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 and six months ended December 31, 2008, the Company generated $510,345 and $1,077,866, respectively, in revenues compared to $352,011 and $676,958, respectively, in the comparable prior year's periods. 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 $42,000, respectively, in the three months and six months ended December 31, 2008 for the development work and $75,000 and $150,000 under the license agreements. In 2007, in the comparable periods, the Company recognized $9,000 and $18,000 for the development work and $75,000 and $37,500 under the license agreement. As of December 31, 2008, the Company included $170,000 from the development fees in deferred revenues on its balance sheet.

COST OF REVENUE The cost of revenue for the three months and six months ended December 31, 2008, consist primarily of personnel, related payroll costs and support service costs in the respective amounts of $135,046 and $275,666. Other costs include travel, data hosting services, telecommunication costs and depreciation of computer equipment used in the maintenance and processing of customers' data. The three months and six months periods ended December 31, 2008 include higher costs for new personnel and increased time allocated to operations of $16,112 and $12,546, respectively, and increased license fees and travel due to increased revenues of $6,734 and $10,859, respectively. The costs for the three month and six month periods in the comparative periods of the prior year were $138,354 and $264,677 including a non-cash compensation expense under SFAS 123R, Share-Based Payments of $15,818 resulting from option grants in the quarter ended December 31, 2007.

RESEARCH AND DEVELOPMENT Research and development costs are charged to operations as incurred and consist primarily of personnel, related benefit costs and outside contracted services. The costs for the three months and six months ended December 31, 2008 were $132,576 and $270,470, respectively. In the current year's periods, the Company allocated additional time to development, increased the executive's salary, and incurred higher payroll and related costs of $16,246 and $32,389, respectively; increased outside contractor use in the amounts of $21,300 and $57,900, respectively, to assist in the integration of various systems with our business intelligence solution for new franchise operations; and incurred increased travel expenses of $3,510 and $6,120 respectively. The costs for the three month and six month periods in the comparative periods of the prior year were $212,587 and $296,645 including a non-cash compensation expense under SFAS 123R, Share-Based Payments of $119,766 resulting from option grants in the quarter ended December 31, 2007. 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 and six month periods ended December 31, 2008 were $86,876 and $158,537, respectively, compared to $139,126 and $196,611 in the comparative periods of the prior year. In the quarter ended December 31, 2007, the Company recorded a non-cash compensation expense of $56,493 under SFAS 123R, Share-Based Payments resulting from option grants. The Company's decrease in marketing and selling expenses in the current periods reflects increased compensation for its executives and outside consultant and a greater allocation of time, personnel and related costs of $4,923 and $11,953, respectively, offset by the stock based compensation expense in the comparison periods. Also in the current quarter ended December 31, 2008, the Company incurred higher costs for marketing, trade shows and related travel of $6,466 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 month and six month periods ended December 31, 2008 were $108,758 and $240,568, respectively, compared to $205,169 and $356,897 in the comparative periods of the prior year. In the quarter ended December 31, 2007, the Company recorded a non-cash compensation expense under SFAS 123R, Share-Based Payments of $112,987 resulting from option grants. The Company's decrease in the current periods reflects increased compensation for its executives and related costs of $5,879 and $13,838, respectively, offset by the stock based compensation expense in the comparison periods. Further reduction was primarily due to reduced professional fees of $35,623 and reduced insurance costs approximating $4,100 in the current quarter. The Company incurred increased costs of $4,638 to report as a public company, and increased costs for travel and administrative expenses of $14,768

INTEREST EXPENSE Interest expense consists of the following:

                                                                                Six Months Ended
                                             Three Months Ended                   December 31,
Interest expense                                December 31,
                                           2008              2007             2008            2007
Accrued interest on convertible      $          16,633  $        16,415   $       33,048  $       32,831
debentures
Amortization of the
discount of the
beneficial                                    595            19,062             595           38,124
conversion feature
in the convertible
debentures
Accrued interest on loan payable            1,750             1,750           3,500            3,500
Interest incurred
from the deferred
credits issued to                           2,357            2,486            4,731            4,987
consortium members
Interest income
earned on cash and                          (7,57)          (1,200)          (1,437)          (3,817)
cash equivalents
Net interest expense                 $         20,578   $        38,513  $       40,437   $      75,625

NET INCOME (LOSS) The net income for the three months and six months ended December 31, 2008 was $725,280 and 790,953, respectively, compared to a net loss of $381,738 and $513,497 for the comparative periods in 2007. The increase in the net income for the three months and six months ended December 31, 2008 was primarily the result of increased revenue resulting from the licensing of the Company's solutions by additional customers and professional service fees and the non-operating income resulting from the debt forgiveness obligation settled in October 2008 offset by the non-cash compensation expense under SFAS 123R, Share-Based Payments resulting from option grants in the quarter ended December 31, 2007. The Company was able to reduce its professional fees and other expenses but incurred increased costs in the use of outside consultants for development work, increased compensation for executives, employees and sales consultants, and increased marketing and sales costs.

The net income per share for the three months and six months ended December 31, 2008 was $0.01 and $0.02 per share in the respective periods on 51,681,553 and 51,306,553 weighted average common shares outstanding. This compares with net losses per share for the three month and six month periods ended December 31, 2007 of $(0.01) and $(0.01) per share, on 50,931,553 and 50,531,814 weighted average common shares outstanding, respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Company continued to achieve another 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 December 31, 2008, there was an accumulated deficit of $8,736,316 and the Company's cash position is $200,655. 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.