Exhibit 99.1
NEWS RELEASE
CONTACT:
CreditRiskMonitor.com, Inc.
Jerry Flum, CEO
(845) 230-3030
info@creditriskmonitor.com
FOR IMMEDIATE RELEASE
CreditRiskMonitor Reports Record Operating Results for 2007
VALLEY COTTAGE, NY—February 27, 2008—CreditRiskMonitor (Symbol: CRMZ) announced that for the year ended December 31, 2007 revenues increased 15% to $4.99 million, net income was $370,000 versus $15,000 last year and net cash flow increased 17% to over $505,000.
Jerry Flum, CEO, said, “2007 continues the positive trend for our company. Our full year operating results are all records – revenue level, income from operations and cash balance. We believe that the troubles in the mortgage related markets will be spreading to the corporate credit/debt markets going forward. It is in these markets that our service is the benchmark for utility and price. During the past year we introduced our new proprietary credit score, the FRISK2 score, to our fundamental service. We plan to continue to improve our service over the coming year, while keeping our prices low.”
CREDITRISKMONITOR.COM, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
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| 2007 |
| 2006 |
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Operating revenues |
| $ | 4,989,177 |
| $ | 4,322,785 |
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Operating expenses: |
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Data and product costs |
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| 1,651,606 |
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| 1,404,182 |
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Selling, general and administrative expenses |
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| 2,953,648 |
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| 2,849,002 |
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Depreciation and amortization |
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| 65,895 |
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| 65,951 |
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Total operating expenses |
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| 4,671,149 |
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| 4,319,135 |
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Income from operations |
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| 318,028 |
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| 3,650 |
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Other income |
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| 93,344 |
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| 68,285 |
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Interest expense |
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| (37,535 | ) |
| (52,416 | ) |
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Income before income taxes |
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| 373,837 |
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| 19,519 |
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Provision for state and local income taxes |
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| 3,606 |
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| 4,922 |
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Net income |
| $ | 370,231 |
| $ | 14,597 |
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Net income per share of common stock: |
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Basic and diluted |
| $ | 0.05 |
| $ | 0.00 |
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CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
DECEMBER 31, 2007 AND 2006
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| 2007 |
| 2006 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 2,973,263 |
| $ | 2,467,520 |
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Accounts receivable, net of allowance of $30,000 |
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| 737,436 |
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| 647,484 |
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Other current assets |
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| 260,657 |
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| 297,267 |
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Total current assets |
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| 3,971,356 |
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| 3,412,271 |
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Property and equipment, net |
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| 149,773 |
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| 131,211 |
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Goodwill |
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| 1,954,460 |
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| 1,954,460 |
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Other assets |
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| 27,753 |
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| 27,753 |
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Total assets |
| $ | 6,103,342 |
| $ | 5,525,695 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Deferred revenue |
| $ | 3,391,339 |
| $ | 2,985,724 |
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Accounts payable |
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| 51,119 |
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| 78,364 |
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Accrued expenses |
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| 348,745 |
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| 415,645 |
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Current portion of long-term debt |
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| 136,141 |
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| 122,870 |
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Current portion of capitalized lease obligations |
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| — |
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| 18,437 |
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Total current liabilities |
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| 3,927,344 |
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| 3,621,040 |
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Long-term debt, net of current portion |
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| 150,799 |
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| 286,940 |
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Other liabilities |
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| 66,422 |
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| 73,392 |
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Total liabilities |
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| 4,144,565 |
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| 3,981,372 |
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Stockholders’ equity: |
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Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued |
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| — |
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| — |
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Common stock, $.01 par value; authorized 25,000,000 shares; issued and outstanding 7,694,462 |
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| 76,944 |
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| 76,944 |
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Additional paid-in capital |
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| 28,221,907 |
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| 28,177,684 |
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Accumulated deficit |
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| (26,340,074 | ) |
| (26,710,305 | ) |
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Total stockholders’ equity |
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| 1,958,777 |
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| 1,544,323 |
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Total liabilities and stockholders’ equity |
| $ | 6,103,342 |
| $ | 5,525,695 |
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CreditRiskMonitor (http://www.crmz.com) is an Internet-based publisher of financial information, designed to save time for busy corporate credit professionals that competes with Dun & Bradstreet, Equifax and Experian.
Safe Harbor Statement: Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others,
those risks, uncertainties and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports.