/EINPresswire.com/ -- CALGARY, ALBERTA--(Marketwired - Dec 6, 2016) - Cortex Business Solutions Inc. (TSX VENTURE:CBX), the online network helping companies connect and interact with each other to transmit documents and grow their businesses, today announces its three months ended October 31, 2016 ("Q1 F2017") Management's Discussion and Analysis and Condensed Interim Consolidated Financial Statements.

"As we share Q1 F2017 results today, I continue to be encouraged by the progress that we have made as an organization in the past year. My confidence in this Cortex Management Team to now deliver on our growth and financial strategy has never been stronger," commented Joel Leetzow, President and CEO. "With the restructuring and internal transformation of Cortex now being mostly complete, F2017 is going to be a year of increased sales momentum with new customers and a continued focus on increasing our value to our current customers.

"Q1 results for F2017 provide further proof that our goal of profitability is within reach this fiscal year. These Q1 results were achieved despite an increase in sales and marketing expenses during the quarter. Although there were no new buyers signed in Q1 F2017, the business coming from within our current customer base was strong and the results can be seen with our 777% improvement in professional services revenue quarter over quarter."

Q1 F2017 Highlights:

Cash Flow from Operations

• Net cash used in operating activities improved 9% to $126,248.

Revenue

• Total revenue was down 6%,
• Access and usage fees were down 7%:
  • Access fees grew 6%,
  • Usage fees declined 22%,
• Integration and set up fees were down 82%, and
• Project management fees were up 777%.

Expenses

• Total expenses were down 26%,
• Cost of sales were down 42%,
• Sales and marketing was up 32%,
• Research and development costs were down 25%,
• General and administrative costs were down 21%, and
• Severance and termination charges were down 62%.

"Q1 F2017 marked a great start to the 2017 fiscal year," said Sandra Fawcett, CFO of Cortex. With the cost realignment behind us, the focus has moved towards generating new sales while maintaining the strict cost structure. The pipeline for sales was strong in Q1 F2017, however, no net new buyers contracts closed in the quarter. It was expected given the ongoing development of the sales team. Confidence remains in the ability to close additional buyers in the upcoming six months."

Cortex management will host a conference call, followed by a question and answer period.

The details of the conference call are as follows:

Date: Wednesday, December 7, 2016
Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time)
Toll-free dial-in number: 1-866-225-0198
International dial-in number: 1-416-340-2216

Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex Business Solutions at 403-219-2838.

A replay of the conference call will be available after the call through December 14, 2016.

Toll-free replay number: 1-800-408-3053
Toll replay number: 1-905-694-9451
Replay ID: 6178544
About Cortex Business Solutions

Cortex Business Solutions Inc. (TSX VENTURE:CBX) is a business-to-business network that enables electronic invoicing for buying and supplying organizations. The Cortex network offers flexible connection methods to reduce the time required to process invoices and tools that leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to grow their businesses.

For more information, please visit www.cortex.net.

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statements of Financial Position
(Prepared in Canadian dollars)

		October 31		July 31
		2016		2016
Assets
Current assets
	Cash	$	5,574,766	$	5,621,835
	Short-term investments		60,000		60,000
	Accounts receivable		854,150		866,142
	Prepaid expenses		225,897		145,823
			6,714,813		6,693,800
Long term receivables			26,457		-
Deposits			35,061		35,061
Property and equipment			271,152		292,791
Intangible assets			39,666		42,882
		$	7,087,149	$	7,064,534
Liabilities
Current liabilities
	Accounts payable and accrued liabilities	$	1,041,920	$	1,086,380
	Deferred revenue		49,818		46,854
	Rebate provision		296,298		294,145
	Current tax provision		65,449		59,647
			1,453,485		1,487,026
Shareholders' Equity
Share capital			60,291,515		60,291,515
Accumulated other comprehensive income			713,609		640,232
Contributed surplus			9,202,514		9,126,948
Deficit			(64,573,974)		(64,481,187)
			5,633,664		5,577,508
		$	7,087,149	$	7,064,534

