U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 FORM 10-KSB xANNUAL REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE 
ACT OF 1934 For the fiscal year ended: December 31, 2007 oTRANSITION REPORT
UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 For the transition period from __________ to
__________ Commission File Number 1-8601 CREDITRISKMONITOR.COM, INC.(Name of small business issuer in its
charter)Nevada

36-2972588(State or other jurisdiction of
  incorporation or organization)

(I.R.S. Employer
  Identification No.)704 Executive Boulevard, Suite AValley Cottage, New York

10989(Address of Principal Executive
offices)

(Zip Code)Issuers
  telephone number: (845) 230-3000Securities
  registered under Section 12(b) of the Act:Title of each class
  None
Name of each
  exchange on which registeredSecurities
  registered under Section 12(g) of the Act:Common Stock $.01 Par Value(Title of Class) Check whether
the issuer is not required to file reports pursuant to Section 13 or 15(d) of
the Exchange Act. o Check whether
the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of
the Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes x   No o Check if there
is no disclosure of delinquent filers in response to Item 405 of Regulation S-B
contained in this form, and no disclosure will be contained, to the best of
registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. o Indicate by a
check mark whether the registrant is a shell company (as defined in Rule 12b-2
of the Exchange Act). Yes o   No x State issuers
revenues for the most recent fiscal year. $4,989,177 The aggregate
market value of the Registrants common stock held by non-affiliates as of
March 6, 2008 was $4,404,122. The Companys common stock is traded on the OTC
Electronic Bulletin Board. There were
7,694,462 shares of common stock $.01 par value outstanding as of March 6,
2008. Documents
incorporated by reference: None Transitional
Small Business Disclosure Format (check one): Yes o   No x    PART I

ITEM 1.
BUSINESSIn
addition to historical information, the following discussion of the Companys
business contains forward-looking statements. These forward-looking statements
involve risks, uncertainties and assumptions. The actual results may differ
materially from those anticipated in these forward-looking statements as a
result of many factors, including but not limited to, those discussed in the
sections in this Annual Report on Form 10-KSB entitled The CreditRiskMonitor
Business, The Companys Goals, Marketing and Sales, Managements
Discussion and Analysis of Financial Condition and Results of Operations, and
Risks and Other Considerations. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect managements
opinions only as of the date hereof. CreditRiskMonitor.com, Inc. (the Company
or CRMZ) undertakes no obligation to revise or publicly release the results
of any revision to these forward-looking statements. Readers should carefully
review the risk factors described in this document as well as in other
documents the Company files from time to time with the Securities and Exchange
Commission, including the Quarterly Reports on Form 10-QSB to be filed by the
Company in fiscal year 2008.

Overview

CRMZ
was organized in Nevada in February 1977 and was engaged in the development and
sale of nutritional food products from 1982 until October 22, 1993, when it
sold substantially all of its assets (the Asset Sale), as previously
reported. In September 1998, the Company acquired an option (the Option) to
purchase the assets of the CreditRisk Monitor credit information service (CM
Service) from Market Guide Inc. (MGI). The Company exercised the Option on
December 29, 1998 and completed the purchase of the CM Service assets effective
January 19, 1999. The assets included customer contracts, receivables,
equipment, software and intangibles. Following the closing of the CM Service
purchase, the Company commenced doing business under the name CreditRiskMonitor.com.

The CreditRiskMonitor Business

CRMZ
(see our website at www.crmz.com) is an Internet-based publisher of financial
information, designed to save time for busy corporate credit professionals,
which competes with Dun & Bradstreet, Inc. (D&BTM). The
service publishes comprehensive commercial credit reports covering public
companies worldwide and includes detailed financial statements, ratio analysis
and trend reports, peer analyses, Altman Z default scores, company background
information, plus Moodys Investors Service (Moodys) and Standard &
Poors (S&P) ratings. It also includes trade payment data and public
filings (i.e., suits, liens, judgments and bankruptcy information) on millions
of U.S. companies. The service also provides continuous news monitoring that
keeps subscribers up to date on events affecting the creditworthiness of
companies, including financial statement updates,

1

SEC filings, Moodys and
S&P rating changes, credit-relevant news stories and press releases.

Beginning
in 2007, the Company added an interactive service for credit managers to use in
managing recommended credit line limits for their customers, in light of
changes in the companies financial strength. This service monitors daily changes
in a customized recommended credit limit for each customer and generates alert
messages to subscribers as requested, so they can take immediate action when a
customers circumstances change. Mid-year 2007, the Company added its new
proprietary credit score, the FRISK2 score, to its Fundamental Service. This
new proprietary score predicts corporate default within the next 12 months, and
provides clients with a fast, consistent method for identifying those companies
at greatest risk of default. The FRISK2 score is updated daily, based on the
latest information available to the Company, and is derived from a statistical
model back-tested on 10,000 companies over a multi-year period.

The
overall focus of the Companys services is on facilitating the extension of
trade credit from one business to another. The Company is not a consumer
reporting agency as defined by the Fair Credit Reporting Act, as it is not
involved in the communication of information bearing on consumer credit.

In
a business-to-business transaction, for example the purchase and sale of
$20,000 of merchandise, the seller usually will ship before the buyer pays 
this is an extension of trade credit by the seller. The terms of trade credit
could be 2%-10 days, net 30 which means the customer is entitled to a 2%
deduction from the price if the customer makes payment within 10 days; but if
not, the customer must make payment in full within 30 days. The seller takes a
financial risk extending this credit, referred to as trade credit risk. The
buyer may pay late, causing the seller to incur increased borrowing costs; the
seller may incur extra costs in attempting to collect the $20,000; or the buyer
may never pay the full $20,000. Amounts unlikely to be repaid are called bad
debt. If buyers fail to pay, the seller can suffer substantial losses (e.g.,
assuming the seller averages a 10% pre-tax margin it will take about $10 of
sales to offset each $1 of bad debt).

CRMZs
service is usually purchased by a seller to review the risks of extending trade
credit to its customers. CRMZ believes that, with the downsizing of
corporations and the related reductions in credit departmental budgets and
personnel, corporate credit professionals have to do more with less. It is
notable that trade credit decisions are often made under intense time pressure.
Simultaneously, the Company believes, there has been an explosive growth in the
volume of data about businesses. Credit professionals are often faced with an
overwhelming amount of available data concerning important customers, while the
time for research and analysis is severely limited.

CRMZs
service is the result of managements experience in the commercial credit
industry and on-going research with respect to corporate credit department
information needs. This has enabled CRMZ to satisfy the credit professions
need for a timely, efficient, low cost

2

credit information service.
CRMZ publishes and sells the following commercial credit analysis services to corporate
credit managers:

(1)
An annual fixed-price
  service (the Fundamental Service) with unlimited usage and coverage of
  public companies, featuring multi-period spreads of financial reports and
  ratio analysis, as well as up-to-date financial news screened specifically
  for usefulness in credit evaluation. Another feature of the service is
  notification and delivery of this news via email, concerning only companies
  of interest to the subscriber. This service is supplemented with trade
  receivable data contributed mainly by CRMZs subscribers, as well as U.S.
  public-record filing information (i.e., suits, liens, judgments and
  bankruptcy information) covering millions of public and private U.S.
  companies. Midyear 2007, the Company added its proprietary new FRISK2 score,
  which saves clients time by quickly identifying which companies are at
  greatest risk of default. At the end of 2007, the Fundamental Service covered
  over 40,000 public companies worldwide, totaling approximately $38 trillion
  in corporate revenue. Subscribers may opt, at lower prices, for limited
  regional coverage: North American Service for coverage of just U.S.,
  Canadian, Mexican and Caribbean companies.(2)
In February 2007, the
  Company announced its innovative new Credit Limit Service, sold as an annual
  subscription. The Credit Limit Service offers subscribers the ability to
  calculate and monitor credit line limit recommendations. These calculations
  are based on a sophisticated proprietary statistical model of default risk. The
  calculations are based, in part, on the subscribers own financial situation
  and relationship with each subject company. The resulting credit limit
  recommendations are fast, consistent and objective, based on proven risk
  analysis techniques, and customized to the subscribers unique situation.
  This Credit Limit Service is fully integrated with the Fundamental Service,
  which provides analytical depth to subscribers when questions arise or more
  analysis is needed. It is only sold in conjunction with the Fundamental
  Service, for an additional fee. The fee is based, in part, on the number of
  subject companies evaluated during the annual subscription period, and
  includes monitoring.(3)
Single credit reports on
  the over 40,000 companies covered in item (1) above. These reports are sold
  mainly via credit card and obtained via the Internet. Email alerts are not
  available with this single-report service.(4)
Individual credit reports
  on approximately 20 million foreign public and private companies. These
  reports are purchased by CRMZ through affiliations with third-party suppliers
  and sold to CRMZ subscribers.There
is little hard data on the size of CRMZs market. The U.S. National Association
of Credit Management has about 30,000 members, but some industry observers
believe the number of U.S. credit managers and other personnel performing this
function is substantially greater. In addition, there are numerous U.S. based
companies that do not have a full-time credit function but still require credit
information.

3

Furthermore, a market exists
outside of the U.S. for information on U.S. and foreign companies. Finally, a
small fraction of the Companys customers use the information for purposes
outside of the credit function, including procurement and strategic
planning/competitive analysis.

The
viability and potential of CRMZs business is made possible by the following
characteristics:


Low
  price. The prices
  of CRMZs services are low compared to the subscribers possible loss from
  not getting paid and low compared to the cost of most competitive products
  (for example, see the Price Comparison chart on our website).
Non-cyclical. As economic growth slows, general
  corporate credit risk usually increases and the credit managers function
  rises in importance and complexity. Additionally, products that allow credit
  managers to perform their jobs more efficiently and cost effectively,
  compared to competitive services, should gain market share in most business
  environments and especially during a downturn. In a contracting business
  environment, many companies face increasing price competition which should
  accelerate their shift to lower cost technologies and providers, such as
  CRMZ. CRMZs business and revenues therefore may continue to grow as world
  economic growth slows or declines. Over the last ten years the issuance of
  corporate junk bonds and other debt by public companies and public debt by
  private companies (LBOs, etc.), and the development of credit instruments to
  hedge default and interest rate risk (i.e., credit derivatives) has increased
  dramatically. It is difficult to get a complete or totally accurate number of
  the totals, but it appears the notional values of these various instruments
  may be in the range of $25-30 trillion. To put this in perspective, in 2007
  the U.S. Gross National Product (GNP) was approximately $14 trillion, and
  the market value of all U.S. public company equity was approximately $17
  trillion. Thus, U.S. public companies and private companies with public debt
  have a looming vulnerability to business cycle contraction and the attendant
  market risks for interest rates and stock markets. This dramatically
  increases the exposure and complexity of extending commercial trade credit
  and puts a premium on the speed and analysis of CRMZs service.
Recurring
  revenue stream. The
  recurring annual revenue stream of its subscription fee model gives the
  Company stability not found in a one-time sale product-based company.
Profit
  multiplier. Some of
  the Companys basic costs are being reduced. On a broad generic basis, the
  prices of computer hardware, software and telecommunications have been coming
  down for all buyers, including CRMZ. In addition, CRMZ has automated a
  significant amount of the processes used to create and deliver its service;
  therefore, its production costs, apart from the development cost of enhancing
  and upgrading the Companys website, are relatively stable over a wide range
  of increasing4

revenue. Offsetting these
  cost reductions is the cost of increasing the data content of CRMZs services
  if the Company chooses to increase content and not raise its prices to cover
  these additional costs.
Self
  financing. CRMZs
  business has no inventory, manufacturing or warehouse facilities, and payment
  for the subscription service is made early in the subscription cycle. Thus,
  the Companys business is characterized by low capital-intensity, and yet it
  is a business capable of generating high margins and sufficient positive cash
  flow to grow the business organically with little need for external capital.
  In addition, the Company has approximately $4.6 million of net operating loss
  carryforwards which may offset future tax liability and thus positively
  impact cash flow. (See MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS - Financial Condition, Liquidity and
  Capital Resources; and Net Operating Loss Carryforwards.)
Management.CRMZ has in-place
  an experienced management team with proven talent in business credit
  evaluation systems and Internet development.The
  Companys Goals
Growth in
  U.S. market share.
  Faced with a dominant U.S. competitor, D&B, as well as other several
  larger competitors, the Companys primary goal is to gain market share. The
  Company believes that many potential customers are unaware of its service,
  while others are aware of but have not evaluated its service.
International
  penetration.
  Foreign companies doing business in the U.S. may have the same need as
  domestic companies for CRMZs credit analysis of U.S. companies.
  Internationally, the Internet provides a mechanism for rapid and inexpensive
  marketing and distribution of CRMZs service.
Broaden
  the services supplied.
  Revenue per subscriber should increase over time as the Company adds
  functionality and content, which for example it did in 2007 with the
  introduction of its Credit Limit Service and also with an increase in
  coverage of non-U.S. companies. Also, revenue per client should increase over
  time as the Company sells additional passwords to existing clients.
Lowest
  cost provider.
  CRMZs sourcing, analysis and preparation of data into a usable form is
  highly automated. CRMZ delivers all of its information to customers via the
  Internet and there is continuous automation between the sourcing of data and
  delivery of a company credit report to a subscriber. Because of this
  automation, CRMZs production costs are relatively stable over a wide range
  of increasing revenue. Management believes CRMZs cost structure is one of the lowest in its industry.5


High
  margins and return on investment. The Company foresees declining unit costs in some important expense
  areas, such as computer and communication costs, which should increase net
  profits from its subscription income stream. The Company believes that the
  advent of Internet delivery of telephone calls will further reduce the cost
  per phone call over the next several years, and computer costs per
  transaction should also continue to decline. The Company has lower sales
  expenses for customer renewals than for new sales, and the Company expects
  that its renewal revenue will grow to be a larger share of total revenue each
  year. All these naturally occurring unit cost reductions will be in addition
  to the cost reductions achieved through servicing more accounts over the
  Companys in-place fixed costs.Marketing and Sales

To
gain market share for the Companys service, it will continue to use the
Internet (at our website www.crmz.com) as the primary mechanism for
demonstrating and distributing its service. To inform potential subscribers
about its service, CRMZ uses a combination of telephone sales, Internet
demonstration, direct mail, trade show representation and speaking engagements
before credit groups and associations.

Value Proposition

The
Companys fundamental value proposition is that it creates and sells
high quality commercial credit reports that save busy credit managers time, at
a cost significantly below that of reports from the leading provider (price
comparison as of January 30, 2008). Because D&B has the largest share of
the commercial credit market, their flagship product, the Business Information
Report (BIR), is the standard by which that market measures both quality and
price. The Companys research shows that its customers overwhelmingly agree
that CreditRiskMonitor saves them time, helps them to make better credit
decisions, and represents a significant value for the price paid compared to
competitive services.

The
operational strategy CRMZ follows to deliver on its value proposition is
straightforward. CRMZ became (and remains) one of the industrys lowest cost
producers of high quality commercial credit information by continuously
collecting data from a wide variety of sources and employing sophisticated
proprietary computer algorithms to process that data into an extensive database
of valuable reports on companies. Highly automated operations add to
reliability and consistency, while limiting costs. The Company employs a small
number of analysts who selectively review data at critical points in its
process to further enhance the quality of its products and their relevance to
credit professionals.

CRMZ
employs several different selling strategies to deliver this value to
different customer segments:

6


Credit professionals need
  to save time, when analyzing their most important customers, and the CRMZ
  service provides this critical benefit. CRMZ believes that its reports and
  monitoring of public companies, having aggregate revenues of approximately
  $37 billion, are superior in this way to what is offered by D&B. The CRMZ
  service provides financial information in greater depth and better analytical
  efficiency. It also includes timely email alerts enabling credit
  professionals to easily stay on top of financial developments at their
  customers, without the clutter of non-financial news prevalent at other news
  services. Finally, the Moodys and S&P ratings, and the Altman Z and
  proprietary FRISK2 scores offered by the service enable further efficiency by
  focusing attention on only those companies showing financial weakness.
The Companys customers
  typically have contracts with D&B. Traditionally, D&B sells them
  prepaid units and/or reports (units) on an annual basis, which they can
  then use to buy D&B products throughout the year. The price of each unit
  depends on the number of units being purchased upfront, with the resulting
  price of a domestic U.S. BIR generally ranging between $40 and $60. If a
  customer has unused units at the end of the year, D&B may allow it to
  carry a percentage of them forward, if the customer renews for another year
  for at least the same number of units as the previous year. All other unused
  units may be forfeited. For these customers, CRMZs simple unlimited usage
  fixed price annual subscription represents an opportunity to save money by
  reducing the customers D&B usage. The best practice that CRMZ recommends
  to its subscription customers is to always search CRMZs database first
  (which does not incur any incremental expense to them) and to save their
  expensive D&B units for decisions concerning those privately-held
  businesses where CRMZ may have little or no information. According to the
  Companys research, the great majority of customers report saving money as a
  result of using the CRMZ service. In 2005, the Company became aware that
  D&B had also begun selling some part of its service on a fixed-price
  basis, and in 2006 D&B expanded this practice under the trade name
  DNBi. It appears that these contracts offer a fixed price for usage of
  D&B information within a wide range of amounts, the upper end of which is
  a multiple of the customers current usage. D&B attempts to maintain or
  increase its total annual charges to each DNBi customer, and these charges
  are generally many times more than comparable CRMZ fees. At the same time,
  D&B attempts to bind its customers to multi-year agreements, so as to
  blunt the customers ability to reduce its D&B costs over several years.
  The Company cannot predict the effectiveness of D&Bs strategy much less
  whether D&B will find this DNBi pricing is even sustainable over multiple
  years, while attempting to continuously increase its revenues. To date, the
  tactic has not significantly diminished the Companys ability to win new
  customers.7


The Company estimates that
  only a small percentage of all credit-related business
  transactions are currently supported by objective third party credit
  information. This is not surprising, given the high cost of commercial credit
  reports from D&B and other vendors. CRMZ breaks that model by eliminating
  the incremental cost of a credit report. CRMZs fixed price, unlimited usage
  annual subscription enables customers to employ up to date, objective credit
  information in many more transactions than was economically feasible before.
  Customers can make better credit decisions with no increase in costs.
It is expected that
  compliance with the Sarbanes-Oxley Act of 2002 will require companies to
  adopt more systematic processes to review trade credit and accounts
  receivable risks. In-depth and frequent review of risks concentrated in the
  largest customer companies, many of which are public companies covered by
  CRMZ, is a common practice that the Company expects to become even more
  prevalent.
For low-volume customers,
  CRMZ sells single commercial credit reports for a flat price of $49.95 per
  report, using credit card transactions via the Internet. Although D&B
  also sells single reports on the Internet, they impose a complicated pricing
  schedule, in which the price of a specific company report depends on both the
  customers home country and the home country of the company about which they
  are inquiring. This pricing schedule includes more than 30 different price
  points for the D&B Business Information Report alone, ranging from $80 to
  $570 for this flagship report. This competitors approach is apparently
  designed to protect its legacy revenue streams from the pre-Internet era,
  when charging large cross-border premiums could be justified to some extent
  by the increased production costs of producing and delivering reports across
  boundaries. In contrast, CRMZ was designed from the ground up to be a worldwide
  provider of commercial credit reports over the Internet, and is not similarly
  constrained by legacy systems. Consequently, CRMZs value advantage is even
  more apparent when customers compare the costs of cross-border report
  purchases.Net Operating Loss Carryforwards

At
December 31, 2007, the Company had net operating loss (NOL) carryforwards
aggregating approximately $4.6 million, expiring in varying amounts over the
next nineteen (19) years, which, to the extent available under the Internal
Revenue Code of 1986, as amended (the Code), may be used to minimize the
Companys liability for taxes on future taxable income of the Company, if any.

Section
382 of the Code provides limits on the amount of a companys NOL carryforwards
which can be applied against its earnings after an ownership change occurs.
Generally, such a limit is determined, with respect to the amount of NOL
carryforward to which the limit applies, by multiplying the companys value at
the time of the ownership change by the published long-term tax exempt interest
rate. The resulting amount is the maximum that can be offset by NOL carryforwards in any one
year if an ownership change has occurred.

8

An
ownership change occurs if there has been an owner shift  a more than 50
percentage point increase in stock ownership involving 5-percent shareholders
over the lowest percentage of stock of the loss corporation owned by such
shareholders at any time during the testing period (generally, the prior 3
years). For this purpose, in general, shareholders that are not 5-percent
shareholders are aggregated and treated as a single 5-percent shareholder.

Employees

As
of March 6, 2008, the Company had 43 full-time employees. None of the Companys
employees are covered by a collective bargaining agreement. The Company
believes its relations with its employees to be satisfactory and has suffered
no interruption in operations.

The
Company established a 401(k) Plan covering all employees effective January 1,
2000 that provides for discretionary Company contributions. The Company has no
other retirement, pension, profit sharing or similar program in effect for its
employees. The Company adopted a stock option plan in 1998 that covers its employees.

ITEM 2.
PROPERTY.The
Company does not own any real property. The Companys principal office is
located in approximately 7,690 square feet of leased space in an industrial
warehouse complex located in Valley Cottage, New York. The lease expires on
July 31, 2009 and provides for a monthly cost of $8,394 during the current year
and increases of 3% per annum in subsequent years, plus an allocated portion of
real estate taxes, insurance and common area maintenance.

ITEM 3.
LEGAL
  PROCEEDINGS.Neither
the Company nor its property is a party to or the subject of a pending legal
proceeding.

ITEM 4.
SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS.No
matters were submitted to a vote of security holders during the fourth quarter
of the Companys fiscal year ended December 31, 2007, either through the
solicitation of proxies or otherwise.

9

PART II

ITEM 5.
MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL
 BUSINESS ISSUER PURHASES OF EQUITY SECURITIES.The
Companys Common Stock trades in the over-the-counter market Bulletin Board
Service under the symbol CRMZ. The following table sets forth the high and low
closing bid quotations reported on the over-the-counter market Bulletin Board
Service for each calendar quarter of 2006 and 2007. These quotations reflect
inter-dealer prices without retail mark-up, mark-down or commission and do not
necessarily represent actual transactions.

High Bid

Low Bid2006First
 Quarter


$
1.70



$
1.05Second
 Quarter


$
1.75



$
1.35Third
 Quarter


$
1.35



$
0.60Fourth
 Quarter


$
2.95



$
0.602007First
 Quarter


$
2.70



$
1.20Second
 Quarter


$
2.50



$
1.75Third
 Quarter


$
2.50



$
2.32Fourth
 Quarter


$
2.60



$
1.25On
March 6, 2008, there were approximately 318 registered holders of the Companys
Common Stock. This number does not reflect the number of individuals or
institutional investors holding stock in nominee name through banks, brokerage
firms, and others.

The
Company has not paid any cash dividends on its Common Stock and does not
anticipate paying any cash dividends in the foreseeable future.

The
Company did not repurchase any of its common stock during the fourth quarter of
2007.

ITEM 6.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
 RESULTS OF OPERATIONS.Financial Condition, Liquidity and Capital
Resources

At
December 31, 2007, the Company had cash and cash equivalents of $2.97 million
compared to $2.47 million at December 31, 2006. The Company had working capital
(i.e., total current assets in excess of total current liabilities) of
approximately $44,000 at December 31, 2007 compared to a working capital
deficit of approximately $209,000 at December 31, 2006. The Companys cash ratio
(which measures a companys ability to pay its current bills and is computed by
dividing cash and cash equivalents by total current liabilities) improved from
0.68 at December 31, 2006 to 0.76 at December 31, 2007 and its current ratio
(which measures a companys ability to meet its current obligations and

10

is computed by
dividing total current assets by total current liabilities) went from 0.94 at
December 31, 2006 to 1.01 at December 31, 2007. Additionally, the main
component of current liabilities at December 31, 2007 is deferred revenue of
$3.39 million, which should not require significant future cash outlay other
than the cost of preparation and delivery of the applicable commercial credit
reports which cost much less than the deferred revenue shown. The deferred
revenue is recognized as income over the subscription term, which approximates
twelve months. The Company has no bank lines of credit or other currently
available credit sources.

The
Company believes that it will have sufficient resources to meet its working
capital and capital expenditure needs, including debt service, for the
foreseeable future.

As
described more fully in Notes 7 and 9 of the Notes to Financial Statements, at
December 31, 2007 the Company had certain cash obligations, which are due as
follows:

Total

Less than
 1 Year

1-3 Years

4-5 Years

After
 5 YearsPromissory Note

$
286,940

$
136,141

$
150,799





Operating leases


231,903


144,654


87,249





Total

$
518,843

$
280,795

$
238,048





Off-Balance Sheet Arrangements

The
Company is not a party to any off-balance sheet arrangements.

Results of Operations

2007
vs. 2006

Year Ended December 31,2007

2006Amount

% of Total
 Revenue

Amount

% of Total
 RevenueOperating revenues

$
4,989,177


100.00
%
$
4,322,785


100.00
%Operating expenses:Data and
product costs


1,651,606


33.11
%

1,404,182


32.48
%Selling,
general and administrative expenses


2,953,648


59.20
%

2,849,002


65.91
%Depreciation
and amortization


65,895


1.32
%

65,951


1.53
%Total operating
expenses


4,671,149


93.63
%

4,319,135


99.92
%Income from operations


318,028


6.37
%

3,650


0.08
%Other income


93,344


1.87
%

68,285


1.58
%Interest expense


(37,535
)

-0.75
%

(52,416
)

-1.21
%Income before income taxes


373,837


7.49
%

19,519


0.45
%Provision for state and local
income taxes


3,606


0.07
%

4,922


0.11
%Net income

$
370,231


7.42
%
$
14,597


0.34
%Operating
revenues increased 15% for fiscal 2007. This increase was primarily due to an
increase in the number of subscribers and increased revenue from existing
subscribers to the Companys Internet subscription service as the market became
more aware of the Companys

11

enhanced
service as well as sales from the Companys new credit limit service introduced
during the first quarter.

Data
and product costs increased 18% for fiscal 2007. This increase
was primarily due to higher salary and related employee benefits costs
including the hiring of additional quality control and IT personnel, as well as
the cost of new third-party content added to the Companys website offset in
part by lower consulting fees.

Selling,
general and administrative expenses increased 4% for fiscal 2007. This increase
was primarily due to higher salary and related employee benefit costs due to an
increase in the Companys sales force during the past 12 months and an increase
in professional fees, primarily for outside assistance in complying with the
requirements of the Sarbanes-Oxley Act of 2002, partially offset by a decrease
in marketing expenses.

Depreciation
and amortization decreased less than 1% for fiscal 2007, due to a lower
depreciable asset base reflecting the continued use of certain items that have
been fully depreciated.

Other
income increased 37% for fiscal 2007, primarily due to a higher level of funds
invested in interest bearing accounts as well as a higher interest rate
received on such funds during the current period compared to the same period
last year.

Interest
expense decreased 28% for fiscal 2007, due to a lower outstanding promissory
note balance.

The
Company did not report a provision for Federal income taxes because of the
availability of net operating loss carryforwards to offset its current tax
liability.

The
Company reported net income of approximately $370,000 for fiscal 2007 compared
to net income of approximately $15,000 for the year ended December 31, 2006.

