annual fee. The International Private Company Data Enhancement provides access to data covering over 9 million private businesses with financial statements based in Europe and Japan, including over 325,000 private company FRISK® scores and over 1.2 million Altman Z”-scores.

3 Source: U.S. Courts business bankruptcy filing data on Chapter 11 and Chapter 7 for 2023, 2024 and 2025. Chapter 11 and Chapter 7 filings totaled 22,918 for the year ended December 31, 2025, as compared with 17,299 for the year ended December 31, 2023.

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(2)

SupplyChainMonitor™. The SupplyChainMonitor™ product platform provides subscribers with interactive tools to monitor and manage their company’s supply chain risks at the aggregate and granular levels. With easy-to-use filtering and built-in views, the product offers concise dashboards with drill-down capabilities to examine counterparty risk across categories including geography, industry, and financial risk level, plus subscriber-provided metadata classes such as criticality and direct/indirect. The product provides functions to easily view supplier locations on a world map that supports real-time event overlays including weather, natural disasters, and power outages. Material news, events, and other risk alerts can be configured as immediate or daily digest “push” notifications providing automatic monitoring. Fully customizable company reports offer rich financial insights and charts including the industry-leading 96%-accurate FRISK® score, analyst-informed financial questions for counterparties, NRSROs ratings, over 40 unique financial ratios, and more. With records on more than 30 million businesses worldwide, predictive risk scores on approximately 5 million, and payment data on about 4 million, the SupplyChainMonitor™ product provides actionable insights for procurement risk management. Enhanced peer analysis tools allow comparisons of up to 5 businesses over time across financial ratios and risk scores, simplifying bid reviews and alternative source investigations. Macro-level risk information on 180 countries across 10 risk categories, powered by the Economist Intelligence Unit (“EIU”), is included to assist in sourcing strategy when examining geopolitical, legal, labor, tax, and security risks. The SupplyChainMonitor™ product is sold to subscribers through an upfront annual payment.

This platform is only offered with worldwide coverage and includes the U.S. Private Company Data Enhancement with third-party financial distress scores on 3 million private U.S. businesses. Subscribers can purchase the International Private Company Data Enhancement for an additional annual fee, which provides the same enhanced coverage available in the CreditRiskMonitor® product.

(3)

Credit Limit Service. The Credit Limit Service product, an add-on subscription service available on the CreditRiskMonitor® product, helps subscribers establish, update, and manage credit limits for their customers based on the changing state of those customers’ financial strength. Available since 2007, this interactive product monitors daily changes in a customized and recommended credit limit for each customer, and generates alerts to subscribers so they can take immediate action when a customer’s circumstances change. The Credit Limit Service is fully integrated with the CreditRiskMonitor® product, allowing subscribers to quickly engage in deep analysis when reviewing any specific credit line limit. The additional fee is based, in part, on the number of companies evaluated during the annual subscription period.

(4)

Confidential Financial Statements Solution. The Confidential Financial Statements Solution (“CFSS”) product is an available addition to the CreditRiskMonitor® and SupplyChainMonitor™ products to help subscribers streamline the financial risk assessments of their private company counterparties. Subscribers, or their designated counterparty(ies), upload confidential financial statements to the Company’s secure web portal to leverage Optical Character Recognition (“OCR”) and Artificial Intelligence (“AI”) technology that automates the extraction, standardization, analyses, and bankruptcy scoring of that financial statement data. As a result, the CFSS product eliminates the need for manual data entry and improves the consistency of financial risk assessments while supporting the quick turnarounds required for timely business decisions. CFSS product reports include standardized financial statements, comprehensive peer benchmarking against public and private company comparables, CFS FRISK® score that leverages PAYCE® score insights (where available), and the Altman Z”-score. The CFSS product is sold in an initial block of 10 credits and subsequent credits in any quantity. Credits are only consumed when bankruptcy scores are produced, and expire at the end of each annual subscription period.

Both product platforms feature the Company’s proprietary bankruptcy risk scores: the FRISK® score and the PAYCE® score. These proprietary scores indicate a business’s level of financial distress, by predicting its probability of bankruptcy within the next 12 months. The scores provide subscribers with a fast, consistent method for identifying those companies at the greatest risk, serving as an exceptional workflow optimization tool.

(a)

FRISK®. The FRISK® score is a daily updating, structural statistical model that is backtested using Company data and bankruptcies for public companies. The model includes inputs from the stock market, financial statement ratios, agency ratings, and subscriber sentiment. Its calculation involves the preparation of data from multiple sources, the use of executable software created expressly by and owned by the Company, as well as sophisticated algorithms and weighting techniques that are proprietary Company trade secrets. Many experienced and knowledgeable credit and risk professionals have incorporated the FRISK® score into their fundamental analysis of companies with whom they do business. In 2025, the FRISK® score covered over 350,000 public and private companies worldwide representing over $100 trillion in corporate revenue.

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Sentiment of Trade Credit Experts. Since 2003, the Company has collected usage information from its subscriber base, which represents financial risk management professionals from nearly 40% of the Fortune 1000 plus over a thousand other companies worldwide. Using an aggregated and anonymized version of this usage data, CreditRiskMonitor.com developed an independently predictive, corporate bankruptcy risk model. The hypothesis behind this approach is that when a subscriber investigates a business more thoroughly, as reflected in distinct behavioral/usage patterns, the subscriber tends to be more concerned with that business and may reduce or eliminate trade credit as a result of those concerns. This situation tends to occur when other sources of working capital financing are scarce. When such patterns occur in aggregate, it is independently predictive of increased bankruptcy risk. This signal was incorporated into the FRISK® score in 2016, resulting in an accuracy lift and improved precision in classifying the riskiest businesses in the highest risk classes. At least three months prior to filing for bankruptcy, the FRISK® score now classifies 50% of these soon-to-file businesses in its highest risk “FRISK® 1” category and 67% of these soon-to-file businesses in its combined “FRISK® 1” and “FRISK® 2” categories. This improved precision solidifies the FRISK® score as the first line of defense for subscribers in workflow optimization by focusing review time on those counterparties with the greatest probability of going bankrupt within the next 12 months. Since 2016, the FRISK® score has maintained or surpassed its benchmark 96% accuracy and it appears to be the only bankruptcy analytic in the industry leveraging the sentiment of trade credit experts in the generation of financial risk scores.

(b)

PAYCE®. The PAYCE® score provides a highly accurate measure of financial stress when no financial statements are available for private companies. It utilizes payment data collected and processed through the Company’s Trade Contributor Program, U.S. federal tax lien data, and more to deliver an approximately 80% accurate score on over 330,000 private companies in the U.S. and Canada. The PAYCE® score is unlike other payment-based models that infer bankruptcy risk from summarized past dollar-weighted payment performance. A PAYCE® score is only calculated for a business when there are sufficient quantities of trade reporting suppliers and specific trade experiences. The Company believes that the model covers most U.S. private companies with $5 million or more in annual revenue4. Among all reported bankruptcies, about half are classified in the two highest risk categories at least three months before they file. This group represents only 2.5% of the PAYCE® score’s coverage population, reinforcing its use as a workflow optimization tool to focus subscriber attention on those businesses with the greatest chance of experiencing bankruptcy within the next 12 months.

In 2025, the Company released two new product features: Financial Analyst Strength Test (“FAST”) Rating and Risk Level.

FAST Rating. The FAST Rating is a financial health assessment that extends our scored coverage by 3.5 million businesses, specifically smaller international private companies with limited financial data. This product feature is included with the International Private Company Data Enhancement add-on product, within the CreditRiskMonitor® Worldwide Service and SupplyChainMonitor™ platforms.

Risk Level. The Risk Level framework consolidates all of our financial risk analytics into a simple Low, Medium, or High Risk classification, providing subscribers with an intuitive way to assess and compare over 10 million public and private companies worldwide using the most accurate financial risk analytic available. This product feature is available with both CreditRiskMonitor® and SupplyChainMonitor™.

The viability and potential of CreditRiskMonitor.com’s business are made possible by the following characteristics:

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Low price. The prices of the Company’s SaaS subscription products are low as compared to a subscriber’s possible losses from not being paid by a customer or being unable to secure critical inventory/services from a supplier. Additionally, the prices are low relative to the cost of most competitive third-party financial risk analysis products.

