WESTMOUNTAIN Co - FORM 10-Q - November 21, 2011

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EX-32.1 - CERTIFICATION - WESTMOUNTAIN Co	wasm_ex321.htm
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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended September 30, 2011

o 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 þ 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(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 þ No o

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 o Accelerated filer o

Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company þ

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

The number of shares outstanding of the registrant's common stock, as of the latest practicable date, November 18, 2011, was 9,517,402.

FORM 10-Q

WestMountain Asset Management, Inc.

TABLE OF CONTENTS

PART 1 FINANCIAL INFORMATION

ITEM 1.	Financial Statements		3
		Condensed Consolidated Balance Sheets at September 30, 2011 (Unaudited) and December 31, 2010
		Condensed Consolidated Statement of Operations (Unaudited) for the three months ended September 30, 2011 and 2010 and for the nine months ended September 30, 2011 and 2010 and for the period October 18, 2007 (inception) through September 30, 2011	4
		Condensed Consolidated Statement of Cash Flows (Unaudited) for the nine months ended September 30, 2011 and 2010 and for the period October 18, 2007 (inception) through September 30, 2011	5
		Statement of Shareholders' Equity (Unaudited) for the period October 18, 2007 (inception) through September 30, 2011	6
		Notes to the Condensed Consolidated Financial Statements	7
ITEM 2.	Management's Discussion and Analysis and Plan of Operation		11
ITEM 3.	Quantitative and Qualitative Disclosures About Mark Risk		13
ITEM 4.	Controls and Procedures		13
ITEM 4T.	Controls and Procedures		13

PART II OTHER INFORMATION

ITEM 1.	Legal Proceedings		14
ITEM 1A.	Risk Factors		14
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds		19
ITEM 3.	Defaults Upon Senior Securities		19
ITEM 4.	Submission of Matters to a Vote of Security Holders		19
ITEM 5.	Other Information		19
ITEM 6.	Exhibits		19
			19
Signatures			20

WestMountain Asset Management, Inc.
(A Development Stage Company)
Condensed Consolidated Balance Sheets
	September 30,			December 31,
Assets	2011			2010
	(unaudited)

Cash and cash equivalents	$	187,328		$	402,152
Certificates of deposit		11,809			11,800
Accounts receivable, related parties		16,673			22,417
Income tax receivable		34,266			-
Note receivable		90,000			90,000
Prepaid expenses		5,077			1,601
Computers, net		1,661			3,896
Intangibles, net		10,148			6,858
Investment, at fair value		7,213,226			10,808,319
Deferred tax asset, net		19,850			23,947
Total assets	$	7,590,038		$	11,370,990

Liabilities and Shareholders' Equity
Liabilities:
Accounts payable	$	50		$	433
Income tax payable		-			24,775
Note payable, related parties		-			500,000
Interest payable, related parties		-			37,178
Accrued liabilities		4,800			14,523
Accrued liabilities, related parties		-			525
Deferred tax liability		2,489,574			3,839,311
Total liabilities		2,494,424			4,416,745

Shareholders' Equity:
Preferred stock, $.10 par value; 1,000,000 shares authorized,		-			-
-0- shares issued and outstanding for 2011 and 2010
Common stock, $.001 par value; 50,000,000 shares authorized,		9,517			9,062
9,517,402 shares issued and outstanding September 30, 2011
9,061,750 shares issued and outstanding December 31, 2010
Additional paid-in-capital		906,836			362,253
Earnings accumulated during development stage		(17,901	)		93,059
Other comprehensive income, net		4,197,162			6,489,871
Total shareholders' equity		5,095,614			6,954,245
Total liabilities and shareholders' equity	$	7,590,038		$	11,370,990

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

WestMountain Asset Management, Inc.
(A Development Stage Company)
Condensed Consolidated Statements of Operations (unaudited)
For the three months ended September 30, 2011 and 2010 and for the
nine months ended September 30, 2011 and 2010 and for the
period October 18, 2007 (inception) through September 30, 2011