12

2006 vs. 2005

Year Ended December 31,2006

2005Amount

% of Total
 Revenue

Amount

% of Total
 RevenueOperating revenues

$
4,322,785


100.00
%
$
3,841,833


100.00
%Operating expenses:Data and
product costs


1,404,182


32.48
%

1,113,602


28.99
%Selling,
general and administrative expenses


2,849,002


65.91
%

2,679,203


69.73
%Depreciation
and amortization


65,951


1.53
%

66,302


1.73
%Total operating
expenses


4,319,135


99.92
%

3,859,107


100.45
%Income (loss) from
operations


3,650


0.08
%

(17,274
)

-0.45
%Other income


68,285


1.58
%

31,492


0.82
%Gain on settlement of
litigation





0.00
%

1,100,000


28.63
%Interest expense


(52,416
)

-1.21
%

(66,091
)

-1.72
%Income before income
taxes


19,519


0.45
%

1,048,127


27.28
%Provision for state and local
income taxes


4,922


0.11
%

2,058


0.05
%Net income

$
14,597


0.34
%
$
1,046,069


27.23
%Operating
revenues increased 13% for fiscal 2006. This increase was primarily due to an
increase in the number of subscribers to the Companys Internet subscription
service as well as a higher average contract price offset in part by a decrease
in the number of subscribers to the Companys subscription service for
third-party international credit reports.

Data
and product costs increased 26% for fiscal 2006. This increase
was primarily due to higher salary and related employee benefits costs
including the hiring of additional quality control personnel, higher consulting
fees, as well as the cost of new third-party content added to the Companys
website.

Selling,
general and administrative expenses increased 6% for fiscal 2006. This increase
was primarily due to higher salary and related employee benefit costs due to an
increase in the Companys sales force during the past 12 months and an increase
in marketing expenses, partially offset by a decrease in professional fees as a
result of the settlement of the litigation that was reached during last years
second quarter, as previously reported.

Depreciation
and amortization decreased less than 1% for fiscal 2006, due to a lower
depreciable asset base as certain items have been fully depreciated but are
still in use.

Other
income increased 117% for fiscal 2006, primarily due to the settlement proceeds
received at the end of April 2005 that were invested in interest bearing
accounts as well as a higher interest rate received on funds invested in
interest bearing accounts during the current period compared to the same period
last year.

Interest
expense decreased 21% for fiscal 2006, due to a lower outstanding promissory
note balance.

13

The
Company reported net income of approximately $15,000 for fiscal 2006 compared
to net income of approximately $1.05 million for the year ended December 31,
2005. This decrease was primarily due to the litigation settlement of $1.1
million received in the second quarter of fiscal 2005.

Future
Operations

The
Company over time intends to expand its operations by expanding the breadth and
depth of its product and service offerings and introducing new and complementary
products. Gross margins attributable to new business areas may be lower than
those associated with the Companys existing business activities.

As
a result of the Companys limited operating history and the evolving nature of
the markets in which it competes, the Companys ability to accurately forecast
its revenues, gross profits and operating expenses as a percentage of net sales
is limited. The Companys current and future expense levels are based largely
on its investment plans and estimates of future revenues. To a large extent
these costs do not vary with revenue. Sales and operating results generally
depend on the Companys ability to attract and retain customers and the volume
of and timing of customer subscriptions for the Companys services, which are
difficult to forecast. The Company may be unable to adjust spending in a timely
manner to compensate for any unexpected revenue shortfall. Accordingly, any
significant shortfall in revenues in relation to the Companys planned
expenditures would have an immediate adverse effect on the Companys business,
prospects, financial condition and results of operations. Further, as a
strategic response to changes in the competitive environment, the Company may
from time to time make certain pricing, service, marketing or acquisition
decisions that could have a material adverse effect on its business, prospects,
financial condition and results of operations.

Achieving
greater profitability depends on the Companys ability to generate and sustain
increased revenue levels. The Company believes that its success will depend in
large part on its ability to (i) increase its brand awareness, (ii) provide its
customers with outstanding value, thus encouraging customer renewals, and (iii)
achieve sufficient sales volume to realize economies of scale. Accordingly, the
Company intends to continue to increase the size of its sales force, invest in
product development, operating infrastructure, marketing and promotion. There
can be no assurance that the Company will be able to achieve these objectives
within a meaningful time frame.

Critical Accounting Policies, Estimates and
Judgments

The
Companys financial statements are prepared in accordance with accounting
principles that are generally accepted in the United States. The preparation of
these financial statements require management to make estimates and judgments
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the

14

reported
amounts of revenues and expenses during the reporting period. Management bases
its estimates and judgments on historical experience and other factors that are
believed to be reasonable under the circumstances. Actual results may differ
from these estimates. Management continually evaluates its estimates and
judgments, the most critical of which are those related to:

Revenue recognition  CRMZs North American
 and worldwide service is sold on a subscription basis pursuant to customer
 contracts that span varying periods of time, but are generally for a period
 of one year. The Company initially records amounts billed as accounts
 receivable and defers the related revenue until persuasive evidence of an
 arrangement exists, fees are fixed or determinable, and collection is
 reasonably assured. Revenues are recognized ratably over the related
 subscription period. Revenue from the Companys third-party international
 credit report service is recognized as information is delivered and products
 and services are used by customers.Valuation of goodwill  Goodwill is reviewed
 for impairment annually, or more frequently if events or changes in
 circumstances warrant. If the carrying value of this asset exceeds its
 estimated fair value, the Company will record an impairment loss to write the
 asset down to its estimated fair value.Income taxes  The Company provides for
 deferred income taxes resulting from temporary differences between financial
 statement and income tax reporting. Temporary differences are differences
 between the amounts of assets and liabilities reported for financial
 statement purposes and their tax bases. Deferred tax liabilities are
 recognized for temporary differences that will be taxable in future years
 tax returns. Deferred tax assets are recognized for temporary differences
 that will be deductible in future years tax returns and for operating loss
 and tax credit carryforwards. Deferred tax assets are reduced by a valuation
 allowance if it is deemed more likely than not that some or all of the
 deferred tax assets will not be realized. The Company considers that the
 cumulative losses incurred in recent years creates a rebuttable presumption
 that a full valuation allowance continues to be required for its deferred tax
 assets.Federal Tax Considerations

The
Company has available net operating loss carryforwards (NOLs), which may be
used to reduce its Federal income tax liability. However, provisions contained
in the Internal Revenue Code of 1986, as amended (the Code), may impose
substantial limitations upon the Companys ability to utilize its NOLs. For
example, the Company may be subject to the alternative minimum tax which does
not always permit full utilization of NOLs otherwise available.

Limitations
imposed by Section 382 of the Code upon the availability of NOLs would apply if
certain changes were to occur in ownership of the Company. Thus, the Companys
utilization of its

15

carryforwards
in the future may be deferred and/or reduced if the Company undertakes further
equity financings or if certain other changes occur in the ownership of the
Common Stock. See Business - Net Operating Loss Carryforwards.

Recently Issued Accounting Standards

The
Financial Accounting Standards Board (FASB) and the Securities and Exchange
Commission (SEC) have issued accounting pronouncements as of December 31,
2007 that will become effective in subsequent periods; however, management does
not believe that any of those pronouncements would have significantly affected
our financial accounting measurements or disclosures had they been in effect
during the annual period for which financial statements are included in this
annual report, nor does management believe those pronouncements would have a
significant effect on our future financial position or results of operations.

Risks and Other Considerations

The
risks and uncertainties described below are not the only ones facing the
Company. Additional risks and uncertainties not presently known to the Company
or currently deemed immaterial also may impair its business operations. If any
of the risks described below actually occur, the Companys business could be impaired.

From
time to time, information provided by the Company or statements made by its
employees, or information provided in its filings with the Securities and
Exchange Commission may contain forward-looking information. Any statements
contained herein or otherwise made that are not statements of historical fact
may be deemed to be forward-looking statements. Without limiting the foregoing,
the words believes, expects, anticipates, plans and similar expressions
are intended to identify forward-looking statements. The Companys actual
future operating results or short-term or long-term liquidity may differ
materially from those projections or statements made in such forward-looking
information as a result of various risks and uncertainties, including but not
limited to the following in addition to those set forth elsewhere herein or in
other filings made by the Company with the Commission.

Limited
Operating History of CRMZ; Anticipated Losses
and Negative Cash Flow. The Company has been operating its
business since January 1999, when it acquired the assets of the CreditRisk
Monitor credit information service. Accordingly, CRMZ has a limited operating
history on which to base an evaluation of its business and prospects. The
Companys prospects must be considered in light of the risks, expenses and
difficulties frequently encountered by companies in their early stage of
development, particularly companies in new and rapidly evolving markets such as
online commerce. Such risks for the Company include, but are not limited to, an
evolving and unpredictable business model and the management of growth. To
address these risks, the Company among other things, must maintain and increase
its customer base, implement and successfully execute its business and
marketing strategy and its expansion into new product markets,

16

effectively
integrate acquisitions and other business combinations, continue to develop and
upgrade its technology and transaction-processing systems, improve its Web
site, provide superior customer service, respond to competitive developments
and attract, retain and motivate qualified personnel. There can be no assurance
that the Company will be successful in addressing such risks, and the failure
to do so could have a material adverse effect on the Companys business,
prospects, financial condition and results of operations.

Since
inception, CRMZ incurred significant operating losses, and it has been
generating operating profits only since 2006. There can be no assurance that
the Company may not again incur additional losses and negative cash flow. See MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Unpredictability of Future Revenues and Profits;
Potential Fluctuations in Quarterly Operating Results. As a
result of the Companys limited operating history and the emerging nature of
the markets in which it competes, the Companys ability to accurately forecast
its revenues, gross profits and operating expenses as a percentage of net sales
is limited. The Companys current and future expense levels are based largely
on its investment plans and estimates of future revenues and to a large extent
are fixed. Sales and operating results generally depend on the Companys ability
to attract and retain customers and the volume of and timing of their
subscriptions for the Companys services, which are difficult to forecast. The
Company may be unable to adjust spending in a timely manner to compensate for
any unexpected revenue shortfall. Accordingly, any significant shortfall in
revenues in relation to the Companys planned expenditures would have an
immediate adverse effect on the Companys business, prospects, financial
condition and results of operations. Further, as a strategic response to
changes in the competitive environment, the Company may from time to time make
certain pricing, service, marketing or acquisition decisions that could have a
material adverse effect on its business, prospects, financial condition and
results of operations.

Maintaining
and improving profitability depends on the Companys ability to generate and
sustain substantially increased revenue levels. The Company believes that its
success will depend in large part on its ability to (i) extend its brand position,
(ii) provide its customers with outstanding value, and (iii) achieve sufficient
sales volume to realize economies of scale. Accordingly, the Company intends to
continue to invest in marketing and promotion, product development and
technology and operating infrastructure development. There can be no assurance
that the Company will be able to achieve these objectives within a meaningful
time frame.

The
Company expects to experience significant fluctuations in its future quarterly
operating results due to a variety of factors, some of which are outside the
Companys control. Factors that may adversely affect the Companys quarterly
operating results include, among others, (i) the Companys ability to retain
existing customers, attract new customers at a steady rate and maintain
customer satisfaction, (ii) the Companys ability to maintain gross margins in

17

its existing
business and in future product lines and markets, (iii) the development of new
services and products by the Company and its competitors, (iv) price
competition, (v) the level of use of the Internet and online services and
increasing acceptance of the Internet and other online services for the
purchase of products such as those offered by the Company, (vi) the Companys
ability to upgrade and develop its systems and infrastructure, (vii) the
Companys ability to attract new personnel in a timely and effective manner,
(viii) the level of traffic on the Companys Web site, (ix) the Companys
ability to manage effectively its development of new business segments and
markets, (x) the Companys ability to successfully manage the integration of
operations and technology of acquisitions or other business combinations, (xi)
technical difficulties, system downtime or Internet brownouts, (xii) the amount
and timing of operating costs and capital expenditures relating to expansion of
the Companys business, operations and infrastructure, (xiii) governmental
regulation and taxation policies, (xiv) disruptions in service by common
carriers due to strikes or otherwise, (xv) risks of fire or other casualty,
(xvi) litigation costs or other unanticipated expenses, (xvii) interest rate
risks and inflationary pressures, and (xviii) general economic conditions and
economic conditions specific to the Internet and online commerce.

Due
to the foregoing factors and the Companys limited forecasting abilities, the
Company believes that period-to-period comparisons of its revenues and
operating results are not necessarily meaningful and should not be relied on as
an indication of future performance.

Competition.
The online commerce market, particularly over the Web, is new, rapidly evolving
and intensely competitive. The Companys current or potential competitors
include (i) companies now selling or who will be selling credit analysis data,
such as D&BTM which currently has the dominant position in the
industry and the financial resources to invest much more than the Company can
while withstanding substantial price competition, and (ii) a number of indirect
competitors that specialize in online commerce or information or who derive a
substantial portion of the revenues from online commerce, advertising or
information, and who may offer competing products, and many of which possess
significant brand awareness, sales volume and customer bases. The Company
believes that the principal competitive factors in its market are brand
recognition, selection, personalized services, convenience, price,
accessibility, customer service, quality of search tools, quality of editorial and
other site content and reliability and speed of delivery. Many of the Companys
competitors have longer operating histories, larger customer bases, greater
brand recognition and significantly greater financial, marketing and other
resources than the Company. Certain of the Companys competitors may be able to
secure data from vendors on more favorable terms, devote greater resources to
marketing and promotional campaigns, adopt more aggressive pricing and devote
substantially more resources to Web site and systems development than the
Company. Increased competition may result in reduced operating margins, loss of
market share and a diminished brand franchise. There can be no assurance that
the Company will be able to compete successfully against current and future competitors.

18

The
Company expects that the competition in the Internet and online commerce
markets will intensify in the future. For example, as various Internet market
segments obtain large, loyal customer bases, participants in those segments may
seek to leverage their market power to the detriment of participants in other
market segments. In addition, new technologies and the expansion of existing
technologies may increase the competitive pressures on the Company. Competitive
pressures created by any one of the Companys competitors, or by the Companys
competitors collectively, could have a material adverse effect on the Companys
business, prospects, financial condition and results of operations.