•

Non-cyclical. The Company’s business and recurring revenues have continued to grow year-over-year despite bullish macroeconomic performance. However, when economic growth slows, general corporate credit risk usually increases, and the risk manager’s function rises in importance and complexity. Products that allow risk managers to perform their jobs more efficiently and cost-effectively should gain market share in most business environments, but especially during economic downturns. In a contracting business environment, many companies typically accelerate their shift to lower-cost technologies and providers, such as CreditRiskMonitor.com. The Company has demonstrated accelerated growth during such periods including the Great Recession and the COVID-19 pandemic. In addition, because of the increase in corporate debt issuance and use of credit derivatives, the Company believes public and private businesses are even more vulnerable to a business cycle contraction. Large over-the-counter debt and general market uncertainty imply continued high risk and complexity in extending commercial trade credit to many businesses, putting a premium on the speed and analytical strength of CreditRiskMonitor.com’s products.

4 Based on data published by the North American Industry Classification System (“NAICS”) Association on the number of U.S. businesses with annual sales ranges greater than or equal to $5 million and the number of U.S. public companies it follows.

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Recurring revenue stream. The recurring annual revenue stream of its SaaS subscription fee model gives CreditRiskMonitor.com stability not found in a traditional, non-subscription company.

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Profit multiplier. The Company has automated a significant number of the processes used to create and deliver its SaaS subscription products. Therefore, its production costs, apart from development costs (enhancing and upgrading the Company’s web platforms as well as new product generation), are relatively stable over a wide range of increasing revenue. Offsetting these cost reductions is the cost of increasing the data content within our SaaS subscription products, should the Company choose to increase its data content and not raise its prices to cover these additional costs.

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Self-financing. CreditRiskMonitor.com has no inventory, manufacturing, or warehouse facilities. Payments for its products are received early in the subscription period with nearly all subscribers paying upfront annual fees without termination for convenience rights as opposed to monthly or quarterly contracts. Thus, the Company has a low capital intensity and can generate high margins, providing sufficient positive cash flow to grow the business organically with little need for external capital.

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Experienced management. CreditRiskMonitor.com has an experienced management team with proven talent in business credit evaluation systems and SaaS web development. The Company’s senior management team has an average tenure of approximately 14 years.

Company Goals

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Growth in U.S. market share. Faced with a dominant U.S. competitor, Dun & Bradstreet, as well as several other larger competitors, the Company’s primary goal is to gain market share. The Company believes that many potential subscribers are still unaware of its SaaS subscription products. Additionally, many other potential subscribers, who are aware of its SaaS subscription products, have not evaluated our full suite of products or recent enhancements/improvements.

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International penetration. Foreign businesses transacting within the U.S. or other international markets may have the same need as domestic businesses for our financial risk analyses. Worldwide, the Internet provides a mechanism for rapid and inexpensive marketing and distribution of the Company’s SaaS subscription products. With the global reach of the Internet, CreditRiskMonitor.com is well positioned to expand in international markets.

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Broaden the services supplied. Revenue per subscriber may increase over time as the Company adds functionality, content, and new products. Also, revenue per subscriber should increase over time as the Company sells additional seat licenses and add-on products (upsell) as well as other products into different departments of existing subscribers (cross-sell). The Company’s SupplyChainMonitor™ product is a clear example of this goal as it is offered to a different department than CreditRiskMonitor® and at a higher price point due to its additional functionality and content.

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Lowest cost provider. CreditRiskMonitor.com’s sourcing, analysis, and preparation of data into a usable form are highly automated. The Company delivers all its information to subscribers via the Internet and there is automation between the sourcing of data and delivery of a business credit report to a subscriber. Because of this automation, CreditRiskMonitor.com’s production costs are relatively stable over a wide range of increasing revenue. Management believes the Company’s cost structure is one of the lowest in its industry while maintaining a higher customer service level for subscribers.

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High margins and return on investment. The Company foresees declining costs per subscriber based on a continued interest in renewing products at the end of their subscription term. The Company has lower sales expenses for customer renewals than for new customer sales. CreditRiskMonitor.com expects that its renewal revenue will continue to represent a larger share of total revenue each year and, by carrying a lower cost basis, will contribute to higher overall margins over time. The Company’s preferred calculation for return on investment is Return on Tangible Net Worth as it focuses on hard assets. Given its lack of debt and limited intangible assets, the Company’s Tangible Net Worth normally represents most of its Total Stockholders’ Equity and generates a fair rate of return based on pre-tax income.

Marketing and Sales

To gain market share for the Company’s products, it will continue to use the Internet (at our website www.creditriskmonitor.com) as the primary mechanism for demonstrating and distributing its suite of products. To inform potential subscribers about its products, CreditRiskMonitor.com uses a combination of telephone sales, Internet demonstration, and inbound and outbound marketing, including but not limited to digital strategies, social media, media/PR outreach, trade show representation, and speaking engagements before credit and supply chain groups and associations.

