UNITED
STATES SECURITIES AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





(Mark
One)


x QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the
quarterly period ended September 30,
2009





o TRANSITION 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.


(Exact
name of registrant as specified 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)





Registrant’s
telephone number, including area code: (845)
230-3000





Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 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





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes o   No
o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a small reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





Large
accelerated filer o            Accelerated
filer o


Non-accelerated
filer o      Smaller
reporting company x





Indicate
by check mark whether the registrant is a shell company (as defined by Rule
12b-2 of the Exchange Act).


Yes o   No
x





APPLICABLE
ONLY TO CORPORATE ISSUERS





Indicate
the number of shares outstanding of each of the issuer’s classes of common
stock, as of the latest practical date:


Common
stock $.01 par value -- 7,849,462 shares outstanding as of November 2,
2009.









CREDITRISKMONITOR.COM, INC.


INDEX





PagePART
      I. FINANCIAL INFORMATIONItem 1. Financial StatementsBalance Sheets – September 30, 2009 (Unaudited) and December 31,
      2008
            2Statements of Operations for the Three Months Ended September
      30, 2009 and 2008 (Unaudited)
            3Statements of Operations for the Nine Months Ended September 30,
      2009 and 2008 (Unaudited)
            4Statements of Cash Flows for the Nine Months Ended September 30,
      2009 and 2008 (Unaudited)
            5Condensed Notes to Financial Statements
            6Item 2. Management’s Discussion and Analysis of Financial
      Condition and Results of Operations
            9Item 4T. Controls and Procedures
            14PART
      II. OTHER INFORMATIONItem 6. Exhibits
            14SIGNATURES
            15


1
 Index


PARTI. FINANCIAL INFORMATION





Item 1.
Financial Statements





CREDITRISKMONITOR.COM,
INC.


BALANCE
SHEETS


SEPTEMBER
30, 2009 AND DECEMBER 31, 2008




Sept.
      30,
            
            
            Dec.
      31,2009
            
            
            2008(Unaudited)
            
            
            (Note
      1)ASSETSCurrent
      assets:Cash
      and cash equivalents
            
            $
            4,969,790
            
            
            $
            912,591Marketable
      securities
            
            
            -
            
            
            
            2,958,996Accounts
      receivable, net of allowance
            
            
            833,320
            
            
            
            1,146,066Other
      current assets
            
            
            144,120
            
            
            
            237,883Total
      current assets
            
            
            5,947,230
            
            
            
            5,255,536Property
      and equipment, net
            
            
            261,038
            
            
            
            213,142Goodwill
            
            
            1,954,460
            
            
            
            1,954,460Prepaid
      and other assets
            
            
            30,365
            
            
            
            28,109Total
      assets
            
            $
            8,193,093
            
            
            $
            7,451,247LIABILITIES
      AND STOCKHOLDERS’ EQUITYCurrent
      liabilities:Deferred
      revenue
            
            $
            4,787,475
            
            
            $
            4,394,803Accounts
      payable
            
            
            46,940
            
            
            
            52,758Accrued
      expenses
            
            
            502,812
            
            
            
            610,748Total
      current liabilities
            
            
            5,337,227
            
            
            
            5,058,309Other
      liabilities
            
            
            -
            
            
            
            3,424Total
      liabilities
            
            
            5,337,227
            
            
            
            5,061,733Stockholders’
      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 7,849,462 shares
            
            
            78,494
            
            
            
            78,494Additional
      paid-in capital
            
            
            28,319,691
            
            
            
            28,279,268Accumulated
      deficit
            
            
            (25,542,319
            )
            
            
            (25,968,248
            )Total
      stockholders’ equity
            
            
            2,855,866
            
            
            
            2,389,514Total
      liabilities and stockholders’ equity
            
            $
            8,193,093
            
            
            $
            7,451,247





See
accompanying condensed notes to financial statements.


2
 Index


CREDITRISKMONITOR.COM, INC.


STATEMENTS
OF OPERATIONS


FOR THE
THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008


(Unaudited)




2009
            
            
            2008Operating
      revenues
            
            $
            2,052,310
            
            
            $
            1,493,498Operating
      expenses:Data
      and product costs
            
            
            519,005
            
            
            
            456,891Selling,
      general and administrative expenses
            
            
            1,101,815
            
            
            
            909,565Depreciation
      and amortization
            
            
            26,533
            
            
            
            19,818Total
      operating expenses
            
            
            1,647,353
            
            
            
            1,386,274Income
      from operations
            
            
            404,957
            
            
            
            107,224Other
      income, net
            
            
            2,564
            
            
            
            6,741Income
      before income taxes
            
            
            407,521
            
            
            
            113,965Provision
      for income taxes
            
            
            1,020
            
            
            
            880Net
      income
            
            $
            406,501
            
            
            $
            113,085Net
      income per share of common stock:Basic
            
            $
            0.05
            
            
            $
            0.01Diluted
            
            $
            0.05
            
            
            $
            0.01Weighted
      average number of common shares outstanding:Basic
            
            
            7,849,462
            
            
            
            7,709,139Diluted
            
            
            8,198,544
            
            
            
            7,848,460





See
accompanying condensed notes to financial statements.


3
 Index


CREDITRISKMONITOR.COM, INC.


STATEMENTS
OF OPERATIONS


FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008


(Unaudited)





2009
            
            
            2008Operating
      revenues
            
            $
            5,717,872
            
            
            $
            4,263,138Operating
      expenses:Data
      and product costs
            
            
            1,584,503
            
            
            
            1,335,862Selling,
      general and administrative expenses
            
            
            3,641,310
            
            
            
            2,723,308Depreciation
      and amortization
            
            
            75,524
            
            
            
            57,829Total
      operating expenses
            
            
            5,301,337
            
            
            
            4,116,999Income
      from operations
            
            
            416,535
            
            
            
            146,139Other
      income
            
            
            12,921
            
            
            
            40,285Interest
      expense
            
            
            (14
            )
            
            
            (9,853
            )Income
      before income taxes
            
            
            429,442
            
            
            
            176,571Provision
      for income taxes
            
            
            3,513
            
            
            
            3,237Net
      income
            
            $
            425,929
            
            
            $
            173,334Net
      income per share of common stock:Basic
            
            $
            0.05
            
            
            $
            0.02Diluted
            
            $
            0.05
            
            
            $
            0.02Weighted
      average number of common shares outstanding:Basic
            
            
            7,849,462
            
            
            
            7,699,466Diluted
            
            
            8,070,599
            
            
            
            8,007,976





See
accompanying condensed notes to financial statements.


4
 Index


CREDITRISKMONITOR.COM, INC.


STATEMENTS
OF CASH FLOWS


FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008


(Unaudited)




2009
            
            
            2008Cash
      flows from operating activities:Net
      income
            
            $
            425,929
            
            
            $
            173,334Adjustments
      to reconcile net income to net cash provided by operating
      activities:Depreciation
      and amortization
            
            
            75,524
            
            
            
            57,829Deferred
      rent
            
            
            (3,424
            )
            
            
            (2,640
            )Stock-based
      compensation
            
            
            40,423
            
            
            
            40,422Realized
      loss on marketable securities
            
            
            28,224
            
            
            
            -Changes
      in operating assets and liabilities:Accounts
      receivable
            
            
            312,746
            
            
            
            (123,621
            )Other
      current assets
            
            
            93,763
            
            
            
            99,682Prepaid
      and other assets
            
            
            (2,256
            )
            
            
            886Deferred
      revenue
            
            
            392,672
            
            
            
            438,209Accounts
      payable
            
            
            (5,818
            )
            
            
            61,664Accrued
      expenses
            
            
            (107,936
            )
            
            
            22,448Other
      liabilities
            
            
            -
            
            
            
            (58,890
            )Net
      cash provided by operating activities
            
            
            1,249,847
            
            
            
            709,323Cash
      flows from investing activities:Purchase
      of marketable securities
            
            
            (433,761
            )
            
            
            -Sale
      of marketable securities
            
            
            3,364,533
            
            
            