													October 18, 2007
	For the three months ended						For the nine months ended						(Inception) Through
	September 30,						September 30,						September 30,
	2011			2010			2011			2010			2011

Revenue:
Advisory/consulting fees, related parties	$	-		$	16,450		$	-		$	98,932		$	132,717
Management fees, related parties		10,929			22,416			55,762			67,255			374,796
Total revenue		10,929			38,866			55,762			166,187			507,513

Operating expenses:
Sales, general and administrative expenses		107,895			16,574			173,603			56,586			423,014
Total sales, general and administraive expenses		107,895			16,574			173,603			56,586			423,014

Net (loss)income from operations		(96,966	)		22,292			(117,841	)		109,601			84,499

Other income/(expense)
Interest income		58			137			213			649			13,414
Interest expense		-			(12,603	)		(24,521	)		(20,137	)		(68,900	)
Loss on investment		-			-			-			-			(50,000	)
Total other income/(expense)		58			(12,466	)		(24,308	)		(19,488	)		(105,486	)

Net (loss)income before income taxes		(96,908	)		9,826			(142,149	)		90,113			(20,987	)

(Benefit)provision for income taxes		(19,728	)		16,863			(31,189	)		35,046			(3,086	)
Net (loss)income	$	(77,180	)	$	(7,037	)	$	(110,960	)	$	55,067		$	(17,901	)

Basic and diluted income(loss) per share	$	(0.01	)	$	(0.00	)	$	(0.01	)	$	0.01
Basic and diluted weighted average common
shares outstanding		9,517,402			9,061,750			9,218,641			9,061,750

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

WestMountain Asset Management, Inc.
(A Development Stage Company)
Condensed Statements of Cash Flows (unaudited)
For the nine months ended September 30, 2011 and 2010
and for the period October 18, 2007 (inception) through September 30, 2011
							October 18, 2007
	For the nine months ended						(Inception) through
	September 30,						September 30,
	2011			2010			2011


Cash flows from operating activities:
Net income	$	(110,960	)	$	55,067		$	(17,901	)
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization		6,175			7,410			25,326
Stock based compensation expense		20,519			-			20,519
Stock received for advisory fees		-			(88,933	)		(122,717	)
Changes in operating assets and operating liabilities:
Prepaid expenses		(3,485	)		(1,217	)		(5,086	)
Accounts receivable, related parties		5,744			8,020			(16,673	)
Income tax refund receivable		(34,266	)					(34,266	)
Accounts payable and accrued liabilities		(23,289	)		11,609			29,370
Income tax payable		(20,678	)		13,826			(19,850	)
Net cash (used in)provided by operating activities		(160,240	)		5,782			(141,278	)

Cash flows from investing activities:
Purchases of property and equipment		(7,230	)		(1,790	)		(37,135	)
Payments for investments		(47,354	)		(60,000	)		(403,774	)
Notes receivable		-			89,387			(90,000	)
Payments for and proceeds from certificates of deposit		-			(124,771	)		(11,800	)
Net cash (used in) investing activities		(54,584	)		(97,174	)		(542,709	)

Cash flows from financing activities:
Payments for notes payable, related parties					-			-
Proceeds from notes payable, related parties		-			350,000			500,000
Proceeds from sale of common stock		-			-			371,315
Net cash provided by financing activities		-			350,000			871,315

Net change in cash		(214,824	)		258,608			187,328

Cash and cash equivalents, beginning of period		402,152			70,328			-


Cash and cash equivalents, end of period	$	187,328		$	328,936		$	187,328

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income tax	$	15,251		$	20,000		$	28,118
Interest	$	37,178		$	-		$	44,378

Non cash investing activities
Unrealized gains(loss) on investments	$	(3,642,447	)	$	(7,389,242	)	$	6,686,734
Deferred income taxes	$	(1,349,737	)	$	(4,063,494	)	$	(2,489,574	)
Conversion of related parties note and interest to common stock	$	524,519		$	-		$	524,519

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

WestMountain Asset Management, Inc.
(A Development Stage Company)
Condensed Statement of Changes in Shareholders' Equity (unaudited)
For the period from October 18, 2007 (inception) through September 30, 2011

