Mr. R. James Matthews reports

ARMADA RELEASES ANNUAL RESULTS

Armada Data Corp.'s annual financial results for the year ended May 31, 2015, have now been filed on SEDAR and are available to view on SEDAR and the company's website.

                             SELECTED ANNUAL INFORMATION 
                                                            Fiscal year ended     
                                     May 31, 2015   May 31, 2014   May 31, 2013   May 31, 2012

Total revenue                          $2,008,772     $2,260,200     $2,587,922     $3,110,921
 (Loss) before taxes                    $(640,434)     $(137,853)     $(373,042)     $(621,774)
Income taxes                                  Nil      $(102,289)     $(122,504)      $(14,906)
Comprehensive (loss) after taxes        $(640,434)     $(240,142)     $(495,546)     $(636,680)
Comprehensive (loss) per share             $(0.04)        $(0.01)        $(0.03)        $(0.04)

The company's total revenue decreased by 11 per cent in 2015 from $2.26-million to $2,008,772. The company reported a comprehensive loss of $640,434, due to the following factors:

• Management's decision to close the brewing facility of Mister Beer on Jan. 1, 2015: The annualized loss recognized by this segment, before adjustments to inventory and fixed assets, was $193,194.
• The writedown of Mister Beer's property, plant and equipment assets from a net book value of $410,328 to a fair market value of $45,000 resulted in a loss of $365,328. These assets were sold on Aug. 31, 2015, for $45,000.
• The writedown of Mister Beer inventory to a nil value at May 31, 2015, from a value of $84,079.
• The continuing fixed expenses (rent and utilities) of the Mister Beer production facility: These expenses will continue until management is able to dispose of or offset the costs of this facility.

The insurance services division experienced a decrease in revenue from $983,405 in 2014 to $909,656 in 2015, or by 7 per cent. The decrease in revenue was the result of unusual flooding in Alberta and Ontario in fiscal 2014, which resulted in an unusually high number of claims processed.

The retail services division revenue was down 26 per cent to $323,012 from $437,734. The new Car Cost Canada website and a new French language site devoted to the Quebec market clearly helped the Car Cost Canada membership program maintain a strong presence in the marketplace, despite increasing competition. Experimentation with pricing of retail memberships in fiscal 2015 contributed to the decrease.

The dealer services division revenue increased by 3 per cent from $676,995 in 2014 to $695,017 in 2015, despite the decrease in membership sales, which drive the dealer lead-generation program and some manufacturer intervention on the part of an automaker discouraging its dealer body from participating in any type of third party lead-generation program.

The advertising/marketing services division, which derives its revenue from the sale of on-line third party advertising on Car Cost Canada and The Car Magazine increased from $8,336 to $12,251, or 47 per cent.

The information technology division revenue improved 22 per cent to $127,649 in 2015 from $104,654 in 2014. IT continues to offer technical support and website hosting to hundreds of customers, and is developing new customer relationships on a regular basis, as well as offering new services for sale. The Mister Beer division's revenues were down from $344,496 to $107,790, or 69 per cent. Direct product costs and labour decreased by 44 per cent from $295,420 to $166,603. The net revenue for Mister Beer went from $49,076 in 2014 to ($58,813) in 2015. Management made the decision to close this division and production facility, effective Jan. 1, 2015, and pursue a sale or other disposition of the Mister Beer business line, assets and facility. On Aug. 31, 2015, the plant equipment was sold for $45,000.

Armada's consolidated statement reflects a loss this year, before corporation income taxes, of ($640,434), compared with the loss before corporation income taxes of ($137,853) in 2014. This loss is the result of a Mister Beer operating loss of $642,601. Corporation income tax expense is nil in 2015, compared with $102,289 in 2014.

Total expenses before amortization decreased to $2,137,421 compared with $2,222,133, a 4-per-cent decrease over last year.

Management engaged in many cost-cutting measures to reduce expenses in 2015, including reductions in advertising, management salaries, computer consulting and rent. The bank indebtedness was reduced to nil at May 31, 2015, from ($200,946) at May 31, 2014, by obtaining financing from a private company controlled by a director and an officer of the company. Accounts receivable increased to $267,182 as at May 31, 2015, from $244,777 last year.

Related-party accounts receivable decreased from $5,255 to $3,493. Accounts payable increased to $254,762 as at May 31, 2015, from $191,823 a year earlier.

Related parties accounts payable decreased to $1,469 as at May 31, 2015, from $45,771 last year.

Corporation income taxes payables are $110,623 as at May 31, 2015, compared with $106,601 as at May 31, 2014.

Related-party notes payable

The current portion increased from nil at May 31, 2014, to $212,000 at May 31, 2015, and related-party notes payable -- long term portion -- went from nil at May 31, 2014, to $81,000 at May 31, 2015. As a result of the loss reported by the company in 2015, the company's deficit increased to ($1,834,816) as at May 31, 2015, compared with ($1,194,382) the prior year. Earnings per share at May 31, 2015, are (four cents) versus (one cent) per share at May 31, 2014. No dividends were paid out to shareholders in fiscal 2015 or fiscal 2014.

Management does not plan on issuing any dividends until further notice.

Outlook

The company's outlook is to continue to increase sales, update and improve its data services products and services, and deliver significantly better results to its shareholders by way of the following:

1. Build on the historical success of the company's continuing sales and marketing efforts focused on increasing sales at retail services, dealer services and insurance services;
2. Exploit market awareness and demand for new vehicle pricing information and dealer referrals that result from the additional competition within that market space; by putting more emphasis on outside partners, data outsourcing and its underutilized on-line magazine, The Car Magazine;
3. Continue to improve its relationships with some of the largest insurance companies in Canada and partner with some of these organizations to produce new products and services for their vast client base;
4. Maintain operating expenses and achieve the economies of scales of an Internet-based business;
5. Expand third party fee-based on-line advertising, by developing improved and more secure advertising methods.

We seek Safe Harbor.