CreditRiskMonitor Restates 2024-2025 Financials, Discloses Material Weakness in Tax Controls
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 10-K restates 2024 and 2025 financials, cutting 2025 net income by $506,770 and disclosing a material weakness in tax controls.
Key Events · Legal and Risk Events · CRMZ
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Restated Financials Filed
The 10-K/A restates 2025 and 2024 financial statements. 2025 net income was reduced by $506,770 to $511,161; 2024 net income reduced by $368,309 to $1,306,593.
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Material Weakness Disclosed
Management identified a material weakness in internal control over financial reporting related to identification, monitoring, and evaluation of state and local tax nexus requirements.
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Tax Liability Quantified
Accrued expenses increased by $1.9 million for 2025 and $1.3 million for 2024 due to uncollected sales and income taxes in multiple states.
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Remediation Plan Underway
The company is pursuing Voluntary Disclosure Agreements with impacted states and has engaged an independent third-party provider of automated sales tax solutions.
Analysis · CRMZ · Trade & Services
The amended 10-K formalizes the previously announced restatement with full financial statement reconciliations. Net income for 2025 was reduced by $506,770 to $511,161, and 2024 net income fell by $368,309 to $1,306,593. The company also disclosed a material weakness in internal control over financial reporting related to state and local tax nexus, and outlined a remediation plan including engagement of an automated sales tax solution provider. While the restatement was already known, the quantified impact and control deficiency disclosure are material new information for investors.
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.