											Earnings
											Accumulated
	Preferred Stock				Common Stock				Additional		During			Unrealized
			Par				Par		Paid-in		Development			Holdings
	Shares		Value		Shares		Value		Capital		Stage			Gain/(Loss)			Total
Balance at October 18, 2007		-	$	-		-	$	-	$	-	$	-		$	-		$	-

November 19, 2007 common stock shares sold
at $0.001 per share		-		-		290,000		290		-		-			-			290

November 20, 2007 common stock shares sold
at $0.01 per share		-		-		235,000		235		2,115		-			-			2,350

November 28, 2007 common stock shares sold
at $0.04 per share		-		-		8,050,000		8,050		311,950		-			-			320,000

November 30, 2007 common stock shares sold
at $0.10 per share		-		-		486,750		487		48,188		-			-			48,675

Net loss, October 18, 2007 (inception) through		-		-		-		-		-		(29,460	)		-			(29,460	)
December 31, 2007

Balance at December 31, 2007		-		-		9,061,750		9,062		362,253		(29,460	)		-			341,855

Net income, for the year ended
December 31, 2008		-		-		-		-		-		916			-			916

Balance at December 31, 2008		-		-		9,061,750		9,062		362,253		(28,544	)		-			342,771

Unrealized gain on investments for the quarter
ended December 31, 2009		-		-		-		-		-					12,566,353			12,566,353

Net income, for the year ended
December 31, 2009		-		-		-		-		-		74,274			-			74,274

Balance at December 31, 2009		-		-		9,061,750		9,062		362,253		45,730			12,566,353			12,983,398

Unrealized loss on investments for the quarter
ended December 31, 2010		-		-		-		-		-		-			(6,076,482	)		(6,076,482	)

Net income, for the year ended
December 31, 2010		-		-		-		-		-		47,329			-			47,329
Balance at Dectember 31, 2010		-	$	-		9,061,750	$	9,062	$	362,253	$	93,059		$	6,489,871		$	6,954,245

Unrealized loss on investments for the quarter
ended March 31, 2011		-		-		-		-		-		-			(1,683,476	)		(1,683,476	)

Net loss, for the quarter ended
March 31, 2011		-		-		-		-		-		(2,116	)		-			(2,116	)
Balance at March 31, 2011		-	$	-		9,061,750	$	9,062	$	362,253	$	90,943		$	4,806,395		$	5,268,653

Unrealized loss on investments for the quarter
ended June 30, 2011		-		-		-		-		-		-			(1,993,403	)		(1,993,403	)

Conversion of note payable and interest,						455,652		455		524,064								524,519
related party on June 29, 2011

Net loss, for the quarter ended
June 30, 2011		-		-		-		-		-		(31,664	)		-			(31,664	)
Balance at June 30, 2011		-	$	-		9,517,402	$	9,517	$	886,317	$	59,279		$	2,812,992		$	3,768,105

Stock based compensation expense for options granted										20,519								20,519
August 15, 2011

Unrealized gain on investments for the quarter
ended September 30, 2011		-		-		-		-		-		-			1,384,170			1,384,170

Net loss, for the quarter ended
September 30, 2011		-		-		-		-		-		(77,180	)		-			(77,180	)
Balance at September 30, 2011		-	$	-		9,517,402	$	9,517	$	906,836	$	(17,901	)	$	4,197,162		$	5,095,614

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

WestMountain Asset Management, Inc.

(A Development Stage Company)

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

Nature of Organization and Basis of Presentation

WestMountain Asset Management, Inc. was incorporated in the state of Colorado on October 18, 2007 and on this date approved its business plan and commenced operations.

The Company is a development stage enterprise in accordance with ASC 915 “Accounting and Reporting by Development Stage Enterprises” formerly SFAS No. 7. 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 associated with management fees. We are reevaluating our business plan and by the fourth quarter of 2011, our current management will propose and begin to implement the new business model for the near term.

The Company records revenue for management fees for services provided to clients, including high net worth individuals and institutions, in connection with raising, investing and managing private equity and directing investment funds for third parties.

