WESTMOUNTAIN Co - FORM 10-Q

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EXCEL - IDEA: XBRL DOCUMENT - WESTMOUNTAIN Co	Financial_Report.xls
EX-32.1 - CERTIFICATION - WESTMOUNTAIN Co	wmas10q630201ex3212.htm
EX-31.1 - CERTIFICATION - WESTMOUNTAIN Co	wmas10q6302012ex311.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended June 30, 2012

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-53030

WESTMOUNTAIN ASSET MANAGEMENT, INC.

(Exact Name of Issuer as specified in its charter)

Colorado	26-1315305
(State or other jurisdiction	(IRS Employer File Number)
of incorporation)


123 North College Avenue, Ste 200
Fort Collins, Colorado	80524
(Address of principal executive offices)	(zip code)

(970) 212-4770

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (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 [ ]

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(Section 232.405 of this chapter) during the preceding 12 months(or such shorter period that the registrant was required to submit and post such files. Yes [X]

No [ ]

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

Large accelerated filer []	Accelerated filer []
Non-accelerated filer [] (Do not check if a smaller reporting company)	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes [] No [X]

The number of shares outstanding of the registrant's common stock, as of the latest practicable date, August 11, 2012, was 9,517,402.

FORM 10-Q

WestMountain Asset Management, Inc.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
Item 1. Financial Statements

Consolidated Balance Sheets (Unaudited) at June 30, 2012 and December 31, 2011	3

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) for the three months ended June 30, 2012 and 2011 and for the six months ended June 30, 2012 and 2011	4

Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2012 and 2011	5

Notes to the Consolidated Financial Statements (Unaudited)	6

Item 2. Management’s Discussion and Analysis and Plan of Operation	11

Item 3. Quantitative and Qualitative Disclosures About Market Risk	14

Item 4. Controls and Procedures	14

Item 4T. Controls and Procedures	14

PART II OTHER INFORMATION

Item 1. Legal Proceedings	15

Item 1A. Risk Factors	15

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	20

Item 3. Defaults Upon Senior Securities	20

Item 4. Submission of Matters to a Vote of Security Holders	20

Item 5. Other Information	20

Item 6. Exhibits	21

Signatures	22

PART I FINANCIAL INFORMATION

For purposes of this report, unless otherwise indicated or the context otherwise requires, all references herein to “WestMountain Asset Management,” “we,” “us,” and “our,” refer to WestMountain Asset Management, Inc, a Colorado corporation, and our wholly-owned subsidiaries WestMountain Business Consulting, Inc., WestMountain Valuation Services, Inc., and WestMountain Allocation Analysis, Inc.

ITEM 1. FINANCIAL STATEMENTS


WestMountain Asset Management, Inc.
Consolidated Balance Sheets
(Unaudited)



	June 30,			December 31,
	2012			2011
Assets
Current Assets:
Cash and cash equivalents	$	78,799		$	118,566
Investment, at fair value		1,124,829			5,848,129
Accounts receivable, related parties		30,856			34,673
Accounts receivable		-			5,000
Note receivable, net of allowance for doubtful accounts
of $60,000					30,000
Prepaid expenses		3,470			3,953
Deferred tax assets, net		92,858			78,768
Other Current Assets:
Income tax receivable		45,149			37,681
Certificates of deposit		11,814			11,811
Total Current Assets		1,387,775			6,168,581

Property and equipment, net of accumulated depreciation of		493			1,272
$8,980 and $8,201 respectively
Intangible assets, net of accumulated amortization of $22,292		5,370			8,555
and $19,107 respectively
Total assets	$	1,393,638		$	6,178,408
Liabilities and Shareholders'Equity
Current Liabilities:
Accrued liabilities	$	18,508		$	38,315
Accrued liabilities, related parties		1,000			3,300
Deferred revenue		50,000			-
Total current liabilities		69,508			41,615

Deferred tax liability		243,806			2,005,273
Total liabilities		313,314			2,046,888

Shareholders' Equity:
Preferred stock, $0.10 par value; 1,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value; 50,000,000 shares authorized,		9,518			9,518
9,517,402 shares issued and outstanding
Additional paid-in-capital		914,274			906,836
Deficit earnings		(257,606	)		(191,651	)
Other comprehensive income, net		414,138			3,406,817
Total shareholders' equity		1,080,324			4,131,520
Total liabilities and shareholders' equity	$	1,393,638		$	6,178,408

The accompanying notes are an integral part of these unaudited consolidated financial statements.

