CreditRiskMonitor Q1 2026 Restated: Net Income Swings to Loss on Tax Nexus Errors
CRMZ is trading near its 52-week low of $1.98 (3.5% above the low) on elevated volume (2.1× avg).
Summary
CreditRiskMonitor's amended Q1 2026 10-Q shows net income swung to a $52,323 loss from a previously reported $58,312 profit due to state tax nexus errors, and discloses a material weakness in tax controls.
Key Events · Earnings and Guidance · CRMZ
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Q1 2026 Net Income Swings to Loss
Restated Q1 2026 net loss was $52,323, versus a previously reported profit of $58,312 — a $110,635 swing driven by $121,757 higher SG&A and $29,129 lower other income.
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Q1 2025 Also Restated Lower
Q1 2025 net income swung from $159,062 to a $7,809 loss, a $166,871 reduction, reflecting the same tax nexus errors.
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Material Weakness in Tax Controls
Management disclosed a material weakness in internal control over financial reporting related to state and local tax nexus requirements, with remediation via VDAs and a third-party automated sales tax solution.
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Restatement Follows August 6 Disclosure
This filing quantifies the restatement first announced on August 6, 2026, providing specific Q1 2026 and Q1 2025 impacts.
Analysis · CRMZ · Trade & Services
The amended 10-Q quantifies the previously announced tax restatement for Q1 2026 and Q1 2025. Q1 2026 net income swung from a $58,312 profit to a $52,323 loss, driven by $121,757 in additional SG&A and $29,129 lower other income. The company also disclosed a material weakness in internal controls over state and local tax nexus, with remediation underway via VDAs and a third-party sales tax solution. This confirms the restatement's material impact on recent results and raises governance concerns.
At the time of this filing, CRMZ was trading at $2.05 on OTC in the Trade & Services sector, with a market capitalization of approximately $22.1M. The 52-week trading range was $1.98 to $2.99. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.