Unaudited Financial Information

The accompanying financial information as of September 30, 2011 and for the three months ended September 30, 2011 and 2010, and for the nine months ended September 30, 2011 and 2010 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 September 30, 2011 and its operating results for the three months and nine months ended September 30, 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, 2010. The results of operations for the three months ended September 30, 2011 is not necessarily an indication of operating results to be expected for the year.

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 September 30, 2011 there was $102,764 in cash equivalents.

Fair Value of Financial Instruments

Available-for-sale securities are accounted for on a specific identification basis. As of September 30, 2011, we held available-for-sale securities with an aggregate fair value of $7,213,226, including $6,686,734 of unrealized gains (net of income taxes) recorded in accumulated other comprehensive income. As of September 30, 2011, 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. As of September 30, 2011, our basis in available-for-sale is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2011

Quoted Prices in

Significant

Active Markets for

Other

Significant

Identical Assets and

Observable

Unobservable

Balance as of

Liabilities

Inputs

September 30,

Description

(Level 1)

(Level 2)

(Level 3)

2011

Assets:

Available-for-sale

securities

6,374,276

838,950

7,213,226

(2) Stockholders Equity

Common Stock

On November 19, 2007 the Company sold 290,000 shares of its common stock for $290 or $0.001 per share.

On November 20, 2007 the Company sold 235,000 shares of its common stock for $2,350 or $0.01 per share.

On November 28, 2007 the Company sold 8,050,000 shares of its common stock to WestMountain Blue, LLC, an affiliate, for a cash price of $320,000 or $0.04 per share. The stock transaction made WestMountain Blue, LLC the Company’s majority shareholder.

On November 30, 2007 the Company sold 486,750 shares of its common stock for $48,675 or $0.10 per share. The stock sale was made in reliance on an exemption from registration of a trade in the United States under Rule 504 and/or Section 4(6) of the Act.

The Company relied upon exemptions from registration believed by it to be available under federal and state securities laws in connection with the offering.

A total of 9,061,750 shares were issued for a total cash price of $371,315. As of December 31, 2007, the common stock issued and outstanding at par is $9,062 or $0.001 per share. The amount over and above the $0.001 par value per share is recorded in the additional paid-in capital account in the amount of $362,253.

On June 29, 2011, our related party note and interest, in the amount of $524,519, was converted to a total of 455,652 of common shares of the Company.

Stock Options

On August 15, 2011, the Company approved the employee compensation plan and granted a total of 200,000 shares of common stock, to our employees. As stated in the compensation plan, these options have a ten 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, 2012. The options have an exercise price of $0.51 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 maturity time used in the calculation is 5.375 years. The third quarter expense is $20,519. The remaining $20,519 will be expensed as stated above.

The following table presents the activity for options granted:

			Weighted
			Average
	Options		Exercise Price
Outstanding - December 31, 2010		-		-
Granted		200,000		0.51
Forfeited/canceled		-		-
Exercised		-		-
Outstanding - September 30, 2011		200,000		0.51

The following table presents the composition of options outstanding and exercisable:

		Options Outstanding				Options exerciseable
Range of Exercise Prices		Number		Life		Number		Price
	0.51		200,000		10		100,000		0.51

(3) 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.

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, 2011. Total expenses incurred with Bohemian Companies were $3,000 for each quarter ending September 30, 2011 and 2010. Total expenses incurred with Bohemian Companies were $9,000 for the nine months ending September 30, 2011 and 2010. As of September 30, 2011 the Company did not have a balance due to Bohemian Companies, LLC.

For the three months ended September 30, 2011 and 2010 the Company recorded $10,929 and $22,416 in revenue for management fees charged to WestMountain Prime, LLC, a related party. For the nine months ended September 30, 2011 and 2010 the Company recorded $55,762 and $67,255 respectively for management fees. 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 three months ended September 30, 2011 and 2010, we record $-0- and $16,450 respectively in related party revenue for advisory fees charged to Nexcore Healthcare Capital Corp., formerly CapTerra Financial Group, Inc. For the nine months ended September 30, 2011 and 2010 the Company recorded $-0- and $98,932, respectively, in related party revenue for advisory fees charged to Nexcore Healthcare Capital Corp and Accredited Members, Inc. “AMI”.

