The restatement confirms a material accounting failure with quantifiable earnings impact. Monitor for potential securities class action litigation, which frequently follows restatements. Watch for updates on VDA negotiations with states and any further tax liability adjustments. The material weakness in internal controls over tax nexus suggests ongoing compliance risk.
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Executive Summary
CreditRiskMonitor.com filed an amended 10-K (10-K/A) to restate its 2024 and 2025 financial statements, following the August 6, 2026 8-K disclosure. The restatement adds ~$1.98M in combined state sales/use tax and income tax liabilities for prior periods, reducing previously reported net income by ~$507K for 2025 and ~$368K for 2024. A material weakness in internal controls over tax nexus monitoring was identified, and the auditor's report now references the restatement. This filing confirms and quantifies the financial impact of the previously disclosed accounting error, undermining the reliability of prior financials and raising litigation risk.
Key Facts
- Restatement adds ~$1.977M in total tax liabilities (sales/use and income) for prior periods across 2024 and 2025.
- 2025 net income reduced by ~$507K from $1.018M to $511K; 2024 net income reduced by ~$368K from $1.675M to $1.307M.
- Material weakness identified in internal controls over state/local tax nexus monitoring.
- Auditor CohnReznick LLP issued an updated report referencing the restatement; no change in auditor or going concern opinion.
- Company pursuing Voluntary Disclosure Agreements (VDAs) with impacted states and engaged a third-party automated sales tax solution provider.
Financial Impact
Combined ~$1.977M in additional state sales/use and income tax liabilities recorded, reducing 2025 net income by ~$507K and 2024 net income by ~$368K.
Risk Factors
- Securities fraud class action litigation risk following restatement.
- Additional state tax liabilities or penalties from VDA negotiations.
- Reputational damage and potential subscriber churn due to internal control weakness.
- Further restatements or adjustments if additional tax nexus issues are identified.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-K/A Filing (Primary) | 0001140361-26-033719 |
| Document: ef20080310_ex19.htm | 0001140361-26-033719 |
| Document: ef20080310_ex31-1.htm | 0001140361-26-033719 |
| Document: ef20080310_ex31-2.htm | 0001140361-26-033719 |
| Document: ef20080310_ex32-2.htm | 0001140361-26-033719 |
| Document: ef20080310_ex32-1.htm | 0001140361-26-033719 |
| Document: ef20080310_ex23.htm | 0001140361-26-033719 |
| Document: 0001140361-26-033719-index-headers.html | 0001140361-26-033719 |
| Document: 0001140361-26-033719-index.html | 0001140361-26-033719 |
| Document: 0001140361-26-033719.txt | 0001140361-26-033719 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 18, 2026 5w ago | 8-K | $2.10 $2.10 | · 0.00% | ▼ −1.55% | $2.08 (−0.95%) |
Aug 19, 2026 9w ago | 10-Q/A | $2.05 $2.00 | ▲ +2.44% | ▲ +1.60% | $2.08 (−1.46%) |
Aug 19, 2026 9w ago | 10-K/A | $2.05 $2.00 | ▲ +2.44% | ▲ +1.60% | $2.08 (−1.46%) |
Aug 19, 2026 9w ago | 10-Q/A | $2.05 $2.00 | ▲ +2.44% | ▲ +1.60% | $2.08 (−1.46%) |
Aug 6, 2026 11w ago | 8-K | $2.15 $2.00 | ▲ +6.98% | ▲ +7.59% | $2.08 (+3.26%) |
Mar 4, 2026 33w ago | 8-K | $2.31 $2.31 | · 0.00% | ▼ −0.57% | $2.08 (+9.96%) |
US Market Status
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