SOURCE: Creditriskmonitor.com Inc.

February 23, 2011 16:27 ET

CreditRiskMonitor Reports 2010 Operating Results

VALLEY COTTAGE, NY--(Marketwire - February 23, 2011) - CreditRiskMonitor (OTCBB: CRMZ) announced that for the year ended December 31, 2010 revenues increased 19% to $9.34 million and income from operations was $1.68 million versus $813,000 last year.

Jerry Flum, CEO, said, "We had strong cash flow, resulting in a record year-end cash, cash equivalent and marketable securities balance of $6.85 million at December 31, 2010 compared to $4.68 million at December 31, 2009, and we continue to operate the Company without debt. However, we were unable to maintain the pace of revenue growth that we achieved during the credit crisis years of 2008/9. Year-over-year net income and net income per share declined, due to the Company's nonrecurring reversal of its tax valuation allowance during the fourth quarter of 2009." The tax expense recorded in 2010 does not result in any cash liability because of the availability of unexpired net operating loss ("NOL") carry-forwards. This expense reduces the recorded deferred tax asset and at December 31, 2010, the Company had NOL carryforwards aggregating approximately $2.1 million, expiring in varying amounts over the next sixteen (16) years.

                        CREDITRISKMONITOR.COM, INC.
                           STATEMENTS OF INCOME
              FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

                                                   2010            2009
                                                ----------      ----------
Operating revenues                              $9,343,011      $7,848,010

Operating expenses:
        Data and product costs                   2,429,745       2,118,316
        Selling, general and administrative
         expenses                                5,102,805       4,813,064
        Depreciation and amortization              133,564         103,909
                                                ----------      ----------

                Total operating expenses         7,666,114       7,035,289
                                                ----------      ----------

Income from operations                           1,676,897         812,721
Other income, net                                   23,443          13,893
                                                ----------      ----------


Income before income taxes                       1,700,340         826,614
Benefit (provision) for state and local
 income taxes                                     (687,030)        908,960
                                                ----------      ----------

Net income                                      $1,013,310      $1,735,574
                                                ==========      ==========


Income before income taxes per share of common
 stock**:

        Basic                                   $     0.22      $     0.11
                                                ==========      ==========

        Diluted                                 $     0.20      $     0.10
                                                ==========      ==========

Net income per share of common stock:

        Basic                                   $     0.13      $     0.22
                                                ==========      ==========

        Diluted                                 $     0.12      $     0.21
                                                ==========      ==========

** Denotes non-GAAP financial measure. Because of the Company's reversal of its valuation allowance during the fourth quarter of 2009, as the Company had sufficient evidence to conclude that it is more likely than not that the Company will be able to utilize its net operating loss carryforwards prior to their expiration, the calculation of the Company's benefit (provision) for income taxes is not comparable between years. Accordingly, we feel that reporting pre-tax earnings per share is a better measure in this instance even though this is a non-GAAP financial measure.

                        CREDITRISKMONITOR.COM, INC.
                              BALANCE SHEETS
                        DECEMBER 31, 2010 AND 2009


                                                   2010            2009
                                               -----------     -----------
ASSETS
Current assets:
        Cash and cash equivalents              $ 5,642,568     $ 4,679,466
        Marketable securities                    1,204,234               -
        Accounts receivable, net of allowance
         of $30,000                              1,406,865       1,370,523
        Other current assets                       480,922         253,857
                                               -----------     -----------

                Total current assets             8,734,589       6,303,846

Property and equipment, net                        364,360         261,591
Goodwill                                         1,954,460       1,954,460
Deferred taxes on income                           233,873         913,503
Other assets                                        23,225          23,116
                                               -----------     -----------

                Total assets                   $11,310,507     $ 9,456,516
                                               ===========     ===========


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
        Deferred revenue                       $ 5,997,862     $ 5,321,116
        Accounts payable                            24,024          42,614
        Accrued expenses                         1,167,196         698,832
                                               -----------     -----------

                Total current liabilities        7,189,082       6,062,562

Other liabilities                                    1,149               -
                                               -----------     -----------

                Total liabilities                7,190,231       6,062,562
                                               -----------     -----------

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 7,899,462 and
         7,849,462 shares, respectively             78,994          78,494
        Additional paid-in capital              28,440,586      28,333,094
        Accumulated deficit                    (24,399,304)    (25,017,634)
                                               -----------     -----------

            Total stockholders' equity           4,120,276       3,393,954
                                               -----------     -----------

            Total liabilities and stockholders'
             equity                            $11,310,507     $ 9,456,516
                                               ===========     ===========

CreditRiskMonitor (http://www.crmz.com) is an Internet-based publisher of financial information, designed to save time for busy corporate credit professionals that competes with Dun & Bradstreet, Equifax and Experian.

Safe Harbor Statement: Certain statements in this press release, including statements prefaced by the words "anticipates," "estimates," "believes," "expects" or words of similar meaning, 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, including, among others, those risks, uncertainties and factors referenced from time to time as "risk factors" or otherwise in the Company's Registration Statements or Securities and Exchange Commission Reports.

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