As of September 30, 2011 and 2010, the Company recorded $16,673 and 22,416 as an accounts receivable. The accounts receivable balances, for both periods, represent third quarter management fees that were due from WestMountain Prime, LLC.

On October 15, 2008, the Company signed a promissory note in the amount of $75,000 from BOCO Investments, Inc. The interest rate on the note was 12%. All principal and interest of this note was paid in full in 2009. On September 15, 2009 the Company signed a promissory note with BOCO Investments, Inc. (BOCO), a related party, in the amount of $150,000. The note matured in March 2010 and has been extended to March 2011. On June 30, 2010 the Company entered into a new note for $500,000 with an interest rate of 10% and a maturity date of June 30, 2011. The September 15, 2009 note for $150,000 was canceled and the principal and interest was rolled into the new note. On June 29, 2011 the full amount of the note and related accrued interest, in the amount of $524,519, was converted to 455,652 of common shares at a price of $1.15 which was determined by the Board of Directors to be the fair value of the shares as of that date.

The Company entered into an agreement with SP Business Solutions (“SP”) to provide accounting and related services for the Company. The owner, Joni Troska, was appointed Secretary of WestMountain Asset Management, Inc on March 19, 2010, and is considered to be a related party through June 2011. Ms. Troska was hired part time for the Company in July 2011 and will no longer be paid as an outside consultant and a related party for the third quarter 2011 going forward. Actual costs incurred for the nine months ended September 30, 2011 and 2010 was $1,400 and $3,928 respectively.

In December 2009 the Company formed three new companies, WestMountain Business Consulting, Inc., WestMountain Allocation Analytics, Inc. and WestMountain Valuation Services, Inc. that are included in our consolidated financial statements. We transferred $2,000 into each checking account in December 2009. As of September 30, 2011, no other activity has been recorded.

On September 29, 2010 CapTerra Financial Group, Inc. merged with Nexcore Group LP. The Company provided advisory services related to the transaction and for those services received 1,645,000 warrants. In December the warrants were exercised and the resulting investment in equity securities was recorded at a fair value of $2,451,050 as of December 31, 2010. The equity securities have been restricted and cannot be sold for two years.

(4) Investments

In August, 2011 we exercised 866,000 warrants of Terra Mining at a cost of $0.001. As of September 30, 2011 the fair value of the stock was $3.99.

The Company’s investments as of September 30, 2011 are summarized below.

					As of September 30, 2011
									Accumulated
					Share		Market		Unrealized
Company Name	Shares		Cost		Price		Value		Gain/Loss

Omni Bio Pharmaceutical, Inc.		1,707,107	$	193,635	$	1.40	$	2,389,948	$	2,196,313
Accredited Members Holding Corporation		1,698,713		267,408		0.25		424,678		157,270
Nexcore Healthcare Capital Corp.		1,645,000		18,095		0.51		838,950		820,855
Silver Verde May Minging Co., Inc.		246,294		46,488		0.42		103,444		56,956
WestMountain Index Advisor, Inc.		866,000		866		3.99		3,456,206		3,455,340

Totals		6,163,114	$	526,492			$	7,213,226	$	6,686,734

(5) Other Comprehensive Income (Loss)

Other comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes an unrealized gain of marketable equity securities. The details of comprehensive income are as follows:


	For the nine months ended
	September 30,
	2011			2010
Net (Loss)Income, as reported	$	(110,960	)	$	55,067

Other Comprehensive (loss):
Unrealized loss of marketable equity securities		(2,292,709	)		(7,389,242	)

Other Comprehensive (Loss)	$	(2,403,669	)	$	(7,334,175	)

(6) Subsequent Events

On October 31, 2011 the market price of Omni is $1.03 per share, a decrease of $0.37 from $1.40 as of September 30, 2011. Based on this net change in market price, the value of the investments would decrease by $631,630.