Need for
Additional Financing; Risks of Default.
The Companys future liquidity and capital funding requirements will depend on
numerous factors, including whether or when the Company will increase its
customer base and revenues, and the costs and timing of expansion of sales,
control of information costs and other expenses and competition. There can be
no assurance that additional capital, if needed, will be available on terms
acceptable to the Company, or at all. Furthermore, any additional equity
financing may be dilutive to stockholders and may cause a loss or material
limitation of the Companys NOL carryovers, and debt financing may be
unavailable in light of the first priority liens which have been granted to
secure the Companys note to the seller of the assets of its credit information
service and, if available, will likely include restrictive covenants, including
financial maintenance covenants restricting the Companys ability to incur
additional indebtedness and to pay dividends. The failure of the Company to
raise capital on acceptable terms when needed could have a material adverse
effect on the Company.

There
can be no assurance that the Company will be able to meet its debt service
obligations. In the event the Companys cash flow is inadequate to meet its
obligations, the Company could face substantial liquidity problems. If the
Company is unable to generate sufficient cash flow or otherwise obtain funds
necessary to make required payments, or if the Company otherwise fails to
comply with the various covenants in its indebtedness, it would be in default
under the terms thereof, which would permit the holders of such indebtedness to
accelerate the maturity of such indebtedness and to foreclose on its
collateral, which could cause defaults under other indebtedness of the Company.
Any such default could have a material adverse effect on the Companys
business, prospects, financial condition and results of operations.

System
Development and Operation Risks.
Any system interruptions that result in the unavailability of the Companys Web
site would reduce the attractiveness of the Companys service offerings. The
Company has experienced periodic system interruptions, which it believes will
continue to occur from time to time. The Company will be required to add
additional software and hardware and further develop and upgrade its existing
technology and network infrastructure to accommodate increased traffic on its
Web site resulting from increased sales volume. Any inability to do so may
cause unanticipated system

19

disruptions,
slower response times, degradation in levels of customer service, impaired
quality, or delays in reporting accurate financial information. There can be no
assurance that the Company will be able to accurately project the rate or
timing of increases, if any, in the use of its Web site or in a timely manner
to effectively upgrade and expand its systems or to integrate smoothly any
newly developed or purchased modules with its existing systems. Any inability
to do so could have a material adverse effect on the Companys business,
prospects, financial condition and results of operations.

The
Companys web servers were located to a secure offsite location during 2004.
Its back office computer and communications hardware is located at a single
leased facility in Valley Cottage, New York. The Companys systems and
operations are vulnerable to damage or interruption from fire, flood, power
loss, telecommunications failure, break-ins, earthquake and similar events. The
Company does not currently have redundant systems or a formal disaster recovery
plan and does not have sufficient business interruption insurance to compensate
it for losses that may occur. Despite the implementation of network security
measures by the Company, its servers are vulnerable to computer viruses, physical
or electronic break-ins and similar disruptions, which could lead to
interruptions, delays, loss of critical data or the inability to accept and
fulfill customer orders. The occurrence of any of the foregoing events could
have a material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Management of
Potential Growth. To
manage the expected growth of its operations and personnel, the Company will be
required to improve existing and implement new operational and financial
systems, procedures and controls, as well as to expand, train and manage its
growing employee base. There can be no assurance that the Companys current and
planned personnel, systems, procedures and controls will be adequate to support
the Companys future operations, that management will be able to hire, train,
retain, motivate and manage required personnel or that Company management will
be able to successfully identify, manage and exploit existing and potential
market opportunities. If the Company is unable to manage growth effectively,
such inability could have a material adverse effect on the Companys business,
prospects, financial condition and results of operations.

Limited
Personnel. The Company
currently has limited personnel and other resources to undertake the extensive
marketing activities necessary to maintain and grow is revenues. The Companys
ability to generate revenue will be dependent upon, among other things, its
ability to manage an effective sales organization. The Company will need to
continue to develop and expand a sales force and a marketing group with
technical expertise to coordinate marketing efforts. In addition, there can be
no assurance that the Company will be able to market its products effectively through
an in-house sales force, independent sales representatives, through
arrangements with an outside sales force, or through strategic partners.

20

Risks of New
Business Areas. The Company intends to expand its operations by
continuing to promote new and complementary products and by expanding the
breadth and depth of its product or service offerings. Expansion of the Companys
operations in this manner will require significant additional expense and
development, operations and editorial resources and could strain the Companys
management, financial and operational resources. There can be no assurance that
the Company will be able to expand its operations in a cost-effective or timely
manner. Furthermore, any new business launched by the Company that is not
favorably received by customers could damage the Companys reputation or the
CRMZ brand. The lack of market acceptance of such efforts or the Companys
inability to generate satisfactory revenues from such expanded services or
products to offset their cost could have a material adverse effect on the
Companys business, prospects, financial condition and results of operations.
Gross margins attributable to new business areas may be lower than those
associated with the Companys existing business activities.

Risks of
Business Combinations and Strategic Alliances.
The Company may choose to expand its operations or market presence by entering
into business combinations, investments, joint venture or other strategic alliances
with third parties. Any such transaction will be accompanied by risks commonly
encountered in such transactions, which include, among others, the difficulty
of assimilating the operations, technology and personnel of the combined
companies, the potential disruption of the Companys ongoing business, the
possible inability to retain key technical and managerial personnel, the
potential inability of management to maximize the financial and strategic
position of the Company through the successful integration of acquired
businesses, additional expenses associated with amortization of purchased
intangible assets, additional operating losses and expenses associated with the
activities and expansion of acquired businesses, the maintenance of uniform
standards, controls and policies and the possible impairment of relationships
with existing employees and customers. There can be no assurance that the
Company will be successful in overcoming these risks or any other problems
encountered in connection with such business combinations, investments, joint
ventures or other strategic alliances, or that such transactions will not have
a material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Rapid
Technological Change. To remain
competitive, the Company must continue to enhance and improve the
responsiveness, functionality and features of its services. The Internet and
the online commerce industry are characterized by rapid technological change,
changes in user and customer requirements and preferences, frequent new
products and service introductions embodying new technologies and the emergence
of new industry standards and practices that could render the Companys
existing website and proprietary technology and systems obsolete. The Companys
success will depend, in part, on its ability to license leading technologies
useful in its business, enhance its existing services, develop new services and
technology that address the increasingly sophisticated and varied needs of its
prospective customers and respond to technological advances and emerging
industry standards and practices on a cost-effective and timely basis. The
development of a website and other proprietary technology entails

21

significant
technical, financial and business risks. There can be no assurance that the
Company will successfully implement new technologies or adapt its website,
proprietary technology and transaction-processing systems to customer
requirements or emerging industry standards. If the Company is unable, for
technical, legal, financial or other reasons, to adapt in a timely manner in
response to changing market conditions or customer requirements, such inability
could have a material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Dependence on
Key Personnel. The
Companys performance is substantially dependent on the continued services and
on the performance of its senior management and other key personnel. The
Company does not have long-term employment agreements with any of its key
personnel and maintains no key person life insurance policies. The loss of
the services of its executive officers or other key employees could have a
material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Reliance on
Certain Suppliers. The
Company purchases its data and/or credit reports from a limited number of
vendors under agreements having terms of 24 months or less. The Company has no
longer-term contracts or arrangements with any vendor of data that guarantee
the availability of data, the continuation of particular payment terms or the
extension of credit. Nevertheless, the Company believes that it would be able
to obtain the necessary data from other sources, at competitive prices, should
it become necessary or advisable to do so. There can be no assurance, however,
that the Companys vendors will continue to supply data to the Company on
current terms or that the Company will be able to establish new or extend
current vendor relationships to ensure acquisition of information in a timely
and efficient manner and on acceptable commercial terms. If the Company were
unable to maintain or develop relationships with vendors that would allow it to
obtain sufficient quantities of reliable information on acceptable commercial
terms, such inability could have a material adverse effect on the Companys
business, prospects, financial condition and results of operations.

Risk of
Expansion and Implementation of Growth
Strategy. The Companys growth and expansion have placed, and
may continue to place, a strain on the Companys management, administrative,
operational, financial and technical resources and increased demands on its
systems and controls. Demands on the Companys network resources and technical
staff and resources have grown rapidly with the Companys expanding customer
bases. A failure to effectively provide customer and technical support services
will adversely affect the Companys ability to attract and maintain its
customer base. The Company expects to experience continued strain on its
operational systems as it develops, operates and maintains its network.
Expected increases in the Companys Internet client base will produce increased
demands on sales, marketing and administrative resources, its engineering and
technical resources, and its customer and technical support resources. The
Company believes that it will need, both in the short-term and the long-term,
to hire additional sales and marketing and technical personnel as well as
qualified administrative and management personnel

22

in the
accounting and finance areas to manage its financial control systems. In
addition, the Company will need to hire or to train managerial and support
personnel. Although the Company has hired additional personnel and upgraded
certain of its systems, there can be no assurance that the Companys
administrative, operating and financial control systems, infrastructure,
personnel and facilities will be adequate to support the Companys future
operations or maintain and effectively adapt to future growth.

There
can be no assurance that the Company will be able to build its infrastructure,
add services, expand its customer bases or implement the other features of its
business strategy at the rate or to the extent presently planned, or that its
business strategy will be successful. The Companys ability to continue to grow
may be affected by various factors, many of which are not within the Companys
control, including U.S. and foreign regulation of the Internet industry,
competition and technological developments. The inability to continue to
upgrade the networking systems or the operating and financial control systems,
the inability to recruit and hire necessary personnel or the emergence of
unexpected expansion difficulties could have a material adverse effect on the
Companys business, prospects, financial condition and results of operations.

Risks of
Network Failure. The success
of the Company is largely dependent on its ability to deliver high quality,
uninterrupted access to its product over the Internet. Any system or network
failure that causes interruptions in the Companys Internet operations could
have a material adverse effect on the business, financial condition or results
of operations of the Company. The Companys operations are dependent on its
ability to successfully expand its network and integrate new and emerging
technologies and equipment into its network, which are likely to increase the
risk of system failure and cause unforeseen strain upon the network. The
Companys operations also are dependent on the Companys protection of its
hardware and other equipment from damage from natural disasters such as fires,
floods, hurricanes, and earthquakes, or other sources of power loss,
telecommunications failures or similar occurrences.

Significant
or prolonged system failures could damage the reputation of the Company and
result in the loss of customers. Such damage or losses could have a material
adverse effect on the Companys ability to obtain new subscribers and
customers, and on the Companys business, prospects, financial condition and
results of operations.

Security
Risks. Despite the implementation of network
security measures by the Company, such as limiting physical and network access
to its routers, its Internet access systems and information services are
vulnerable to computer viruses, break-ins and similar disruptive problems
caused by its customers or other Internet users. Such problems caused by third
parties could lead to interruption, delays or cessation in service to the
Companys Internet customers. Furthermore, such inappropriate use of the
Internet by third parties could also potentially jeopardize the security of
confidential information stored in the computer systems of the Companys
customers and other parties connected to the Internet, which may deter
potential subscribers.

23

Persistent
security problems continue to plague public and private data networks. Recent
break-ins, worms and viruses reported in the press and otherwise have
reached computers connected to the Internet at major corporations and Internet
access providers and have involve the theft of information, including incidents
in which hackers bypassed firewalls by posing as trusted computers. Alleviating
problems caused by computer viruses, worms, break-ins or other problems caused
by third parties may require significant expenditures of capital and resources
by the Company, which could have a material adverse effect on the Company.
Until more comprehensive security technologies are developed, the security and
privacy concerns of existing and potential customers may inhibit the growth of
the Internet service industry in general and the Companys customer base and
revenues in particular. Moreover, if the Company experiences a breach of
network security or privacy, there can be no assurance that the Companys
customers will not assert or threaten claims against the Company based on or
arising out of such breach, or that any such claims will not be upheld, which
could have a material adverse effect on the Companys business, prospects,
financial condition and results of operations.

Risks
Associated with Domain Names. The
Company currently utilizes its domain names CreditRiskMonitor.com and crmz.com
in its business. The acquisition and maintenance of domain names generally is
regulated by governmental agencies and their designees. For example, in the
United States, the National Science Foundation has appointed Network Solutions,
Inc. as the exclusive registrar for the .com, .net and .org generic
top-level domains. The regulation of domain names in the United States and in
foreign countries is subject to change. Governing bodies may establish
additional top-level domains, appoint additional domain name registrars or
modify the requirements for holding domain names. As a result, there can be no
assurance that the Company will be able to acquire or maintain relevant domain
names in the United States and all other countries in which it may conduct
business. Furthermore, the relationship between regulations governing domain
names and laws protecting trademarks and similar proprietary rights is unclear.
The Company, therefore, may be unable to prevent third parties from acquiring
domain names that are similar to, infringe upon or otherwise decrease the value
of its trademarks and other proprietary rights. Any such inability could have a
material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Governmental
Regulation and Legal Uncertainties.
The Company is not currently subject to direct regulation by any domestic or
foreign governmental agency, other than regulations applicable to businesses
generally and laws or regulations directly applicable to access to online
commerce. However, due to the increasing popularity and use of the Internet and
other online services, it is possible that a number of laws and regulations may
be adopted with respect to the Internet or other online services covering
issues such as user privacy, pricing, content, copyrights, distribution and
characteristics and quality of products and services. Furthermore, the growth
and development of the market for online commerce may prompt calls for more
stringent consumer protection laws that may impose additional burdens on those

24

companies
conducting business online. The adoption of any additional laws or regulations
may decrease the growth of the Internet or other online services, which could,
in turn, decrease the demand for the Companys products and services and increase
the Companys cost of doing business, or otherwise have a material adverse
effect on the Companys business, prospects, financial condition and results of
operations. Moreover, the applicability to the Internet and other online
services of existing laws in various jurisdictions governing issues such as
property ownership, sales and other taxes, libel and personal privacy is
uncertain and may take years to resolve. Any such new legislation or
regulation, the application of laws and regulations from jurisdictions whose
laws do no currently apply to the Companys business, or the application of
existing laws and regulations to the Internet and other online services could
have a material adverse effect on the Companys business, prospects, financial
condition and results of operations.

