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, 2009, the Company generated $501,088 in revenues compared to $567,521 in the comparable prior year's period. This decrease in revenues was attributable to a decrease in professional service contracts for special projects but was offset by an increase primarily attributable to the licensing of the Company's solutions by additional customers. 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 over a 3 year period to coincide with the terms of the related licensing fees. The Company recognized $21,000 in the three months ended September 30, 2009 and 2008 for the development work and $75,000 under the license agreements. As of September 30, 2009, the Company included $107,000 from the development fees in deferred revenues on its balance sheet.

COST OF REVENUE The cost of revenue for the three months ended September 30, 2009, consist primarily of personnel, related payroll costs and support service costs in the amount of $145,935. 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 ended September 30, 2009 included higher costs for new personnel and increased time allocated to operations of $26,743, increased license fees due to increased revenues of $2,148, offset by a decrease in data hosting and telecommunications services of $16,611 and a decrease in other operating costs of $7,283. The costs for the three month period in the comparable period of the prior year were $140,619.

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 ended September 30, 2009 were $129,627. In the current year's period, although the Company increased salaries, they re-allocated personnel time from development to operations, thus total payroll and related costs decreased $202. The Company also was able to reduce the use of outside contractors by $6,598 and reduced travel and other costs by $1,795. The costs for the three month period in the comparative period of the prior year were $137,893. 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 ended September 20, 2009 were $58,565 compared to $71,662 in the comparable period of the prior year. The Company's marketing and selling expenses in the current period decreased due to re-allocated personnel time from marketing and sales to operations and administration by $5,091, and reduced costs for advertising, travel and trade shows in the amount of $8,006. 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 period ended September 30, 2009 were $129,377 compared to $131,815 in the comparable period of the prior year. On August 12, 2009, the Company authorized the issuance of 250,000 stock option grants to its latest Board of Directors member and recorded non-cash compensation expense of $17,673 resulting from that option grant. The options to purchase the Company's shares were granted at the closing price on the date of the grant at $0.08, using the Black Sholes method for calculating the charge and vested immediately upon the grant. In the current quarter, The Company effected reductions in professional fees of $4,800, insurance costs of $2,864, expenses related to being a public company of $3,677 and other operating costs of $6,609.

INTEREST EXPENSE Interest expense consists of the following:

                                                     Three Months Ended
                                                        September 30,
Interest expense
                                                     2009             2008
Accrued interest on                             $         16,642  $      16,416
convertible debentures
Accrued interest on loan                              2,076           1,750
payable
Interest incurred
from the deferred
credits issued to                                    2,328            2,374
consortium members
Interest income
earned on cash and                                    (233)            (681)
cash equivalents
Net interest expense                           $        20,813    $      19,859

NET INCOME (LOSS) The net income for the three months ended September 30, 2009 was $9,854 compared to $65,673 for the comparable period in 2008. The decrease in the net income was primarily the result of decreased revenue from professional service fees offset by an increase of the licensing of the Company's solutions to additional customers. In this current quarter, although the Company added additional personnel and increased staff salaries, they effected significant reductions in most other categories as noted above. The Company also incurred a non-cash compensation expense of $17,673 resulting from an option grant to the newest member of its Board of Directors.

The net income per share for the three months ended September 30, 2009 and 2008 was $0.00 per share on 51,931,553 weighted average common shares outstanding and $0.00 per share, on 50,931,553 weighted average common shares outstanding, respectively.

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 September 30, 2009, there was an accumulated deficit of $8,730,907 and the Company's cash position is $13,251. 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.