CreditRiskMonitor records $2 million sales tax liability after tax nexus review triggers restatement
CRMZ•Second-quarter fiscal 2026 results and liquidity
Second-quarter fiscal 2026 net loss widened to about $475,000.
Cash, equivalents and short-term Treasuries totaled about $17.8 million.
Tax nexus review leads to liabilities and restatement
CreditRiskMonitor recorded about $2 million in sales tax liability and $210,000 in income tax liability, including interest, tied to state tax nexus.
The liabilities prompted a restatement tied to uncollected sales and use tax, plus unfiled income tax returns in some jurisdictions.
The company said it identified a material weakness in internal controls over identifying and monitoring state and local tax nexus.
Voluntary Disclosure Agreements have been submitted to limit lookback periods and eliminate penalties, and the amounts may change as reviews with states continue.