Proprietary
Rights. The Company relies
and expects to continue to rely on a combination of copyright, trademark and
trade secret laws and contractual restrictions to establish and protect its
technology. The Company does not currently have any issued patents or
registered copyrights.

The
Company has a policy to require employees and consultants to execute
confidentiality and technology ownership agreements upon the commencement of
their relationships with the Company. There can be no assurance that the steps
taken by the Company will be adequate to prevent misappropriation of its
technology or other proprietary rights, or that the Companys competitors will
not independently develop technologies that are substantially equivalent or
superior to the Companys technology. There can be no assurance that the
Companys trademark applications will result in any trademark registrations, or
that, if registered, any registered trademark will be held valid and
enforceable if challenged.

In
addition, to the extent the Company becomes involved in litigation to enforce
or defend its intellectual property rights, such litigation can be a lengthy
and costly process causing diversion of effort and resources by the Company and
its management with no guarantee of success.

Sarbanes-Oxley Act of 2002. Beginning
with the enactment of the Sarbanes-Oxley Act of 2002, a significant number of
new corporate governance requirements have been adopted or proposed by the SEC.
Although we currently comply with all current requirements, we may not be
successful in complying with these requirements in the future. In addition,
certain of these requirements may require us to make changes to our corporate
governance.

ITEM 7.
FINANCIAL STATEMENTS.The
information required by Item 7, and an index thereto, appears at pages F-1 to
F-17 (inclusive) of this Report on Form 10-KSB.

25

ITEM 8.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
 FINANCIAL DISCLOSURE.None.

ITEM 8A.
CONTROLS AND PROCEDURES.Evaluation of Disclosure Controls and
Procedures

The
Companys management, with the participation of the Companys Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
Companys disclosure controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended)
as of the end of the period covered by this report. Based on that evaluation,
the Companys Chief Executive Officer and Chief Financial Officer have
concluded that, as of the end of such period, the Companys disclosure controls
and procedures are effective.

There
have not been any changes in the Companys internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Securities Exchange Act of 1934, as amended) during its fiscal fourth quarter
that have materially affected, or are reasonably likely to materially affect,
the Companys internal control over financial reporting.

Managements Report on Internal Control Over
Financial Reporting

The
Companys management is responsible for establishing and maintaining adequate
internal control over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act. Under the supervision and with the
participation of the Companys management, including its principal executive
officer and principal financial officer, the Company conducted an evaluation of
the effectiveness of its internal control over financial reporting based on
criteria established in the framework in Internal
Control  Integrated Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this evaluation, the Companys
management concluded that its internal control over financial reporting was
effective as of December 31, 2007.

Internal
controls over financial reporting, no matter how well designed, have inherent
limitations. Therefore, internal control over financial reporting determined to
be effective can provide only reasonable assurance with respect to financial
statement preparation and may not prevent or detect all misstatements.
Moreover, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

26

This
annual report does not include an attestation report of the Companys
registered accounting firm regarding internal control over financial reporting.
Managements report was not subject to attestation by the Companys registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit the Company to provide only managements report
in this annual report.

ITEM 8B.
OTHER INFORMATION.None.

27

PART III

ITEM 9.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
 COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.Directors and Executive Officers

The
following table sets forth certain information with respect to the directors
and executive officers of the Company and the period such persons held their
respective positions with the Company.

Name

Age

Principal
 Occupation/Position
 Held with Company

Officer or
 Director
 SinceJerome S. Flum

67

Chairman of the
 Board/Chief
 Executive Officer

1983William B. Danner

51

President/Chief
 Operating Officer

2005Lawrence
 Fensterstock

57

Senior Vice
 President/Chief
 Financial Officer/
 Secretary

1999Andrew J. Melnick

66

Director

2005Jeffrey S.
 Geisenheimer

42

Director

2005Joshua M. Flum

38

Director

2007Richard J. James

68

Director

1992Jerome S.
Flum was appointed President and
Chief Executive Officer of the Company and Chairman of the Board of Directors
in June 1985. He resigned from the office of Presidency in 2007. From 1968 to
1985, Mr. Flum was in the investment business as an institutional security
analyst, research and sales partner at an investment firm and then as a general
partner of a private investment pool. Before entering the investment business
Mr. Flum practiced law, helped manage a U.S. congressional campaign and served
as a legal and legislative aide to a U.S. congressman. Mr. Flum has been a
guest lecturer at the Massachusetts Institute of Technology/Sloan School of
Management Lab for Financial Engineering. Mr. Flum received a BS degree in
Business Administration from Babson College and a JD degree from Georgetown
University Law School.

William B.
Danner joined the Company in May
2005 as Chief Marketing Officer, was appointed Chief Operating Officer in
October 2005 and appointed President in May 2007. Mr. Danner brings to the
Company over 20 years of financial services and information services
experience. His most recent experience includes brand strategy and business
development consulting for financial services clients at his

28

own firm, Danner
Marketing. Clients included WellPoint and Bowne & Co. Previously, he
was at Citigate Albert Frank, a marketing communications company in New York
City, where he provided strategic planning and brand consulting for a variety
of leading financial services organizations including Reuters Instinet and the
CFA Institute. From 1997 to 2001, Mr. Danner was Vice President of Market
Development at MetLifes employee-benefits business. Before joining MetLife, he
was at Dun & Bradstreet for over 5-1/2 years, most recently as Vice
President, Strategic Planning. He spent nearly the first 10 years of his career
at General Electric Company, working in increasingly responsible positions at
GE Information Services and GE Capital. Mr. Danner earned a BA in economics at
Harvard College and an MBA at Harvard Business School.

Lawrence
Fensterstock joined the Company
and was elected to his current offices in January 1999. Previously, he joined
Market Guide Inc. in September 1996 to assist in the formation of its credit
information services division. From 1993 to 1996, Mr. Fensterstock was with
Information Clearinghouse Incorporated (ICI) and was closely involved in the
formation of its credit reporting service. In addition to being responsible for
the publication of the various facets of this credit reporting service, he was
chief operating and financial officer of ICI. From August 1989 through October
1992, Mr. Fensterstock was Vice President-Controller, Treasurer and Corporate
Secretary for a private entity formed to acquire Litton Industries office
products operations in a leveraged buyout. There, he spent 2-1/2 years acting
as de facto chief financial officer. Mr. Fensterstock is a certified public
accountant who began his career in 1973 with Arthur Andersen LLP. He has an MBA
degree from The University of Chicago Business School and a BA degree from
Queens College.

Andrew J.
Melnick has been a Director since
March 2005. He retired from Goldman, Sachs & Co. at the end of 2004. He
joined Goldman Sachs in 2002 as Co-Director of its Global Investment Research
Division and a member of its Management Committee. Prior to joining Goldman
Sachs, Mr. Melnick was Senior Vice President and Director of the Global
Securities and Economics Research Group of Merrill Lynch. During his 13 years
at Merrill Lynch, he expanded the Firms Research Group from primarily a
domestic effort to one with research offices in 26 countries around the world.
During that period Merrill Lynch was ranked as the top research department in
nearly all regions of the world including six straight times as the number one
equity research department in the United States. Previous employment: President
of Woolcott & Co. a boutique research and investment banking firm; Director
of Research and a Partner of L.F. Rothschild Unterberg Towbin; and Senior
Analyst at Drexel Burnham Lambert. Mr. Melnick is non-executive chairman of
Copal Partners, a provider of financial research and analytics services through
client-specific proprietary products, a director of Pop-A-Lock, a car door
unlocking, roadside assistance and locksmith service business, and a director
of the New York Society of Security Analysts. Mr. Melnick earned a B.A. in
Economics and M.B.A. in Finance from Rutgers. He is a Chartered Financial
Analyst (C.F.A.).

29

Jeffrey S.
Geisenheimer has been a Director since December 2005. He is Chief
Financial Officer of Managed Systems, Inc., a private equity-backed information
technology services provider to small and medium sized businesses since July
2007. In this capacity he is responsible for the daily financial and operating
activities of the Company. Prior to joining Managed Systems, Mr. Geisenheimer
was the Chief Financial Officer of two publicly traded companies (Multex.com,
Inc. from 1999 to 2003 and Market Guide, Inc. from 1987 to 1999) and three
private equity-backed companies (Register.com, Inc. from March 2007 to July
2007, Instant Information, Inc. from July 2005 to March 2007 and Moneyline
Telerate, Inc. from December 2003 to July 2005). While Chief Financial Officer
at three of the companies (Market Guide, Multex and Moneyline Telerate) he
oversaw their acquisitions by much larger corporations for a combined
transaction value of over $750 million. Mr. Geisenheimer received a Bachelor of
Business Administration degree in Banking and Finance and a Master of Business
Administration degree in Accounting from Hofstra University.

Joshua M.
Flum was elected a Director in
September 2007. He is an executive with CVS Caremark Corporation since July
2004. Mr. Flum began his career at CVS Caremark in Store Operations and is
currently the Vice President for Pharmacy Systems. Prior to joining CVS
Caremark, Mr. Flum spent three years with The Boston Consulting Group
specializing in the Consumer and Retail Practice Area. Mr. Flum is a graduate
of the Yale Law School and spent the first years of his professional career
clerking for the Honorable Edward R. Becker, Chief Judge of the United States
Court of Appeals for the Third Circuit, and then at the law firm of Miller,
Cassidy, Larroca and Lewin, LLP. Mr. Flum is the son of Jerome Flum.

Richard J.
James is a Consultant for Sigma
Breakthrough Technologies, Inc., working with leading international and
domestic Fortune 500 companies to improve their new product development and
operational processes, since 2005. From 1980 until 2002, Mr. James served as
the Technical Manager for Polaroid Corporations Consumer Hardware Division,
supporting manufacturing plants in Scotland, China and the United States. In
this role he was responsible for increasing the business performance of Polaroids
instant consumer cameras through improved manufacturing processes and product
redesigns. From 1968 through 1979, Mr. James was President of James Associates,
a group of businesses involving accounting and tax preparation, small business
consulting, real estate sales and rentals, and retail jewelry sales. Mr. James
is a founding Board member and VP Finance of the Boston Chapter of the Society
of Concurrent Product Development. Mr. James holds a BS in Chemical Engineering
from Northeastern University and has completed extensive managerial and
technical subjects.

The
Companys By-Laws provide that (a) directors shall be elected to hold office
until the next annual meeting of stockholders and that each director, including
a director elected to fill a vacancy, shall hold office until the expiration of
the term for which the director was elected and until a successor has been
elected, and (b) officers shall hold office until their successors are chosen
by the Board of Directors, except that the Board may remove any officer at any
time.

30

Significant Employees

Michael
Broos has been Chief Technology Officer since December
2001. He has more than 30 years of experience leading technology teams in the
development and implementation of software applications for the Internet,
Windows, DOS, and mainframes. Before joining the Company, Mr. Broos was Senior
Vice President of Technology for About.com; Chief Technology Officer of
Fan2Fan.com; Chief Technology Officer of AKA.com; Vice President of Internet
Solutions for Inventure.com; and Vice President of Software Development for Dun
& Bradstreet Information Systems for 8 years. Prior to joining Dun &
Bradstreet in 1990, Mr. Broos was an independent consultant and entrepreneur
for 10 years, during which time he co-founded several software companies,
including Infocom (the creators of Zork). Mr. Broos began his career with a
ten-year stint on the academic computer research staff of the M.I.T. Laboratory
of Computer Science, where he developed interactive, graphical and email-based
applications for the ARPANET (the precursor of todays Internet).

Al
Carmenini has been head of Product Development since
July 2005. He is responsible for consulting with customers and enhancing our
service. Mr. Carmenini brings to the Company over 20 years of experience in
business credit. His background includes a combination of senior operational
roles at Revlon and Viacom/Simon & Schuster, as well as product development
roles at Walker Interactive Systems, Standard & Poors and at Al Carmenini &
Associates. He has been a member of the Credit Research Foundation for over 20
years, during which time Mr. Carmenini has served as a trustee as well as an
active member of numerous committees, including Future Trends, Benchmarking,
Re-engineering, Technology, and Research. He was instrumental in creating the
initial benchmarking database for CRF, which is the most in-depth database for
business credit & collection in the U.S. today. Mr. Carmenini is a graduate
of Fordham University, receiving B.S. degrees in both Marketing Management and
Systems.

The Audit Committee

The
Audit Committee shall assist the Board of Directors in fulfilling its
responsibility to the shareholders, potential shareholders and investment
community relating to corporate accounting, reporting practices of the Company
and the quality and integrity of the Companys financial reporting. To fulfill
its purposes, the Committees duties shall include to:


Appoint,
 evaluate, compensate, oversee the work of, and if appropriate terminate, the
 independent auditor, who shall report directly to the Committee.
Approve in
 advance all audit engagement fees and terms of engagement as well as all
 audit and non-audit services to be provided by the independent auditor.
Engage
 independent counsel and other advisors, as it deems necessary to carry out
 its duties.31

In
performing these functions, the Audit Committee meets periodically with the
independent auditors and management to review their work and confirm that they
are properly discharging their respective responsibilities. The Audit Committee
met four times during the last fiscal year, prior to the filing of the
Companys annual and quarterly SEC reports.

The
Audit Committee currently consists of its outside directors  Andrew Melnick,
Jeffrey Geisenheimer, Joshua Flum and Richard James, all of whom, except Mr.
Flum, are audit committee financial experts and are independent, as such terms
are defined by the SEC.

