Safe Harbour - Forward Looking Statements

When used in this Quarterly Report on Form 10-Q, in documents incorporated herein and elsewhere by us from time to time, the words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements concerning our business operations, economic performance and financial condition, including in particular, our business strategy and means to implement the strategy, our objectives, the amount of future capital expenditures required, the likelihood of our success in developing and introducing new products and expanding the business, and the timing of the introduction of new and modified products or services. These forward looking statements are based on a number of assumptions and estimates which are inherently subject to significant risks and uncertainties, many of which are beyond our control and reflect future business decisions which are subject to change.

A variety of factors could cause actual results to differ materially from those expected in our forward-looking statements, including those set forth from time to time in our press releases and reports and other filings made with the Securities and Exchange Commission. We caution that such factors are not exclusive. Consequently, all of the forward-looking statements made in this document are qualified by these cautionary statements and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to publicly release the results of any revisions of such forward-looking statements that may be made to reflect events or circumstances after the date hereof, or thereof, as the case may be, or to reflect the occurrence of unanticipated events.

RESULTS OF OPERATIONS

REVENUE The Company's primary revenue is derived by delivering software as a service, or hosted solutions for its clients billed on a monthly basis for each location serviced. For the three months ended September 30, 2008, the Company generated $567,521 in revenues compared to $324,947 in the comparable prior year's period. This increase in revenues is primarily attributable to the licensing of the Company's solutions by additional customers and professional service fees. In 2008 and 2007, the Company received payments under contracts for the development of various solutions, subject to multi-year licensing agreements. The revenue under these contracts is recognized, under Statement of Position 97-2 (as amended), Software Revenue Recognition, over a 3 year period to coincide with the terms of the related licensing fees. The Company recognized $21,000 and $9,000, respectively, in the three months ended September 30, 2008 and 2007 for the development work and $75,000 and $37,500 under the license agreement. As of September 30, 2008, the Company included $191,000 from the development fees in deferred revenues on its balance sheet.

COST OF REVENUE The cost of revenues for the three months ended September 30, 2008 and 2007 consist primarily of personnel, related payroll costs and support service costs in the respective amounts of $140,619 and $126,322. These costs include travel, data hosting services, telecommunication costs and depreciation of computer equipment used in the maintenance and processing of customers' data. The current year's period includes higher costs for license fees due to increased revenues of $1,872 and restructuring costs for data hosting and polling services of $10,602. This was offset by reduced payroll and related costs of $3,566 due to reduced time allocated to operations in this quarter compared to the prior year's quarter.

RESEARCH AND DEVELOPMENT Research and development costs are charged to operations as incurred and consist primarily of personnel and related benefit costs. The costs for the three months ended September 30, 2008 and 2007 were $137,893 and $84,058, respectively. The primary increase of $36,600 was attributable to the use of outside consultants to assist in the integration of various systems for new franchise operations with our business intelligence solution. Also in the current year's quarter, the Company allocated more time to development, increased executive salaries, and thus incurred higher payroll and related costs of $16,142 based on the actual time incurred as compared to the time allocated to research and development in the prior year's comparative quarter. The Company's research and development is part of its strategic plan to provide enhancements and integration into new and existing franchise operations in the retail market.

MARKETING AND SELLING The costs for the three month period ended September 30, 2008 were $71,662 compared to $57,485 in the comparative period of the prior year. The Company's increase in marketing and selling expenses in the current quarter reflects increased compensation for its executives and outside consultant and a greater allocation of personnel and related costs of $7,028 based on time incurred in this respective category. Also in the current quarter ended September 30, 2008, the Company incurred higher costs for marketing, trade shows and related travel of $7,146 as compared to the same period of the prior year. For the current fiscal year, the Company continues to expand its customer base through direct sales, trade shows and referrals from its relationship with existing clients.

GENERAL AND ADMINISTRATIVE The Company's general and administrative costs consist primarily of executive salaries and related benefits, professional fees for attorneys, our independent auditor, rent, expenses related to being a public company and other operating costs. The costs for the three months ended September 30, 2008 and 2007 were $131,815 and $151,728, respectively. The reduction was primarily due to reduced professional fees approximating $38,000, offset by increased executive compensation of $6,646 and costs incurred of $6,140 to report as a public company.

INTEREST EXPENSE Interest expense consists of the following:

                                                  Three Months Ended
                                                    September 30,
Interest expense
                                                  2008          2007
Accrued interest on                           $      16,416 $     16,414
convertible debentures
Amortization of the                                 -           19,062
discount of the
beneficial
conversion feature
in the convertible
debentures
Accrued interest on loan                          1,750          1,750
payable
Interest incurred                                 2,374          2,501
from the deferred
credits issued to
consortium members
Interest income                                    (681)       (2,614)
earned on cash and
cash equivalents
Net interest expense                          $      19,859 $     37,113

NET INCOME (LOSS) The net income for the three months ended September 30, 2008 and 2007 was $65,673 compared to a net loss of $131,759 for the comparative period in 2007. The increase in the net income for the three months September 30, 2008 was primarily the result of increased revenue resulting from the licensing of the Company's solutions by additional customers and professional service fees. The Company was able to reduce its professional fees by $38,000 primarily due to the change in its independent public accountants. This increase in income was offset by use of outside consultants for development work, increased compensation for executives and sales consultants, and increased marketing and sales costs.

The net income per share for the three months ended September 30, 2008 was $65,673, or $0.00 per share in this period on 50,931,553 weighted average common shares outstanding. This compares with the net loss per share for the three month period ended September 30, 2007 of $131,739 or $(0.00) and per share, on 50,132,076 weighted average common shares outstanding.

LIQUIDITY AND CAPITAL RESOURCES

The Company achieved its first profitable quarter since it commenced operations. The Company had incurred operating losses and negative cash flows from operations in each quarter since it commenced operations through June 30, 2008. As of September 30, 2008, there was an accumulated deficit of $9,461,596 and the Company's cash position is $49,755. While there can be no assurances that the

Company will continue to increase its customer base and related revenues necessary to cover its operating costs; the Company's management believes the opportunities identified in its pipeline are achievable to continue generating operating profitability and positive cash flow in the near future.

The Company may need additional financing and there is no assurance that such financing will be available, if at all, at terms acceptable to the Company. If additional funds are raised by the issuance of equity securities, existing stockholders may experience dilution of their ownership interests and these securities may have rights senior to those of holders of the common stock. If adequate funds are not available or not available on acceptable terms, it could have a material adverse effect on the Company's financial condition and results of operations.