WestMountain Asset Management, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011

Revenue:
Advisory/consulting fees, related parties	$	19,500					$	37,500		$	-
Advisory/consulting fees								5,000			-
Management fees, related parties		18,856			22,416			39,883			44,833
Total revenue		38,356			22,416			82,383			44,833

Operating expenses:
Sales, general and administrative expenses		74,156			52,699			169,904			65,707
Total sales, general and administrative expenses		74,156			52,699			169,904			65,707

Net loss from operations		(35,800	)		(30,283	)		(87,521	)		(20,874	)

Other income/(expense)
Interest income		2			68			8			155
Interest expense		-			(12,192	)		-			(24,521	)
Total other income/(expense)		2			(12,124	)		8			(24,366	)

Net loss before income taxes		(35,798	)		(42,407	)		(87,513	)		(45,240	)

Income tax benefit		(21,558	)		(10,744	)		(21,558	)		(11,461	)
Net loss	$	(14,240	)	$	(31,663	)	$	(65,955	)	$	(33,779	)
Other comprehensive loss
Unrealized loss on marketable equity securities		(2,992,679	)		(1,692,382	)		(1,270,448	)		(2,876,959	)
Comprehensive loss	$	(3,006,919	)	$	(1,724,045	)	$	(1,336,403	)	$	(2,910,738	)

Basic and diluted net loss per share	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Basic and diluted weighted average common
shares outstanding		9,517,402			9,106,250			9,517,402			9,106,250

The accompanying notes are an integral part of these unaudited consolidated financial statements.


WestMountain Asset Management, Inc.
Consolidated Statements of Cash Flows
(Unaudited)	Six Months Ended
	June 30,
	2012			2011


Cash flows from operating activities:
Net loss	$	(65,955	)	$	(33,779	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		3,964			3,793
Stock based compensation expense		7,438			(11,461	)
Income tax benefit		(14,090	)		-
Changes in operating assets and operating liabilities:
Prepaid expenses and other current assets		480			(5,706	)
Accounts receivable		5,000			-
Accounts receivable, related parties		3,817			-
Accounts payable and accrued liabilities		(20,653	)		(29,033	)
Accounts payable, related parties		(2,300	)		(225	)
Income tax refundable		(7,468	)
Income tax payable		-			(12,601	)
Deferred revenue		50,000			-
Net cash used in operating activities		(39,767	)		(89,012	)

Cash flows from investing activities:
Purchases of property and equipment		-			(7,230	)
Purchases of investments		-			(39,869	)
Net cash used in investing activities		-			(47,099	)

Net change in cash		(39,767	)		(136,111	)

Cash and cash equivalents, beginning of period		118,566			402,153


Cash and cash equivalents, end of period	$	78,799		$	266,042

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income tax	$	24,705		$	12,601
Interest	$	-		$	37,179

Non cash investing and financing activities:
Unrealized loss on investments	$	992,679		$	2,876,959
Conversion of notes receivable to marketable securities	$	30,000		$	524,520

The accompanying notes are an integral part of these unaudited consolidated financial statements.

WestMountain Asset Management, Inc.

Notes to Unaudited Consolidated Financial Statements

(1) Nature of Organization and Summary of Significant Accounting Policies

Nature of Organization and Basis of Presentation

WestMountain Asset Management, Inc. (“we”,”our” or the “Company”) was incorporated in the state of Colorado on October 18, 2007 and on this date approved its business plan and commenced operations. The consolidated financial statements include the financial information of WestMountain Asset Management Inc. and its wholly owned subsidiaries, WestMountain Business Consulting, Inc., WestMountain Allocation Analytics, Inc. and WestMountain Valuation Services Inc. All significant intercompany accounts and transactions have been eliminated.

Unaudited Financial Information

The accompanying financial information as of June 30, 2012, for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011 is unaudited. In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at June 30, 2012 and its operating results for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011 have been made. Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2011. The results of operations for the three and six months ended June 30, 2012 is not necessarily an indication of operating results to be expected for the year.

Commitments and Contingencies

Based on currently available information, the Company believes that it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our financial statements. As the Company learns new facts concerning contingencies, the Company reassesses its position both with respect to accrued liabilities and other potential exposures. In the case of all known contingencies, the Company accrues a liability when the loss is probable and the amount is reasonably estimable. The Company does not reduce these liabilities for potential insurance or third-party recoveries.

Reclassifications

Certain prior period amounts have been reclassified to conform to current period presentation.

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. As of June 30, 2012 there were no cash equivalents.

Fair Value of Financial Instruments

Available-for-sale securities are accounted for on a specific identification basis. As of June 30, 2012 and December 31, 2011 respectively, we held available-for-sale securities with an aggregate fair value of $1,124,829 and 5,848,129. As of June 30, 2012, all of our available-for-sale securities were invested in publically traded equity holdings. Available-for-sale securities were classified as current based on the percentage of the equity controlled by the Company as well as our intended use of the assets. The Company recognized unrealized losses, net of tax, in accumulated other comprehensive income for the six months ended June 30, 2012 and 2011 in the amounts of $2,992,679 and $2,876,959 respectively.

WestMountain Asset Management, Inc.

Notes to Unaudited Consolidated Financial Statements

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of June 30, 2012


	Quoted Prices in	Significant
	Active Markets for	Other	Significant
	Identical Assets and	Observable	Unobservable	Balance as of
	Liabilities	Inputs	Inputs	March 31,
Description	(Level 1)	(Level 2)	(Level 3)	2012
Assets:
Available-for-sale
securities	$ 1,092,318	$ -	$ 32,511	$ 1,124,829

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2011

	Quoted Prices in	Significant
	Active Markets for	Other	Significant
	Identical Assets and	Observable	Unobservable	Balance as of
	Liabilities	Inputs	Inputs	December 31,
Description	(Level 1)	(Level 2)	(Level 3)	2011
Assets:
Available-for-sale
securities	$ 5,845,618	$ -	$ 2,511	$ 5,848,129

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments measured at fair value under level 3 on a recurring basis using significant unobservable inputs during the six months ended June 30, 2012.

