EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1

NEWS RELEASE
 
CONTACT:
CreditRiskMonitor.com, Inc.
Jerry Flum, CEO
(845) 230-3030
ir@creditriskmonitor.com

FOR IMMEDIATE RELEASE

CreditRiskMonitor Announces 2Q Results

VALLEY COTTAGE, NY—August 6, 2019—CreditRiskMonitor (OTCQX: CRMZ) reported that revenues were $3.57 million and $7.06 million for the 3 and 6 months ended June 30, 2019, respectively, an increase of 2.6% and 3.1% over the comparable periods last year. For the same periods in 2019, loss from operations was approximately ($56,700) and ($248,300), respectively, versus approximately ($128,400) and ($475,600) for the comparable 2018 periods. Cash and cash equivalents at the end of the six-month period increased $336,300 to $8.40 million versus the 2018 year-end balance of $8.07 million.

Jerry Flum, CEO, said, “While our sales growth remains sluggish in the present economic environment as the sales cycle has lengthened, our loss from operations for the 3 and 6 months ended June 30, 2019 decreased from the same periods last year and continued to show improvement between the first and second quarters of 2019, reflecting continued positive results from our investment in infrastructure and new data. We continue to remain debt free, thus providing us with financial flexibility.”

CREDITRISKMONITOR.COM, INC.
STATEMENTS OF OPERATIONS
FOR THE 3 AND 6 MONTHS ENDED JUNE 30, 2019 AND 2018
(Unaudited)

   
3 Months Ended
June 30,
    
6 Months Ended
June 30,
  
   
2019
    
2018
    
2019
    
2018
  
                         
Operating revenues
  
$
3,567,531
    
$
3,477,823
    
$
7,063,340
    
$
6,849,747
  
                                 
Operating expenses:
                                
Data and product costs
    
1,426,497
      
1,413,694
      
2,895,490
      
2,897,685
  
Selling, general and administrative expenses
    
2,147,733
      
2,150,490
      
4,315,144
      
4,338,614
  
Depreciation and amortization
    
50,045
      
42,039
      
101,034
      
89,087
  
                                 
Total operating expenses
    
3,624,275
      
3,606,223
      
7,311,668
      
7,325,386
  
                                 
Loss from operations
    
(56,744
)
    
(128,400
)
    
(248,328
)
    
(475,639
)
Other income, net
    
43,209
      
30,602
      
84,099
      
51,644
  
                                 
Loss before income taxes
    
(13,535
)
    
(97,798
)
    
(164,229
)
    
(423,995
)
Benefit from income taxes
    
2,005
      
10,961
      
16,231
      
81,722
  
                                 
Net loss
  
$
(11,530
)
  
$
(86,837
)
  
$
(147,998
)
  
$
(342,273
)
                                 
Net loss per share:
                                
Basic and diluted
  
$
(0.00
)
  
$
(0.01
)
  
$
(0.01
)
  
$
(0.03
)

CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
JUNE 30, 2019 AND DECEMBER 31, 2018

   
June 30,
2019
    
December 31,
2018
  
   
(Unaudited)
        
             
ASSETS
            
Current assets:
            
Cash and cash equivalents
  
$
8,403,179
    
$
8,066,899
  
Accounts receivable, net of allowance
    
1,928,960
      
2,454,585
  
Other current assets
    
832,965
      
561,861
  
                 
Total current assets
    
11,165,104
      
11,083,345
  
                 
Property and equipment, net
    
554,820
      
543,762
  
Operating lease right-of-use asset
    
2,469,025
      
--
  
Goodwill
    
1,954,460
      
1,954,460
  
Other assets
    
31,607
      
35,613
  
                 
Total assets
  
$
16,175,016
    
$
13,617,180
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Unexpired subscription revenue
  
$
8,860,837
    
$
8,560,316
  
Accounts payable
    
126,553
      
94,767
  
Current portion of operating lease liability
    
140,217
      
--
  
Accrued expenses
    
1,131,349
      
1,311,218
  
                 
Total current liabilities
    
10,258,956
      
9,966,301
  
                 
Deferred taxes on income, net
    
473,194
      
490,381
  
Unexpired subscription revenue, less current portion
    
229,524
      
178,129
  
Operating lease liability, less current portion
    
2,375,451
      
--
  
Other liabilities
    
--
      
24,537
  
                 
Total liabilities
    
13,337,125
      
10,659,348
  
                 
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 10,722,401 shares
    
107,224
      
107,224
  
Additional paid-in capital
    
29,678,817
      
29,650,760
  
Accumulated deficit
    
(26,948,150
)
    
(26,800,152
)
                 
Total stockholders’ equity
    
2,837,891
      
2,957,832
  
 
                
Total liabilities and stockholders’ equity
  
$
16,175,016
    
$
13,617,180
  

Overview

CreditRiskMonitor (http://www.crmz.com) is a web-based publisher of financial information that helps corporate credit and procurement professionals stay ahead of business financial risk quickly, accurately and cost effectively. The service offers comprehensive commercial credit reports and financial risk analysis covering public companies worldwide. Unlike other commercial credit bureaus, such as Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies.

The Company also collects a significant amount of trade receivable data on both public and a select group of private companies every month, to help subscribers determine payment performance.

Over 35% of the Fortune 1000 plus over 1,000 other large companies worldwide depend on CreditRiskMonitor’s timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, crowdsourcing of risk professionals as well as the Company’s proprietary FRISK® and PAYCE® scores.

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. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.