Compliance with Section 16(a) of the of 1934

Section
16(a) of the Securities Exchange Act of 1934, as amended, requires the
Companys directors and officers, and persons who own more than 10% of a registered
class of the Companys equity securities, to file with the Securities and
Exchange Commission (SEC) initial reports of ownership and reports of changes
in ownership of Common Stock and other equity securities of the Company. Such
persons are required by SEC regulation to furnish the Company with copies of
all Section 16(a) reports they file.

To
the Companys knowledge, based solely on its review of the copies of such
reports received by it with respect to fiscal 2007, or written representations
from certain reporting persons, the Company believes that all filing
requirements applicable to its directors, officers and persons who own more
than 10% of a registered class of the Companys equity securities have been
timely complied with.

Code of Ethics

CRMZs
Board of Directors has adopted a Code of Ethics for its Principal Executive
Officer and Senior Financial Officers. This Code applies to the Companys Chief
Executive Officer, President and Chief Financial Officer (who also is the
Companys principal accounting officer).

32

ITEM 10.
EXECUTIVE COMPENSATION.The
following table shows all cash compensation paid or to be paid by the Company
during the fiscal years indicated to the chief executive officer and all other
executive officers of the Company as of the end of the Companys last fiscal
year.

SUMMARY COMPENSATION TABLEName and Principal Position

Year

Salary

Bonus (1)

Option 
 Awards (2)

All Other 
 Compensation

TotalJerome S. Flum,

2007

$  148,988

$   8,000

$
-0-


$
-0-


$  156,988Chairman and ChiefExecutive Officer

2006

$  145,000

$   8,000

$
183


$
15,000
(3)

$  168,183William B. Danner,

2007

$  170,063

$
 18,000

$
16,823


$
-0-


$  204,886President

2006

$  150,000

$
 18,000

$
16,823


$
-0-


$  184,823LawrenceFensterstock,

2007

$  148,988

$
 18,000

$
683


$
-0-


$  167,671Senior Vice President

2006

$  153,365

$ 18,000

$
683


$
-0-


$  172,048(1)The
amounts in this column reflect bonuses awarded for the fiscal year shown but
paid in the subsequent fiscal year.

(2)Represents
the compensation costs of stock option awards for financial reporting purposes
for the year under SFAS 123R, rather than an amount paid to or realized by the
Named Executive Officer.See
Note 5 of the Notes to Financial Statements for a discussion of
the assumptions used in calculating the aggregate grant date fair value
computed in accordance with SFAS 123R. The SFAS 123R value as of the grant date
for stock options is spread over the number of months of service required for
the grant to become non-forfeitable. There can be no assurance that the SFAS
123R amounts will ever by realized.

(3) Beginning January 20, 1999 and
continuing through June 30, 2003, in order to conserve the Companys cash during
this start-up period, Mr. Flum agreed to defer a portion of his annual salary.
As of June 30, 2003, the cumulative non-interest bearing amount deferred was
$238,750. In July 2004, the Companys Board of Directors agreed to issue
200,000 shares of the Companys common stock with a fair value of $90,000 as
partial payment of this liability as well as paying, in cash, the balance to
the Chief Executive Officer, representing the tax gross-up on this stock
award, thereby reducing the cumulative deferred amount by approximately
$150,000 to $88,890. In December 2006, the Companys Board of Directors agreed
to allow Mr. Flum to exercise stock options for 15,000 shares of the Companys
common stock with an exercise price of $15,000 as partial payment of this liability
as well as paying, in cash, $15,000 to Mr. Flum, representing the tax
gross-up on this stock issuance. This transaction reduced the cumulative
deferred amount still payable to $58,890. The full amount of his compensation,
including the deferred amount, is reflected in the Companys financial
statements.

33

Outstanding Equity Awards

No
stock options, stock awards or stock appreciation rights were granted to the
Companys executive officers during the last fiscal year.

The
following table reflects outstanding equity grants to the Companys executive
officers as of December 31, 2007:

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-ENDName

Number of
 Securities
 Underlying
 Unexercised
 Options
 (#)
 Exercisable

Number ofSecuritiesUnderlyingUnexercisedOptions(#)Un-exercisable

Equity
 Incentive
 Plan
 Awards:
 Number of
 Securities
 Underlying
 Unexercised
 Unearned
 Options
 (#)

OptionExercisePrice($)

OptionExpirationDateJerome S.Flum

5,000


-0-


-0-

$1.0000

07-31-08William B.

-0-


100,000


-0-

$1.0000

05-09-15Danner

-0-


50,000


-0-

$1.2500

10-06-15150,000


-0-


-0-

$0.0001

08-25-08Lawrence

-0-


15,000


-0-

$1.0000

12-19-11Fensterstock

-0-


5,000


-0-

$1.0000

07-13-13The
closing market price of the Companys common stock on December 31, 2007 was
$2.41 per share.

All
of the options granted may be exercised after three years from the date of
grant in installments upon the Company attaining certain specified gross
revenue and pre-tax profit margin objectives as set forth in the table below,
unless such objectives are modified in the sole discretion of the Board of
Directors. In order to achieve the vesting of the applicable percentage of
options at each level, both the minimum sales amount and the pre-tax operating
margin tests for that level must be met.

34

MINIMUM ANNUALLevel


Gross Sales

Pre-Tax Operating
 Margin

Options
 Vested

Cumulative
 Options Vested1

$
3
 Million


20%

6.7
%

6.7
%2

$
4
 Million


23%

6.7
%

13.4
%3

$
5
 Million


27%

10.0
%

23.4
%4

$
6
 Million


36%

10.0
%

33.4
%5

$
7.5
 Million


39%

13.3
%

46.7
%6

$
9
 Million


42%

13.3
%

60.0
%7

$
11
 Million


45%

16.6
%

76.6
%8

$
14
 Million


48%

16.6
%

93.2
%9

$
17
 Million


48%

6.8
%

100.0
%Notwithstanding
that the objectives may not have been met in whole or in part, each of the
foregoing performance-based options will vest in full on a date which is two
years prior to the expiration date of the option or, in the event of a change
in control, will vest in full at the time of such change in control.
Accordingly, options to purchase 5,000 and 150,000 shares of common stock
granted to Messrs. Flum and Fensterstock, respectively, have become immediately
exercisable.

Directors Fees

Commencing
September 1994, non-employee directors receive $450 for each Board of
Directors meeting attended, up to a maximum payment of $1,800 per Director per
calendar year.

DIRECTOR COMPENSATIONName

Fees Earned
 or Paid in
 Cash

Option
 Awards(1)

TotalAndrew J. Melnick

$
1,350


$
4,889


$6,239Jeffrey S. Geisenheimer

$
1,350


$
5,190


$6,540Joshua M. Flum

$
900


$
2,540


$3,440Richard J. James

$
900


$
228


$1,128(1) Represents the compensations costs for
financial reporting purposes for the year under SFAS 123R. See Note 5 to the
Notes to Financial Statements for the assumptions made in
determining SFAS 123R values.

35

ITEM 11.
SECURITY OWNERSHIP OF CERTAIN BENEFICAL OWNERS AND MANAGEMENT AND
 RELATED STOCKHOLDER MATTERS.The
following table sets forth as of March 6, 2008 information regarding the
beneficial ownership of the Companys voting securities (i) by each person who
is known to the Company to be the owner of more than five percent of the
Companys voting securities, (ii) by each of the Companys directors and
executive officers, and (iii) by all directors and executive officers of the
Company as a group. Except as indicated in the following notes, the owners have
sole voting and investment power with respect to the shares:

Name of
 Beneficial Owner

Amount and Nature of
 Beneficial Ownership(1)

Percent of
 ClassFlum
Partners(2)

4,897,128


62.39
%Jerome S. Flum

5,380,353
(3)(4)

68.54
%William B. Danner

11,395



*Lawrence Fensterstock

150,000


1.91
%Andrew J. Melnick

10,000



*Jeffrey S.
Geisenheimer

58,653



*Richard J. James

37,000



*All directors and officers (as a
group (6 persons))

5,647,401
(3)(4)

71.95
%*less than 1%

(1) Does
not give effect to (a) options to purchase 473,500 shares of Common Stock
granted to 11 officers and employees pursuant to the 1998 Long Term Incentive Plan
of the Company, and (b) options to purchase an aggregate of 109,000 shares
granted to the non-employee directors pursuant to the 1998 Long Term Incentive
Plan of the Company. All of the foregoing options are not exercisable within
sixty days. Includes 2,000 shares of Common Stock issued to Flum Partners in
consideration of loans to the Company. Includes options to purchase 5,000 and
150,000 shares of Common Stock granted to Messrs. Flum and Fensterstock,
respectively, which are immediately exercisable

(2) The
sole general partner of Flum Partners is Jerome S. Flum, Chairman of the Board
and Chief Executive Officer of the Company.

36

(3) Includes
4,897,128 shares owned by Flum Partners, of which Mr. Flum is the sole general
partner, which are also deemed to be beneficially owned by Mr. Flum because of
his power, as sole general partner of Flum Partners, to direct the voting of
such shares held by the partnership. Mr. Flum disclaims beneficial ownership of
the shares owned by Flum Partners. The 5,380,353 shares of Common Stock, or
68.54% of the outstanding shares of Common Stock, may also be deemed to be
owned, beneficially and collectively, by Flum Partners and Mr. Flum, as a
group, within the meaning of Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (the Act).

(4) Includes
2,000 shares of Common Stock owned by a grandchild of Mr. Flum, the beneficial
ownership of which is disclaimed by Mr. Flum.

The
Companys equity compensation plan approved by stockholders is the 1998
Long-Term Incentive Plan.

The
following table summarizes information about the Companys common stock that
may be issued upon the exercise of options, warrants and rights under all
equity compensation plans of the Company as of December 31, 2007.

Plan category

Number of
 securities
 to be issued
 upon
 exercise of
 outstanding
 options,
 warrants and
 rights

Weighted
 average
 exercise price
 of
 outstanding
 options,
 warrants
 and rights

Number of
 securities
 remaining
 available for
 future
 issuance under
 equity
 compensation
 plans
 (excluding
 securities
 reflected in
 first column)Equity compensation plans
 approved by stockholders



737,500



$
0.9461




675,500Equity compensation plans
 not approved by stockholders













Total



737,500



$
0.9461




675,500ITEM 12.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.There
were no such reportable relationships or related transactions in 2007.

37

ITEM 13.
 EXHIBITS.(a)
 Exhibits2
 -
 Copy of the
 Asset Purchase Agreement dated December 29, 1998. (1)3(i)
 -
 Copy of the
 Companys Amended and Restated Articles of Incorporation dated as of May 7,
 1999. (3)3(ii)
 -
 Copy of the
 Companys By-Laws as amended April 27, 1987 and May 11, 1999. (5)10-C
 -
 Copy of
 Companys 1998 Long-Term Incentive Plan. (2)14
 -
 CreditRiskMonitor.com,
 Inc. Code of Ethics for Principal Executive Officer and Senior Financial Officers.
 (4)31.1*
 -
 Certification of Chief Executive
Officer.31.2*
 -
 Certification of Chief Financial
Officer.32.1*
 -
 Certification of Chief Executive Officer Pursuant
to 18 U.S.C. Section
 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
 -
 Certification of Chief Financial Officer Pursuant
to 18 U.S.C. Section
 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(1)
 Filed as an
 Exhibit to Registrants Report on Form 8-K dated January 19, 1999 (File No.
 1-10825) and incorporated herein by reference thereto.(2)
 Filed as an
 Exhibit to Registrants Annual Report on Form 10-KSB for the fiscal year
 ending December 31, 1998 (File No. 0-10825) and incorporated herein by
 reference thereto.(3)
 Filed as an
 Exhibit to Registrants Annual Report on Form 10-KSB for the fiscal year
 ending December 31, 1999 (File No. 1-10825) and incorporated herein by
 reference thereto.(4)
 Filed as an
 Exhibit to Registrants Annual Report on Form 10-KSB for the fiscal year
 ending December 31, 2003 (File No. 1-10825) and incorporated herein by
 reference thereto.(5)
 Filed as an
 Exhibit to Registrants Annual Report on Form 10-KSB for the fiscal year
 ending December 31, 2005 (File No. 1-10825) and incorporated herein by
 reference thereto.*
 Filed
 herewith.DOCUMENTS AVAILABLE UPON REQUEST

All
exhibits indicated above are available upon request and payment of a reasonable
fee approximating the Companys cost of providing and mailing the exhibits by
writing to:

Office
of the Secretary, CreditRiskMonitor.com, Inc., 704 Executive Boulevard, Suite
A, Valley Cottage, NY 10989.

38

ITEM 14.
 PRINCIPAL ACCOUNTANT FEES AND SERVICES.The
aggregate fees incurred by J.H. Cohn LLP for professional services rendered to
the Company for the last two fiscal years are as follows:

Fiscal Year Ended
 December 31,2007
 
 2006Audit fees (1)
 
 $
 75,000
 
 $
 71,000Audit related fees (2)
 
 
 7,000
 
 
 Tax fees (3)
 
 
 8,000
 
 
 8,000All other fees
 
 
 
 
 
 Total fees
 
 $
 90,000
 
 $
 79,000(1)
 Consists of
 fees for services provided in connection with the audit of the Companys
 financial statements and review of the Companys quarterly financial
 statements.(2)
 Consists of
 fees for assurance and related services that are reasonably related to the
 performance of the audit or review of the Companys financial statements and
 are not reported under Audit Fees.(3)
 Consists of
 fees for preparation of Federal and state income tax returns.The
engagement of J.H. Cohn LLP for the 2007 and 2006 fiscal years and the scope of
audit-related services, including the audits and reviews described above, were
all pre-approved by the Audit Committee.

The
policy of the Audit Committee is to pre-approve the engagement of the Companys
independent auditors and the furnishing of all audit and non-audit services.