Fair value at December 31, 2011	$	2,511
Additions during the period		30,000
Fair value at June 30, 2012	$	32,511

Correction of Prior Year Information

During the year ended December 31, 2011, we transitioned to a new independent registered public accounting firm. During the audit of our 2010 consolidated financial statements, we determined that the valuation of our investments recorded on the Balance Sheet required an adjustment to better represent the investments at fair value. This resulted in an adjustment to the previously reported amounts in the consolidated financial statements for the three and six months ended June 30, 2011.

In accordance with the SEC's Staff Accounting Bulletin Nos. 99 and 108 (SAB 99 and SAB 108), the Company evaluated this error and, based on an analysis of quantitative and qualitative factors, determined that the error was immaterial to each of the prior reporting periods affected. However, if the adjustments to correct the cumulative effect of the above error had been recorded in the six months ended June 30, 2012, the Company believes the impact would have been significant and would impact comparisons to prior periods. Therefore, as permitted by SAB 108, the Company corrected, in the current filing, previously reported results for the six months ended June 30, 2012.

The correction impacts the consolidated statement cash flows for the six months ended June 30, 2011 which was revised to reflect the cumulative effect of the error described above. An adjustment of $2,964,530 was made to the noncash item of unrealized loss on investments to change it to $2,876,959 from the previously reported amount of $5,841,489.

WestMountain Asset Management, Inc.

Notes to Unaudited Consolidated Financial Statements

Deferred Revenue

The Company recognizes deferred revenue on a straight line basis over the period for which the services are performed. The deferred revenue of $50,000 as of June 30, 2012 represents cash received for services to be provided through August 2012.

(2) Investments

During February 2012, the Company converted its $30,000 convertible note receivable into 200,000 common shares of common stock of SRKP 16, Inc. This investment is recorded at our cost of $30,000. SRKP, Inc. is in the process of obtaining their ticker symbol.

The Company’s investments as of June 30, 2012 and December 31, 2011 are summarized below.

					As of June 30, 2012
									Accumulated
					Share		Market/Cost		Unrealized
Company Name	Shares		Cost		Price		Value		Gain/Loss

Omni Bio Pharmaceutical, Inc.		1,707,107	$	193,634	$	0.52	$	887,695	$	694,061
Accredited Members Holding Corporation		1,691,713		194,306		0.07		118,420		(75,886	)
Nexcore Healthcare Capital Corp.		1,645,000		1,645		-		1,645		-
Silver Verde May Mining Co., Inc		246,294		46,488		0.35		86,203		39,715
WestMountain Index Advisor, Inc.		866,000		866		-		866		-
SRKP, Inc.		200,000		30,000		-		30,000		-
Totals		6,356,114	$	466,939			$	1,124,829	$	657,890

					As of December 31, 2011
									Accumulated
					Share		Market/Cost		Unrealized
Company Name	Shares		Cost		Price		Value		Gain/Loss

Omni Bio Pharmaceutical, Inc.		1,707,107	$	193,634	$	2.99	$	5,104,249	$	4,910,615
Accredited Members Holding Corporation		1,691,713		194,306		0.38		642,851		448,545
Nexcore Healthcare Capital Corp.		1,645,000		1,645		-		1,645		-
Silver Verde May Mining Co., Inc		246,294		46,488		0.40		98,518		52,030
WestMountain Index Advisor, Inc.		866,000		866		-		866		-


Totals		6,156,114	$	436,939			$	5,848,129	$	5,411,190

WestMountain Asset Management, Inc.

Notes to Unaudited Consolidated Financial Statements

(3) Stockholders Equity

Common Stock

There were 9,517,402 shares of common stock outstanding as of June 30, 2012 and December 31, 2011.

No common shares were issued or cancelled during the six months ended June 30, 2012.

Stock options

On August 15, 2011, the Company approved the employee compensation plan and granted a total of 200,000 common stock options, to our employees. As stated in the compensation plan, these options have a four year term. Fifty percent of the options will become vested and exercisable immediately, 25% on the first anniversary date of August 15, 2011, and 25% on the second anniversary date of August 15, 2011. The options have an exercise price of $0.27 per share, which was the fair value of the stock on the day of the grant. Given a risk free rate of 0.99%, a volatility input of 99.96% and using the simplified method, the expected term used in the calculation is 2.375 years. During the six months ended June 30, 2012, $7,438 was expensed to the income statement and an accumulative total of $27,957 is included in additional paid-in capital as of June 30, 2012. The remaining $13,081 will be expensed in the next quarter.

