SOURCE: CreditRiskMonitor

CreditRiskMonitor

May 11, 2016 10:33 ET

CreditRiskMonitor Announces 1Q Results

VALLEY COTTAGE, NY--(Marketwired - May 11, 2016) - CreditRiskMonitor (OTCQX: CRMZ) reported that for the 3 months ended March 31, 2016, revenues increased 2% to $3.12 million compared to $3.07 million in last year's first quarter. Net loss for the quarter was approximately $90,300 compared to net income of approximately $36,500 in the prior year period. Cash, cash equivalents and marketable securities decreased approximately $81,200 since 2015 year-end, to $8.88 million.

Jerry Flum, CEO, said, "The quarter was impacted by a planned increase in our marketing expenses as part of our 2016 plan to drive increased traffic to the Company's website, and improve customers' experience using the website. This is the Company's first significant marketing campaign and it includes investment in a substantial redesign of our website, which was launched early in the second quarter. The Company remains debt free and our strong cash position allows us to undertake these initiatives."

   
CREDITRISKMONITOR.COM, INC.  
STATEMENTS OF OPERATIONS  
FOR THE 3 MONTHS ENDED MARCH 31, 2016 AND 2015  
(Unaudited)  
             
    2016     2015  
             
Operating revenues   $ 3,117,143     $ 3,070,206  
                 
Operating expenses:                
    Data and product costs     1,255,792       1,229,736  
    Selling, general and administrative expenses     1,970,439       1,730,813  
    Depreciation and amortization     50,626       52,747  
                 
      Total operating expenses     3,276,857       3,013,296  
                 
Income (loss) from operations     (159,714 )     56,910  
Other income, net     17,911       4,956  
                 
Income (loss) before income taxes     (141,803 )     61,866  
Benefit from (provision for) income taxes     51,477       (25,345 )
                 
Net income (loss)   $ (90,326 )   $ 36,521  
                 
Net income (loss) per common share of stock:                
    Basic   $ (0.01 )   $ 0.00  
    Diluted   $ (0.01 )   $ 0.00  
                 
Weighted average number of common shares outstanding:                
    Basic     10,722,321       10,481,065  
    Diluted     10,722,321       10,702,721  
                     
   
CREDITRISKMONITOR.COM, INC.  
BALANCE SHEETS  
MARCH 31, 2016 AND DECEMBER 31, 2015  
             
    March 31,     Dec. 31,  
    2016     2015  
    (Unaudited)        
             
ASSETS                
Current assets:                
    Cash and cash equivalents   $ 8,620,077     $ 8,717,899  
    Marketable securities     262,135       245,474  
    Accounts receivable, net of allowance     2,032,343       1,927,428  
    Other current assets     1,089,352       749,925  
                 
      Total current assets     12,003,907       11,640,726  
                 
Property and equipment, net     469,881       395,026  
Goodwill     1,954,460       1,954,460  
Other assets     62,460       33,999  
                 
      Total assets   $ 14,490,708     $ 14,024,211  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
    Deferred revenue   $ 8,026,551     $ 7,436,764  
    Accounts payable     60,786       78,267  
    Accrued expenses     1,185,154       1,241,317  
                 
      Total current liabilities     9,272,491       8,756,348  
                 
Deferred taxes on income     806,161       806,161  
Other liabilities     6,902       4,314  
                 
      Total liabilities     10,085,554       9,566,823  
                 
Stockholders' equity:                
    Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued    
-
     
-
 
    Common stock, $.01 par value; authorized 32,500,000 shares; issued and outstanding 10,722,321 shares    
107,223
     
107,223
 
    Additional paid-in capital     29,511,937       29,473,845  
    Accumulated deficit     (25,214,006 )     (25,123,680 )
                 
      Total stockholders' equity     4,405,154       4,457,388  
                 
      Total liabilities and stockholders' equity   $ 14,490,708     $ 14,024,211  
                       

Overview

CreditRiskMonitor (http://www.crmz.com) is a Web-based publisher of financial information, designed to save time and help busy corporate credit and procurement professionals manage risk. The service offers comprehensive commercial credit reports covering public companies worldwide. Over 35% of the Fortune 1,000 already use CreditRiskMonitor's timely news alerts and reports that feature detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, as well as the Company's proprietary FRISK® scores, which have been proven predictive in anticipating corporate financial stress, including bankruptcy.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information about these risks, uncertainties and factors can be found in the "Risk Factors" of the Company's Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.

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