Edgar Filing: CREDITRISKMONITOR COM INC

form10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2011

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to_____

Commission File Number: 1-8601

CreditRiskMonitor.com, Inc.

(Exact name of registrant as specified in its charter)

Nevada		36-2972588
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

704 Executive Boulevard, Suite A
Valley Cottage, New York		10989
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (845) 230-3000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).

Yes o No þ

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:

Common stock $.01 par value -- 7,914,462 shares outstanding as of November 2, 2011.

CREDITRISKMONITOR.COM, INC.

INDEX

	Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets – September 30, 2011 (Unaudited) and December 31, 2010	2

Statements of Income for the Three Months Ended September 30, 2011 and 2010 (Unaudited)	3

Statements of Income for the Nine Months Ended September 30, 2011 and 2010 (Unaudited)	4

Statements of Cash Flows for the Nine Months Ended September 30, 2011 and 2010 (Unaudited)	5

Condensed Notes to Financial Statements	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	8

Item 4. Controls and Procedures	12

PART II. OTHER INFORMATION

Item 6. Exhibits	12

SIGNATURES	13

Index

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.

BALANCE SHEETS

SEPTEMBER 30, 2011 AND DECEMBER 31, 2010

	September 30,			December31,
	2011			2010
	(Unaudited)			(Note 1)

ASSETS
Current assets:
Cash and cash equivalents	$	6,162,612		$	5,642,568
Marketable securities		1,765,874			1,204,234
Accounts receivable, net of allowance		1,224,953			1,406,865
Other current assets		322,387			480,922

Total current assets		9,475,826			8,734,589

Property and equipment, net		321,448			364,360
Goodwill		1,954,460			1,954,460
Deferred taxes on income		--			233,873
Prepaid and other assets		39,187			23,225

Total assets	$	11,790,921		$	11,310,507


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Deferred revenue	$	6,476,571		$	5,997,862
Accounts payable		66,252			24,024
Accrued expenses		824,565			1,167,196
Accrued income taxes		12,096			--

Total current liabilities		7,379,484			7,189,082

Other liabilities		3,140			1,149

Total liabilities		7,382,624			7,190,231

Stockholders’ equity:
Preferred stock, $.01 par value authorized 5,000,000 shares none issued		--			--
Common stock, $.01 par value authorized 25,000,000 shares issued and outstanding 7,914,462 and 7,899,462 shares, respectively		79,144			78,994
Additional paid-in capital		28,556,242			28,440,586
Accumulated deficit		(24,227,089	)		(24,399,304	)

Total stockholders’ equity		4,408,297			4,120,276

Total liabilities and stockholders’ equity	$	11,790,921		$	11,310,507

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(Unaudited)

	2011			2010

Operating revenues	$	2,580,339		$	2,389,932

Operating expenses:
Data and product costs		716,226			580,184
Selling, general and administrative expenses		1,572,311			1,223,686
Depreciation and amortization		42,753			35,345

Total operating expenses		2,331,290			1,839,215

Income from operations		249,049			550,717
Other income, net		52,096			39,570

Income before income taxes		301,145			590,287
Provision for income taxes		(72,260	)		(236,870	)

Net income	$	228,885		$	353,417

Net income per share of common stock:

Basic	$	0.03		$	0.04
Diluted	$	0.03		$	0.04

Weighted average number of common shares outstanding:

Basic		7,914,462			7,889,462
Diluted		8,295,097			8,277,216

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(Unaudited)

	2011			2010

Operating revenues	$	7,559,650		$	6,906,507

Operating expenses:
Data and product costs		2,196,463			1,751,224
Selling, general and administrative expenses		4,502,063			3,844,920
Depreciation and amortization		125,482			94,600

Total operating expenses		6,824,008			5,690,744

Income from operations		735,642			1,215,763
Other income, net		87,015			54,161

Income before income taxes		822,657			1,269,924
Provision for income taxes		(254,711	)		(513,612	)

Net income	$	567,946		$	756,312

Net income per share of common stock:

Basic	$	0.07		$	0.10
Diluted	$	0.07		$	0.09

Weighted average number of common shares outstanding:

Basic		7,904,851			7,896,236
Diluted		8,334,258			8,287,177

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(Unaudited)

	2011			2010

Cash flows from operating activities:
Net income	$	567,946		$	756,312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		125,482			94,600
Deferred income taxes		245,969			507,462
Deferred rent		1,991			459
Stock-based compensation		100,806			38,397
Unrealized gain on marketable securities		(48,929	)		(37,451	)
Changes in operating assets and liabilities:
Accounts receivable		181,912			292,559
Other current assets		158,535			13,740
Prepaid and other assets		(15,962	)		(11,219	)
Deferred revenue		478,709			438,540
Accounts payable		42,228			31,056
Accrued expenses		(342,632	)		(102,584	)

Net cash provided by operating activities		1,496,055			2,021,871

Cash flows from investing activities:
Purchase of marketable securities		(512,711	)		(1,222,439	)
Purchase of property and equipment		(82,570	)		(143,653	)

Net cash used in investing activities		(595,281	)		(1,366,092	)

Cash flows from financing activities:
Dividends paid to shareholders		(395,730	)		(394,980	)
Proceeds from exercise of stock options		15,000			50,000

Net cash used in financing activities		(380,730	)		(344,980	)

Net increase in cash and cash equivalents		520,044			310,799
Cash and cash equivalents at beginning of period		5,642,568			4,679,466

Cash and cash equivalents at end of period	$	6,162,612		$	4,990,265

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

CONDENSED NOTES TO FINANCIAL STATEMENTS

(Unaudited)

(1) Basis of Presentation

The accompanying unaudited condensed financial statements of CreditRiskMonitor.com, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosure required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed financial statements reflect all material adjustments, including normal recurring accruals, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented, and have been prepared in a manner consistent with the audited financial statements for the fiscal year ended December 31, 2010.

The results of operations for the three and nine months ended September 30, 2011 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2010 balance sheet has been derived from the audited financial statements at that date, but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and the footnotes for the fiscal year ended December 31, 2010 included in the Company’s Annual Report on Form 10-K.

(2) Stock-Based Compensation

The Company applies ASC 718, “Compensation-Stock Compensation” (“ASC 718”) to account for stock-based compensation.

The following table summarizes the stock-based compensation expense for stock options that was recorded in the Company’s results of operations in accordance with ASC 718 for the three and nine months ended September 30:

		3 Months Ended				9 Months Ended
		September 30,				September 30,
		2011		2010		2011		2010

Data and product costs	$	5,437	$	1,370	$	13,608	$	4,356
Selling, general and administrative expenses		29,356		11,347		87,198		34,041

	$	34,793	$	12,717	$	100,806	$	38,397

(3) Other Recently Issued Accounting Standards

The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of September 30, 2011 that will become effective in subsequent periods; however, management does not believe that any of those pronouncements would have significantly affected our financial accounting measurements or disclosures had they been in effect during the interim periods for which financial statements are included in this quarterly report. Management also believes those pronouncements will not have a significant effect on our future financial position or results of operations.

Index

(4) Fair Value Measurements

The Company records its financial instruments that are accounted for under ASC 320, “Investments-Debt and Equity Securities” at fair value. The determination of fair value is based upon the fair value framework established by ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 provides that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: (a) Level 1 – valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; (b) Level 2 – valuations based on quoted prices in markets that are not active, or financial instruments for which all significant inputs are observable; either directly or indirectly; and (c) Level 3 – valuations based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable; thus, reflecting assumptions about the market participants.

The Company’s cash, cash equivalents and marketable securities are stated at fair value. The carrying value of accounts receivable, other current assets, accounts payable and other current liabilities approximates fair market value because of the short maturity of these financial instruments.

The Company’s cash equivalents and marketable securities are generally classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Marketable securities include U.S. government bonds.

The table below sets forth the Company’s cash and cash equivalents and marketable securities as of September 30, 2011 and December 31, 2010, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	September 30, 2011								December 31, 2010
	Level 1		Level 2		Level 3		Total		Total

Cash and cash equivalents	$	6,162,612	$	-	$	-	$	6,162,612	$	5,642,568
Marketable securities		1,765,874		-		-		1,765,874		1,204,234

Total	$	7,928,486	$	-	$	-	$	7,928,486	$	6,846,802

The Company did not hold financial assets and liabilities which were recorded at fair value in the Level 2 or 3 categories as of either September 30, 2011 or December 31, 2010.

(5) Net Income per Share

Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding and the dilutive effect of outstanding stock options:

	3 Months Ended						9 Months Ended
	September 30,						September 30,
	2011			2010			2011			2010

Weighted average number of common shares outstanding – basic		7,914,462			7,899,462			7,904,851			7,896,236
Potential shares exercisable under stock option plans		497,500			532,500			567,500			549,167
LESS: Shares which could be repurchased under treasury stock method		(116,865	)		(154,746	)		(138,093	)		(158,226	)

Weighted average number of common shares outstanding – diluted		8,295,097			8,277,216			8,334,258			8,287,177

Index

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

BUSINESS ENVIRONMENT

The continuing uncertainty in the worldwide financial system has negatively impacted general business conditions. It is possible that a weakening economy could adversely affect our clients’ need for credit information, or even their solvency, but we cannot predict whether or to what extent this will occur.

Our strategic priorities and plans for 2011 are to continue to build on the improvement initiatives underway to achieve sustainable, profitable growth. Global market conditions, however, may affect the level and timing of resources deployed in pursuit of these initiatives in 2011.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

The following table presents selected financial information and statistics as of September 30, 2011 and December 31, 2010 (dollars in thousands):

	Sept. 30,		Dec. 31,
	2011		2010
Cash, cash equivalents and marketable securities	$	7,928	$	6,847
Accounts receivable, net	$	1,225	$	1,407
Working capital	$	2,096	$	1,546
Cash ratio		1.07		0.95
Quick ratio		1.24		1.15
Current ratio		1.28		1.21

The Company has invested some of its excess cash in debt instruments of the United States Government. All highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents, while those with maturities in excess of three months when purchased are reflected as marketable securities.

As of September 30, 2011, the Company had $7.93 million in cash, cash equivalents and marketable securities, an increase of approximately $1.08 million from December 31, 2010. The principal component of this net increase for the last nine months was the cash generated by operating activities of approximately $1.50 million.

Additionally, the main component of current liabilities at September 30, 2011 is deferred revenue of $6.48 million, which should not require significant future cash outlay other than the cost of preparation and delivery of the applicable commercial credit reports which cost much less than the deferred revenue shown. The deferred revenue is recognized as income over the subscription term, which approximates twelve months. The Company has no bank lines of credit or other currently available credit sources.

The Company believes that its existing balances of cash, cash equivalents, marketable securities and cash generated from operations will be sufficient to satisfy its currently anticipated cash requirements through at least the next 12 months and the foreseeable future. Moreover, the Company has been cash flow positive for the last 5 fiscal years and has no long-term debt. However, the Company’s liquidity could be negatively affected if it were to make an acquisition or license products or technologies, which may necessitate the need to raise additional capital through future debt or equity financing. Additional financing may not be available at all or on terms favorable to the Company.

OFF-BALANCE SHEET ARRANGEMENTS

The Company is not a party to any off-balance sheet arrangements.

Index

RESULTS OF OPERATIONS

	3 Months Ended September 30,
	2011						2010
				% of Total						% of Total
				Operating						Operating
	Amount			Revenues			Amount			Revenues

Operating revenues	$	2,580,339			100.00	%	$	2,389,932			100.00	%

Operating expenses:
Data and product costs		716,226			27.76	%		580,184			24.28	%
Selling, general and administrative expenses		1,572,311			60.93	%		1,223,686			51.20	%
Depreciation and amortization		42,753			1.66	%		35,345			1.48	%
Total operating expenses		2,331,290			90.35	%		1,839,215			76.96	%

Income from operations		249,049			9.65	%		550,717			23.04	%
Other income, net		52,096			2.02	%		39,570			1.66	%

Income before income taxes		301,145			11.67	%		590,287			24.70	%
Provision for income taxes		(72,260	)		(2.80	%)		(236,870	)		(9.91	%)

Net income	$	228,885			8.87	%	$	353,417			14.79	%

Operating revenues increased $190,407, or 8%, for the three months ended September 30, 2011 compared to the third quarter of fiscal 2010. This overall revenue growth resulted from a $220,274, or 9%, increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers, as well as a $29,867, or 44%, decrease in the Company’s third-party international credit report subscription service, attributable to lower usage by subscribers. The widespread concerns of our subscribers and potential subscribers about corporate credit risk, driven by the Great Recession, gradually diminished during 2010. Their concerns about cost control have continued. It became apparent to the Company that our growth was slowing during 2010. So, in the third quarter of 2010 the Company reorganized its sales department and began to change its sales process to adapt to this new environment. The new selling method is more consistent with reduced “impulse” buying and also with the Company’s prospective new clients’ increased focus on cost control. The Company is seeing early signs that these changes in its sales process will be successful, over the long term, but may take several more quarters to implement fully.

Data and product costs increased $136,042, or 23%, for the third quarter of 2011 compared to the same period of fiscal 2010. This increase was due primarily to higher salary and related employee benefits, including additional quality control personnel, as well as the higher cost of third-party content, due to the purchase of additional data elements.

Selling, general and administrative expenses increased $348,625, or 28%, for the third quarter of fiscal 2011 compared to the same period of fiscal 2010. This increase was due to higher salary and related employee benefits as well as to the outsourcing of certain data entry tasks and higher professional fees.

Depreciation and amortization increased $7,408, or 21%, for the third quarter of fiscal 2011 compared to the same period of fiscal 2010. This increase is due to a higher depreciable asset base reflecting the acquisition of new computer equipment and furniture related to the rental of additional office space as well as the replacement of computer equipment that had been in operation past its depreciable life.

Other income, net increased $12,526 for third quarter of fiscal 2011 compared to the same period last year. This increase was due to the Company having a higher cash balance to invest in 2011 versus 2010.

Provision for income taxes decreased $164,610 for the third quarter of fiscal 2011 compared to the same period of fiscal 2010. This decrease was due to the Company having lower pre-tax income because of the reasons enumerated above as well as the recording of additional deferred tax benefits upon the filing of its 2010 tax return.

Index

	9 Months Ended September 30,
	2011						2010
				% of Total						% of Total
				Operating						Operating
	Amount			Revenues			Amount			Revenues

Operating revenues	$	7,559,650			100.00	%	$	6,906,507			100.00	%

Operating expenses:
Data and product costs		2,196,463			29.06	%		1,751,224			25.36	%
Selling, general and administrative expenses		4,502,063			59.55	%		3,844,920			55.67	%
Depreciation and amortization		125,482			1.66	%		94,600			1.37	%
Total operating expenses		6,824,008			90.27	%		5,690,744			82.40	%

Income from operations		735,642			9.73	%		1,215,763			17.60	%
Other income, net		87,015			1.15	%		54,161			0.79	%

Income before income taxes		822,657			10.88	%		1,269,924			18.39	%
Provision for income taxes		(254,711	)		(3.37	%)		(513,612	)		(7.44	%)

Net income	$	567,946			7.51	%	$	756,312			10.95	%

Operating revenues increased $653,143, or 9%, for the nine months ended September 30, 2011 compared to the first nine months of fiscal 2010. This overall revenue growth resulted from a $668,647, or 10%, increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers, offset slightly by a $15,504, or 7%, decrease in the Company’s third-party international credit report subscription service, attributable to lower usage by subscribers. The widespread concerns of our subscribers and potential subscribers about corporate credit risk, driven by the Great Recession, gradually diminished during 2010. Their concerns about cost control have continued. It became apparent to the Company that our growth was slowing during 2010. So, in the third quarter of 2010 the Company reorganized its sales department and began to change its sales process to adapt to this new environment. The new selling method is more consistent with reduced “impulse” buying and also with the Company’s prospective new clients’ increased focus on cost control. The Company is seeing early signs that these changes in its sales process will be successful, over the long term, but may take several more quarters to implement fully.

Data and product costs increased $445,239, or 25%, for the first nine months of 2011 compared to the same period of fiscal 2010. This increase was due primarily to higher salary and related employee benefits, including additional quality control personnel, as well as the higher cost of third-party content, due to the purchase of additional data elements.

Selling, general and administrative expenses increased $657,143, or 17%, for the first nine months of fiscal 2011 compared to the same period of fiscal 2010. This increase was primarily due to the Company’s decision to outsource certain data entry tasks, as well as higher salary and related employee benefits, higher professional fees, and higher rent and utilities expense, related to the Company’s leasing of additional space at its corporate headquarters.

Depreciation and amortization increased $30,882, or 33%, for the first nine months of fiscal 2011 compared to the same period of fiscal 2010. This increase is due to a higher depreciable asset base reflecting the acquisition of new computer equipment and furniture related to the rental of additional office space as well as the replacement of computer equipment that had been in operation past its depreciable life.

Other income, net increased $32,854 for first nine months of fiscal 2011 compared to the same period last year. This increase was due to the Company having a higher cash balance to invest in 2011 versus 2010.

Index

Provision for income taxes decreased $258,901 for the first nine months of fiscal 2011 compared to the same period of fiscal 2010. This decrease was due to the Company having lower pre-tax income because of the reasons enumerated above as well as the recording of additional deferred tax benefits upon the filing of its 2010 tax return.

FUTURE OPERATIONS

The Company over time intends to expand its operations by expanding the breadth and depth of its product and service offerings and introducing new and complementary products. Gross margins attributable to new business areas may be lower than those associated with the Company’s existing business activities.

As a result of the evolving nature of the markets in which it competes, the Company’s ability to accurately forecast its revenues, gross profits and operating expenses as a percentage of net sales is limited. The Company’s current and future expense levels are based largely on its investment plans and estimates of future revenues. To a large extent these costs do not vary with revenue. Sales and operating results generally depend on the Company’s ability to attract and retain customers and the volume of and timing of customer subscriptions for the Company’s services, which are difficult to forecast. The Company may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall. Accordingly, any significant shortfall in revenues in relation to the Company’s planned expenditures would have an immediate adverse effect on the Company’s business, prospects, financial condition and results of operations. Further, as a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service, marketing or acquisition decisions that could have a material adverse effect on its business, prospects, financial condition and results of operations.

Achieving greater profitability depends on the Company’s ability to generate and sustain increased revenue levels. The Company believes that its success will depend in large part on its ability to (i) increase its brand awareness, (ii) provide its customers with outstanding value, thus encouraging customer renewals, and (iii) achieve sufficient sales volume to realize economies of scale. Accordingly, the Company intends to continue to increase the size of its sales force, invest in product development, operating infrastructure, marketing and promotion. The Company believes that these expenditures will help it to sustain the revenue growth it has experienced over the last several years. We anticipate that sales and marketing expenses will continue to increase in dollar amount and as a percentage of revenues during the remainder of 2011 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses will also continue to increase in dollar amount and may increase as a percentage of revenues during the remainder of 2011 and future periods because it expects to employ more development personnel on average compared to prior periods and build the infrastructure required to support the development of new and improved products and services. However, as these expenditures are discretionary in nature, the Company expects that the actual amounts incurred will be in line with its projections of future cash flows in order not to negatively impact its future liquidity and capital needs. There can be no assurance that the Company will be able to achieve these objectives within a meaningful time frame.

The Company expects to experience significant fluctuations in its future quarterly operating results due to a variety of factors, some of which are outside the Company’s control. Factors that may adversely affect the Company’s quarterly operating results include, among others, (i) the Company’s ability to retain existing customers, attract new customers at a steady rate and maintain customer satisfaction, (ii) the Company’s ability to maintain gross margins in its existing business and in future product lines and markets, (iii) the development of new services and products by the Company and its competitors, (iv) price competition, (v) the level of use of the Internet and online services and increasing acceptance of the Internet and other online services for the purchase of products such as those offered by the Company, (vi) the Company’s ability to upgrade and develop its systems and infrastructure, (vii) the Company’s ability to attract new personnel in a timely and effective manner, (viii) the level of traffic on the Company’s website, (ix) the Company’s ability to manage effectively its development of new business segments and markets, (x) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (xi) technical difficulties, system downtime or Internet brownouts, (xii) the amount and timing of operating costs and capital expenditures relating to expansion of the Company’s business, operations and infrastructure, (xiii) governmental regulation and taxation policies, (xiv) disruptions in service by common carriers due to strikes or otherwise, (xv) risks of fire or other casualty, (xvi) litigation costs or other unanticipated expenses, (xvii) interest rate risks and inflationary pressures, and (xviii) general economic conditions and economic conditions specific to the Internet and online commerce.

Index

Due to the foregoing factors, the Company believes that period-to-period comparisons of its revenues and operating results are not necessarily meaningful and should not be relied on as an indication of future performance.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q may contain forward-looking statements, including statements regarding future prospects, industry trends, competitive conditions and litigation issues. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes”, “expects”, “anticipates”, “plans” or words of similar meaning are intended to identify forward-looking statements. This notice is intended to take advantage of the “safe harbor” provided by the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. These forward-looking statements involve a number of risks and uncertainties. Among others, factors that could cause actual results to differ materially from the Company’s beliefs or expectations are those listed under “Results of Operations” and other factors referenced herein or from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission reports. The Company disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, a future event or otherwise.

Item 4. Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 6. Exhibits

31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, formatted in Extensible Business Reporting Language (XBRL): (i) the Balance Sheets, (ii) the Statements of Income, (iii) the Statements of Cash Flows, and (iv) the Notes to Financial Statements.*

Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CREDITRISKMONITOR.COM, INC. (REGISTRANT)


Date: November 14, 2011	By:	/s/ Lawrence Fensterstock
		Lawrence Fensterstock
		Chief Financial Officer &
		Principal Accounting Officer