            -Purchase
      of property and equipment
            
            
            (123,420
            )
            
            
            (143,220
            )Net
      cash provided by (used in) investing activities
            
            
            2,807,352
            
            
            
            (143,220
            )Cash
      flows from financing activities:Proceeds
      from exercise of stock options
            
            
            -
            
            
            
            5,015Payments
      on long-term debt
            
            
            -
            
            
            
            (286,940
            )Net
      cash used in financing activities
            
            
            -
            
            
            
            (281,925
            )Net
      increase in cash and cash equivalents
            
            
            4,057,199
            
            
            
            284,178Cash
      and cash equivalents at beginning of period
            
            
            912,591
            
            
            
            2,973,263Cash
      and cash equivalents at end of period
            
            $
            4,969,790
            
            
            $
            3,257,441





See
accompanying condensed notes to financial statements.


5
 Index


CREDITRISKMONITOR.COM, INC.


CONDENSED
NOTES TO FINANCIAL STATEMENTS


(Unaudited)





(1) Basis
of Presentation





The
accompanying unaudited condensed financial statements of CreditRiskMonitor.com,
Inc. (the “Company”) have been prepared in accordance with accounting principles
generally accepted in the United States for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain
information and footnote disclosure required by generally accepted accounting
principles (“GAAP”) in the United States for complete financial statements have
been condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission (the “SEC”). In the opinion of management,
the accompanying unaudited financial statements reflect all material
adjustments, including normal recurring accruals, necessary to present fairly
the Company’s financial position, results of operations and cash flows for the
periods presented, and have been prepared in a manner consistent with the
audited financial statements for the fiscal year ended December 31,
2008.





The
results of operations for the three and nine months ended September 30, 2009 are
not necessarily indicative of the results of a full fiscal year.





The
December 31, 2008 balance sheet has been derived from the audited financial
statements at that date, but does not include all disclosures required by GAAP.
These financial statements should be read in conjunction with the audited
financial statements and the footnotes for the fiscal year ended December 31,
2008 included in the Company’s Annual Report on Form 10-K.





In
May 2009, the Financial Accounting Standards Board issued Accounting
Standards Codification (“ASC”) 855, “Subsequent Events” (“ASC 855”). This
standard is intended to establish general standards of accounting for and
disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. Specifically,
this standard sets forth the period after the balance sheet date during which
management of a reporting entity should evaluate events or transactions that may
occur for potential recognition or disclosure in the financial statements, the
circumstances under which an entity should recognize events or transactions
occurring after the balance sheet date in its financial statements, and the
disclosures that an entity should make about events or transactions that
occurred after the balance sheet date. ASC 855 is effective for fiscal
years and interim periods ended after June 15, 2009. We adopted this
standard effective June 15, 2009 and have evaluated any subsequent events
through the date of this filing. We do not believe there are any material
subsequent events which would require further disclosure.





(2)
Stock-Based Compensation





The
Company applies ASC 718, “Compensation-Stock Compensation” (“ASC 718”) to
account for stock-based compensation.




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 ASC 718 for the three and nine months ended September 30:


6
 Index




3
      Months Ended
            
            
            9
      Months EndedSeptember 30,
            
            
            September 30,2009
            
            
            2008
            
            
            2009
            
            
            2008Data
      and product costs
            
            $
            1,952
            
            
            $
            1,952
            
            
            $
            5,857
            
            
            $
            5,857Selling,
      general and administrative expenses
            
            
            11,522
            
            
            
            11,522
            
            
            
            34,566
            
            
            
            34,565$
            13,474
            
            
            $
            13,474
            
            
            $
            40,423
            
            
            $
            40,422





(3) Other
Recently Issued Accounting Standards





The
Financial Accounting Standards Board and the SEC had issued certain accounting
pronouncements as of September 30, 2009 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 quarterly report. Management also
believes those pronouncements will not have a significant effect on our future
financial position or results of operations.





(4) Fair
Value Measurements





The
Company records its financial instruments that are accounted for under ASC 320,
“Investments-Debt and Equity Securities” at fair value. The determination of
fair value is based upon the fair value framework established by ASC 820,
“Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820
provides that a fair value measurement assumes that the transaction to sell an
asset or transfer a liability occurs in the principal market for the asset or
liability or, in the absence of a principal market, the most advantageous market
for the asset or liability. The fair value hierarchy is broken down into three
levels based on the source of inputs as follows: (a) Level 1 – valuations based
on unadjusted quoted prices in active markets that are accessible at the
measurement date for identical, unrestricted assets or liabilities; (b) Level 2
– valuations based on quoted prices in markets that are not active, or financial
instruments for which all significant inputs are observable; either directly or
indirectly; and (c) Level 3 – valuations based on prices or valuation techniques
that require inputs that are both significant to the fair value measurement and
unobservable; thus, reflecting assumptions about the market
participants.





The
Company’s cash and cash equivalents are stated at fair value. The carrying value
of accounts receivable, other current assets, accounts payable and other current
liabilities approximates fair market value because of the short maturity of
these financial instruments.





The
Company’s cash equivalents are generally classified within level 1 of the fair
value hierarchy because they are valued using quoted market prices. These
instruments include money market securities.





The table
below sets forth the Company’s cash and cash equivalents as of September 30,
2009, which are measured at fair value on a recurring basis by level within the
fair value hierarchy.


7
 Index




Total
      fairLevel 1
            
            
            Level 2
            
            
            Level 3
            
            
            valueCash
      and cash equivalents
            
            $
            4,969,790
            
            
            $
            -
            
            
            $
            -
            
            
            $
            4,969,790Total
            
            $
            4,969,790
            
            
            $
            -
            
            
            $
            -
            
            
            $
            4,969,790





The
Company did not hold financial assets and liabilities which were recorded at
fair value in the Level 2 or 3 categories as of September 30, 2009.





Effective
January 1, 2009, the Company fully adopted the provisions of ASC 820 by
adopting the provisions relating to its nonfinancial assets and liabilities. The
Company adopted the provisions relating to financial assets and liabilities in
the prior year and its adoption of ASC 820 relating to nonfinancial assets and
liabilities did not have a material impact on its financial position or results
of operations.





(5) Net
Income Per Share





Basic net
income per share is based on the weighted average number of common shares
outstanding. Diluted net income per share is based on the weighted average
number of common shares outstanding and the dilutive effect of outstanding stock
options:





3
      Months Ended
            
            
            9
      Months EndedSeptember 30,
            
            
            September 30,2009
            
            
            2008
            
            
            2009
            
            
            2008Weighted
      average shares outstanding – basic
            
            
            7,849,462
            
            
            
            7,709,139
            
            
            
            7,849,462
            
            
            
            7,699,466Potential
      shares exercisable under stock option plans
            
            
            582,500
            
            
            
            527,500
            
            
            
            516,167
            
            
            
            647,500LESS:
      Shares which could be repurchased under treasury stock
    method
            
            
            (233,418
            )
            
            
            (388,179
            )
            
            
            (295,030
            )
            
            
            (338,990
            )Weighted
      average shares outstanding – diluted
            
            
            8,198,544
            
            
            
            7,848,460
            
            
            
            8,070,599
            
            
            
            8,007,976





For
periods in which the Company has earnings, out-of-the-money stock options (i.e.,
the average stock price during the period is below the exercise price of the
stock option) are not included in diluted earnings per share as their effect is
anti-dilutive. For the three months ended September 30, 2008, 55,000 shares
were excluded from the calculation of diluted earnings per share as their effect
was anti-dilutive. For the nine months ended September 30, 2009 and 2008,
66,333 shares and 55,000 shares, respectively, were excluded from the
calculation of diluted earnings per share as their effect was
anti-dilutive.


8
 Index


Item2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations





BUSINESS
ENVIRONMENT





The
continuing uncertainty in the worldwide financial system has negatively impacted
general business conditions. It is possible that a weakening economy could
adversely affect our clients’ need for credit information, or even their
solvency, but we cannot predict whether or to what extent this will occur. To
the contrary, monthly bookings of new business subscriptions for first nine
months of 2009 were the highest in the Company’s history, supporting our belief
that the need for credit information is non-cyclical (see discussion on
“Non-cyclical” found on page 5 of our 2008 Form 10-K).





FINANCIAL
CONDITION, LIQUIDITY AND CAPITAL RESOURCES




The
following table presents selected financial information and statistics as of
September 30, 2009 and December 31, 2008 (dollars in thousands):





September 30,
            
            
            December
      31,2009
            
            
            2008Cash,
      cash equivalents, and marketable securities
            
            $
            4,970
            
            
            $
            3,872Accounts
      receivable, net
            
            $
            833
            
            
            $
            1,146Working
      capital
            
            $
            610
            
            
            $
            197Cash
      ratio
            
            
            0.93
            
            
            
            0.77Quick
      ratio
            
            
            1.09
            
            
            
            0.99Current
      ratio
            
            
            1.11
            
            
            
            1.04





The
Company has invested most of its excess cash in debt instruments of the United
States Government. All highly liquid investments with an original maturity of
three months or less are considered cash equivalents, while those with
maturities in excess of three months are reflected as marketable
securities.
 
 As of
September 30, 2009, the Company had $4.97 million in cash, cash equivalents, and
marketable securities, an increase of $1.10 million from December 31, 2008, and
an increase of $1.71 million from the cash and cash equivalents balance reported
at September 30, 2008. The principal component of this net increase for the last
nine months was the cash generated by operating activities of $1.25
million.
 
 The
Company’s cash generated by operating activities significantly exceeded its net
income due primarily to the increase in deferred revenue.Additionally,
the main component of current liabilities at September 30, 2009 is deferred
revenue of $4.79 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 its existing balances of cash, cash equivalents and cash
generated from operations will be sufficient to satisfy its currently
anticipated cash requirements through at least the next 12 months. Moreover, the
Company has been cash flow positive for the last 4 fiscal years and the balance
of cash and cash equivalents at September 30, 2009 was equal to approximately
87% of its revenues for the first nine months of fiscal 2009. Further, the
Company has no long-term debt. However, the Company’s liquidity could be
negatively affected if it were to make an acquisition or license products or
technologies, which may necessitate the need to raise additional capital through
future debt or equity financing. Additional financing may not be available at
all or on terms favorable to the Company.


9
 Index


OFF-BALANCE
SHEET ARRANGEMENTS





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





RESULTS
OF OPERATIONS





3 Months Ended September
30,2009
            
            
            2008Amount
            
            
            %
      of Total Operating Revenues
            
            
            Amount
            
            
            %
      of Total Operating RevenuesOperating
      revenues
            
            $
            2,052,310
            
            
            
            100.00
            %
            
            $
            1,493,498
            
            
            
            100.00
            %Operating
      expenses:Data
      and product costs
            
            
            519,005
            
            
            
            25.29
            %
            
            
            456,891
            
            
            
            30.59
            %Selling,
      general and administrative expenses
            
            
            1,101,815
            
            
            
            53.69
            %
            
            
            909,565
            
            
            
            60.90
            %Depreciation
      and amortization
            
            
            26,533
            
            
            
            1.29
            %
            
            
            19,818
            
            
            
            1.33
            %Total
      operating expenses
            
            
            1,647,353
            
            
            
            80.27
            %
            
            
            1,386,274
            
            
            
            92.82
            %Income
      from operations
            
            
            404,957
            
            
            
            19.73
            %
            
            
            107,224
            
            
            
            7.18
            %Other
      income, net
            
            
            2,564
            
            
            
            0.13
            %
            
            
            6,741
            
            
            
            0.45
            %Income
      before income taxes
            
            
            407,521
            
            
            
            19.86
            %
            
            
            113,965
            
            
            
            7.63
            %Provision
      for income taxes
            
            
            1,020
            
            
            
            0.05
            %
            
            
            880
            
            
            
            0.06
            %Net
      income
            
            $
            406,501
            
            
            
            19.81
            %
            
            $
            113,085
            
            
            
            7.57
            %





Operating
revenues increased $558,812, or 37%, for the three months ended September 30,
2009 compared to the third quarter of fiscal 2008. This overall revenue growth
resulted from a $556,469, or 39%, increase in Internet subscription service
revenue, including $315,901 attributable to an increase in the number of
subscribers and $240,568 attributable to increased sales to existing
subscribers, as well as a $2,343, or 3%, increase in the Company’s third-party
international credit report subscription service, attributable to greater usage
by existing subscribers despite a decrease in the number of subscribers to that
service.





