8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 16, 2020

CreditRiskMonitor.com, Inc.

(Exact name of registrant as specified in its charter)

Nevada	1-8601	36-2972588
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

704 Executive Boulevard

Valley Cottage, NY 10989

(Address of principal executive offices, including zip code)

(845) 230-3000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01	CRMZ	OTC Markets OTCQX U.S.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On March 16, 2020, CreditRiskMonitor.com, Inc. issued a press release relating to, among other things, its financial results for the year ended December 31, 2019. This press release is filed as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits 

Exhibit No.	Description
99.1	Press Release dated March 16, 2020.

SIGNATURE

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 hereunto duly authorized.

	CREDITRISKMONITOR.COM, INC.
Date: March 16, 2020	By:	/s/	Lawrence Fensterstock
			Lawrence Fensterstock
			Chief Financial Officer
			(Principal Financial and
			Accounting Officer)

EX-99.1

Exhibit 99.1

NEWS RELEASE

CONTACT:

CreditRiskMonitor.com, Inc.

Jerry Flum, CEO

(845) 230-3030

ir@creditriskmonitor.com

FOR IMMEDIATE RELEASE

CreditRiskMonitor 2019 Operating Results

VALLEY COTTAGE, NY—March 16, 2020—CreditRiskMonitor (OTCQX: CRMZ) reported that revenues for the year ended December 31, 2019 increased to $14.50 million up 4% from $13.89 million in 2018. The Company reported pre-tax income of approximately $343,100 for 2019 compared to a pre-tax loss of approximately $192,200 in the prior year. Net income for 2019 was approximately $217,600 compared to a net loss of approximately $179,300 in the prior year. Cash and cash equivalents at the end of 2019 increased to $8.28 million from the 2018 year-end balance of $8.07 million.

Jerry Flum, CEO, said, “I’m happy to report that we reversed the losses incurred last year while continuing to add new content into our product. We remain debt-free and our strong balance sheet provides us with financial flexibility should investment opportunities present themselves. We continue to invest in our business as we wait for the corporate responses to the super difficult health and financial environment. Until there is a definitive resolution of the current worldwide pandemic situation, we expect a slowdown in corporate decision making which may negatively impact our ability to sign new business.”

CREDITRISKMONITOR.COM, INC.

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

	2019			2018
Operating revenues	$	14,501,173		$	13,891,004
Operating expenses:
Data and product costs		5,759,660			5,764,535
Selling, general and administrative expenses		8,347,083			8,257,619
Depreciation and amortization		207,224			190,156
Total operating expenses		14,313,967			14,212,310
Income (loss) from operations		187,206			(321,306	)
Other income, net		155,852			129,111
Income (loss) before income taxes		343,058			(192,195	)
Benefit from (provision for) income taxes		(125,464	)		12,863
Net income (loss)	$	217,594		$	(179,332	)
Net income (loss) per share of common stock:
Basic and diluted	$	0.02		$	(0.02	)

CREDITRISKMONITOR.COM, INC.

BALANCE SHEETS

DECEMBER 31, 2019 AND 2018

	2019			2018
ASSETS
Current assets:
Cash and cash equivalents	$	8,275,836		$	8,066,899
Accounts receivable, net of allowance of $30,000		2,287,921			2,454,585
Other current assets		549,821			561,861
Total current assets		11,113,578			11,083,345
Property and equipment, net		477,973			543,762
Operating lease right-of-use asset		2,380,974			--
Goodwill		1,954,460			1,954,460
Other assets		35,723			35,613
Total assets	$	15,962,708		$	13,617,180
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Unexpired subscription revenue	$	8,651,843		$	8,560,316
Accounts payable		137,500			94,767
Current portion of operating lease liability		147,229			--
Accrued expenses		1,344,550			1,311,218
Total current liabilities		10,281,122			9,966,301
Deferred taxes on income, net		521,765			490,381
Unexpired subscription revenue, less current portion		166,169			178,129
Operating lease liability, less current portion		2,299,433			--
Other liabilities		--			24,537
Total liabilities		13,268,489			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		29,705,673			29,650,760
Accumulated deficit		(27,118,678	)		(26,800,152	)
Total stockholders’ equity		2,694,219			2,957,832
Total liabilities and stockholders’ equity	$	15,962,708		$	13,617,180

About CreditRiskMonitor

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.