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CHF Spotlight
Issue No. 27 November 2008
Recurring Revenue Revue
Cortex Business Solutions (TSX-V: CBX) – technology solutions company that eliminates paper record-keeping for high-traffic, procurement operations by transacting electronically, saving money and turnaround time.
Cortex Achieved 82% Increase in Recurring Revenue Stream in Q3 by Meeting Goals Consistently
Cortex Business Solutions Inc. (TSXV: CBX) (“Cortex”)is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices, resulting in improved cash flow management and control while reducing days outstanding and administrative costs. Cortex is a low cost, low risk service solution that can be implemented quickly by leveraging its customers’ existing business system.
Cortex has partnerships with TELUS, Sun Microsystems, Fujitsu Consulting, Spira Data, and Eagle Consulting, each devoted on delivering quality customer service to its customers. In the past few months, Cortex has achieved record growth, driven by the signing of Husky Energy to become its primary e-commerce provider, and has commenced the 3,000+ supplier on-boarding process. More than 650 companies are connected to the Network to date, which is growing at an accelerating rate already expanding by three times since January 31, 2008! Cortex’s Q3 2008 financials for the three months ended April 30, 2008, posted an 82% increase in the recurring revenue stream, and 40% increase in quarterly revenue over the same quarter last year. Recurring revenue represented 31% of total revenue in Q3 2008, close to 50% increase over the 22% averaged over the previous four quarters.
Cortex consistently follows through, meeting its goals and targets to build shareholder value. The Company recently announced a partnership with TELUS, completed an over-subscribed financing of $5.2 million, and secured Husky Energy as its primary e-commerce solution provider. In addition to its near term goals, Cortex is seeking new strategic partnerships for market penetration and generate new sales. Part of the search may include analyzing targeted joint ventures/acquisitions to broaden the product line and customer base in the medium to long term.
Currently, there are over 1 million companies operating within Canada (source Stats Canada). Cortex anticipates its near term growth targets to reach over 10,000 customers, or 1% of total market share. Average annual recurring revenue generated per Cortex customer is approximately $1,700, which provides potential recurring revenues of $17 million annually. Cortex has the ability to scale internationally with ease, with limited legislative and/or regulatory barriers, through leveraging its relationships and growing network of users.
The Company is currently trading at $0.15 per share with 104.4 million shares outstanding; look for Q4 results by the end of November.
Mario Toneguzzi, Calgary Herald
Published: Monday, November 10, 2008
With the plethora of important business documents manually exchanged on a daily basis by companies, administrative costs run high and the entire processing system at times lacks some efficiency.
But a Calgary-based company, Cortex Business Solutions Inc., has developed a network service to provide a paperless supply chain management system for companies, particularly in the area of procurement.
Procurement -- the business-to-business sale and purchase of goods and services -- is largely a manual and paper-based process, presenting businesses with time-consuming and costly tasks like tracking cost commitments, matching purchase orders, receipts and invoicing, data entry and analyzing invoicing errors, says Ryan Lailey, vice-president of business development for Cortex.
Many companies still operate with an archaic system when it comes to procurement, he says.
Cortex, a provider of e-commerce services which was incorporated in 1999, has reached an agreement that will offer its services to TELUS energy sector customers. In 2006, Cortex had five employees; now it has 70 employees.
"The TELUS relationship will expand Cortex's open access e-procurement network to enable energy sector companies to exchange procurement and accounts payable information electronically with their customers and suppliers, regardless of which accounting software they use," states Cortex in a press release.
"By joining this network, customers will reduce administration costs, improve validation and accuracy of invoicing and deliver visible cost benefits to procurement processing."
Cortex, with revenue of $1.6 million in 2007, has about 700 clients, primarily in Canada but some in the United States, including Husky Energy. Lailey says that with the Cortex network, paper is eliminated, administration costs are reduced, a simpler system is in place, cash flows and financial controls are improved and payment times are cut down.
Every company connects to the network, paying a onetime connection fee varying by client and a monthly access fee.
He says the entire cost of the network for a company is about one-third the cost of one full-time employee making about $60,000 a year.
"Our sell is not a technical sell. Our sell is a business sell," says Lailey.
Cortex Business Solutions Inc. - Incorporated: 1999; - Went public: 2001; - Employees: 64 full-time, six contract;
Clients: 700 companies primarily in anada but some in the United States, including Husky Energy, - Annual revenue: $1.6 million in 2007;
Description: -commerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers.
Cortex partnership with Telus may be first of many
The Calgary vendor is looking for help to expand the breadth of its e-procurement network
10/24/2008 10:06:00 AM By: Jeff Jedras
Cortex Business Solutions is hoping a recent reseller agreement signed with Telus will be the first of many such relationships as the Calgary-based e-commerce and e-procurement services provider seeks to expand the breadth of its open access e-procurement network.
An e-commerce services vendor, Cortex has developed an e-procurement network that is designed to remove paper from the procurement process. Ryan Lailey, vice-president of business development and corporate strategy with Cortex, said the goal of the network is to improve efficiencies and reduce the cost of procurement for member companies.
“We eliminate paper and allow companies to communicate with each other regardless of what their accounting software is,” said Lailey. “Once connected, companies can communicate with their connected suppliers regardless of their backend.”
Each company pays a one-time fee to connect to the network, and then pays a monthly access fee and a small transaction fee. Of course, the success of the network is dependant on the number of members of the supply chain that take part. Last year, for example, a major project for Cortex was with Husky Energy. They tapped Cortex as their primary e-commerce provider, and encouraged their suppliers to join the network so Husky could eliminate paper from its procurement process.
“The buyer at the top of the supply chain spends a lot of money, and they have companies in their supply chain that are both suppliers and buyers, and they have suppliers of their own,” said Lailey, explaining how the network can grow.
While Cortex has been primarily focused on direct-sales to date, as the network grows they're looking to channel partners for help. The first such agreement was recently signed with Telus, and will see the telco offer Cortex's services to Telus customers in the energy sector.
“The sales, consulting and marketing capabilities of Telus will further accelerate the expansion of our service offerings to the energy sector,” said Lailey. “Through our relationship with Telus, Cortex continues to surround itself with world class organizations that understand the potential in the market to reduce costs, improve cash flow and financial controls for any company by utilizing Cortex services.”
Gaining critical mass in the energy sector is an important strategy for Cortex, said Lailey, and Telus will help with that goal. Where the channel will begin to play a larger role for Cortex, he said, is in expanding the size and breadth of the network even further.
“We're looking at bringing on more partners,” said Lailey. “Telus provided important validation for us. This wasn't an overnight deal, they've done a lot of work looking at the market and identifying solutions available they can bring to their clients.”
Cortex is interested in working with any partner or company, he said, that can enhance and increase the distribution of their network. Partners will gain both margin on the deal and a share of ongoing revenue.
“It could be another telco or it could be a consulting company,” said Lailey. “A lot of consultants do work for our target customers, and they could sell our solution as their recommendation for solving some of their issues.”
For Immediate Release: Monday, June 23rd, 2008
CORTEX SELECTED AS PRIMARY PROVIDER TO
MAJOR OIL & GAS COMPANY
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE U.S./
Calgary, Alberta, Monday, June 23rd, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) (“Cortex”) is pleased to announce that it has entered into a memorandum of understanding with one of Canada’s top 5 integrated Oil & Gas companies to expand our current initiative and become their primary e – commerce solution provider. Under the terms of the MOU, Cortex will connect the top 3000 service suppliers and a yet to be determined number of material suppliers across their upstream, midstream, downstream, oil sands and corporate business units across North America. Implementation will begin immediately, with the majority of the initiative being completed by year end. As part of the agreement, the current service contract has been extended by 3 years, with the option to extend the contract for an additional 3 years in 2011.
“Cortex is very pleased to have been selected as the primary e – commerce solution” said Ryan D. Lailey Vice President Business Development & Corporate Strategy at Cortex “This contract further validates the benefits of our approach and solutions in the marketplace by providing a low cost, highly efficient solution to solve an important business need. As a result, over the next 12 months Cortex will experience significant growth in our customer base across North America and will provide the foundation to expand our service to additional companies of similar size”
About Cortex Business Solutions Inc.
Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
Ryan Lailey, VP Business Development & Corporate Strategy
Tel: (403) 260-6647
Email: rlailey@cortex.net
CHF Investor Relations
Robin Cook, Senior Account Manager Jacqueline Wagenaar, Account Manager
Tel: (416) 868-1079 ext. 228 Tel: (416) 868-1079 ext. 289
Email: robin@chfir.com Email: jacqueline@chfir.com
To receive Company press releases, please email jacqueline@chfir.com and mention “Cortex News” on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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.
TSX VENTURE: CBX
Oct 22, 2008 09:00 ETCortex Business Solutions Inc. Conference Call Notification
CALGARY, ALBERTA--(Marketwire - Oct. 22, 2008) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Cortex Business Solutions Inc. (TSX VENTURE:CBX) ("Cortex" or the "Company") announced that it will host a conference call this Thursday, October 23rd at 10:00 a.m. EST to discuss the Company's partnership with TELUS to offer Cortex's services to TELUS' energy sector customers, first announced on October 15, 2008.
To access the conference call, please dial: 416-641-6135 or 866-225-6564 toll free.
The conference call will be available for limited time to replay until Thursday, November 6, 2008 11:59 PM. The replay numbers to dial are: 416-695-5800 or 800-408-3053, and the passcode is 3273749.
About Cortex Business Solutions Inc.
Cortex Business Solutions is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex 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 days outstanding and administrative costs. A electronic low cost, low risk solution that can be implemented quickly by leveraging a customers' existing system business is the Cortex way to Evolve BusinessTM today.
To receive Company press releases, please email sasha@chfir.com and mention "Cortex News" on the subject line.
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.
For more information, please contact
Cortex Business Solutions Inc.
Ryan Lailey
VP Business Development & Corporate Strategy
(403) 260-6647
Email: rlailey@cortex.net
Website: www.cortex.net
or
CHF Investor Relations
Robin Cook
Senior Account Manager
(416) 868-1079 ext. 228
Email: robin@chfir.com
or
CHF Investor Relations
Jacqueline Wagenaar
Account Manager
(416) 868-1079 ext. 289
Email: jacqueline@chfir.com
For Immediate Release: Thursday, May 29, 2008
CORTEX CLOSES $5.2 MILLION SHORT FORM PROSPECTUS OFFERING
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
Calgary, Alberta, May 29, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) (“Cortex”) is pleased to announce it has closed its previously announced short form prospectus offering, which was oversubscribed, raising a total of $5,220,000 for the Company.
Standard Securities Capital Corporation (“Standard Securities”) acted as agent for the offering. A total of 26,100,000 units (“Units”) were issued by the Corporation at a price of $0.20 per unit for gross proceeds of $5,220,000 (the “Offering”), including the partial exercise of an over-allotment option granted to Standard Securities. Each Unit consists of one (1) common share (“Common Share”) and one half of one (1/2) Common Share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder to acquire one (1) Common Share for a period of two years from the closing date of the Offering at an exercise price of $0.30 per Common Share.
Standard Securities was paid a cash commission of $522,000 in connection with the offering. In addition, Standard Securities was issued 2,610,000 broker warrants to acquire up to that number of units at a price of $0.20 for a period of two (2) years from the closing date of the Offering.
The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Cortex Business Solutions Inc.
Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
Ryan Lailey, VP Business Development & Corporate Strategy
Tel: (403) 260-6647
Email: rlailey@cortex.net
CHF Investor Relations
Robin Cook, Senior Account Manager
Tel: (416) 868-1079 ext. 228
Email: robin@chfir.com
Jacqueline Wagenaar, Account Manager
Tel: (416) 868-1079 ext. 289
Email: jacqueline@chfir.com
To receive Company press releases, please email mirna@chfir.com and mention “Cortex News” on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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.
News Release
October 15, 2008
Paperless supply chain management: Cortex Business Solutions and
TELUS to expand eProcurement network to help energy sector companies decrease costs and improve efficiencies
Calgary, AB – Cortex Business Solutions Inc. (TSX VENTURE: CBX), a leading provider of eCommerce services, today announced an agreement that will offer Cortex’s services to TELUS energy sector customers and rapidly expand Canada’s fastest growing open access eProcurement network.
The TELUS relationship will expand Cortex’s open access eProcurement network to enable energy sector companies to exchange procurement and accounts payable information electronically with their customers and suppliers, regardless of which accounting software they use. By joining this network, customers will reduce administration costs, improve validation and accuracy of invoicing and deliver visible cost benefits to procurement processing.
Procurement – the business-to-business sale and purchase of goods and services - is a largely manual and paper-based process, presenting businesses with time-consuming and costly tasks like tracking cost commitments, matching purchase orders, receipts and invoicing, data entry and analyzing invoicing errors.
“Cortex is pleased to enter into this strategic agreement with one of Canada’s largest telecommunications companies,” said Ryan D. Lailey, vice-president, Business Development at Cortex. “The sales, consulting and marketing capabilities of TELUS will further accelerate the expansion of our service offerings to the energy sector. Through our relationship with TELUS, Cortex continues to surround itself with world class organizations that understand the potential in the market to reduce costs, improve cash flow and financial controls for any company by utilizing Cortex services.“
TELUS will be recognized as a Tier 1 consulting partner and Cortex Network reseller with rights to market and distribute Cortex’s services. Customers will benefit from the usability and efficiencies provided by Cortex’s services and will enjoy the full support from both the Cortex and TELUS teams.
About Cortex Business Solutions Inc.
Cortex Business Solutions is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex 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 days 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. For further information please visit www.cortex.net.
Forward-looking statements
This news release contains forward looking statements. Forward looking statements are not based on historical facts, but rather on current expectations, Company assumptions and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Company assumptions and risk factors are listed from time to time in TELUS' reports, public disclosure documents including Management's discussion and analysis, Annual Information Form, and in other filings with securities regulatory authorities in Canada and the United States.
– 30 –
For media inquiries, please contact:
Morten Paulson
Senior Vice-President
Fleishman-Hillard Canada Inc.
(403) 266-4710
morten.paulsen@fleishman.ca
Jacqueline Wagenaar
CHF Investor Relations
(416) 868-1079 x. 289
jacqueline@chfir.com
ElectroBusiness.com Inc. (the "Corporation") (TSXV: EB) is pleased to announce that it has entered into an agreement with Eagle Professional Resources Inc. (Eagle) to provide staffing and sourcing services to the company. Eagle is one of Canada's largest technology staffing companies and provides staffing and sourcing services across Canada. ElectroBusiness will be working with Eagle to place required contract and permanent employees to the corporation to enable the company to manage growth and deliver on major projects in the future.
"This agreement with Eagle is a continuation of our strategy to surround ourselves with companies that understand the opportunities that ElectroBusiness is pursuing and can provide the necessary skills and services to make our company successful." Said Ryan D. Lailey VP Business Development
"This is an exciting opportunity and we look forward to building a strong, successful relationship with ElectroBusiness," said Kevin Dee, Eagle’s CEO. "Effective staffing solutions have enabled Eagle to become a leading staffing company in Canada and, we are eager to contribute our expertise to ElectroBusiness's future growth and success."
About ElectroBusiness
The ElectroBusiness secure document exchange service connects users to a secure world allowing business transactions with any number of locations, partners, suppliers or customers. ElectroBusiness is building a trading partner exchange where companies can interact regardless of internal business process or systems. The system currently has over 400 companies connected and over 1200 users from the Oil & Gas , manufacturing, distribution and retail industries.
About Eagle Professional Resources Inc.
Founded in 1996, Eagle is one Canada's largest and most successful IT Staffing companies. A Canadian–owned company with ten (10) offices from coast-to-coast, Eagle specializes in sourcing technology professionals for contract and full-time positions. The company has been named one of Canada's 50 Best managed companies every year since 1999, was named a Top 20 Best Small and Medium Employers in Canada in April 2006 and achieved ISO 9001:2000 certification in June 2006. Eagle is also a very active advocate within the Canadian staffing industry association (ACSESS), supports many charities and provides fourteen (14) scholarships to college students each year. To learn more about Eagle and its network of offices, please visit www.eagleonline.com or call toll-free 1-800-95-NESST (63778). Check out Eagle’s blog at: http://eagleceonews.blogspot.com
CORTEX ANNOUNCES Q3 RESULTS
Calgary, Alberta, June 27, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) today announced results from the three months ended April 30, 2008 (Q3). The Company continues to focus on increasing the number of suppliers on our network, which increases our recurring revenue streams (access and usage). For the three months ended April 30, 2008 (Q3) Cortex posted an 82% increase in the recurring revenue stream from the same quarter last year. During the quarter, Cortex increased the customer base by 20%. Our customers are focused on improving operational efficiencies, controls and reducing risk. As a result, our sales pipeline has increased and opportunities with additional large organizations have emerged.
Highlights of Fiscal 2008’s third quarter were;
• Achieved quarterly revenue of $609,130, an increase of 40% from $435,715 recorded in the third quarter of
fiscal year 2007;
• Increased recurring revenue in the quarter to $190,355 from $104,535 in the same quarter last year (82%
growth);
• Reduced cash flow used in operations after changes in non-cash working capital by 72%. The Company
had a cash outflow of ($264,287) for the quarter ended April 30, 2007 and a cash outflow of ($75,233) for
the quarter ended April 30, 2008;
• Continued with supplier adoption and sales program to connect suppliers to Cortex and expand our network
by 20% from January 31, 2008 to current;
• Achieved 100% exercise of the remaining outstanding warrants for total cash flow from financing activities
in the quarter of $1,690,849 and;
• Subsequent to Q3, the Company closed its first short form prospectus on May 29, 2008. The full amount of
the prospectus was filled, including $220,000 in over-allotment. The total gross proceeds to the Company
were $5,220,000, before issuance costs estimated at $725,000 for estimated net proceeds of $4,495,000.
• On June 19th 2008, the Company signed a memorandum of understanding with one of Canada’s top 5
integrated oil and gas companies to expand our current initiative and become their primary e – commerce
solution provider.
In the coming quarters, the Company will execute its investment plan to increase the sales and marketing resources to capture more market share and increase access and usage fees.
About Cortex Business Solutions Inc.
Cortex is an information management company whose document exchange solution saves businesses valuable time and money. Cortex products enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment. What once took a matter of months to complete can now be accomplished in a matter of days!
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
Ryan Lailey, VP Business Development & Corporate Strategy
Tel: (403) 260-6647
Email: rlailey@cortex.net
CHF Investor Relations
Robin Cook, Account Manager Jacqueline Wagenaar, Associate Account Manager
Tel: (416) 868-1079 ext. 228 Tel: (416) 868-1079 ext. 289
Email: robin@chfir.com Email: jacqueline@chfir.com
To receive Company press releases, please email jacqueline@chfir.com and mention “Cortex News” on the subject line. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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. To receive Company press releases, please email jacqueline@chfir.com and mention “Cortex News” on the subject line.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
For Immediate Release: Thursday, May 22, 2008
CORTEX ANNOUNCES FINAL RECEIPT AND CHANGES TO ITS BOARD OF DIRECTORS
Calgary, Alberta, Thursday, May 22, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) (“Cortex”) today announced that it has received a receipt from the Alberta Securities Commission (“ASC”) for its (final) prospectus in connection with its previously announced short form prospectus offering. Closing is expected to occur on May 29, 2008.
In addition, Cortex announced the resignation of Mr. Gord Herman from the Cortex board of directors. Mr. Herman’s resignation was in response to a request of the ASC in connection with its review of Cortex’s prospectus offering documentation and based on Mr. Herman’s prior affiliation with Neteller plc. In order to expedite the closing of the current financing, Mr. Herman has agreed to comply with the ASC’s request and to step down from the Cortex board while he clarifies his personal position with the ASC. Both management and the board of directors of Cortex express their thanks to Mr. Herman for acting in the best interest of Cortex and its shareholders in this matter.
About Cortex Business Solutions Inc.
Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
Ryan Lailey, VP Business Development & Corporate Strategy
Tel: (403) 260-6647
Email: rlailey@cortex.net
CHF Investor Relations
Robin Cook, Senior Account Manager
Tel: (416) 868-1079 ext. 228
Email: robin@chfir.com
Jacqueline Wagenaar, Account Manager
Tel: (416) 868-1079 ext. 289
Email: jacqueline@chfir.com
To receive Company press releases, please email jacqueline@chfir.com and mention
“Cortex News” on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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.
To receive Company press releases, email jacqueline@chfir.com and mention “Cortex News” on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Cortex Business Solutions Announces $5 Million Prospectus Offering
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY April 17, 2008 - Cortex Business Solutions Inc. (“Cortex” or the “Company”) (TSX-V: CBX), is pleased to announce that it has entered into an engagement letter with Standard Securities Capital Corporation as agent (the “Agent”) to sell by way of a best efforts short form prospectus offering up to 25,000,000 Units of the Company (each a “Unit”) at a price of $0.20 per Unit for gross proceeds of up to $5,000,000 (the “Offering”). The Company has filed a preliminary short form prospectus in respect of the Offering with the securities commissions of Alberta, British Columbia, Saskatchewan and Ontario. Cortex intends to use the proceeds of the Offering for general working capital and expansion of its sales and delivery organizations.
Each Unit will be comprised of one common share of the Company (“Common Share”) and one-half of one common share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.30 per Common Share. The Warrants will be exercisable for a period of 24 months following the closing of the Offering. The securities will be issued from treasury and subject to regulatory approval and will be offered on a ‘best effort’ basis by way of a short form prospectus in the provinces of British Columbia, Alberta, Saskatchewan and Ontario.
“We are pleased to be working with Standard Securities to complete this financing” said Ryan D. Lailey, VP Business Development & Corporate Strategy "With the increased demand Cortex is experiencing for its services, this strategic financing will allow Cortex to accelerate the growth of its network and the Company through increased investments in Cortex’s sales and delivery organizations.”
The Agent shall receive compensation comprised of cash and broker warrants upon closing of the Offering. The Offering is scheduled to close on or about May 2, 2008, or such other date as the parties may agree and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The Company also announces that the unaudited consolidated financial statements for the three and six month periods ended January 31, 2008 have been restated to reflect changes in the consolidated statement of cash flows for the three and six month periods ended January 31, 2007. The changes include the repayment of convertible debentures in the amount of $32,000 from non-cash working capital from operating activities to financing activities, as well as disclosing a $28,000 non-cash transaction repayment of convertible debentures through the issuance of shares. In addition, a commitment relating to CHF Investor Relations has been added to commitment note 8(b).The combined effect of these changes had no impact to cash flow or net loss for the quarter ended January 31 2007 as previously reported. For a more detailed explanation of the restatement, please refer to Note 3 of the restated January 31, 2008 unaudited consolidated financial statements as filed of SEDAR.
About Cortex Business Solutions Inc.
Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
For Immediate Release: Thursday, April 10, 2008
Cortex Announces The Addition of new board member
Calgary, Alberta, April 10, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) today announced that Mr. Gord Herman has joined its Board of Directors.
The Management and Board of Cortex are pleased to welcome Mr. Herman to its board of directors. Mr. Herman brings significant business, financial and entrepreneurial experience to the board of Cortex.
Mr Herman received his Bachelor of Business Administration from Brigham Young University in 1980 and his Master of Business Administration from the University of Notre Dame in 1984. Gord started off his career in the mid 80’s as an investment analyst and eventually Investment Banking specializing in mergers and acquisitions. In the later 80’s to mid 90’s he moved into the operations and administration side of business assuming various roles in larger Canadian corporations including Shell oil and General Electric Capital where he finished as President of General Electric Capital Leasing Inc. He was promoted to Executive VP of a large GE capital US based company but opted to pursue an entrepreneurial opportunity in Canada. In September of 2002 Gord became President and CEO of Neteller, then a private money transfer service company, Gord retired as Chairmen of Neteller in 2007 and now works part time as a partner in a high technology incubator venture capital firm.
“I am very excited about joining the team of Cortex Business Solutions” Said Mr. Herman ”Their viral business model and services universally allows and automates different business accounting systems to communicate with each other, thereby streamlining the accounts receivable and payables process. I look forward to contributing to the growth and success of Cortex as a board member.”
In welcoming Mr. Herman to the Board of Cortex, Doug Lailey, Chairman, commented "Gord brings to Cortex a strong record of accomplishment at both the senior management and board level of rapidly growing organizations, which will be extremely valuable as Cortex moves aggressively to expand its markets and network subscribers"
About Cortex Business Solutions Inc.
Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment
For further information please visit www.cortex.net or contact:
Cortex Business Solutions Inc.
Ryan Lailey, VP Business Development & Corporate Strategy
Tel: (403) 260-6647
Email: rlailey@cortex.net
CHF Investor Relations
Robin Cook, Account Manager Jacqueline Wagenaar, Associate Account Manager
Tel: (416) 868-1079 ext. 228 Tel: (416) 868-1079 ext. 289
Email: robin@chfir.com Email: jacqueline@chfir.com
To receive Company press releases, please email jacqueline@chfir.com and mention “Cortex News” on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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.
Marketwire
Cortex Business Solutions Inc.
April 3, 2008 - 09:51:29 AM
Cortex Partners With Spira Data to Serve Oil & Gas Industry
CALGARY, ALBERTA--(Marketwire - April 3, 2008) - Cortex Business Solutions
(the "Corporation") (TSX VENTURE:CBX) is pleased to announce that it has
entered into a partnership with Spira Data Corp. ("Spira") to jointly market
and distribute a complete and open industry wide solution for the oil and gas
industry. Spira is a leader in field ticketing solutions; Premier global
market intelligence firm IDC Canada reported in March 2008 that Spira was one
of "10 Canadian Wireless Companies to Watch." By working together with Cortex,
Spira enables organizations to capture internal data electronically with the
ability to engage in intercompany data exchange. The collective solution
allows a company the ability to capture and translate information such as
field tickets, invoices and purchase orders electronically from Spira's system
and deliver seamlessly to any company on the Cortex Network. Customers who
have chosen to use the joint solution significantly improve efficiencies,
increase cash flow and reduce costs.
"Cortex is very excited to partner with Spira," said Ryan D. Lailey VP
Business Development at Cortex. "Both Spira and Cortex are innovative
companies and by working together, we provide the most efficient industry-wide
solution available. Cortex and Spira have the same target markets and by
jointly marketing a complete solution, we provide a seamless system that
automates processes from field to payment."
"Spira is excited about the opportunity to offer our current customer base and
future customers the ability to increase efficiencies within their
organization," says Craig Latimer, VP of Sales of Spira, "Bringing partners
that offer highly specialized and highly effective solutions is part of the
Spira model."
For sales inquiries or more information about this partnership and innovative
solutions please contact
Cortex: Ryan Lailey, VP Business Development 403-262-6272 E-mail :
rlailey@cortex.net
or
Spira: Craig Latimer, VP Sales 403-263-6475. E-mail :
Craig.Latimer@spiradata.com
About Cortex Business Solutions Inc.
The Cortex service enables the secure electronic exchange of business critical
documents such as purchase orders, field receipts, invoices and
acknowledgments, between a large cohort of trading partners. It offers a
sophisticated, non-intrusive, electronic solution to help navigate the
procurement and supply chain process with ease and efficiency. Information
previously anchored by paper that relied on fax, e-mail, mail etc, is now
electronically sent and translated, allowing normally non-compatible ERP
systems to communicate fluently. Customers can implement the approach quickly
and achieve productivity improvements, enhanced cash flow and efficiencies.
Cortex evolves the existing systems by handling the entire business
transaction process from purchase point to payment. For further information
please visit www.cortex.net.
About Spira Data Corp
Spira Data Corp. is a leading innovator and provider of electronic data
management software solutions. Founded in 2005, Spira empowers companies of
all sizes to automate and streamline business processes and data from the
field to the office with their flagship software solution, Spira Wireless
Field Ticketing. This innovative solution facilitates a myriad of operational
and financial oil field data capture, including expenses, equipment,
materials, and billing. Spira Data Corp. is based in Calgary, Alberta. For
more information, visit www.spiradata.com.
To receive Company press releases, please email jacqueline@chfir.com and
mention "Cortex News" on the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cortex Business Solutions Inc. Ryan Lailey VP Business Development &
Corporate Strategy (403) 260-6647 Email: rlailey@cortex.net Website:
www.cortex.net
Spira Data Corp. Craig Latimer VP Sales (403) 263-6475 (403) 263-2513 (FAX)
Email: Craig.Latimer@spiradata.com Website: www.spiradata.com
CHF Investor Relations Robin Cook Account Manager (416) 868-1079 ext. 228
Email: robin@chfir.com
CHF Investor Relations Jacqueline Wagenaar Associate Account Manager (416)
868-1079 ext. 289 Email: jacqueline@chfir.com
CORTEX ANNOUNCES RECORD REVENUE IN SECOND QUARTER
Calgary, Alberta, March 10, 2008 – Cortex Business Solutions Inc. (TSX-V: CBX) today announced its continued growth in the three months ended January 31, 2008 (Q2), with record sales. During the quarter, Cortex secured the largest contract in Company history with a major integrated oil and gas company, validating our growth strategy. This customer provides access to 1000’s of other potential customers by employing Cortex solutions to achieve productivity improvements, enhanced cash flow and efficiencies to both buyers and suppliers on the Cortex network.
| Three Months ended January 31 |
Six months ended January 31 |
|||||||
| 2008 | (Restated) 2007 |
$ Change |
% Change |
2008 | (Restated) 2007 |
$ Change |
% Change |
|
| Revenue | $816,652 | $370,068 | $446,584 | 121% | $1,436,140 | $768,421 | $667,719 | 87% |
| Expenses | 964,270 | 492,997 | 471,273 | 96% | 1,780,808 | 1,037,069 | 743,739 | 72% |
| Net loss | (147,618) | (122,929) | 24,689 | 20% | (344,668) | (268,648) | 76,020 | 28% |
| Net loss (per share) |
$(0.003) | $(0.002) | $0.001 | 50% | $(0.006) | $(0.010) | $0.004 | 40% |
| Total assets | 1,013,047 | 982,218 | 30,829 | 31% | 1,013,047 | 982,218 | 30,829 | 31% |
Highlights of Fiscal 2008’s second quarter were;
- Achieved record quarterly revenue of $816,652, an increase of 32% from $619,488 recorded in the first three months of fiscal year 2008 and a 121% ($446,584) increase from the same three month period 2007;
- Cash flow from operations, prior to changes in non-cash working capital, for the six months ended January 31, 2008 was $24,048. $43,978 of this relates to the quarter ended January 31, 2008 and $(20,930) cash used in operations for the quarter ended October 31, 2007;
- Q2 loss of ($147,618) or ($0.003) per share(January 31, 2007- restated, Q2 - $(122,929)) and a six month loss of $(344,668) or $(0.006) per share (January 31, 2007 restated six months - $(268,648))compared to first quarter loss of ($197,050) or ($0.004) per share;
- The Company’s income before stock based compensation for the three months ended January 31, 2008 was $35,092 (January 31, 2007 - $(94,679)(restated)) and income before stock based compensation for the six months ended January 31, 2008 was $9,244 (January 31, 2007 - $(106,848) restated);
- Secured contract to expand automation project with a major oil and gas company and within 60 days successfully launched the Cortex system into production;
- Began a supplier adoption and sales program to connect suppliers to Cortex and expand our network; and
- Engaged CHF IR to implement an Investor Relations program to extend the reach of Cortex in the investment community.
