CreditRiskMonitor Restates Q3 2025 Financials, Discloses Material Weakness
CRMZ is trading near its 52-week low of $1.98 (3.5% above the low).
Summary
CreditRiskMonitor's amended 10-Q reveals the full impact of its tax restatement: Q3 2025 net income fell 49% from prior reports, and a material weakness in tax controls was disclosed.
Key Events · Legal and Risk Events · CRMZ
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Restatement Quantified
Q3 2025 net income reduced by $119,599 to $125,269; Q3 2024 reduced by $164,433 to $387,149 due to uncollected state sales and income taxes.
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Accrued Liabilities Surge
Accrued expenses increased by $1,640,794 as of September 30, 2025, reflecting estimated tax liabilities and interest.
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Material Weakness Disclosed
Internal controls over state and local tax nexus identification and monitoring were ineffective, a material weakness in ICFR.
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Remediation Underway
Company pursuing Voluntary Disclosure Agreements with impacted states and engaged an automated sales tax solution provider.
Analysis · CRMZ · Trade & Services
The 10-Q/A quantifies the restatement first announced on August 6, 2026. Net income for Q3 2025 was cut by $119,599 to $125,269, and Q3 2024 by $164,433 to $387,149, due to uncollected state sales and income taxes. Accrued expenses jumped by $1.64 million as of September 30, 2025. Management also disclosed a material weakness in internal controls over tax nexus monitoring, a serious governance red flag. The company is pursuing Voluntary Disclosure Agreements and has hired an automated sales tax provider, but the liability and remediation costs remain uncertain.
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.