The following table presents the activity for common stock options during the six months ended June 30, 2012:

			Weighted
			Average
		Options	Exercise Price
Outstanding - December 31, 2011		200,000	$ 0.27
	Granted	-	-
	Forfeited/canceled	-	-
	Exercised	-	-
Outstanding - June 30, 2012		200,000	$ 0.27

The weighted average remaining life of these 200,000 options as of June 30, 2012 and December 31, 2011 was 3.1 and 3.6 years respectively.

The following table presents the composition of options outstanding and exercisable as of June 30, 2012 and December 31, 2011. The exercisable options have an intrinsic value of $38,000 and $24,000 as of June 30, 2012 and December 31, 2011, respectively.

	Options Outstanding		Options Exercisable
Range of Exercise Prices	Number	Life	Number	Price
0.27	200,000	3.1	100,000	0.27

(4) Related Parties

Bohemian Companies, LLC and BOCO Investments, LLC are two companies under common control. Mr. Klemsz, our President, has been the Chief Investment Officer of BOCO Investments, LLC since March 2007. Since there is common control between the two companies and a relationship with our Company President, we are considering all transactions with Bohemian Companies, LLC and BOCO Investments, LLC, related party transactions.

WestMountain Asset Management, Inc.

Notes to Unaudited Consolidated Financial Statements

On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC to provide us with certain defined services. These services include financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement. We compensate Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performs services on our behalf. We receive invoices monthly from Bohemian Companies, LLC. This Service Agreement matures on December 31, 2012. Total expenses incurred with Bohemian Companies were $3,000 for the three months ending June 30, 2012 and 2011. As of June 30, 2012 and December 31, 2011 the Company had a balance due to Bohemian Companies, LLC of $1,000 and $3,300 respectively.

For the six months ended June 30, 2012 and 2011 the Company recorded management fee revenues of $39,883 and $44,833, respectively, for asset management services performed on behalf of WestMountain Prime, LLC, a related party. The Company and WestMountain Prime, LLC are under common principal ownership. The Company earns management fees based on the size of the funds managed, and incentive income based on the performance of the funds.

For the six months ended June 30, 2012 and 2011, the Company recorded social media revenue of $37,500 and $0, respectively. All of the $37,500 recorded in 2012 is related party revenue for services performed on behalf of Nexcore Group LP. The company and Nexcore are under common principal ownership.

As of June 30, 2012 and December 31, 2011, the Company had $30,856 and $34,673, respectively, of accounts receivable from related parties. These amounts represent management fees that were due from WestMountain Prime, LLC., consulting services for marketing and social media due from Nexcore Group LP.

On September 29, 2010 CapTerra Financial Group, Inc. merged with Nexcore Group LP (“Nexcore”). The Company provided advisory services related to the transaction and for those services received 1,645,000 warrants. In December 2010, these warrants were exercised for common stock of Nexcore Group LP. As of December 31, 2010, no active market existed for these securities and so the company kept the value of this investment on the books at the aggregate exercise price of $1,645. The equity securities have been restricted and cannot be sold for two years.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION

The following discussion of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by, the consolidated financial statements and notes thereto included in, Item 1 in this Quarterly Report on Form 10-Q. This item contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated in such forward-looking statements.

Forward-Looking Statements

This Quarterly Report on Form 10-Q and the documents incorporated herein by reference contain forward-looking statements. Such forward-looking statements are based on current expectations, estimates, and projections about our industry, management beliefs, and certain assumptions made by our management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. However, readers should carefully review the risk factors set forth herein and in other reports and documents that we file from time to time with the Securities and Exchange Commission, particularly Annual Reports on Form 10-K, Quarterly reports on Form 10-Q and any Current Reports on Form 8-K.

General

We are a fee-based marketing and media consultant to public companies and an investment asset manager.

Our principal business address is 123 North College Avenue, Suite 200, Fort Collins, Colorado 80524. We operate out of one office in Colorado. We have no specific plans at this point for additional offices.

On January 1, 2008, we entered into a Service Agreement with Bohemian Companies, LLC to provide us with certain defined services. These services include financial, bookkeeping, accounting, legal and tax matters, as well as cash management, custody of assets, preparation of financial documents, including tax returns and checks, and coordination of professional service providers as may be necessary to carry out the matters covered by the Service Agreement. We will compensate Bohemian Companies, LLC by reimbursing this entity for the allocable portion of the direct and indirect costs of each employee of Bohemian Companies, LLC that performs services on our behalf. We will receive invoices on a monthly basis from Bohemian Companies, LLC. This Service Agreement is for the term of one year, ending December 31, 2012.

Operations

We act primarily as a fee-based marketing and media consultant to public companies and, secondarily, as an investment asset manager. We are currently generating revenues.

As a consultant, we provide investor relations, website development, video production, and associated marketing and media services to clients. We are paid fees for our services by our clients underwritten consulting agreements.

As a secondary source of revenue, we raise, invest and manage private equity and direct investment funds for third parties including high net worth individuals and institutions. We earn management fees based on the size of the funds that we manage and incentive income based on the performance of these funds. We do not focus on any particular industry but look at any and all opportunities. We will screen investments with emphasis towards finding opportunities with long term potential.