39

SIGNATURES

In
accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

CREDITRISKMONITOR.COM, INC. 
(REGISTRANT)

Date: March
 28, 2008
 By:  /s/
 Jerome S.
 FlumJerome S.
 FlumChairman of
 the Board andChief
 Executive OfficerIn
accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

Date: March
 28, 2008
 By:  /s/
 Jerome S.
 FlumJerome S.
 FlumChairman of
 the Board andChief
 Executive OfficerDate: March
 28, 2008
 By:  /s/
 Lawrence
 FensterstockLawrence
 FensterstockChief
 Financial OfficerDate: March
 28, 2008
 By:  /s/
 Andrew J.
 MelnickAndrew J.
 MelnickDirectorDate: March
 28, 2008
 By:  /s/
 Jeffrey S.
 GeisenheimerJeffrey S.
 GeisenheimerDirectorDate: March
 28, 2008
 By:  /s/
 Joshua M.
 FlumJoshua M.
 FlumDirectorDate: March
 28, 2008
 By:  /s/
 Richard J.
 JamesRichard J.
 JamesDirector40

CREDITRISKMONITOR.COM, INC.
INDEX TO FINANCIAL STATEMENTS

PAGEREPORT OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRM


F-2FINANCIAL STATEMENTSBalance Sheets - December 31, 2007 and 2006


F-3Statements of Operations - Years Ended
  December 31, 2007 and 2006


F-4Statements of Stockholders Equity  Years
  Ended December 31, 2007 and 2006


F-5Statements of Cash Flows - Years Ended
  December 31, 2007 and 2006


F-6Notes to Financial Statements


F-7F-1

Report of
Independent Registered Public Accounting Firm

To the Board
of Directors and 
Stockholders of CreditRiskMonitor.com, Inc.:

We have
audited the accompanying balance sheets of
CreditRiskMonitor.com, Inc. as of December 31, 2007 and 2006, and the related
statements of operations, stockholders equity and cash flows for the years
then ended. These financial statements are the responsibility of the Companys
management. Our responsibility is to express and opinion on these financial
statements based on our audits.

We conducted
our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of CreditRiskMonitor.com, Inc. as of
December 31, 2007 and 2006, and its results of operations and cash flows for
the years then ended, in conformity with accounting principles generally
accepted in the United States.

/s/ J.H. Cohn
LLP

Jericho, New
York
March 10, 2008

F-2

CREDITRISKMONITOR.COM, INC.BALANCE SHEETS
December 31, 2007 and 2006

2007

2006ASSETSCurrent assets:Cash and cash
equivalents

$
2,973,263

$
2,467,520Accounts
receivable, net of allowance of $30,000


737,436


647,484Other current
assets


260,657


297,267Total current
assets


3,971,356


3,412,271Property and equipment,
net


149,773


131,211Goodwill


1,954,460


1,954,460Other assets


27,753


27,753Total
assets

$
6,103,342

$
5,525,695LIABILITIES AND
STOCKHOLDERS EQUITYCurrent liabilities:Deferred
revenue

$
3,391,339

$
2,985,724Accounts
payable


51,119


78,364Accrued
expenses


348,745


415,645Current
portion of long-term debt


136,141


122,870Current
portion of capitalized lease obligations





18,437Total current
liabilities


3,927,344


3,621,040Long-term debt, net of current
portion


150,799


286,940Other liabilities


66,422


73,392Total
liabilities


4,144,565


3,981,372Stockholders
equity:Preferred
stock, $.01 par value; authorized 5,000,000 shares; none
  issued





Common stock,
$.01 par value; authorized 25,000,000 shares; issued and
  outstanding 7,694,462


76,944


76,944Additional
paid-in capital


28,221,907


28,177,684Accumulated
deficit


(26,340,074
)

(26,710,305
)Total
stockholders equity


1,958,777


1,544,323Total
liabilities and stockholders equity

$
6,103,342

$
5,525,695The accompanying notes are
an integral part of these financial statements.

F-3

CREDITRISKMONITOR.COM, INC.STATEMENTS OF OPERATIONS
Years Ended December 31, 2007 and 2006

2007

2006Operating revenues

$
4,989,177

$
4,322,785Operating expenses:Data and
product costs


1,651,606


1,404,182Selling,
general and administrative expenses


2,953,648


2,849,002Depreciation
and amortization


65,895


65,951Total
operating expenses


4,671,149


4,319,135Income from
operations


318,028


3,650Other income


93,344


68,285Interest expense


(37,535
)

(52,416
)Income before income
taxes


373,837


19,519Provision for state and local
income taxes


3,606


4,922Net income

$
370,231

$
14,597Net income per share-Basic

$
0.05

$
0.00Diluted

$
0.05

$
0.00The accompanying notes are
an integral part of these financial statements.

F-4

CREDITRISKMONITOR.COM, INC.STATEMENTS OF STOCKHOLDERS EQUITY
Years Ended December 31, 2007 and 2006

Additional
 Paid-in
 Capital

Accumulated
 Deficit

Total
 Stockholders
 EquityCommon StockShares

AmountBalance January 1,
2006


7,679,462

$
76,794

$
28,122,383

$
(26,724,902
)
$
1,474,275Net income











14,597


14,597Exercise of stock option settled
by
 reduction in accrued compensation


15,000


150


14,850





15,000Stock-based
compensation








40,451





40,451Balance December 31,
2006


7,694,462


76,944


28,177,684


(26,710,305
)

1,544,323Net income











370,231


370,231Stock-based
compensation








44,223





44,223Balance December 31,
2007


7,694,462

$
76,944

$
28,221,907

$
(26,340,074
)
$
1,958,777The accompanying notes are an integral part of these financial
statements.

F-5

CREDITRISKMONITOR.COM, INC. STATEMENTS OF CASH FLOWS 
Years Ended December 31, 2007 and 2006

2007

2006Cash flows from operating
activities:Net
income

$
370,231

$
14,597Adjustments to
reconcile net income to net
 cash provided by operating activities:Depreciation


65,895


65,951Stock-based
compensation


44,223


40,451Deferred
salary


(5,833
)

(9,167
)Deferred
rent


(1,137
)

1,747Changes in
operating assets and
 liabilities:Accounts
receivable, net


(89,952
)

11,119Other current
assets


36,610


(106,130
)Other
assets





6,101Deferred
revenue


405,615


378,155Accounts
payable


(27,245
)

(47,226
)Accrued
expenses


(66,900
)

257,969Net cash provided by operating
activities


731,507


613,567Cash flows from investing
activities:Purchase of
property and equipment


(84,457
)

(43,473
)Net cash used in investing
activities


(84,457
)

(43,473
)Cash flows from financing
activities:Payments on
promissory note


(122,870
)

(110,893
)Payments on
capital lease obligations


(18,437
)

(26,467
)Net cash used in financing
activities


(141,307
)

(137,360
)Net increase in cash and cash
equivalents


505,743


432,734Cash and cash equivalents at
beginning of
 year


2,467,520


2,034,786Cash and cash equivalents at end
of year

$
2,973,263

$
2,467,520Supplemental disclosure of cash
flow
 information:Cash paid
during the year for:Interest

$
41,115

$
53,450Income
taxes

$
3,606

$
4,922Payout of stock option exercise
through a
 reduction of accrued compensation

$


$
15,000The accompanying notes are an integral part of these financial
statements.

F-6

CREDITRISKMONITOR.COM, INC.NOTES TO FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND DESCRIPTION OF
BUSINESS

CreditRiskMonitor.com,
Inc. (also referred to as the Company or CRMZ) provides a totally
interactive business-to-business Internet-based service designed specifically
for corporate credit professionals. This service is sold predominantly to
corporations located in the United States. In addition, the Company is a
re-distributor of international credit reports in the United States.

During the
first quarter of 2007, the Company filed documents to dissolve Barbito Corp.,
its inactive wholly-owned subsidiary.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

Use of Estimates

The
preparation of financial statements in conformity with accounting principles
generally accepted in the U.S. requires management to make estimates and
assumptions. These estimates and assumptions affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements as well as the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from these estimates.

Cash and Cash Equivalents

The Company
has invested some of its excess cash in debt instruments of the United States
Government. All highly liquid investments with an original maturity of six
months or less are considered cash equivalents.

Property and Equipment

Property and
equipment are recorded at cost. Depreciation is provided on the straight-line
method over the estimated useful life of the asset. Assets under capital leases
are recorded at the lower of the fair market value of the asset or the present
value of future minimum lease payments. Assets under capital leases are
amortized on the straight-line method over their primary term. Estimated useful
lives are generally as follows: fixtures, equipment and software3 to 6 years;
capitalized leases3 to 5 years; and leasehold improvementslower of life or
term of lease.

Goodwill

In accordance with
Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and
Other Intangible Assets, goodwill and other indefinite-lived intangible assets
are no longer amortized, but are reviewed for impairment at least annually and
if a triggering event were to occur in an interim period. Goodwill impairment
is

F-7

CREDITRISKMONITOR.COM, INC.
NOTES TO FINANCIAL STATEMENTS

determined
using a two-step process. The first step of the impairment test is used to
identify potential impairment by comparing the fair value of a reporting unit
to the book value, including goodwill. If the fair value of a reporting unit
exceeds its book value, goodwill of the reporting unit is not considered
impaired and the second step of the impairment test is not required. If the
book value of a reporting unit exceeds its fair value, the second step of the
impairment test is performed to measure the amount of impairment loss, if any.
The second step of the impairment test compares the implied fair value of the
reporting units goodwill with the book value of that goodwill. If the book
value of the reporting units goodwill exceeds the implied fair value of that
goodwill, an impairment loss is recognized in an amount equal to that excess.
The implied fair value of goodwill is determined in the same manner as the
amount of goodwill recognized in a business combination. The Company completed
its annual goodwill impairment tests for 2007 and 2006 during the fourth
quarter of each year and determined there was no impairment of existing
goodwill.

Long-Lived Assets

The Company
reviews its long-lived amortizable assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable in accordance with SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets. Recoverability of assets held and used is
measured by a comparison of the carrying amount of an asset to undiscounted
pre-tax future net cash flows expected to be generated by that asset. An impairment
loss is recognized for the amount by which the carrying amount of the assets
exceeds the fair value of the assets. As of December 31, 2007, management
believes no impairment of long-lived assets has occurred.

Income Taxes

The Company
provides for deferred income taxes resulting from temporary differences between
financial statement and income tax reporting. Temporary differences are
differences between the amounts of assets and liabilities reported for
financial statement purposes and their tax bases. Deferred tax liabilities are
recognized for temporary differences that will be taxable in future years tax
returns. Deferred tax assets are recognized for temporary differences that will
be deductible in future years tax returns and for operating loss and tax
credit carryforwards. Deferred tax assets are reduced by a valuation allowance
if it is deemed more likely than not that some or all of the deferred tax
assets will not be realized.

Revenue Recognition

CRMZs North
American and worldwide service is sold on a subscription basis pursuant to
customer contracts that span varying periods of time, but are generally for a
period of one year. The Company initially records amounts billed as accounts
receivable and defers the related revenue until persuasive evidence of an
arrangement exists,

F-8

CREDITRISKMONITOR.COM, INC.
NOTES TO FINANCIAL STATEMENTS

fees are fixed
or determinable, and collection is reasonably assured. Revenues are recognized
ratably over the related subscription period. Revenue from the Companys
third-party international credit report service is recognized as information is
delivered and products and services are used by customers.

Income Per Share

Income per
share is computed under the provisions of SFAS No. 128, Earnings Per Share.
Amounts reported as basic and diluted net income per share for each of the two
years in the period ended December 31, 2007 reflect the net income for the year
divided by the weighted average of common shares outstanding during the year
and the weighted average of common shares outstanding adjusted for the effects
of potentially dilutive securities (see Note 10).

Fair Value of Financial Instruments

The Company
follows the provisions of SFAS No. 107, Disclosure about Fair Value of
Financial Instruments. This pronouncement requires that the Company calculate
the fair value of financial instruments and include this additional information
in the notes to the financial statements when the fair value is different than
the book value of those financial instruments. The Company believes the
recorded value of cash and cash equivalents, accounts receivable, and accounts
payable and other liabilities approximates fair value because of the short
maturity of these financial instruments. The Companys promissory note was
originally discounted, as appropriate, to bear an interest rate that represents
the cost of borrowings with third-party lenders. Management believes that the
carrying value of the note approximates its fair value at December 31, 2007 and
2006.

Comprehensive Income

The Company
adheres to the provisions of SFAS No. 130, Reporting Comprehensive Income.
This pronouncement establishes standards for reporting and display of
comprehensive income or loss and its components (revenues, expenses, gains, and
losses). The statement requires that all items that are required to be
recognized under accounting standards as components of comprehensive income be
classified by their nature. Furthermore, the Company is required to display the
accumulated balances of other comprehensive income separately from retained
earnings and additional paid-in capital in the equity section of the balance
sheet. For the years ended December 31, 2007 and 2006, there were no items that
gave rise to other comprehensive income or loss and net income equaled
comprehensive income.

Segment Information

The Company
follows the provisions of SFAS No. 131, Disclosures About Segments of an
Enterprise and Related Information. This pronouncement

F-9

CREDITRISKMONITOR.COM, INC.
NOTES TO FINANCIAL STATEMENTS

establishes
standards for the way public business enterprises report information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in interim financial
reports issued to shareholders. The pronouncement also establishes standards
for related disclosure about products and services, geographic areas and major
customers. The Company currently believes it operates in one segment.

Stock-Based Compensation

In December
2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123
(revised 2004) Share-Based Payment (SFAS 123R). SFAS 123R replaces SFAS 123
Accounting for Stock-Based Compensation, and supersedes APB Opinion No 25,
Accounting for Stock Issued to Employees. SFAS 123R establishes standards for
accounting for share-based payment transactions. Share-based payment
transactions are those in which an entity exchanges its equity instruments for
goods or services or in which an entity incurs liabilities in exchange for
goods or services that are based on the fair value of the entitys equity
instruments or that may be settled by the issuance of those equity instruments.
SFAS 123R covers a wide range of share-based compensation arrangements
including share options, restricted share plans, performance-based awards,
share appreciation rights and employee share purchase plans. SFAS 123R requires
a public entity to measure the cost of employee services received in exchange
for an award of equity instruments based on the fair value of the award on the
grant date (with limited exceptions). That cost will be recognized in the
entitys financial statements over the period during which the employee is
required to provide services in exchange for the award.

