CRMZ 10-Q Quarterly Report Sept. 30, 2013

CREDITRISKMONITOR COM INC

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10-Q 1 form10q.htm CREDITRISKMONITOR.COM INC 10-Q 9-30-2013

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, 2013

¨ 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 ¨

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 ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller 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 ¨	Accelerated filer ¨
Non-accelerated filer ¨	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 ¨

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 ,958,564 shares outstanding as of November 5, 2013.

CREDITRISKMONITOR.COM, INC.

INDEX

PART I. FINANCIAL INFORMATION			Page

	Item 1. Financial Statements

		Balance Sheets – September 30, 2013 (Unaudited) and December 31, 2012	2

		Statements of Income for the Three Months Ended September 30, 2013 and 2012 (Unaudited)	3

		Statements of Income for the Nine Months Ended September 30, 2013 and 2012 (Unaudited)	4

		Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012 (Unaudited)	5

		Condensed Notes to Financial Statements (Unaudited)	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, 2013 AND DECEMBER 31, 2012

	September 30,			December 31,
	2013			2012
	(Unaudited)			(Note 1)

ASSETS
Current assets:
Cash and cash equivalents	$	7,230,896		$	6,422,458
Marketable securities		1,422,813			1,725,633
Accounts receivable, net of allowance		1,062,078			1,776,151
Other current assets		583,054			548,838

Total current assets		10,298,841			10,473,080

Property and equipment, net		384,654			260,438
Goodwill		1,954,460			1,954,460
Prepaid and other assets		34,058			21,970

Total assets	$	12,672,013		$	12,709,948

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Deferred revenue	$	6,517,388		$	6,978,797
Accounts payable		76,962			44,097
Accrued expenses		1,154,484			1,161,498

Total current liabilities		7,748,834			8,184,392

Deferred taxes on income		591,355			591,355
Other liabilities		5,413			5,190

Total liabilities		8,345,602			8,780,937

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 7,958,564 and 7,946,462 shares, respectively		79,585			79,464
Additional paid-in capital		28,925,272			28,795,496
Accumulated deficit		(24,678,446	)		(24,945,949	)

Total stockholders’ equity		4,326,411			3,929,011

Total liabilities and stockholders’ equity	$	12,672,013		$	12,709,948

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unaudited)

	2013			2012

Operating revenues	$	3,014,156		$	2,822,056

Operating expenses:
Data and product costs		1,075,271			914,186
Selling, general and administrative expenses		1,578,149			1,427,830
Depreciation and amortization		46,943			37,880

Total operating expenses		2,700,363			2,379,896

Income from operations		313,793			442,160
Other income, net		4,260			13,851

Income before income taxes		318,053			456,011
Provision for income taxes		(126,506	)		(182,473	)

Net income	$	191,547		$	273,538

Net income per share of common stock:

Basic	$	0.02		$	0.03
Diluted	$	0.02		$	0.03

Weighted average number of common shares outstanding:

Basic		7,956,557			7,943,462
Diluted		8,252,541			8,258,438

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unaudited)

	2013			2012

Operating revenues	$	8,813,415		$	8,207,538

Operating expenses:
Data and product costs		3,248,237			2,777,343
Selling, general and administrative expenses		4,965,559			4,591,402
Depreciation and amortization		117,496			114,436

Total operating expenses		8,331,292			7,483,181

Income from operations		482,123			724,357
Other income (expense), net		(38,170	)		26,468

Income before income taxes		443,953			750,825
Provision for income taxes		(176,450	)		(312,352	)

Net income	$	267,503		$	438,473

Net income per share of common stock:

Basic	$	0.03		$	0.06
Diluted	$	0.03		$	0.05

Weighted average number of common shares outstanding:

Basic		7,949,827			7,939,474
Diluted		8,248,215			8,235,847

See accompanying condensed notes to financial statements.

Index

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unaudited)

	2013			2012

Cash flows from operating activities:
Net income	$	267,503		$	438,473
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		117,496			114,436
Deferred income taxes		--			273,291
Deferred rent		223			1,394
Stock-based compensation		112,858			110,738
Unrealized loss on marketable securities		77,363			12,067
Loss on retirement of fixed assets		259			--
Tax benefit from stock option plans		(10,539	)		--
Changes in operating assets and liabilities:
Accounts receivable		714,073			306,736
Other current assets		(23,677	)		186,438
Prepaid and other assets		(12,088	)		(28,660	)
Deferred revenue		(461,409	)		149,150
Accounts payable		32,865			25,081
Accrued expenses		(7,014	)		(351,262	)

Net cash provided by operating activities		807,913			1,237,882

Cash flows from investing activities:
(Purchase) sale of marketable securities		225,457			(13,529	)
Purchase of property and equipment		(241,971	)		(89,225	)

Net cash used in investing activities		(16,514	)		(102,754	)

Cash flows from financing activities:
Proceeds from exercise of stock options		6,500			23,000
Tax benefit from stock option plans		10,539			--

Net cash provided by financing activities		17,039			23,000

Net increase in cash and cash equivalents		808,438			1,158,128
Cash and cash equivalents at beginning of period		6,422,458			6,531,204

Cash and cash equivalents at end of period	$	7,230,896		$	7,689,332

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 disclosures 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, 2012.

