Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

December 18, 2009 12:55 ET

Cortex Announces Q1 2010 Financial Results

First Quarter 2010 Financial and Operational Highlights

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2009) - Cortex Business Solutions Inc. (TSX VENTURE:CBX)


The first quarter of 2010 starts off with record recurring access and usage fee revenue for Cortex. The number of suppliers transacting and the volume of transactions on the Cortex Trading Partner Network (the "Network") continue to grow, resulting in the generation of additional access and usage fee revenue. In addition, Cortex continues to see interest in our order to cash integration service, which generates cash flow upfront for the project, and stimulates access and usage fee revenue upon completion.

Highlights of Q1 are:

- Total revenue for the quarter ended October 31, 2009 of $1,522,382. This is an increase of 565% over quarter ended October 31, 2008.

- Access and usage fee revenue has grown 98% or $193,692 (2009 - $390,660, 2008 - $196,968) over the same quarter 2008.

- Volume of transactions flowing through the Network continues to grow, increasing 21% since fiscal year ended July 31, 2009.

- Cortex has increased the number of contracted customers to over 2000, an increase of 63% since July 31, 2009.

- The Company reduced expenses $235,863 for the quarter ended October 31, 2009 from the quarter ended July 31, 2009 (Q1 2010 - $1,594, 391, Q4 2009 - $1,830,254).

- The Company has a net loss per share of $(0.001) for the quarter ended October 31, 2009. The net loss for the current quarter was $72,009 compared to a loss of $1,765,822 for the same quarter 2008. This is a 96% improvement in the net loss for the Company for the quarter ended October 31, 2009 compared to October 31, 2008.

- During the quarter ended October 31, 2009, the Company signed a new long term service agreement with its largest customer. The agreement includes a one year professional services agreement and a new five year service agreement with an option to extend for an additional five years.

The Company continues to successfully implement its business plan, which is resulting in strong quarter over quarter revenue growth. In this quarter, recurring access and usage fee revenue was 98% greater than the same period ended October 2008. Set up fee revenue, which leads to even stronger recurring access and usage fee revenue growth, increased to over $100,000, from $2,355 during the same quarter last year. This trend will accelerate in future quarters, resulting in steadily improving financial performance. The steady and continual growth of suppliers signing on to the Cortex Trading Partner Network is encouraging and aligns with the Company's business plan. This, together with the long term service agreement signed, will move Cortex closer to positive cash flow projected for the three months ended January 31, 2010.

The current economic downturn may encourage companies to focus on cost savings measures. The Company's services assists companies in this goal by providing them with an automated Procure to pay and Order to Cash solutions which could assist in reducing their internal costs and improving controls.

Selected Financial Information

The following table presents selected quarterly information for the quarters ended October 31, 2009 and 2008.

2009 2008 $ Change %
Revenues $ 1,522,382 $228,813 $ 1,293,569 565%
Expenses 1,594,391 1,994,635 (400,244) (20%)
Net loss (72,009) (1,765,822) (1,693,813) (96)%
Net loss per
share (0.001) (0.017) (0.016) (94)%
Total assets 2,904,381 4,698,623 (1,794,242) (38%)
Total long-
liabilities - - - -
dividends - - - -

To view the Recurring Access and usage fee revenue graph associated with this release, please click the link below:

About Cortex Business Solutions Inc.

Cortex Business Solutions Inc. is an industry leading service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Trading Partner Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business.

Cortex products and services are non-intrusive and allow our customers the freedom to leverage and optimize their existing processes and information technology assets when it makes the best business sense for them. This approach improves the productivity, cash flow and profitability of our customers, while avoiding the risk and delays associated with large information technology or business processes re- engineering initiatives. For more information please visit our website at or the undersigned.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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