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Value Proposition

The Company’s fundamental value proposition is to create and sell high-quality, industry-leading commercial financial risk information featuring bankruptcy analytics with the highest accuracy levels in the market to help busy risk professionals stay ahead of financial risk quickly, easily, and cost-effectively as compared to other leading providers. The Company’s research shows that its subscribers overwhelmingly agree that CreditRiskMonitor.com products save them time, help them to make better financial risk decisions, and represent a significant value-to-cost ratio as compared to its competitors.

CreditRiskMonitor.com’s operational strategy is to deliver on its value proposition by continuing to be one of the industry’s lowest-cost producers of high-quality, accurate commercial financial risk information by continuously collecting data from a wide variety of sources and employing sophisticated, proprietary algorithms to process that data into an extensive database of valuable business records. Highly automated operations add to the reliability and consistency of these records while limiting costs. The Company employs a small number of analysts who selectively review data at critical points in its processes to further enhance product quality and relevance to financial risk professionals.

Risks Related to Information Systems Security

The Company’s information systems, and those of its third-party service providers and vendors, are vulnerable to an increasing threat of continually evolving cybersecurity risks. These risks may take the form of malware, computer viruses, cyber threats, extortion, employee error, malfeasance, system errors, or other types of risks, and may occur from inside or outside of our organization. Cybersecurity risk is increasingly difficult to identify and quantify and cannot be fully mitigated because of the rapidly evolving nature of the threats, targets, and consequences. Additionally, unauthorized parties may attempt to gain access to these systems or our information through fraud or other means of deceiving our third-party service providers, employees, or vendors. The Company’s operations depend, in part, on how well it and its suppliers protect networks, equipment, information technology (“IT”) systems, and software against damage from several threats. The Company has entered into agreements with third parties for hardware, software, telecommunications, and other services in connection with its operations. The Company’s operations depend on the timely maintenance, upgrade, and replacement of networks, equipment, IT systems, and software. However, if the Company is unable or delayed in maintaining, upgrading, or replacing its IT systems and software, the risk of a cybersecurity incident could materially increase. Any of these and other events could result in information system failures, delays, and/or increases in capital expenses. The failure of information systems or a component of information systems may, depending on the nature of any such failure, adversely impact the Company’s reputation and results of operations.

In addition, targeted attacks on the Company’s systems (or on systems of third parties that it relies on), failure or non-availability of a key IT system, or a breach of security measures designed to protect its IT systems could result in disruptions to its operations through delays or the corruption and destruction of its data, property damage, loss of confidential information or financial or reputational risks. As the threat landscape is ever-changing, the Company must make continuous mitigation efforts, including risk-prioritized controls to protect against known and emerging threats; tools to provide automated monitoring and alerting; frequent employee training; and backup and recovery systems to restore systems and return to normal operations. However, there can be no assurance that the Company’s ability to monitor or mitigate cybersecurity risks will be fully effective, and the Company may fail to identify cybersecurity breaches or discover them in a timely way.

Any significant compromise or breach of the Company’s data security, whether external or internal, or misuse of its data, could result in significant costs, lost sales, fines, and lawsuits, as well as damage to its reputation. In addition, as the regulatory environment related to information security, data collection, data use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue modifying or enhancing protective measures or to investigate and remediate any security vulnerabilities.

Employees

As of January 27, 2026, the Company had 94 employees. None of the Company’s employees are covered by a collective bargaining agreement. The Company believes its relations with its employees to be satisfactory and has suffered no interruption in operations.

The Company established a 401(k) Plan covering all employees effective January 1, 2000, that provides for discretionary Company contributions. Employees are eligible to participate in the 401(k) Plan if they are over the age of 21 and after completing one month of service with the Company after their hire date. The Company has no other retirement, pension, profit sharing, or similar program in effect for its employees. The Company adopted a long-term incentive plan in 2020 that covers its employees, replacing its former plan established in 2009.

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Available Information

Copies of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available free of charge on its website (www.creditriskmonitor.com) as soon as reasonably practicable after the Company electronically files the material with or furnishes it to the SEC. Additionally, the SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Information on the Company’s website or linked to its website is not incorporated by reference into this Annual Report.