The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2012 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, 2012 included in the Company’s Annual Report on Form 10-K.

(2)	Stock-Based Compensation

The Company applies Accounting Standards Codification (“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,
	2013		2012		2013		2012

Data and product costs	$	2,971	$	4,473	$	9,042	$	13,017
Selling, general and administrative expenses		32,626		34,701		103,816		97,721

	$	35,597	$	39,174	$	112,858	$	110,738

(3)	Other Recently Issued Accounting Standards

The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of September 30, 2013 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, 2013 and December 31, 2012, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	September 30, 2013								December 31, 2012
	Level 1		Level 2		Level 3		Total		Total

Cash and cash equivalents	$	7 ,230,896	$	-	$	-	$	7,230,896	$	6,422,458
Marketable securities		1 ,422,813		-		-		1,422,813		1,725,633

Total	$	8,653,709	$	-	$	-	$	8,653,709	$	8,148,091

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, 2013 or December 31, 2012.

(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,
	2013			2012			2013			2012


Weighted average number of common shares outstanding – basic		7,956,557			7,943,462			7,949,827			7,939,474
Potential shares exercisable under stock option plans		514,000			463,500			497,166			453,500
LESS: Shares which could be repurchased under treasury stock method		(218,016	)		(148,524	)		(198,778	)		(157,127	)

Weighted average number of common shares outstanding – diluted		8,252,541			8,258,438			8,248,215			8,235,847

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 2013 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 2013.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of September 30, 2013 and December 31, 2012 (dollars in thousands):

	September 30,		December 31,
	2013		2012
Cash, cash equivalents and marketable securities	$	8,654	$	8,148
Accounts receivable, net	$	1,062	$	1,776
Working capital	$	2,550	$	2,289
Cash ratio		1.12		1.00
Quick ratio		1.25		1.21
Current ratio		1.33		1.28

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, 2013, the Company had $8.65 million in cash, cash equivalents and marketable securities, an increase of approximately $506,000 from December 31, 2012. The principal component of this net increase for the last nine months was the cash generated by operating activities of approximately $808,000.

Additionally, the main component of current liabilities at September 30, 2013 is deferred revenue of $6.52 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 8 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,
	2013						2012
				% of Total						% of Total
				Operating						Operating
	Amount			Revenues			Amount			Revenues

Operating revenues	$	3,014,156			100.00	%	$	2,822,056			100.00	%

Operating expenses:
Data and product costs		1,075,271			35.67	%		914,186			32.39	%
Selling, general and administrative expenses		1,578,149			52.36	%		1,427,830			50.60	%
Depreciation and amortization		46,943			1.56	%		37,880			1.34	%
Total operating expenses		2,700,363			89.59	%		2,379,896			84.33	%

Income from operations		313,793			10.41	%		442,160			15.67	%
Other income, net		4,260			0.14	%		13,851			0.49	%

Income before income taxes		318,053			10.55	%		456,011			16.16	%
Provision for income taxes		(126,506	)		(4.20	% )		(182,473	)		(6.47	% )

Net income	$	191,547			6.35	%	$	273,538			9.69	%

Operating revenues increased $192,100, or 7%, for the three months ended September 30, 2013 compared to the third quarter of fiscal 2012. This overall revenue growth resulted from an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers.

Data and product costs increased $161,085, or 18%, for the third quarter of 2013 compared to the same period of fiscal 2012. This increase was due primarily to higher salary and related employee benefits, including additional quality control personnel, the higher cost of third-party content due to the purchase of additional data elements, as well as the higher cost associated with the outsourcing of certain data entry tasks, as more tasks have been outsourced.

Selling, general and administrative expenses increased $150,319, or 11%, for the third quarter of fiscal 2013 compared to the same period of fiscal 2012. This increase was due to higher salary and related employee benefits, as the result of increased headcount, and legal fees incurred in 2013 for foreign trademark registration.

Depreciation and amortization increased $9,063, or 24%, for the third quarter of fiscal 2013 compared to the same period of fiscal 2012. This increase was due to the capitalization of leasehold improvements associated with additional space leased at the Company’s corporate headquarters as well as the purchase of computer equipment.