The Company
adopted SFAS 123R at the beginning of fiscal 2006 utilizing the modified
prospective method, which does not require restatement of prior periods. The
modified prospective method requires that compensation expense be recorded for
all unvested stock options and restricted stock awards over the requisite
service period (generally the vesting schedule).

See Note 5 for
more information regarding the Companys stock compensation plan.

Recently Issued Accounting Standards

The FASB and
the SEC had issued certain accounting pronouncements as of December 31, 2007
that will become effective in subsequent periods; however, management does not
believe that any of those pronouncements would have significantly affected our
financial accounting measurements or disclosures had they been in effect during
the interim periods for which financial statements are included in this annual
report, nor does management believe those pronouncements would have a
significant effect on our future financial position or results of operations.

F-10

CREDITRISKMONITOR.COM, INC.
NOTES TO FINANCIAL STATEMENTS

Concentrations of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit
risk principally consist of cash, cash equivalents and accounts receivable. The
Company maintains its cash and cash equivalents in bank deposit and other
accounts, the balances of which, at times, may exceed Federally insured limits.
Exposure to credit risk is reduced by placing such deposits in high credit
quality financial institutions.

The Company
closely monitors the extension of credit to its customers. The Companys
accounts receivable balance is net of an allowance for doubtful accounts. The
Company does not require collateral or other security to support credit sales,
but provides an allowance for doubtful accounts based on historical experience
and specifically identified risks. Accounts receivable are charged off against
the allowance for doubtful accounts when management determines that recovery is
unlikely and the Company ceases collection efforts. The Company does not
believe that significant credit risk existed at December 31, 2007 and 2006.

NOTE 3 - CASH AND CASH EQUIVALENTS

Cash and cash
equivalents consisted of the following as of December 31:

2007

2006Cash

$
353,407

$
2,194,990Money market funds


1,125,124


272,530U.S. Government
securities


1,494,732


$
2,973,263

$
2,467,520NOTE 4 - INCOME TAXES

The Company
has generated net operating loss (NOL) carryforwards for income tax purposes,
which are available for carryforward against future taxable income. At December
31, 2007, the Company had Federal NOL carryforwards of approximately $4,637,000,
which expire through 2026.

The actual tax
expense for 2007 and 2006 differs from the expected tax expense for those
years (computed by applying the applicable United States federal corporate tax
rate to income before income taxes) as follows:

F-11

CREDITRISKMONITOR.COM, INC. 
NOTES TO FINANCIAL STATEMENTS

2007

2006Computed expected
  expense

$
127,116

$
2,928Expiration of net
  operating loss carryforward


142,024


Permanent timing
  differences


1,252


292State and local income tax
  expense


3,451


4,922Other


31,796


Decrease in valuation
  allowance


(302,033
)

(3,220
)State and local income tax
  expense

$
3,606

$
4,922The tax
effects of temporary differences that give rise to significant portions of the
deferred tax assets at December 31, 2007 and 2006 are as follows:

2007

2006Deferred tax assets:Net operating
loss carryforwards

$
1,854,479

$
2,090,806Other


58,684


61,155Total deferred
tax assets


1,913,163


2,151,961Valuation
allowance


(1,495,551
)

(1,797,584
)Net deferred
tax assets


417,612


354,377Deferred
  tax liabilities:Goodwill
amortization


(411,935
)

(351,068
)Fixed asset
depreciation


(5,677
)

(3,309
)Total deferred
tax liabilities


(417,612
)

(354,377
)Net deferred tax
assets

$


$
The Company
considers that the cumulative losses incurred in recent years, excluding the
effects of anon-recurring gain in 2005, creates a rebuttable presumption that
a full valuation allowance continues to be required for its deferred tax
assets. Therefore, no deferred tax benefit has been recorded and a full
valuation allowance has been charged against the related deferred tax assets
because the Company does not consider it more likely than not that the deferred
tax assets will be realized.

The net change
in the total valuation allowance for the years ended December 31, 2007 and 2006
was a decrease of $302,033 and $170,029, respectively.

NOTE 5 - COMMON STOCK, STOCK OPTIONS, AND
STOCK APPRECIATION RIGHTS

Common Stock

At December
31, 2007, 737,500 shares of the Companys authorized common stock were reserved
for issuance upon exercise of outstanding options under its stock option plan.

F-12

CREDITRISKMONITOR.COM, INC. 
NOTES TO FINANCIAL STATEMENTS

Preferred Stock

The Companys
Articles of Incorporation provide that the Board of Directors has the
authority, without further action by the holders of the outstanding common
stock, to issue up to five million shares of preferred stock from time to time
in one or more series. The Board of Directors shall fix the consideration to be
paid, but not less than par value thereof, and to fix the terms of any such
series, including dividend rights, dividend rates, conversion or exchange
rights, voting rights, rights and terms of redemption (including sinking fund
provisions), the redemption price and the liquidation preference of such
series. As of December 31, 2007, the Company does not have any preferred stock
outstanding.

Stock Options and Stock Appreciation Rights

At December
31, 2007, the Company has one stock option plan: the 1998 Long-Term Incentive
Plan.

The 1998
Long-Term Incentive Plan authorizes the grant of incentive stock options,
non-qualified stock options, stock appreciation rights (SARs), restricted
stock, bonus stock, and performance shares to employees, consultants, and
non-employee directors of the Company. The exercise price of each option shall
not be less than the fair market value of the common stock at the date of
grant. The total number of the Companys shares that may be awarded under this
plan is 1,500,000 shares of common stock. At December 31, 2007, there were
options outstanding for 737,500 shares of common stock under this plan.

Options expire
on the date determined, but not more than ten years from the date of grant. The
plan terminates ten years from the date of stockholder approval. All of the
options granted may be exercised after three years in installments upon the
Company attaining certain specified gross revenue and pre-tax margin
objectives, unless such objectives are modified in the sole discretion by the
Board of Directors. No modifications to these criteria have been made.

Notwithstanding
that the objectives may not be met in whole or in part, these options will vest
in full on a date that is two years prior to the expiration date of the option
or, in the event of a change in control (as defined), will vest in full at time
of such change in control.

There have
been no transactions with respect to the Companys stock appreciation rights
during the years ended December 31, 2007 and 2006, nor are there any stock
appreciation rights outstanding at December 31, 2007 and 2006.

Transactions
with respect to the Companys stock option plan for the years ended December
31, 2007 and 2006 are as follows:

F-13

CREDITRISKMONITOR.COM, INC. NOTES TO FINANCIAL
STATEMENTS

Number
  of Shares

Weighted
  Average
  Exercise
  PriceOutstanding at January 1,
  2006


737,500

$
0.9461Forfeited


(27,000
)

3.7222Exercised


(15,000
)

1.0000Outstanding at December
  31, 2006


695,500

$
0.8372Granted


55,000


2.3818Forfeited


(13,000
)

1.1923Outstanding at December
  31, 2007


737,500

$
0.9461As of December
31, 2007, there were 675,500 shares of common stock reserved for the granting
of additional options.

The Company
adopted SFAS 123R at the beginning of fiscal 2006 utilizing the modified
prospective method, which does not require restatement of prior periods. The
modified prospective method requires that compensation expense be recorded for
all stock options and restricted stock awards unvested at the time of adoption
over the remaining requisite service period (generally the vesting schedule).

The following
table summarizes the stock-based compensation expense for stock options that
was recorded in the Companys results of operations in accordance with SFAS
123R for the years ended December 31:

2007

2006Data and product costs

$
7,810

$
7,810Selling, general and
  administrative costs


36,413


32,641$
44,223

$
40,451The fair value
of each option is estimated on the date of grant using the Black-Scholes
option-pricing model that uses the weighted average assumptions noted in the
following table. Expected volatilities are based on historical volatility of
our stock through the date of grant. The Company uses the simplified method
under Staff Accounting Bulletin No. 107, Valuation of Share-Based Payment
Arrangements for Public Companies, to estimate the options expected term. The
risk-free interest rate used is based on the U.S. Treasury constant maturities
at the time of grant having a term that approximates the expected life of the
option.

No options
were granted during the year ended December 31, 2006. The fair value of options
granted during the year ended December 31, 2007, ranged from $2.19 to $2.39,
with a weighted-average fair value of $2.21. The fair value of options at date
of grant was estimated using the Black-Scholes model with the following
weighted average assumptions:

F-14

CREDITRISKMONITOR.COM, INC. NOTES TO FINANCIAL
STATEMENTS

Assumption

Year ended
  December 31,
  2007Risk-free interest rate


4.43%Expected dividend yield


0.00%Expected volatility factor


1.77Expected life of the
  option (years)


9The Company
issues new shares upon the exercise of options.

The following
table summarizes information about the Companys stock options outstanding at
December 31, 2007:

Options Outstanding

Options ExercisableRange of
  Exercise Prices

Number
  Outstanding

Weighted
  Average
  Remaining
  Contractual
  Life
  (in years)

Weighted
  Average
  Exercise
  Price

Number
  Exercisable

Weighted
  Average
  Exercise
  Price$ 0.0001
  - $ 0.9900



150,000




0.65



$
0.0001




150,000



$
0.0001$ 1.0000
  - $ 1.2000



443,500




6.38



$
1.0000




5,000



$
1.0000$ 1.2100
  - $ 1.6500



89,000




7.84



$
1.3848









$ 1.6600
  - $ 2.4000



55,000




9.72



$
2.3818









737,500




5.64



$
0.9461




155,000



$
0.0324The aggregate
intrinsic value represents the total pretax intrinsic value, based on options
with an exercise price less than the Companys closing stock price of $2.41 as
of December 31, 2007, which would have been received by the option holders had
those option holders exercised their options as of that date. The aggregate
intrinsic value of options outstanding and exercisable as of December 31, 2007
and 2006 was $1,079,610 and $368,535, respectively.

As of December
31, 2007, the total compensation cost related to unvested stock-based awards
granted to employees under the Companys stock option plan but not yet
recognized was $326,000. This cost will be amortized on a straight-line basis
over a weighted average term of 3.92 years and will be adjusted for subsequent
changes in estimated forfeitures.

F-15

CREDITRISKMONITOR.COM, INC. 
NOTES TO FINANCIAL STATEMENTS

NOTE 6 - PROPERTY AND EQUIPMENT

Property and
equipment consisted of the following:

2007

2006Computer equipment and
  software

$
306,283

$
260,159Furniture and fixtures


74,814


70,391Leasehold improvements


35,855


35,855Capitalized lease


90,043


90,043506,995


456,448Less accumulated
  depreciation and amortization


(357,222
)

(325,237
)$
149,773

$
131,211NOTE 7 - PROMISSORY NOTE

In December
2002, the Company entered into a Note Modification Agreement with Market Guide
Inc. (MGI), which modified the Consolidated Secured Promissory Note that had
been executed in July 2001. The new note bears interest at the rate of 9.5% per
annum from January 1, 2003 and is payable in 84 equal monthly installments of
principal and interest of $13,282 each, commencing January 31, 2003. The
Company was required to discount the new note by approximately $20,000 to yield
an effective interest rate of 10.30% based on the carrying value of the old
debt instrument.

The new note
is secured by the assets originally purchased from MGI and substantially all
other assets of the Company and does not contain any covenants.

If the Company
is unable to generate sufficient cash flow or otherwise obtain funds necessary
to make the required payments on this note, it would be in default under the
terms thereof, which would permit the holders of the note to accelerate the
maturity of such indebtedness. Such a default could have a material adverse
effect on Companys business, prospects, financial condition and results of
operations.

The principal
maturities on this note subsequent to December 31, 2007 are as follows:

Year
  Ending
  December 31,

Amount2008

$
136,1412009


150,799286,940Less current portion


136,141$
150,799F-16

CREDITRISKMONITOR.COM, INC. 
NOTES TO FINANCIAL STATEMENTS

NOTE 8 - ACCRUED COMPENSATION

Beginning
January 20, 1999 and continuing through June 30, 2003, the Companys Chairman
and Chief Executive Officer agreed to defer a portion of his annual salary. In December
2006, the Companys Board of Directors agreed to allow the Chairman and Chief
Executive Officer to exercise stock options for 15,000 shares of the Companys
common stock with an exercise price of $15,000 as partial payment of this
liability as well as paying, in cash, $15,000 to the Chairman and Chief
Executive Officer, representing the tax gross-up on this stock issuance. This
transaction reduced the cumulative deferred amount still payable to $58,890.
The full amount of his compensation, including the deferred amount, is
reflected in the Companys financial statements.

NOTE 9 - LEASE COMMITMENTS

The Companys
operations are conducted from a leased facility, which is under an operating
lease that expires in 2009. The Company also leases certain equipment under
operating leases that expire through 2009. Rental expenses under operating
leases were $158,854 and $152,108 for the years ended December 31, 2007 and
2006, respectively.

Future minimum
lease payments for the capital lease and noncancelable operating leases at
December 31, 2007 are as follows:

Operating 
  Leases2008

$
144,6542009


87,249Total minimum lease
  payments

$
231,903NOTE 10 - NET INCOME PER SHARE

The following
table sets forth the computation of basic and diluted net income per share:

2007

2006Net income

$
370,231

$
14,597Basic weighted average
  common shares outstanding


7,694,462


7,680,591Net income per share 
  basic

$
0.05

$
0.00Diluted weighted average
  common shares outstanding


8,138,336


7,950,989Net income per share 
  diluted

$
0.05

$
0.00F-17