NEWS RELEASE CONTACT: Jerry Flum, Chairman & CEO (516) 610-4000, ext. 321 jerryf@creditriskmonitor.comFOR IMMEDIATE RELEASE CreditRiskMonitor.com's Operating Revenues for Fiscal 1999 Up 56% FLORAL PARK, NY—February 11, 2000--CreditRiskMonitor.com, Inc. (Symbol: CRMZ) announced that operating revenues for the 12 months ended December 31, 1999 were $1,259,019, an increase of 56% over 1998's pro forma 12 month operating revenues of $809,563. Fourth quarter operating revenues were $363,524, an increase of 48% from 1998's pro forma fourth quarter operating revenues of $245,812. Jerry Flum, chairman and CEO, indicated that the Company is currently running at an annual revenue rate of approximately $2 million. In January 1999, the Company acquired the assets of the CreditRisk Monitor division of Market Guide Inc. and commenced operations. The pro forma sales are what the Company would have reported if the acquisition had been made as of January 1, 1998. The Company reported a net loss of $1,252,698, or $0.23 per share, for the year. If the acquisition had been made as of January 1, 1998, the Company would have reported a fiscal 1998 net loss of $1,364,651, or $0.26 per share, on a pro forma basis. Included in the net loss for fiscal 1999 and the pro forma fiscal 1998 results is a write-off of $134,076, representing a portion of the purchase price paid for the CreditRisk Monitor assets allocated to in-process research and development that has no probable future use. CreditRiskMonitor.com is an Internet-based financial information analysis and news service designed for corporate credit professionals whose portal web site is www.my.creditriskmonitor.com. 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. |
CREDITRISKMONITOR.COM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998 (Unaudited) 1998 1999 Historical Pro Forma Operating revenues $ 1,259,019 $ -- $ 809,563 Operating expenses: Data and product costs 686,517 -- 150,898 Selling, general and administrative expenses 1,504,829 28,216 1,642,516 Depreciation and amortization 167,250 -- 169,606 Total operating expenses 2,358,596 28,216 1,963,020 Loss from operations (1,099,577) (28,216) (1,153,457) Other income 66,244 7,702 7,702 Interest expense (82,153) -- (81,895) Write-off of intangible assets (134,076) -- (134,076) Loss on sale of fixed assets (3,191) -- -- Loss before income taxes (1,252,753) (20,514) (1,361,726) Provision (benefit) for income taxes (55) 2,925 2,925 Net loss $(1,252,698) $ (23,439) $ (1,364,651) Net loss per share of common stock: Basic $ (0.23) $ (0.06) $ (0.26) Diluted $ (0.23) $ (0.06) $ (0.26) Weighted average number of common shares outstanding: Basic 5,341,129 399,830 5,300,129 Diluted 5,341,129 399,830 5,300,129 CREDITRISKMONITOR.COM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 1999 AND 1998 (Unaudited) 1999 1998 ASSETS Current assets: Cash and cash equivalents $ 1,421,885 $ 13,400 Accounts receivable, net of allowance of $32,500 575,048 -- Purchase option -- 115,000 Other 15,798 -- Total current assets 2,012,731 128,400 Property and equipment, net of accumulated depreciation 316,999 -- Goodwill, net of accumulated amortization 2,183,275 -- Other assets 21,075 -- Total assets $ 4,534,080 $ 128,400 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Unearned subscription income $ 1,263,145 $ -- Accrued liabilities 55,598 86,364 Accounts payable 23,388 5,908 Current portion of capitalized lease obligation 4,070 -- Other 41,768 5,500 Total current liabilities 1,387,969 97,772 Long-term debt, net of current portion: Secured promissory note 832,357 -- Expense promissory note 106,087 -- Capitalized lease obligation 19,990 -- 958,434 -- Deferred compensation 86,250 -- Deferred rent payable 467 -- Total liabilities 2,433,120 97,772 Redeemable convertible voting senior preferred stock, $.01 par value (stated at liquidation value of $1.00 per share) Authorized 1,100,000 shares; issued and outstanding 0 and 1,100,000 shares, respectively -- 1,100,000 Stockholders' equity (deficit) Common stock, $.01 par value Authorized 25,000,000 shares; issued and outstanding 5,341,129 and 399,830 shares, respectively 53,411 3,998 Additional paid-in capital 27,192,567 22,818,930 Accumulated deficit (25,145,018) (23,892,300) Total stockholders' equity (deficit) 2,100,960 (1,069,372) Total liabilities and stockholders' equity (deficit) $ 4,534,080 $ 128,400 |