10-Q

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 March 31, 2012

or

¨ 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 – 7,943,462 shares outstanding as of May 4, 2012.

CREDITRISKMONITOR.COM, INC.

INDEX

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets – March 31, 2012 (Unaudited) and December 31, 2011	2
Statements of Income for the Three Months Ended March 31, 2012 and 2011 (Unaudited)	3
Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011 (Unaudited)	4
Condensed Notes to Financial Statements	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	7
Item 4. Controls and Procedures	10
PART II. OTHER INFORMATION
Item 6. Exhibits	10
SIGNATURES	11

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CREDITRISKMONITOR.COM, INC.

BALANCE SHEETS

MARCH 31, 2012 AND DECEMBER 31, 2011

	March 31,			December 31,
	2012			2011
	(Unaudited)			(Note 1)
ASSETS
Current assets:
Cash and cash equivalents	$	6,917,136		$	6,531,204
Marketable securities		1,749,940			1,753,072
Accounts receivable, net of allowance		1,861,744			1,551,213
Other current assets		390,581			451,143
Total current assets		10,919,401			10,286,632
Property and equipment, net		294,519			306,810
Goodwill		1,954,460			1,954,460
Prepaid and other assets		54,287			23,232
Total assets	$	13,222,667		$	12,571,134
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Deferred revenue	$	7,400,978		$	6,471,494
Accounts payable		72,743			60,941
Accrued expenses		657,830			1,087,163
Deferred taxes on income		189,529			157,385
Total current liabilities		8,321,080			7,776,983
Other liabilities		4,288			3,714
Total liabilities		8,325,368			7,780,697
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 7,943,462 and 7,920,462 shares, respectively		79,434			79,204
Additional paid-in capital		28,656,257			28,597,679
Accumulated deficit		(23,838,392	)		(23,886,446	)
Total stockholders’ equity		4,897,299			4,790,437
Total liabilities and stockholders’ equity	$	13,222,667		$	12,571,134

See accompanying condensed notes to financial statements.

2

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(Unaudited)

	2012			2011
Operating revenues	$	2,645,255		$	2,439,961
Operating expenses:
Data and product costs		926,745			833,927
Selling, general and administrative expenses		1,597,360			1,345,513
Depreciation and amortization		38,141			41,222
Total operating expenses		2,562,246			2,220,662
Income from operations		83,009			219,299
Other income (expense), net		(2,811	)		1,551
Income before income taxes		80,198			220,850
Provision for income taxes		(32,144	)		(91,439	)
Net income	$	48,054		$	129,411
Net income per share of common stock:
Basic	$	0.01		$	0.02
Diluted	$	0.01		$	0.02
Weighted average number of common shares outstanding:
Basic		7,939,165			7,899,462
Diluted		8,216,064			8,363,268

See accompanying condensed notes to financial statements.

3

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(Unaudited)

	2012			2011
Cash flows from operating activities:
Net income	$	48,054		$	129,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		38,141			41,222
Deferred income taxes		32,144			85,891
Deferred rent		574			689
Stock-based compensation		35,808			32,422
Unrealized (gain) loss on marketable securities		3,132			(1,100	)
Changes in operating assets and liabilities:
Accounts receivable		(310,531	)		(201,244	)
Other current assets		60,562			92,196
Prepaid and other assets		(31,055	)		(31,859	)
Deferred revenue		929,484			389,694
Accounts payable		11,802			31,721
Accrued expenses		(429,333	)		(539,286	)
Net cash provided by operating activities		388,782			29,757
Cash flows from investing activities:
Purchase of property and equipment		(25,850	)		(22,126	)
Net cash used in investing activities		(25,850	)		(22,126	)
Cash flows from financing activities:
Proceeds from exercise of stock options		23,000			--
Net cash provided by financing activities		23,000			--
Net increase in cash and cash equivalents		385,932			7,631
Cash and cash equivalents at beginning of period		6,531,204			5,642,568
Cash and cash equivalents at end of period	$	6,917,136		$	5,650,199

See accompanying condensed notes to financial statements.

4

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, 2011.

The results of operations for the three months ended March 31, 2012 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2011 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, 2011 included in the Company’s Annual Report on Form 10-K.

Certain prior year amounts have been reclassified to conform to the current year presentation.

(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 months ended March 31:

	3 Months Ended
	March 31,
	2012		2011
Data and product costs	$	4,285	$	3,855
Selling, general and administrative expenses		31,523		28,567
	$	35,808	$	32,422

(3) Other Recently Issued Accounting Standards

The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of March 31, 2012 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.

5

(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 March 31, 2012 and December 31, 2011, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

	March 31, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Total
Cash and cash equivalents	$	6,917,136	$	-	$	-	$	6,917,136	$	6,531,204
Marketable securities		1,749,940		-		-		1,749,940		1,753,072
Total	$	8,667,076	$	-	$	-	$	8,667,076	$	8,284,276

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 March 31, 2012 or December 31, 2011.

