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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
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