Currently, we believe that we have sufficient capital to implement our business operations or to sustain them through December 31, 2012. We have been profitable in the past, although not in the most recent fiscal quarter. If we can maintain our profitability, we could operate at our present level indefinitely. To date, we have never had any discussions with any possible acquisition candidate nor have we any intention of doing so.

We have not been subject to any bankruptcy, receivership or similar proceeding.

Results of Operations

The following discussion involves our results of operations for the three and six months ended June 30, 2012 and 2011.

For the three months ended June 30, 2012 we had revenues of $38,356 compared to $22,416 for the three months ended June 30, 2011. For the six months ended June 30, 2012 and 2011 we recorded revenues of $82,383 and $44,833 respectively. We recorded $18,856 and $22,416 in related party management fees for the three months ended June 30, 2012 and 2011 respectively. For the six months ended June 30, 2012 we had management fees of $39,883 compared to $44,833 for the six months ended June 30, 2011. As part of the total revenues, we recorded consulting fees of $19,500 in the second quarter 2012. All of these fees were a related party. There were no consulting fees recorded in the second quarter 2011. Consulting fees for the six month ended June 30, 2012 and 2011 we recorded $42,500 and $-0- respectively.

Operating expenses, consisting primarily of selling, general and administrative costs were $74,156 for the three months ended June 30, 2012, compared to $52,700 for the three months ended June 30, 2011. For the six months ended June 30, 2012 and 2011, our operating expenses were 169,904 and 65,708 respectively. The increase in operational expenses in 2012 was primarily associated with the hiring of a full-time President and part-time accountant, and change in audit firms. We believe that our selling, general and administrative costs will increase as we grow our business activities going forward.

We had a net loss of $14,240 for the three months ended June 30, 2012, compared to a net loss of $31,664 for the three months ended June 30, 2011. We had a net loss of $65,955 for the six months ended June 30, 2012 compared to a net loss of $33,780 for the six months ended June 30, 2011.

As of June 30, 2012, we hold seven investment positions. All of the companies are publicly traded and listed on the OTC Bulletin Board.

The table below lists the investments and total shares owned by us as of June 30, 2012.

Company Name	Shares

Omni Bio Pharmaceutical, Inc.		1,707,107
Accredited Members Holding Corporation		1,691,713
Nexcore Healthcare Capital Corp.		1,645,000
Silver Verde May Mining Co., Inc		246,294
WestMountain Index Advisor, Inc.		866,000
SRKP, Inc.		200,000
Totals		6,356,114

Our seventh position involves Marine Exploration, Inc. As of June 30, 2012, we own a total of 175,000,000 common shares, which we have written down to zero value.

Liquidity and Capital Resources

As of June 30, 2012, we had cash of $78,799.

Cash flows used in operating activities were $39,767 for the six months ended June 30, 2012, compared to cash flows used in operating activities of $89,013 for the six months ended June 30, 2011.

Net cash used in investing activities was $-0- for the six months ended June 30, 2012, compared to net cash used in investing activities of $47,099 for the six months ended June 30, 2011.

Over the next twelve months we do not expect any material capital costs for our operations.

Currently, we believe that we have sufficient capital to implement our business operations or to sustain them at our present level indefinitely. To date, we have never had any discussions with any possible acquisition candidate nor have we any intention of doing so.

We operate out of one office in Colorado. We have no specific plans at this point for additional offices.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements with any party.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to use judgment in the application of accounting policies, including making estimates and assumptions. We base our estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied resulting in a different presentation of our financial statements. From time to time, we evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current information. Below is a discussion of accounting policies that we consider critical in that they may require complex judgment in their application or require estimates about matters that are inherently uncertain.

Fair Value Measurements

ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:


Level 1:		Quoted prices in active markets for identical assets or liabilities;

Level 2:		Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or

Level 3:		Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Revenue Recognition

We provide investor relations, website development, video production, and associated marketing and media services to clients. We are paid fees for our services by our clients underwritten consulting agreements. As a secondary source of revenue, we raise, invest and manage private equity and direct investment funds for third parties including high net worth individuals and institutions. We earn management fees based on the size of the funds that we manage and incentive income based on the performance of these funds. We do not focus on any particular industry but look at any and all opportunities. We will screen investments with emphasis towards finding opportunities with long term potential.

Revenue is recognized under the full accrual method. Under the full accrual method, profit may be realized in full when funds are invested and managed, provided (1) the profit is determinable and (2) the earnings process is virtually complete (the Company is not obligated to perform significant activities).

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

None.

ITEM 4. CONTROLS AND PROCEDURES

Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

Management’s Annual Report on Internal Control Over Financial Reporting.

The Company's Chief Executive Officer is responsible for establishing and maintaining disclosure controls and procedures for the Company.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of June 30, 2012, the end of the period covered by this report, based on an evaluation of our disclosure controls and procedures carried out under the supervision of our Chief Executive Officer and Chief Financial Officer (as defined in Rules 13a -15(e) and 15(d)-15(e) under the Exchange Act), our Chief Executive Officer and Chief Financial Officer has concluded that our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the applicable time periods specified by the SEC’s rules and forms.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

We made significant changes in our internal controls during the quarter ended March 31, 2012. The changes include the implementation of formal procedures to determine the fair value of our investment securities which include a quarterly review and approval by the Chief Executive Officer and Chief Financial Officer.

There were no other changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

This report does not include an attestation report of the company’s registered public accounting firm regarding internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no legal proceedings, to which we are a party, which could have a material adverse effect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS

You should carefully consider the risks and uncertainties described below; and all of the other information included in this document. Any of the following risks could materially adversely affect our business, financial condition or operating results and could negatively impact the value of your investment.

The occurrence of any of the following risks could materially and adversely affect our business, financial condition and operating result. In this case, the trading price of our common stock could decline and you might lose all or part of your investment.

Risks Related to Our Business and Industry

We have a limited operating history. We have not been profitable for our two most recent fiscal years We may never continue to be profitable, and, as a result, we could go out of business.

We were formed as a Colorado business entity in October, 2007. At the present time, we have not been profitable at our two most recent fiscal years. We cannot guarantee that we will continue to be profitable, and, as a result, we could go out of business.

Our lack of substantial operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance. An investor could lose his entire investment.

We have a limited operating history. An investor has no frame of reference to evaluate our future business prospects. This makes it difficult, if not impossible, to evaluate us as an investment. An investor could lose his entire investment if our future business prospects do not result in our ever becoming profitable.

If we do not generate adequate revenues to finance our operations, our business may fail.

We are generating revenues but are not currently profitable. As of June 30, 2012, we had a cash position of $78,799. We had certificates of deposit of $11,814. We anticipate that operating costs will be approximately $1,140,000 for the fiscal year ending December 31, 2012. These operating costs include payroll and related costs, travel, office lease, contract services and all other costs of operations. We will use contract employees who will be paid on an hourly basis as each investment transaction is evaluated. However, the operating costs and expected revenue generation are difficult to predict. We expect to generate revenues in the next twelve months from making investments and receiving fees for the placement of capital. Since there can be no assurances that revenues will be sufficient to cover operating costs for the foreseeable future, it may be necessary to raise additional funds. Due to our lack of substantial operating history, raising additional funds may be difficult.

Competition in the investment industry is intense.

Our business plan involves acting as a fee-based marketing and media consultant to public companies and an investment asset manager. Both businesses are highly competitive. There are numerous similar companies providing such services in the United States of America. Our competitors will have greater financial resources and more expertise in this business. Our ability to develop our business will depend on our ability to successfully market our services in this highly competitive environment. We cannot guarantee that we will be able to do so successfully.

The share control position of WestMountain Blue, LLC will limit the ability of other shareholders to influence corporate actions.

Our largest shareholder, WestMountain Blue, LLC, of which Mr. Klemsz is a 16.8% member, owns 8,505,652 shares and thereby controls approximately 90% of our outstanding shares. Because WestMountain Blue, LLC individually beneficially controls more than a majority of the outstanding shares, other shareholders, individually or as a group, will be limited in their ability to effectively influence the election or removal of our directors, the supervision and management of our business or a change in control of or sale of our company, even if they believed such changes were in the best interest of our shareholders generally.

Our future success depends, in large part, on the continued service of our President and Treasurer

We depend almost entirely on the efforts and continued employment of Mr. Anderson, our President, and Mr. Klemsz, our Treasurer. Mr. Anderson is our primary executive officer, and we will depend on him for nearly all aspects of our operations. We do not have an employment contract with either Mr. Anderson or Mr. Klemsz, and we do not carry key person insurance on the life of either gentleman. The loss of the services of either Mr. Anderson or Mr. Klemsz through incapacity or otherwise, would have a material adverse effect on our business. It would be very difficult to find and retain qualified personnel such as either Mr. Anderson or Mr. Klemsz.

Our revenue and profitability fluctuate, particularly inasmuch as we cannot predict the timing of realization events in our business, which may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause volatility in the price of our shares.

We may experience significant variations in revenues and profitability during the year and among years because we are paid incentive income from certain funds only when investments are realized, rather than periodically on the basis of increases in the funds’ net asset values. The timing and receipt of incentive income generated by our funds is event driven and thus highly variable, which contributes to the volatility of our revenue, and our ability to realize incentive income from our funds may be limited. We cannot predict when, or if, any realization of investments will occur. If we were to have a realization event in a particular quarter, it may have a significant impact on our revenues and profits for that particular quarter which may not be replicated in subsequent quarters. In addition, our investments are adjusted for accounting purposes to fair value at the end of each quarter, resulting in revenue attributable to our principal investments, even though we receive no cash distributions from our funds, which could increase the volatility of our quarterly earnings.

Difficult market conditions can adversely affect our funds in many ways, including by reducing the value or performance of the investments made by our funds and reducing the ability of our funds to raise or deploy capital, which could materially reduce our revenue and results of operations.