(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
	March 31,
	2012			2011
Weighted average number of common shares outstanding – basic		7,939,165			7,899,462
Potential shares exercisable under stock option plans		463,500			612,500
LESS: Shares which could be repurchased under treasury stock method		(186,601	)		(148,694	)
Weighted average number of common shares outstanding – diluted		8,216,064			8,363,268

6

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 2012 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 2012.

Financial Condition, Liquidity and Capital Resources

The following table presents selected financial information and statistics as of March 31, 2012 and December 31, 2011 (dollars in thousands):

	March 31,		Dec. 31,
	2012		2011
Cash, cash equivalents and marketable securities	$	8,667	$	8,284
Accounts receivable, net	$	1,862	$	1,551
Working capital	$	2,598	$	2,510
Cash ratio		1.04		1.07
Quick ratio		1.27		1.26
Current ratio		1.31		1.32

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 March 31, 2012, the Company had $8.67 million in cash, cash equivalents and marketable securities, an increase of approximately $383,000 from December 31, 2011. The principal component of this net increase for the last three months was the cash generated by operating activities of approximately $389,000.

Additionally, the main component of current liabilities at March 31, 2012 is deferred revenue of $7.40 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 7 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.

7

Results of Operations

	3 Months Ended March 31,
	2012						2011
				% of Total						% of Total
				Operating						Operating
	Amount			Revenues			Amount			Revenues
Operating revenues	$	2,645,255			100.00	%	$	2,439,961			100.00	%
Operating expenses:
Data and product costs		926,745			35.03	%		833,927			34.18	%
Selling, general and administrative expenses		1,597,360			60.39	%		1,345,513			55.14	%
Depreciation and amortization		38,141			1.44	%		41,222			1.69	%
Total operating expenses		2,562,246			96.86	%		2,220,662			91.01	%
Income from operations		83,009			3.14	%		219,299			8.99	%
Other income (expense), net		(2,811	)		(0.11	%)		1,551			0.06	%
Income before income taxes		80,198			3.03	%		220,850			9.05	%
Provision for income taxes		(32,144	)		(1.21	%)		(91,439	)		(3.75	%)
Net income	$	48,054			1.82	%	$	129,411			5.30	%

Operating revenues increased $205,294, or 8%, for the three months ended March 31, 2012 compared to the first quarter of fiscal 2011. This overall revenue growth resulted from a $232,915, or 10%, increase in Internet subscription service revenue, attributable to increased sales to new and existing subscribers, partially offset by a $27,621, or 37%, decrease in the Company’s third-party international credit report subscription service, attributable to lower usage by subscribers.

Data and product costs increased $92,818, or 11%, for the first quarter of 2012 compared to the same period of fiscal 2011. This increase was due primarily to higher salary and related employee benefits, including additional quality control personnel, 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 $251,847, or 19%, for the first quarter of fiscal 2012 compared to the same period of fiscal 2011. This increase was due to higher salary and related employee benefits, as the result of increased headcount.

Depreciation and amortization decreased $3,081, or 7%, for the first quarter of fiscal 2012 compared to the same period of fiscal 2011. This decrease was due to a lower depreciable asset base reflecting the continued use of certain items that have been fully depreciated.

Other income (expense), net decreased $4,362 for first quarter of fiscal 2012 compared to the same period last year. This decrease was due to the greater negative mark-to-market adjustment record in this year’s first quarter.

Provision for income taxes decreased $59,295 for the first quarter of fiscal 2012 compared to the same period of fiscal 2011. 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.

8

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 2012 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 2012 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 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.

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.

9

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 March 31, 2012, 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.

10

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: May 15, 2012	By: /s/ Lawrence Fensterstock
	Lawrence Fensterstock
	Chief Financial Officer &
	Principal Accounting Officer

11

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jerome S. Flum, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CreditRiskMonitor.com, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 15, 2012	By: /s/ Jerome S. Flum
	Jerome S. Flum
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lawrence Fensterstock, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CreditRiskMonitor.com, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 15, 2012	By: /s/ Lawrence Fensterstock
	Lawrence Fensterstock
	Chief Financial Officer

EX-32.1

EXHIBIT 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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jerome S. Flum, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	By: /s/ Jerome S. Flum
	Jerome S. Flum
	Chief Executive Officer
May 15, 2012

This certification is being furnished to the SEC with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section.

EX-32.2

EXHIBIT 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

In connection with the Quarterly Report of CreditRiskMonitor.com, Inc. on Form 10-Q for the period ended March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence Fensterstock, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	By: /s/ Lawrence Fensterstock
	Lawrence Fensterstock
	Chief Financial Officer
May 15, 2012

This certification is being furnished to the SEC with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

(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 March 31, 2012 and December 31, 2011, respectively, which are measured at fair value on a recurring basis by level within the fair value hierarchy.

			March 31, 2012				December 31, 2011
	Level 1		Level 2		Level 3		Total		Total
Cash and cash equivalents	$	6,917,136	$	-	$	-	$	6,917,136	$	6,531,204
Marketable securities		1,749,940		-		-		1,749,940		1,753,072
Total	$	8,667,076	$	-	$	-	$	8,667,076	$	8,284,276

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 March 31, 2012 or December 31, 2011.

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Other Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2012

Other Recently Issued Accounting Standards [Abstract]

Other Recently Issued Accounting Standards

(3) Other Recently Issued Accounting Standards

The Financial Accounting Standards Board and the SEC had issued certain accounting pronouncements as of March 31, 2012 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.

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BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 6,917,136	$ 6,531,204
Marketable securities	1,749,940	1,753,072
Accounts receivable, net of allowance	1,861,744	1,551,213
Other current assets	390,581	451,143
Total current assets	10,919,401	10,286,632
Property and equipment, net	294,519	306,810
Goodwill	1,954,460	1,954,460
Prepaid and other assets	54,287	23,232
Total assets	13,222,667	12,571,134
Current liabilities:
Deferred revenue	7,400,978	6,471,494
Accounts payable	72,743	60,941
Accrued expenses	657,830	1,087,163
Deferred taxes on income	189,529	157,385
Total current liabilities	8,321,080	7,776,983
Other liabilities	4,288	3,714
Total liabilities	8,325,368	7,780,697
Stockholders' equity:
Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued	0	0
Common stock, $.01 par value; authorized 25,000,000 shares; issued and outstanding 7,943,462 and 7,920,462 shares, respectively	79,434	79,204
Additional paid-in capital	28,656,257	28,597,679
Accumulated deficit	(23,838,392)	(23,886,446)
Total stockholders' equity	4,897,299	4,790,437
Total liabilities and stockholders' equity	$ 13,222,667	$ 12,571,134

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Basis of Presentation

3 Months Ended

Mar. 31, 2012

Basis of Presentation [Abstract]

Basis of Presentation

(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, 2011.

The results of operations for the three months ended March 31, 2012 are not necessarily indicative of the results of a full fiscal year.

The December 31, 2011 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, 2011 included in the Company's Annual Report on Form 10-K.

Certain prior year amounts have been reclassified to conform to the current year presentation.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(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 months ended March 31:

	3 Months Ended
	March 31,
	2012		2011
Data and product costs	$	4,285	$	3,855
Selling, general and administrative expenses		31,523		28,567
	$	35,808	$	32,422

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BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	25,000,000	25,000,000
Common stock, issued (in shares)	7,943,462	7,920,462
Common stock, outstanding (in shares)	7,943,462	7,920,462

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Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2012	May 04, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	CREDITRISKMONITOR COM INC
Entity Central Index Key	0000315958
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 11,723,036
Entity Common Stock, Shares Outstanding		7,943,462
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2012

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STATEMENTS OF INCOME (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
STATEMENTS OF INCOME [Abstract]
Operating revenues	$ 2,645,255	$ 2,439,961
Operating expenses:
Data and product costs	926,745	833,927
Selling, general and administrative expenses	1,597,360	1,345,513
Depreciation and amortization	38,141	41,222
Total operating expenses	2,562,246	2,220,662
Income from operations	83,009	219,299
Other income (expense), net	(2,811)	1,551
Income before income taxes	80,198	220,850
Provision for income taxes	(32,144)	(91,439)
Net income	$ 48,054	$ 129,411
Net income per share of common stock:
Basic (in dollars per share)	$ 0.01	$ 0.02
Diluted (in dollars per share)	$ 0.01	$ 0.02
Weighted average number of common shares outstanding:
Basic (in shares)	7,939,165	7,899,462
Diluted (in shares)	8,216,064	8,363,268

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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income	$ 48,054	$ 129,411
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	38,141	41,222
Deferred income taxes	32,144	85,891
Deferred rent	574	689
Stock-based compensation	35,808	32,422
Unrealized (gain) loss on marketable securities	3,132	(1,100)
Changes in operating assets and liabilities:
Accounts receivable	(310,531)	(201,244)
Other current assets	60,562	92,196
Prepaid and other assets	(31,055)	(31,859)
Deferred revenue	929,484	389,694
Accounts payable	11,802	31,721
Accrued expenses	(429,333)	(539,286)
Net cash provided by operating activities	388,782	29,757
Cash flows from investing activities:
Purchase of property and equipment	(25,850)	(22,126)
Net cash used in investing activities	(25,850)	(22,126)
Cash flows from financing activities:
Proceeds from exercise of stock options	23,000	0
Net cash provided by financing activities	23,000	0
Net increase in cash and cash equivalents	385,932	7,631
Cash and cash equivalents at beginning of period	6,531,204	5,642,568
Cash and cash equivalents at end of period	$ 6,917,136	$ 5,650,199

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Net Income per Share

3 Months Ended

Mar. 31, 2012

Net Income per Share [Abstract]

Net Income per Share

(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
	March 31,
	2012			2011
Weighted average number of common shares outstanding - basic		7,939,165			7,899,462
Potential shares exercisable under stock option plans		463,500			612,500
LESS: Shares which could be repurchased under treasury stock method		(186,601	)		(148,694	)
Weighted average number of common shares outstanding - diluted		8,216,064			8,363,268