On October 31, 2011 the market price of Accredited Members is $0.12 per share, a decrease of $0.13 from $0.25 as of September 30, 2011. Based on this net change in market price, the value of the investments would decrease by $220,833.

On October 31, 2011 the market price of CapTerra Financial Group is $0.70 per share, an increase of $0.19 from $0.51 as of September 30, 2011. Based on this net change in market price, the value of the investments would increase by $312,550. The determination of this investment is measured on a recurring basis using Level 2 valuation measures. See Footnote 1 for further details on fair value measurements.

On October 31, 2011 the market price of Silver Verde May Mining Co. is $0.51 per share, an increase of $0.09 from $0.42 as of September 30, 2011. Based on this net change in market price, the value of the investments would increase by $22,166.

On October 31, 2011 the market price of Terra Mining is $3.99 per share that represents no change in the market price as of September 30, 2011.

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 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 under written 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, 2011. 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.

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 not less than quarterly from Bohemian Companies, LLC. This Service Agreement is for the term of one year, ending December 31, 2011.

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 nine-months ended September 30, 2011 and 2010.

We had revenues of $10,929 for the three months ended September 30, 2011, compared to $38,866 for the three months ended September 30, 2010. We had $55,762 for the nine months ended September 30, 2011, compared to $166,187 for the nine months ended September 30, 2010. Our investments within our managed fund have decreased in value from 2010 which has negatively impacted our revenue for the 2011 period. Our management fee thereby decreased because it is a percentage of the value of the managed fund.

Operating expenses, consisting primarily of selling, general and administrative costs were $107,895 for the three months ended September 30, 2011, compared to $16,574 for the three months ended September 30, 2010. Selling, general and administrative costs were $173,603 for the nine months ended September 30, 2011, compared to $56,586 for the nine months ended September 30, 2010. Most of the increase in costs in 2011 was associated with the hiring of a new President and part-time accountant. We recorded additional minor equipment and contract services expense for marketing and social media that included updates to our Company website, Facebook, and YouTube. In August 2011, the Company approved the Employee Compensation plan and based off of the plan terms and the simplified method used to calculate the maturity date, $20, 519 was recorded for option expense. 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 $77,180 for the three months ended September 30, 2011, compared to net loss of $7,037 for the three months ended September 30, 2010. We had net loss of $110,960 for the nine months ended September 30, 2011, compared to net income of $ 55,067 for the nine months ended September 30, 2010. For the period October 18, 2007 (inception) through September 30, 2011 we had a net loss of $17,901.

The Company’s investment in two companies, Terra Mining (WestMountain Index Advisor, Inc.) and Omni Bio Pharmaceutical, Inc., currently makes up 76% of the Company’s assets as of September 30, 2011. The investment in Terra Mining is made up of the cost of warrants that were exercised in the third quarter and the associated valuation of the investment that is based on the quoted market price as of September 30, 2011. The investment in Omni Bio Pharmaceutical, Inc. consists of the original cost, exercise of the options from GDBA Investments, Inc. and the valuation of the investment that is based on the quoted market price as of September 30, 2010. Since the Company bases these investments on market price, the amount reflected on the balance sheet will change based on the market price on the date of the balance sheet.

As of September 30, 2011, we hold six investment positions. All the companies are publicly traded and listed on the OTC Bulletin Board. The table below lists the investments and total shares owned by the Company as of September 30, 2011.

Company Name	Shares

Omni Bio Pharmaceutical, Inc.		1,707,107
Accredited Members Holding Corporation		1,698,713
Nexcore Healthcare Capital Corp.		1,645,000
Silver Verde May Minging Co., Inc.		246,294
WestMountain Index Advisor, Inc.		866,000


Total Shares		6,163,114

Our sixth position involves Marine Exploration, Inc. As of September 30, 2011, we own a total of 175,000,000 common shares, which we have written down to zero value.

Liquidity and Capital Resources

Our cash and cash equivalents on September 30, 2011 was $187,328 compared to $328,936 on September 30, 2010. We had $11,809 and $114,280 in a certificate of deposit as of September 30, 2011 and 2010, respectively.