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Loss and Comprehensive Loss
For the three months ended October 31, 2016 and 2015
(Prepared in Canadian dollars)

		Three months ended October 31
		2016		2015
Revenue
	Access and usage fees	$	2,337,660	$	2,516,293
	Integration fee and set-up fees		18,124		98,056
	Project management and other revenue		113,284		12,923
			2,469,068		2,627,272
Cost of Sales			823,538		1,412,546
Gross Profit			1,645,530		1,214,726
Expenses
	Sales and marketing		459,909		348,634
	Research and development		440,531		585,703
	General and administrative		801,857		1,017,901
	Severance and termination charges		21,388		56,108
			1,723,685		2,008,346
Loss before finance expense and income taxes			(78,155)		(793,620)
Finance income (expense)			9		(2,536)
Income tax expense			(14,641)		(12,979)
Net loss		$	(92,787)	$	(809,135)
Other comprehensive earnings
	Items that may be reclassified subsequently to net loss:
Foreign exchange gain on foreign operations			73,377		41,879
Comprehensive loss		$	(19,410)	$	(767,256)
Net loss per share - basic and diluted		$	(0.01)	$	(0.10)

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity
(Prepared in Canadian dollars)
(unaudited)

	Number of Common Shares	Share Capital		Number of Warrants	Warrants Value		Contributed Surplus		Accumulated Other Comprehensive Income		Deficit		Total Shareholders' Equity
Balance - July 31, 2015	7,426,349	$	57,640,393	447,580	$	980,941	$	7,848,559	$	580,502	$	(61,776,518)	$	5,273,877
Net loss	-		-	-		-		-		-		(809,135)		(809,135)
Issued during the period	1,551,375		3,102,750	-		-		-		-		-		3,102,750
Issuance cost	-		(364,366)	-		-		-		-		-		(364,366)
Translation of foreign operations	-		-	-		-		-		41,879		-		41,879
Stock based compensation	-		-	-		-		65,161		-		-		65,161
Compensation units issued in conjunction with private placement	-		(101,222)	-		-		101,222		-		-		-
Balance - October 31, 2015	8,977,724		60,277,555	447,580		980,941		8,014,942		622,381		(62,585,653)		7,310,166
Balance - July 31, 2016	8,984,704		60,291,515	-		-		9,126,948		640,232		(64,481,187)		5,577,508
Net loss	-		-	-		-		-		-		(92,787)		(92,787)
Translation of foreign operations	-		-	-		-		-		73,377		-		73,377
Stock based compensation	-		-	-		-		75,566		-		-		75,566
Balance - October 31, 2016	8,984,704	$	60,291,515	-	$	-	$	9,202,514	$	713,609	$	(64,573,974)	$	5,633,664

Cortex Business Solutions Inc.
Condensed Consolidated Interim Statement of Cash Flows
For the three months ended October 31, 2016 and 2015
(Prepared in Canadian dollars)
(unaudited)

		For the three months ended October 31
		2016		2015
Cash provided by (used in)
Operating activities
Net loss		$	(92,787)	$	(809,135)
Items not affecting cash
	Stock-based compensation		75,566		65,161
	Amortization		24,855		460,300
	Accretion on rebate provision		2,153		4,830
			9,787		(278,844)
Changes in non-cash working capital			(136,035)		140,323
Net cash used in operating activities			(126,248)		(138,521)
Financing activity
	Proceeds from issuance of shares		-		3,102,750
	Share issuance costs		-		(364,366)
Net cash provided by financing activities			-		2,738,384
Investing activities
	Acquisition of property and equipment		-		(1,189)
Net cash used in investing activities			-		(1,189)
Effect of exchange rate changes on cash and cash equivalents held in foreign currency			79,179		45,327
Cash (outflow) inflow			(47,069)		2,644,001
Cash, beginning of period			5,621,835		3,986,950
Cash, end of period		$	5,574,766	$	6,630,951