An anonymous director reports

VENDTEK SYSTEMS ANNOUNCES FISCAL 2015 Q1 FINANCIAL RESULTS

VendTek Systems Inc. has released its financial results for its first quarter of fiscal 2015 ended Jan. 31, 2015.

Selected financial information:

• Revenue for the quarter ended Jan. 31, 2015, decreased $183,513 to $264,802, or 40.9 per cent from $448,315 in the prior fiscal quarter of first quarter 2014.
• Operating expenses were $614,237 compared with $830,014 in the prior fiscal quarter.
• Adjusted earnings before interest, taxes, depreciation and amortization loss were $315,798 for first quarter 2015 compared with a loss of $339,873 for the prior year.
• Net loss from continuing operations was $429,649 compared with $536,582 in the prior fiscal quarter.
• Cash used in operations was $260,846 for first quarter 2015, compared with $927,130 cash used in operations in the prior fiscal year.
• Cash and cash equivalents were $196,505 at Jan. 31, 2015, compared with $291,366 at Oct. 31, 2014.

These consolidated financial statements have been prepared on a going-concern basis, which assumes that the company will be able to realize its assets and discharge its liabilities in the normal course of business.

For the quarter ended Jan. 31, 2015, the company has incurred a net loss from continuing operations of $429,649 and negative cash flows of $260,846 from operating activities. The company also has a working capital deficiency of $3,247,990 and a shareholder deficiency of $3,789,433 as at Jan. 31, 2015. These conditions raise significant doubt about the ability of the company to continue as a going concern without additional financing or renegotiate the terms of existing financing. In addition to the funds raised subsequent to quarter-end, management is pursuing several sources of additional financing (both debt and equity) and is of the opinion that sufficient working capital will be obtained from: external financing, renegotiation of existing financing and improved operations, to meet the company's liabilities and commitments as they become due, although there is significant risk that this may not happen on a timely basis or on terms acceptable to the company.

These consolidated financial statements do not give effect to any adjustments which would be necessary, should the company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying consolidated financial statements. Subsequent to quarter-end, on Feb. 5, 2015, the company issued $350,000 of secured convertible debentures on a private placement basis that will mature on Feb. 4, 2018. These bear interest at a rate of 1.0 per cent per annum and have a conversion price of five cents per common share in the first year of the term and 10 cents in the rest of the term. In addition, the company issued seven million additional warrants exercisable at five cents per common share with the issuance of these convertible debentures.

VendTek's management's discussion and analysis, complete financial statements, and notes are available at SEDAR and the company's website. For more information or to receive the complete statements, please contact Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.

      CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                    (all amounts expressed in Canadian dollars)                                    
                                                                 Restated
                                                       three months ended  Three months ended
                                                                  Jan. 31,            Jan. 31,
                                                                     2015                2014
Continuing operations
Revenue
Products and service revenue                                   $  264,802          $  448,315
Cost of product and service revenue                                    --                  --
Gross profit                                                      264,802             448,315
Operating expenses
General and administrative                                        484,795             617,447
Research and development                                          129,442             212,567
Total operating expenses                                          614,237             830,014
(Loss) before finance costs, (loss) on
disposal of assets and foreign exchange loss (gain)              (349,435)           (381,699)
Finance costs                                                      43,680             117,788
Foreign exchange loss                                              36,534              37,095
Net (loss) from continuing operations                            (429,649)           (536,582)
Discontinued operations
Net income from discontinued operations                                --           4,637,602
Net income (loss)                                                (429,649)          4,101,020
Other comprehensive income (loss)
Foreign currency translation difference                             2,363              14,940
Comprehensive income (loss)                                   $  (427,286)       $  4,115,960
Earnings per share
Basic and diluted earnings (loss) per share                         (0.01)               0.07
Earnings per share -- continuing operations
Basic and diluted (loss) per share                                  (0.01)              (0.01)

We seek Safe Harbor.