Data and
product costs increased $62,114, or 14%, for the third quarter of 2009 compared
to the same period of fiscal 2008. This increase was primarily due to higher
salary and related employee benefits, including the hiring of an additional
senior programmer and the higher cost of third-party content due to the addition
of new sources, partially offset by lower consulting fees.





Selling,
general and administrative expenses increased $192,250, or 21%, for the third
quarter of fiscal 2009 compared to the same period of fiscal 2008. This increase
was primarily due to higher marketing expenses and higher salary and related
employee benefit costs, resulting from an increase in commission expense and in
the Company’s sales force during the past 12 months. The commissions increase is
related to (i) new sales bookings increasing at a much faster rate than the
reported increase in operating revenue for this year’s third quarter versus for
last year’s third quarter, and (ii) a higher commission rate on new sales under
a new commission plan implemented at the beginning of the second quarter of
2008. The
Company records the full commission expense at the beginning of new or renewal
contracts but reflects operating revenue ratably over the term of the
contract.


10
 Index


Depreciation
and amortization increased $6,715, or 34%, for the third quarter of fiscal 2009
compared to the same period of fiscal 2008. This increase is due to a higher
depreciable asset base reflecting the replacement of computer equipment that had
been in operation past its depreciable life.





Other
income, net decreased $4,177, or 62%, for third quarter of fiscal 2009 compared
to the same period last year. This decrease was due to less investment income
being earned for the quarter due to a change in the mix of money market
securities to those with a shorter duration and a lower yield.





Nine Months Ended September
    30,2009
            
            
            2008Amount
            
            
            %
      of Total Operating Revenues
            
            
            Amount
            
            
            %
      of Total Operating RevenuesOperating
      revenues
            
            $
            5,717,872
            
            
            
            100.00
            %
            
            $
            4,263,138
            
            
            
            100.00
            %Operating
      expenses:Data
      and product costs
            
            
            1,584,503
            
            
            
            27.71
            %
            
            
            1,335,862
            
            
            
            31.33
            %Selling,
      general and administrative expenses
            
            
            3,641,310
            
            
            
            63.69
            %
            
            
            2,723,308
            
            
            
            63.88
            %Depreciation
      and amortization
            
            
            75,524
            
            
            
            1.32
            %
            
            
            57,829
            
            
            
            1.36
            %Total
      operating expenses
            
            
            5,301,337
            
            
            
            92.72
            %
            
            
            4,116,999
            
            
            
            96.57
            %Income
      from operations
            
            
            416,535
            
            
            
            7.28
            %
            
            
            146,139
            
            
            
            3.43
            %Other
      income
            
            
            12,921
            
            
            
            0.23
            %
            
            
            40,285
            
            
            
            0.94
            %Interest
      expense
            
            
            (14
            )
            
            
            (0.00
            %)
            
            
            (9,853
            )
            
            
            (0.23
            %)Income
      before income taxes
            
            
            429,442
            
            
            
            7.51
            %
            
            
            176,571
            
            
            
            4.14
            %Provision
      for income taxes
            
            
            3,513
            
            
            
            0.06
            %
            
            
            3,237
            
            
            
            0.07
            %Net
      income
            
            $
            425,929
            
            
            
            7.45
            %
            
            $
            173,334
            
            
            
            4.07
            %





Operating
revenues increased $1,454,734, or 34%, for the nine months ended September 30,
2009 versus the first nine months of fiscal 2008. This overall revenue growth
resulted from a $1,443,464, or 36%, increase in Internet subscription service
revenue, including $828,535 attributable to an increase in the number of
subscribers and $614,929 attributable to increased sales to existing
subscribers, as well as a $11,270, or 5%, increase in the Company’s third-party
international credit report subscription service, attributable to greater usage
by existing subscribers despite a decrease in the number of subscribers to that
service.