Cash flows used in operating activities were $160,240 for the nine months ended September 30, 2011, compared to cash flows provided by operating activities of $5,782 for the nine months ended September 30, 2010. For the period October 18, 2007 (inception) through September 30, 2011 cash flows used in operating activities were $141,278.

Net cash used in investing activities was $54,584 for the nine months ended September 30, 2011, compared to $97,174 for the nine months ended September 30, 2010. Net cash used in investing activities was $542,709 for the period October 18, 2007 (inception) through September 30, 2011.

Cash flows provided by financing activities were $-0- and $350,000 for the nine months ended September 30, 2011 and 2010, respectively and $871,315 for the period October 18, 2007 (inception) through September 30, 2011.

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

On June 29, 2011, we entered into a Conversion and Termination Agreement with BOCO Investments, LLC. (BOCO) to convert the outstanding principal and interest on a promissory note owed by us to BOCO. As of June 29, 2011, we owed BOCO a total of $524,519 in principal and accrued interest on the promissory note. We converted the entire outstanding principal and interest on the promissory note into a total of 455,652 common shares and terminated the obligation.

Our expenses have increased over last year as we are paying salaries for our President and part-time accountant hired in 2011. We have also increased our marketing and social media expenses to raise awareness of our Company through our website, Facebook, and YouTube. Starting in this quarter, the Company recognized option expense and will going forward. Our accounting fees will also increase in the fourth quarter of 2011 due to a 2010 audit that will be performed by our new auditors.

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.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

None.

ITEM 4. CONTROLS AND PROCEDURES

Not applicable

ITEM 4T. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, based on an evaluation of our disclosure controls and procedures (as defined in Rules 13a -15(e) and 15(d)-15(e) under the Exchange Act), our Chief Executive Officer and the Chief Financial Officer has concluded that our disclosure controls and procedures are 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.

There were no changes in our internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our 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 limited operating history, and may never sustain a profit. If we cannot operate profitably, we could go out of business.

We were formed as a Colorado business entity in October, 2007. While we have been profitable in our last two fiscal years, we were not profitable in our most recent fiscal quarter, and there can be no guarantee that we will be able to sustain our history of profitability. If we cannot sustain profitability, 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 generate revenues and are current profitable. As of September 30, 2011, we had a cash position of $187,328. We had certificates of deposit of $11,809. We anticipate that operating costs will be approximately $180,000 for the fiscal year ending December 31, 2011. These operating costs include payroll, insurance, taxes, utilities, maintenance, 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 an investment manager. This business is 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 BOCO Investments, LLC itself and through WestMountain Blue, LLC will limit the ability of other shareholders to influence corporate actions.

Our largest shareholders, WestMountain Blue, LLC, and BOCO Investments, LLC together own 8,505,652 shares and thereby control approximately 89% of our outstanding shares. Because WestMountain Blue, LLC and BOCO Investments, LLC individually beneficially control 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 our Treasurer and the continued financing of WestMountain Blue, LLC.

We depend almost entirely on the efforts and continued employment of Mr. Steve Anderson, our President, and Mr. Brian Klemsz, our Treasurer. Messrs. Anderson and Klemsz are our primary executive officers, and we will depend on them for nearly all aspects of our operations. In addition, WestMountain Blue, LLC, is our only source of financing. We do not have an employment contract with either Mr. Anderson or Mr. Klemsz, and we do not carry key person insurance on either’s life. 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 and a financing source to replace WestMountain Blue, LLC.

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 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 that 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 September 30, 2011, 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 Link base Document

101.INS		XBRL Instance Document

101SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Link base Document

101.LAB		XBRL Taxonomy Extension Label Link base Document

101.PRE		XBRL Taxonomy Extension Presentation Link base Document

101.DEF		XBRL Taxonomy Extension Definition Link base 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 September 30, 2011.

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 November 21, 2011.

	WEST MOUNTAIN ASSET MANAGEMENT, INC., a Colorado corporation

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

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