If economic conditions are unfavorable our funds may not perform well and we may not be able to raise money in existing or new funds. Our funds are materially affected by conditions in the global financial markets and economic conditions throughout the world. The global market and economic climate may deteriorate because of many factors beyond our control, including rising interest rates or inflation, terrorism or political uncertainty. In the event of a market downturn, our businesses could be affected in different ways. Our funds may face reduced opportunities to sell and realize value from their existing investments, and a lack of suitable investments for the funds to make. In addition, adverse market or economic conditions as well as a slowdown of activities in a particular sector in which portfolio companies of these funds operate could have an adverse effect on the earnings of those portfolio companies, and therefore, our earnings.

A general market downturn, or a specific market dislocation, may cause our revenue and results of operations to decline by causing:

●	the net asset value of the assets under management to decrease, lowering management fees;

●	lower investment returns, reducing incentive income;

●	material reductions in the value of our fund investments in portfolio companies which reduce our ‘‘surplus’’ and, therefore, our ability to realize incentive income from these investments; and

●	investor redemptions, resulting in lower fees.

Furthermore, while difficult market conditions may increase opportunities to make certain distressed asset investments, such conditions also increase the risk of default with respect to investments held by our funds with debt investments.

The share control position of WestMountain Blue, LLC will limit the ability of other shareholders to influence corporate actions.

Our largest shareholder, WestMountain Blue, LLC owns 8,050,000 shares and thereby controls approximately 90% of our outstanding shares. Because WestMountain Blue, LLC individually beneficially controls more than a majority of the outstanding shares, other shareholders, individually or as a group, will be limited in their ability to effectively influence the election or removal of our directors, the supervision and management of our business or a change in control of or sale of our company, even if they believed such changes were in the best interest of our shareholders generally.

Our future success depends, in large part, on the continued service of our Chief Executive Officer and President

We depend almost entirely on the efforts and continued employment of Mr. Brian L. Klemsz, our Chief Executive and Financial Officer and sole Director and Mr. Steve Anderson, our President. Mr. Anderson is our primary executive officer, and we will depend on him for nearly all aspects of our operations. We do not have an employment contract with Mr. Anderson or Mr. Klemsz, and we do not carry key person insurance on the life of either gentleman. The loss of the services of either Mr. Klemsz or Mr. Anderson through incapacity or otherwise, would have a material adverse effect on our business. It would be very difficult to find and retain qualified personnel such as either Mr. Klemsz or Mr. Anderson.

The success of our business depends, in large part, upon the proper selection of investments, which may be difficult to find, acquire and develop.

We believe that the identification, acquisition and development of appropriate investments are key drivers of our business. Our success depends, in part, on our ability to obtain these investments under favorable terms and conditions and have them increase in value. We cannot assure you that we will be successful in our attempts to find, acquire, and/or develop appropriate investments, will not be challenged by competitors which may put us at a disadvantage. Further, we cannot assure you that others will not independently develop similar or superior programs or investments, which may imperil our profitability.

Risks Related to an Investment in Our Common Stock

The lack of a broker or dealer to create or maintain a market in our stock could adversely impact the price and liquidity of our securities.

We have no agreement with any broker or dealer to act as a market maker for our securities and there is no assurance that we will be successful in obtaining any market makers. Thus, no broker or dealer will have an incentive to make a market for our stock. The lack of a market maker for our securities could adversely influence the market for and price of our securities, as well as your ability to dispose of, or to obtain accurate information about, and/or quotations as to the price of, our securities.

We have limited experience as a public company.

We have only operated as a public company since 2008. Thus, we have limited experience in complying with the various rules and regulations which are required of a public company. As a result, we may not be able to operate successfully as a public company, even if our operations are successful. We plan to comply with all of the various rules and regulations which are required of a public company. However, if we cannot operate successfully as a public company, your investment may be materially adversely affected. Our inability to operate as a public company could be the basis of your losing your entire investment in us.

We may be required to register under the Investment Company Act of 1940, or the Investment Advisors Act, which could increase the regulatory burden on us and could negatively affect the price and trading of our securities.

Because our business involves the identification, acquisition and development of investments, we may be required to register as an investment company under the Investment Company Act of 1940 or the Investment Advisors Act and analogous state law. While we believe that we are currently either not an investment company or an investment advisor or are exempt from registration as an investment company under the Investment Company Act of 1940 or the Investment Advisors Act and analogous state law, either the SEC or state regulators, or both, may disagree and could require registration either immediately or at some point in the future. As a result, there could be an increased regulatory burden on us which could negatively affect the price and trading of our securities.

Our stock has a limited public trading market on the OTC Bulletin Board and there is no guarantee an active trading market will ever develop for our securities.

There has been, and continues to be, a limited public market for our common stock. We trade under the symbol WASM. An active trading market for our shares has not, and may never develop or be sustained. If you purchase shares of common stock, you may not be able to resell those shares at or above the initial price you paid. The market price of our common stock may fluctuate significantly in response to numerous factors, some of which are beyond our control, including the following:

* actual or anticipated fluctuations in our operating results;

* changes in financial estimates by securities analysts or our failure to perform in line with such estimates;

* changes in market valuations of other companies, particularly those that market services such as ours;

* announcements by us or our competitors of significant innovations, acquisitions, strategic partnerships, joint ventures or capital commitments;

* introduction of product enhancements that reduce the need for the products our projects may develop;

* departures of key personnel.