Cortex is entering into an accelerated growth phase. Over the next few quarters, the company will focus on sales and marketing programs to drive new connections and capture market share. Management anticipates validation from the major contract last quarter generating new projects and connections with other major companies in our target markets. Through this next phase, management will continue to employ a disciplined approach to cost controls, operational efficiencies and investments.
“We continue to generate record top line performance on a quarter over quarter and year over year basis.” said Ryan D. Lailey VP Business Development “We are encouraged with our sales pipeline and will focus on increasing the number of customers on the Cortex network through a concentrated sales and marketing program this year.”
Cortex Business Solutions Inc.
December 19, 2007 - 05:06:38 PM
Cortex Announces First Quarter Results
CALGARY, ALBERTA--(Marketwire - Dec. 19, 2007) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) announces financial results for the quarter ended October 31, 2007.Q1 Financial and Operational Highlights
Cortex continued its growth in the first quarter of 2008 in all three revenue streams:
- Achieved record quarterly revenue of $619,488, an increase of 56% from $398,353 recorded in the first quarter of fiscal year 2007;
- Selected by Flint Energy to automate their procurement process; and
- Completed a proof of concept and as a result was awarded a contract with one of Canada's top 5 integrated Oil & Gas companies. The project will see Cortex solutions deployed to hundreds of suppliers in the coming months to transact purchase orders, field tickets and invoices electronically through the Cortex network.
"Management is very encouraged with the continued growth in all areas of our business," said Ryan D. Lailey, VP Business Development & Corporate Strategy. "We continue to execute our corporate strategy and Cortex is in excellent position to capture additional market share. The recent downturn in capital expenditures in the oil and gas sector has raised the profile of solutions provided by Cortex resulting in increased acceptance and interest from
potential customers."
About Cortex
Cortex Business Solutions Inc. enables the secure exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments between a large cohort of trading partners. Our customers can implement Cortex quickly and achieve the productivity improvements, enhanced cash flow and efficiencies associated with transacting electronically with their suppliers and customers.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 FURTHER INFORMATION PLEASE CONTACT:
Cortex Business Solutions Inc. Ryan D. Lailey VP Business Development & Corporate Strategy (403) 260-6647 Email: investors (at) cortex.net
Marketwire
Cortex Business Solutions Inc.
December 7, 2007 - 09:45:06 AM
Cortex Announces Expansion to Automation Project
CALGARY, ALBERTA--(Marketwire - Dec. 7, 2007) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) is pleased to announce that it has been awarded a contract to expand the previously announced proof of concept with one of Canada's top 5 integrated Oil & Gas companies. The project will see Cortex solutions deployed to hundreds of suppliers in the coming months to transact purchase orders, field tickets and invoices electronically through the Cortex network.
"The expansion of our network to a broad range of Oil & Gas suppliers in Canada continues to validate the unique value proposition we offer the buyer and supplier communities," said Ryan D. Lailey VP Business Development & Corporate Strategy, adding that, "with the recent spending reductions in the Oil & Gas industry, companies are exploring opportunities to gain additional efficiencies and reduce costs. Our products and services allow companies of all sizes to quickly and effectively reduce operating costs and improve cash flow. This generates a high return on investment for our customers and provides the basis for an industry wide solution that benefits every company connected to our network."
About Cortex
Cortex Business Solutions Inc. enables the secure exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments between a large cohort of trading partners. Our customers can implement Cortex quickly and achieve the productivity improvements, enhanced cash flow and efficiencies associated with transacting electronically with their suppliers and customers.
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 FURTHER INFORMATION PLEASE CONTACT:
Cortex Business Solutions Inc. Ryan D. Lailey Business Development & Corporate Strategy (403) 260-6647 Email: investors (at) cortex.net
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Cortex Business Solutions Inc.
November 28, 2007 - 01:37:27 PM
Cortex Announces Record Year
CALGARY, ALBERTA--(Marketwire - Nov. 28, 2007) - Cortex Business Solutions Inc. (TSX VENTURE:CBX) announces financial results for the year ended July 31, 2007.Fiscal 2007 Financial and Operational Highlights
Cortex had an outstanding year of achievement, record revenue and growth. The Company's disciplined approach to management, allowed the organization to invest in the core business to create a solid foundation for growth.
- Achieved record revenue of $1.6 million, an increase of 166% from $610,310 recorded in fiscal year 2006.
- Cash and accounts receivable balance of over $700,000 at July 31, 2007.
- Eliminated all corporate debt during the year ended July 31, 2007.
- Completed agreements with two of Canada's largest and most respected firms, Fujitsu Consulting and Eagle Consulting. Both these firms will provide the Company with the foundation to scale operations effectively as we grow to meet market demand.
- Completed a corporate re-branding including a corporate name change, sales and marketing development and created a new corporate message.
- Invested in development of core products and services.
- Secured consulting and pilot projects with a major oil & gas company.
Cortex exits fiscal 2007 with the highest revenue in Company history, debt free, stable cash position and an excellent foundation for growth in 2008.
Management expects that the current cycle in the oil and gas industry will strengthen the sales pipeline and increase the growth of our trading partner network. Given these market conditions and the Company's investment in product development during 2007, management's focus for 2008 will shift to marketing and sales. Management will remain disciplined and focus on revenue growth, controlling costs and driving toward sustainable profitability.
In addition, at the request of Art Smith and Ryan Lailey, officers of the Company, the previously announced stock option grant on July 19, 2007 has been adjusted. This adjustment results in a total reduction of options granted to these officers of 350,000. This request is in response to management's expectation of future growth and the necessity of maintaining a sufficient option pool available to attract new employees and retain existing employees to execute the Company's growth strategy.
About Cortex
The Cortex Business Solutions Inc. enables the secure exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments between a large cohort of trading partners. Our customers can implement Cortex quickly and achieve the productivity improvements, enhanced cash flow and efficiencies associated with transacting electronically with their suppliers and customers.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 FURTHER INFORMATION PLEASE CONTACT:
Cortex Business Solutions Inc. Ryan D. Lailey VP Business Development & Corporate Strategy (403) 260-6647 Email: investors (at) cortex.net
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
July 5, 2007 Calgary, Alberta –Cortex Business Solutions Inc. (TSXV- CBX) is pleased to announce third quarter results. For the quarter ended April 30, 2007, revenue was $430,493 a 182% increase over the same quarter last year and another record quarter. The company posted a loss of $143,636 due to an increase in product development investments and preparation for growth. These numbers are prepared by management and will be audited and included in the company’s annual fillings.
Management continues to invest into the growth of the business in the area of product development. The company will release a new version of our products and services in the next quarter with increased functionality which completes the procurement cycle. Management has seen increased market interest in our products and solutions and is encouraged that the company is well positioned to capture new market share.
"We are pleased with the results of this quarter" Reports Ryan D. Lailey VP Business Development and Corporate Strategy "The Company continued to post strong revenue and we are on track for a record year. During the quarter we invested into updating our core products with new functionalities and user interface upgrades, these upgrades will increase the value of our products and services and will provide the foundation for future growth."
Third Quarter Highlights
Three months ended April 30, 2007
Revenue
Revenue for the period increased 182% (April 30, 2007 - $430,493; April 30, 2006 - $152,873). A significant portion of this increase represents continuing revenue from a project execution contract which was secured from a major oil and gas client. Monthly reoccurring revenue is also growing year over year, as new marketing initiatives couples with product line enhancements are having a positive impact on results.
Expenses
Expenses for the three month period increased 190% (April 30, 2007 - $574,129; April 30, 2006 - $197,913) over the same period last year. The company has focused on improving the product line and infrastructure capability over this time frame to strengthen its market position. Salaries and subcontract costs to accomplish these objectives accounted for 77% of total expenses, being, $445,704, for the quarter (April 30, 2006 - $157,274 or27% of total expenses).
Net Earnings (Loss)
The company is pleased with the increased revenue stream. The net loss for the quarter ended April 30, 2007 was $(143,636); compared to loss in the same quarter ended April 30, 2006 of $(45,040). The current quarter loss, although higher than same quarter last year, has maintained a consistent percentage of total revenue year over year and reflects the expenses required to complete the project execution contract as well as complete the marketing and product improvement programs.
Outlook
Management continues to see increased activity and acceptance of our products and services in the marketplace. The Cortex team is in working on several significant opportunities from multiple industries. Over the next two quarters Cortex will be focusing on closing these opportunities and preparing for delivery. In preparation for growth, management is investing into the business in the areas of product development, delivery and human resources to attract talented employees necessary to successfully deliver major contracts. Revenue is expected to continue to grow in both recurring and project services in the next quarter.
In addition, the board of directors has authorized the grant of 3,400,000 incentive stock options under the company’s incentive stock option plan to directors and officers of Cortex at an exercise price of $xx. These options are pursuant to the company’s overall compensation plan for senior officers and are granted for a five-year period subject to vesting provisions in accordance with the Company's Stock Option Plan. The Board of Directors has determined that there are exemptions from TSX Venture Exchange policy 5.9 for the grant of the options to insiders.
Cortex Business Solutions Inc. (the "Corporation") (TSXV: CBX) is pleased to announce that it has been awarded a contract to conduct a proof of concept with one of Canada’s top 5 integrated Oil & Gas companies. In the coming months, Cortex will be connecting this company to the Cortex Supplier Network which will enable the electronic transmission and confirmation of purchase orders, field tickets, goods receipts and invoices with their suppliers.
Cortex Business Solutions Inc. (the “Corporation”) (TSXV: CBX) is pleased to announce that Flint Energy has engaged Cortex to automate their procurement process. Flint selected Cortex to leverage their existing internal systems and enable the electronic transmission of documents to their customers through a single connection. By connecting once to the Cortex network, Flint can communicate with all Cortex members to eliminate redundant data entry, reduce receivables outstanding and quickly expand to additional suppliers and customers.
"Flint Energy is one of Canada's largest oilfield services companies and Cortex is pleased to have been selected as their service provider," said Ryan D. Lailey, VP Business Development and Corporate Strategy "We continue to see companies like Flint choose our flexible, low cost solutions to meet increasing requirements to communicate electronically."