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 nine months ended March 31, 2009, the Company generated $484,320 and $1,562,185, respectively, in revenues compared to $368,292 and $1,045,250, 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 $63,000, respectively, in the three months and nine months ended March 31, 2009 for the development work and $75,000 and $225,000 under the license agreements. In 2008, in the comparable periods, the Company recognized $9,000 and $27,000 for the development work and $37,500 and $112,500 under the license agreement. As of March 31, 2009, the Company included $149,000 from the development fees in deferred revenues on its balance sheet.

COST OF REVENUE The cost of revenue for the three months and nine months ended March 31, 2009, consist primarily of personnel, related payroll costs and support service costs in the respective amounts of $133,044 and $408,708. 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 nine months periods ended March 31, 2009 include higher costs for new personnel and increased time allocated to operations of $24,456 and $37,002, respectively, increased license fees due to increased revenues of $1,970 and $6,816, respectively, offset by a decrease in data hosting and telecommunications services of $6,153 and $3,099, respectively. The costs for the three month and nine month periods in the comparable periods of the prior year were $146,112 and $410,788 including non-cash compensation expense under SFAS 123R, Share-Based Payments of $15,818 resulting from option grants in the quarter ended December 31, 2007 and $31,636 in the quarter ended March 31, 2008.

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 nine months ended March 31, 2009 were $145,513 and $415,982, respectively. In the current year's periods, the Company allocated additional time to development, increased the executive's salary, incurred higher payroll and related costs of $14,970 and $47,358, respectively, and incurred increased travel expenses of $825 and $6,945 respectively. In the nine months ended March 31, 2009, the Company increased outside contractor use in the amount of $55,700 to assist in the integration of various systems with our business intelligence solution for new franchise operations. The costs for the three month and nine month periods in the comparative periods of the prior year were $338,769 and $635,414 including non-cash compensation expense under SFAS 123R, Share-Based Payments of $119,766 resulting from option grants in the quarter ended December 31, 2007 and $209,402 in the quarter ended March 31, 2009. 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 months and nine months ended March 31, 2009 were $82,760 and $241,297, respectively, compared to $174,612 and $371,223 in the comparable periods of the prior year. In those comparable prior periods, the Company recorded non-cash compensation expense of $97,921 and $154.415, respectively, under SFAS 123R, Share-Based Payments resulting from option grants. The Company's marketing and selling expenses in the current periods included increased compensation for its executives and outside consultant and a greater allocation of time, personnel and related costs of $5,473 and $17,426, respectively. The Company incurred higher costs for marketing, trade shows and related travel of $7,063 as compared to the nine month 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 and nine month periods ended March 31, 2009 were $100,789 and $341,363, respectively, compared to $369,867 and $726,765 in the comparable periods of the prior year. The Company's decrease in the current periods was primarily due to reduced professional fees of $3,071 and $38,694, respectively, and reduced insurance costs of $2,762 and $6,833, respectively. The Company incurred increased costs of $3,493 to report as a public company, and increased costs for travel and administrative expenses of $26,979. In the quarters ended December 31, 2007 and March 31, 2008, the Company recorded non-cash compensation expense under SFAS 123R, Share-Based Payments of $112,987 and $248,571, respectively, resulting from option grants.

INTEREST EXPENSE Interest expense consists of the following:

                                              Three Months Ended                 Nine Months Ended
                                                  March 31,                          March31,


Interest expense                                      2009              2008             2009              2008
Accrued interest on convertible
debentures                               $   16,284      $     16,236      $    49,332      $     49,068
Amortization of the discount of the
beneficial conversion feature in the
convertible debentures                          616            11,115            1,211            49,239
Accrued interest on loan payable              1,750             1,750            5,250             5,250
Interest incurred from the deferred
credits issued to consortium members          2,288             2,458            7,020             7,445
Interest income earned on cash and
cash equivalents                               (988 )            (407 )         (2,426 )          (4,225 )
Net interest expense                     $   19,950      $     31,152      $    60,387      $    106,777

NET INCOME (LOSS) The net income for the three months and nine months ended March 31, 2009 was $2,264 and $793,217, respectively, compared to a net loss of $692,220 and $1,205,717 for the comparable periods in 2008. The increase in the net income for the current year's periods 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. 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 nine months ended March 31, 2009 was $0.00 and $0.02 per share in the respective periods on 51,931,553 and 51,511,845 weighted average common shares outstanding. This compares with net losses per share for the three month and nine month periods ended March 31, 2008 of $(0.01) and $(0.01) per share, on 50,931,553 and 50,664,091 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 March 31, 2009, there was an accumulated deficit of $8,734,052 and the Company's cash position is $122,993. 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.