Of our total outstanding shares as of June 30, 2012, a total of 8,325,000, or approximately 91.9%, will be restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is doing well.

As restrictions on resale end, the market price of our stock could drop significantly if the holders of restricted shares sell them or are perceived by the market as intending to sell them.

Applicable SEC rules governing the trading of “Penny Stocks” limit the liquidity of our common stock, which may affect the trading price of our common stock.

Our common stock currently trades well below $5.00 per share. As a result, our common stock is considered a “penny stock” and is subject to SEC rules and regulations that impose limitations upon the manner in which our shares can be publicly traded. These regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock and the associated risks. Under these regulations, certain brokers who recommend such securities to persons other than established customers or certain accredited investors must make a special written suitability determination for the purchaser and receive the written purchaser’s agreement to a transaction prior to purchase. These regulations have the effect of limiting the trading activity of our common stock and reducing the liquidity of an investment in our common stock.

The over-the-counter market for stock such as ours is subject to extreme price and volume fluctuations.

The securities of companies such as ours have historically experienced extreme price and volume fluctuations during certain periods. These broad market fluctuations and other factors, such as new product developments and trends in the our industry and in the investment markets generally, as well as economic conditions and quarterly variations in our operational results, may have a negative effect on the market price of our common stock.

Buying low-priced penny stocks is very risky and speculative.

Our shares are defined as a penny stock under the Securities and Exchange Act of 1934, and rules of the Commission. The Exchange Act and such penny stock rules generally impose additional sales practice and disclosure requirements on broker-dealers who sell our securities to persons other than certain accredited investors who are, generally, institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly with spouse, or in transactions not recommended by the broker-dealer. For transactions covered by the penny stock rules, a broker-dealer must make a suitability determination for each purchaser and receive the purchaser's written agreement prior to the sale. In addition, the broker-dealer must make certain mandated disclosures in penny stock transactions, including the actual sale or purchase price and actual bid and offer quotations, the compensation to be received by the broker-dealer and certain associated persons, and deliver certain disclosures required by the Commission. Consequently, the penny stock rules may affect the ability of broker-dealers to make a market in or trade our common stock and may also affect your ability to resell any shares you may purchase in the public markets.

Issuances of our stock could dilute current shareholders and adversely affect the market price of our common stock, if a public trading market develops.

We have the authority to issue up to 50,000,000 shares of common stock, 1,000,000 shares of preferred stock, and to issue options and warrants to purchase shares of our common stock without stockholder approval. Although no financing is planned currently, we may need to raise additional capital to fund operating losses. If we raise funds by issuing equity securities, our existing stockholders may experience substantial dilution. In addition, we could issue large blocks of our common stock to fend off unwanted tender offers or hostile takeovers without further stockholder approval.

The issuance of preferred stock by our board of directors could adversely affect the rights of the holders of our common stock. An issuance of preferred stock could result in a class of outstanding securities that would have preferences with respect to voting rights and dividends and in liquidation over the common stock and could, upon conversion or otherwise, have all of the rights of our common stock. Our board of directors' authority to issue preferred stock could discourage potential takeover attempts or could delay or prevent a change in control through merger, tender offer, proxy contest or otherwise by making these attempts more difficult or costly to achieve.

Colorado law and our Articles of Incorporation protect our directors from certain types of lawsuits, which could make it difficult for us to recover damages from them in the event of a lawsuit.

Colorado law provides that our directors will not be liable to our company or to our stockholders for monetary damages for all but certain types of conduct as directors. Our Articles of Incorporation require us to indemnify our directors and officers against all damages incurred in connection with our business to the fullest extent provided or allowed by law. The exculpation provisions may have the effect of preventing stockholders from recovering damages against our directors caused by their negligence, poor judgment or other circumstances. The indemnification provisions may require our company to use our assets to defend our directors and officers against claims, including claims arising out of their negligence, poor judgment, or other circumstances.

We do not expect to pay dividends on common stock.

We have not paid any cash dividends with respect to our common stock, and it is unlikely that we will pay any dividends on our common stock in the foreseeable future. Earnings, if any, that we may realize will be retained in the business for further development and expansion.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibit Number		Description

3.1*		Articles of Incorporation

3.2*		Bylaws

10.1**		Service Agreement With Bohemian Companies, LLC

31.1		Certification of CEO/CFO pursuant to Sec. 302

32.1		Certification of CEO/CFO pursuant to Sec. 906

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document*

101.INS		XBRL Instance Document

101SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

* Previously filed with Form SB-2 Registration Statement, January 2, 2008.

** Previously filed with Form 10-KSB, February 29, 2008.

Reports on Form 8-K

No reports were filed under cover of Form 8-K for the fiscal quarter ended June 30, 2012.

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 August 14, 2012.

	WEST MOUNTAIN ASSET MANAGEMENT, INC., a Colorado corporation

	By:	/s/ Brian L. Klemsz
		Brian L. Klemsz, President, Chief Executive Officer, Chief Financial Officer and Director (Principal Executive, Accounting and Financial Officer)

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