Other income, net decreased $9,591 for third quarter of fiscal 2013 compared to the same period last year. This decrease was due to a negative mark-to-market adjustment recorded in this year’s third quarter.

Provision for income taxes decreased $55,967 for the third quarter of fiscal 2013 compared to the same period of fiscal 2012. This decrease was due to the Company having lower pre-tax income because of the reasons enumerated above.

Index

	9 Months Ended September 30,
	2013						2012
				% of Total						% of Total
				Operating						Operating
	Amount			Revenues			Amount			Revenues

Operating revenues	$	8,813,415			100.00	%	$	8,207,538			100.00	%

Operating expenses:
Data and product costs		3,248,237			36.86	%		2,777,343			33.84	%
Selling, general and administrative expenses		4,965,559			56.34	%		4,591,402			55.94	%
Depreciation and amortization		117,496			1.33	%		114,436			1.39	%
Total operating expenses		8,331,292			94.53	%		7,483,181			91.17	%

Income from operations		482,123			5.47	%		724,357			8.83	%
Other income (expense), net		(38,170	)		(0.43	%)		26,468			0.32	%

Income before income taxes		443,953			5.04	%		750,825			9.15	%
Provision for income taxes		(176,450	)		(2.00	%)		(312,352	)		(3.81	%)

Net income	$	267,503			3.04	%	$	438,473			5.34	%

Operating revenues increased $605,877, or 7%, for the nine months ended September 30, 2013 compared to the same period of fiscal 2012. This overall revenue growth is due to an increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers, partially offset by a decrease in the Company’s third-party international credit report subscription service, attributable to lower usage by subscribers.

Data and product costs increased $470,894, or 17%, for the first nine months of 2013 compared to the same period of fiscal 2012. This increase was due primarily to higher salary and related employee benefits, including additional quality control personnel, the higher cost associated with the outsourcing of certain data entry tasks, as more tasks have been outsourced, as well as the higher cost of third-party content due to the purchase of additional data elements.

Selling, general and administrative expenses increased $374,157, or 8%, for the first nine months of fiscal 2013 compared to the same period of fiscal 2012. This increase was primarily due to higher salary and related employee benefits, and legal fees incurred in 2013 for foreign trademark registration.

Depreciation and amortization increased $3,060, or 3%, for the first nine months of fiscal 2013 compared to the same period of fiscal 2012. This increase was due to the capitalization of leasehold improvements during the 3 ^rd quarter associated with additional space leased at the Company’s corporate headquarters as well as the purchase of computer equipment.

Other income (expense), net decreased $64,638 for the first nine months of fiscal 2013 compared to the same period last year. This decrease was due to the greater negative mark-to-market adjustment recorded in 2013.

Provision for income taxes decreased $135,902 for the first nine months of fiscal 2013 compared to the same period of fiscal 2012. This decrease was due to the Company having lower pre-tax income because of the reasons enumerated above.

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.

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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 and service staff, and to 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 2013 and future periods as the Company continues to expand its business on a worldwide basis. Further, the Company expects that product development expenses and data costs will also continue to increase in dollar amount and may increase as a percentage of revenues during the remainder of 2013 and future periods because it expects to employ more development personnel on average compared to prior periods, obtain additional data and build the infrastructure required to support the development of new and improved products and services. However, as these expenditures are largely 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 Company’s ability to obtain products and services from its vendors, including information suppliers, on commercially reasonable terms, (vi) the Company’s ability to upgrade and develop its systems and infrastructure, and adapt to technological change, (vii) the Company’s ability to attract and retain personnel in a timely and effective manner, (viii) the Company’s ability to manage effectively its development of new business segments and markets, (ix) the Company’s ability to successfully manage the integration of operations and technology of acquisitions or other business combinations, (x) technical difficulties, system downtime or Internet brownouts, (xi) the amount and timing of operating costs and capital expenditures relating to the Company’s business, operations and infrastructure, (xii) governmental regulation and taxation policies, (xiii) disruptions in service by common carriers due to strikes or otherwise, (xiv) risks of fire or other casualty, (xv) litigation costs or other unanticipated expenses, (xvi) interest rate risks and inflationary pressures, and (xvii) general economic conditions and economic conditions specific to the Internet and online commerce.

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.

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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, 2013, 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 Condensed 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.

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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, 2013	By: /s/	Lawrence Fensterstock
		Lawrence Fensterstock
		Chief Financial Officer &
		Principal Accounting Officer

TABLE OF CONTENTS

Part I. Financial Information Item 1. Financial Statements Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 4. Controls and Procedures Part II. Other Information Item 6. Exhibits

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.

CRMZ 10-Q Quarter ended Sept. 30, 2013

Exhibits