Data and
product costs increased $248,641, or 19%, for the first nine months of fiscal
2009 compared to the same period of fiscal 2008. This increase was primarily due
to higher salary and related employee benefits, including the hiring of an
additional senior programmer, as well as the cost of new third-party content
added to the Company’s website, partially offset by lower consulting
fees.





Selling,
general and administrative expenses increased $918,002, or 34%, for the first
nine months of fiscal 2009 compared to the same period of fiscal 2008. This
increase was primarily due to higher marketing expenses and higher salary and
related employee benefit costs, resulting from an increase in commission expense
and in the Company’s sales force during the past 12 months. The commissions
increase is related to (i) new sales bookings increasing at a much faster rate
than the reported increase in operating revenue for this year’s year-to-date
period versus for last year’s year-to-date period, and (ii) a higher commission
rate on new sales under a new commission plan implemented at the beginning of
the second quarter of 2008. The Company records the full commission expense at
the beginning of new or renewal contracts but reflects operating revenue ratably
over the term of the contract.


11
 Index


Depreciation
and amortization increased $17,695, or 31%, for the first nine months of fiscal
2009 compared to the same period of fiscal 2008. This increase is due to a
higher depreciable asset base reflecting the replacement of computer equipment
that had been in operation past its depreciable life.





Other
income decreased $27,364, or 68%, for the first nine months of fiscal 2009
compared to the same period last year. This decrease was due to a negative
mark-to-market adjustment for marketable securities owned during the period and
a decrease in interest rates.





Interest
expense decreased $9,839, or 100%, for the first nine months of fiscal 2009
compared to the same period of fiscal 2008. This decrease was primarily due to
the Company prepaying its long-term debt in April 2008.





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.





Due to
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 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. The
Company believes that these expenditures will help it to sustain the revenue
growth it has experienced over the last several years. We anticipate that sales
and marketing expenses will continue to increase in dollar amount and as a
percentage of revenues during the fourth quarter of 2009 and future periods as
the Company continues to expand its business on a worldwide basis. Further, the
Company expects that product development expenses will also continue to increase
in dollar amount and may increase as a percentage of revenues in the fourth
quarter of 2009 and future periods because it expects to employ more development
personnel on average compared to prior periods and build the infrastructure
required to support the development of new and improved products and services.
However, as these expenditures are discretionary in nature, the Company expects
that the actual amounts incurred will be in line with its projections of future
cash flows in order not to negatively impact its future liquidity and capital
needs.  There can be no assurance that the Company will be able to achieve
these objectives within a meaningful time frame.


12
 Index


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 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 website, (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, 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.





FORWARD-LOOKING
STATEMENTS





This
Quarterly Report on Form 10-Q may contain forward-looking statements, including
statements regarding future prospects, industry trends, competitive conditions
and litigation issues. Any statements contained herein 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”
or words of similar meaning are intended to identify forward-looking statements.
This notice is intended to take advantage of the “safe harbor” provided by the
Private Securities Litigation Reform Act of 1995 with respect to such
forward-looking statements. These forward-looking statements involve a number of
risks and uncertainties. Among others, factors that could cause actual results
to differ materially from the Company’s beliefs or expectations are those listed
under “Results of Operations” and other factors referenced herein or from time
to time as “risk factors” or otherwise in the Company’s Registration Statements
or Securities and Exchange Commission reports.


13
 Index


Item4T. 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 our most recent fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting.





PART II.
OTHER INFORMATION





Item6. Exhibits





31.1
            Certification
      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act of 2002.


31.2
            Certification
      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act of 2002.


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.


14
 Index


SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.





CREDITRISKMONITOR.COM,
      INC.(REGISTRANT)Date:
      November 12, 2009
            By:
      /s/
            Lawrence
      FensterstockLawrence
      FensterstockChief
      Financial Officer &Principal
      Accounting Officer







15