The restatement quantifies the financial impact of previously disclosed tax nexus failures, confirming a material weakness and ongoing liability. Monitor progress of VDA negotiations and any further state tax assessments; the stock may remain under pressure until the remediation plan is complete and the material weakness is resolved.
Price Chart
Executive Summary
CreditRiskMonitor.com filed an amended 10-Q (10-Q/A) to restate its previously issued financial statements for the quarterly periods ended September 30, 2025 and 2024, following the discovery of uncollected and unremitted sales/use tax and unfiled income taxes in certain jurisdictions. The restatement adds approximately $1.37 million in cumulative tax liabilities and interest as of September 30, 2025, reducing net income for the nine months ended September 30, 2025 by $380,556 to $252,901. A material weakness in internal controls over tax nexus monitoring was identified, and the company is pursuing voluntary disclosure agreements with impacted states.
Key Facts
- Restatement adds $1,366,682 in total liabilities as of September 30, 2025, reducing stockholders' equity by the same amount.
- Nine-month 2025 net income reduced by $380,556 to $252,901 (from $633,457 previously reported).
- Material weakness identified in internal controls over state and local tax nexus monitoring.
- Company pursuing Voluntary Disclosure Agreements (VDAs) with impacted states; remediation plan includes third-party automated sales tax solution.
- Restatement covers fiscal years 2024 and 2025 and multiple quarterly periods.
Financial Impact
~$1.37 million in additional tax liabilities and interest as of September 30, 2025; net income for nine months ended September 30, 2025 reduced by ~$380,556.
Risk Factors
- Additional state tax penalties or interest beyond current estimates.
- Potential litigation or regulatory action related to historical non-compliance.
- Ongoing remediation costs and distraction from core business operations.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001140361-26-033714 |
| Document: ef20080309_ex31-2.htm | 0001140361-26-033714 |
| Document: ef20080309_ex31-1.htm | 0001140361-26-033714 |
| Document: ef20080309_ex32-1.htm | 0001140361-26-033714 |
| Document: ef20080309_ex32-2.htm | 0001140361-26-033714 |
| Document: 0001140361-26-033714-index-headers.html | 0001140361-26-033714 |
| Document: 0001140361-26-033714-index.html | 0001140361-26-033714 |
| Document: 0001140361-26-033714.txt | 0001140361-26-033714 |
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
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers