----

----

| x | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                          |   |                | 13-3055012 |   |
|-----------------------------------|--------|---------------------|------------|--------|
| (State or other jurisdiction      |   | (I.R.S. Employer    |
| of Incorporation or Organization) |   | Identification No.) |

|   | 625 North Washington Street, Suite 301, Alexandria, Virginia |   |                   | 22314  |   |   |
|--------|--------------------------------------------------------------|--------|------------------------|--------|--------|--------|
|   | (Address of Principal Executive Offices)                     |   |  (Zip Code)  |   |

|                                                             | (703) 820-2000 |   |
|------------------------------------------------------------------|----------------|--------|
|   (Registrant’s telephone number including area code) |

----

|       |                                   |                                                                                                                              |   |
|------------|----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| Part I     | Financial Information:                 | Page No.                                                                                                                          |
|       |                                   |                                                                                                                              |   |   |
|       | Item 1.                                | Condensed Consolidated Financial Statements                                                                                       |   |   |
|       |                                   |                                                                                                                              |   |   |
|       |                                   | Condensed Consolidated Balance Sheets as of March 31, 2010 (unaudited) and June 30, 2009 (audited)                                | 3      |   |
|       |                                   |                                                                                                                              |   |   |
|       |                                   | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2010 and March 31, 2009 (unaudited) | 4      |   |
|       |                                   |                                                                                                                              |   |   |
|       |                                   | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2010 and March 31, 2009 (unaudited)           | 5      |   |
|       |                                   |                                                                                                                              |   |   |
|       |                                   | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                  | 6      |   |
|       |                                   |                                                                                                                              |   |   |
|       | Item 2.                                | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                       | 10     |   |
|       |                                   |                                                                                                                              |   |   |
|       | Item 3.                                | Quantitative and Qualitative Disclosures About Market Risk                                                                        | 14     |   |
|       |                                   |                                                                                                                              |   |   |
|       | Item 4T.  Controls and Procedures | 15                                                                                                                                |   |
|       |                                   |                                                                                                                              |   |   |
| Part II    | Other Information:                     |                                                                                                                              |   |
|       |                                   |                                                                                                                              |   |   |
|       | Item 1.                                | Legal Proceedings                                                                                                                 | 15     |   |
|       | Item 1A.                               | Risk Factors                                                                                                                      | 15     |   |
|       | Item 2.                                | Unregistered Sales of Equity Securities and Use of Proceeds                                                                       | 15     |   |
|       | Item 3.                                | Defaults Upon Senior Securities                                                                                                   | 15     |   |
|       | Item 4.                                | (Removed and Reserved)                                                                                                            | 15     |   |
|       | Item 5.                                | Other Information                                                                                                                 | 15     |   |
|       | Item 6.                                | Exhibits                                                                                                                          | 16     |   |
|       |                                   |                                                                                                                              |   |   |
| SIGNATURES | 17                                     |                                                                                                                              |

----

| COMTEX NEWS NETWORK, INC.             |   |
|---------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS |   |

|                                                                                                                   |   | March 31,   |        |   | June 30,  |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|-----------|--------|
|                                                                                                                   |   | 2010        |        |   | 2009      |   |
|                                                                                                                   |   | (Unaudited) |        |   | (Audited) |   |
| ASSETS                                                                                                                 |   |        |        |   |      |   |
|     CURRENT ASSETS:                                                                                |   |        |        |   |      |   |
|         Cash and Cash Equivalents                                              |   | $           | 430,498     |   |      | $      | 1,376,634 |   |
|         Investment in Marketable Securities                                    |   |        | 708,638     |   |      |   | 53,318 |   |
|         Accounts Receivable, Net of Allowance for Doubtful Accounts of $66,274 |   |        | 901,342     |   |      |   | 835,362 |   |
|         Prepaid Expenses                                                       |   |        | 75,592      |   |      |   | 5,647 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|               TOTAL CURRENT ASSETS               |   |        | 2,116,070   |   |      |   | 2,270,961 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|     PROPERTY AND EQUIPMENT, NET                                                                    |   |        | 592,460     |   |      |   | 385,293 |   |
|     INVESTMENTS                                                                                    |   |        | 146,426     |   |      |   | 106,426 |   |
|     DEPOSITS AND OTHER ASSETS                                                                      |   |        | 58,056      |   |      |   | 71,928 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|     DEFERRED INCOME TAX ASSET, NET OF VALUATION                                                    |   |        |        |   |      |   |   |   |
|     ALLOWANCE OF $1,755,151 and $1,723,021, respectively                                           |   |        | -           |   |      |   | - |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|               TOTAL ASSETS                       |   | $           | 2,913,012   |   |      | $      | 2,834,608 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                             |   |        |        |   |      |   |   |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|     CURRENT LIABILITIES:                                                                           |   |        |        |   |      |   |   |   |
|         Accounts Payable                                                       |   | $           | 491,006     |   |      | $      | 376,354 |   |
|         Other Accrued Expenses                                                 |   |        | 411,413     |   |      |   | 212,542 |   |
|         Accrued Payroll Expenses                                               |   |        | 81,888      |   |      |   | 197,340 |   |
|         Deferred Revenue                                                       |   |        | 126,553     |   |      |   | 95,028 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|               TOTAL LIABILITIES                  |   |        | 1,110,860   |   |      |   | 881,264 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 2)                                                                                 |   |        |        |   |      |   |   |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
| STOCKHOLDERS’ EQUITY:                                                                                            |   |        |        |   |      |   |   |   |
|       Preferred Stock, $0.01 Par Value - Shares Authorized:                              |   |        |        |   |      |   |   |   |
|       5,000,000: No Shares issued and outstanding                                        |   |        | -           |   |      |   | - |   |
|       Common Stock, $0.01 Par Value - Shares Authorized:                                 |   |        |        |   |      |   |   |   |
|       25,000,000: Shares issued and outstanding 15,794,200                               |   |        | 157,942     |   |      |   | 157,942 |   |
|       Additional Paid-In Capital                                                         |   |        | 13,596,637  |   |      |   | 13,596,637 |   |
|       Accumulated Deficit                                                                |   |        | (11,952,427 | )      |      |   | (11,801,235 | ) |
|                                                                                                                   |   |        |        |   |      |   |   |   |
|       Total Stockholders’ Equity                                                   |   |        | 1,802,152   |   |      |   | 1,953,344 |   |
|                                                                                                                   |   |        |        |   |      |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                       |   | $           | 2,913,012   |   |      | $      | 2,834,608 |   |

----

| Comtex News Network, Inc.                                                                                                                                                                                                              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed Consolidated Statements of Operations                                                                                                                                                                                        |   |
| (Unaudited)                                                                                                                                                                                                                            |   |
|                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                   |   | Three months ended |   |   | Nine months ended |   |
|                                                                                                                                                                                                                                   |   | March 31, |   |   | March 31, |   |
|                                                                                                                                                                                                                                   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                                                               |   | $ | 1,900,951 |   |   | $ | 1,492,475 |   |   | $ | 5,506,040 |   |   | $ | 4,808,087 |   |
|                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Revenues                                                                                                                                                                                                                       |   |   | 755,332 |   |   |   | 607,314 |   |   |   | 2,150,774 |   |   |   | 1,727,699 |   |
|                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                                                                                                                                                                                           |   |   | 1,145,619 |   |   |   | 885,161 |   |   |   | 3,355,266 |   |   |   | 3,080,388 |   |
| Operating Expenses:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Technical Operations and Support                                                                                                                                                                                                       |   |   | 451,328 |   |   |   | 316,685 |   |   |   | 1,201,385 |   |   |   | 1,149,203 |   |
| Sales and Marketing                                                                                                                                                                                                                    |   |   | 381,317 |   |   |   | 208,348 |   |   |   | 926,978 |   |   |   | 608,118 |   |
| General and Administrative (Inclusive of stock-based compensation of $ 0 and $0, for the three months ended March 31, 2010 and 2009, respectively and $0 and $35,000, for the nine months ended March 31, 2010 and 2009, respectively) |   |   | 517,682 |   |   |   | 380,623 |   |   |   | 1,369,840 |   |   |   | 1,210,999 |   |
| Depreciation and Amortization                                                                                                                                                                                                          |   |   | 46,786 |   |   |   | 29,838 |   |   |   | 124,259 |   |   |   | 87,925 |   |
| Total Operating Expenses                                                                                                                                                                                                               |   |   | 1,397,113 |   |   |   | 935,494 |   |   |   | 3,622,462 |   |   |   | 3,056,245 |   |
| Operating (Loss) Income                                                                                                                                                                                                                |   |   | (251,494 | ) |   |   | (50,333 | ) |   |   | (267,196 | ) |   |   | 24,143 |   |
| Other income (expense), net:                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                                                                                                                                                                                                        |   |   | 14,456 |   |   |   | 760 |   |   |   | 15,338 |   |   |   | 10,324 |   |
| Realized and unrealized gain (loss) on marketable securities                                                                                                                                                                           |   |   | 22,968 |   |   |   | 17,457 |   |   |   | 44,880 |   |   |   | 17,457 |   |
| Other Income (Expense)                                                                                                                                                                                                                 |   |   | 23,764 |   |   |   | 28 |   |   |   | 57,152 |   |   |   | 1,280 |   |
| Other Income (Expense), net                                                                                                                                                                                                            |   |   | 61,188 |   |   |   | 18,245 |   |   |   | 117,370 |   |   |   | 29,061 |   |
| Income (Loss) Before Income Taxes                                                                                                                                                                                                      |   |   | (190,306 | ) |   |   | (32,088 | ) |   |   | (149,826 | ) |   |   | 53,204 |   |
| (Provision) for Federal and State Income Taxes                                                                                                                                                                                         |   |   | (986 | ) |   |   | (1,071 | ) |   |   | (1,366 | ) |   |   | (18,089 | ) |
| Tax Benefit of Net Operating Loss Carry forward                                                                                                                                                                                        |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 4,168 |   |
| Net (Loss) Income                                                                                                                                                                                                                      |   | $ | (191,292 | ) |   | $ | (33,159 | ) |   | $ | (151,192 | ) |   | $ | 39,283 |   |
| Basic (Loss) Earnings Per Common Share                                                                                                                                                                                                 |   | $ | (0.01 | ) |   | $ | 0.00 |   |   | $ | (0.01 | ) |   | $ | 0.00 |   |
| Weighted Average Number of Common Shares                                                                                                                                                                                               |   |   | 15,794,200 |   |   |   | 15,446,374 |   |   |   | 15,794,200 |   |   |   | 15,583,241 |   |
| Diluted (Loss) Earnings Per Common Share                                                                                                                                                                                               |   | $ | (0.01 | ) |   | $ | 0.00 |   |   | $ | (0.01 | ) |   | $ | 0.00 |   |
| Weighted Average Number of Shares Assuming Dilution                                                                                                                                                                                    |   |   | 15,794,200 |   |   |   | 15,446,374 |   |   |   | 15,794,200 |   |   |   | 15,653,295 |   |

----

| COMTEX NEWS NETWORK, INC.                                                                                                  |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                            |   |
| (Unaudited)                                                                                                                |   |
|                                                                                                                       |   |
|                                                                                                                       |   | Nine Months Ended |   |
|                                                                                                                       |   | March 31, |   |
|                                                                                                                       |   | 2010 |   |   | 2009 |   |
| Cash Flows from Operating Activities:                                                                                      |   |   |   |   |   |   |
|     Net (Loss) Income                                                                                  |   | $ | (151,192 | ) |   | $ | 39,283 |   |
|     Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |   |   |   |   |   |   |   |   |
|         Depreciation and Amortization                                              |   |   | 124,258 |   |   |   | 87,926 |   |
|         Provision for Doubtful Accounts                                            |   |   | - |   |   |   | 7,950 |   |
|         Realized and Unrealized (Gain) on Marketable Securities                    |   |   | (44,880 | ) |   |   | (17,457 | ) |
|         Stock-Based Compensation                                                   |   |   | - |   |   |   | 35,000 |   |
|             Accounts Receivable                                |   |   | (65,980 | ) |   |   | 161,463 |   |
|             Prepaid Expenses                                   |   |   | (69,945 | ) |   |   | 10,620 |   |
|             (Purchase) of Marketable Securities                |   |   | (610,443 | ) |   |   | (16,389 | ) |
|             Deposits and Other Assets                          |   |   | 13,875 |   |   |   | - |   |
|             Accounts Payable and Other Accrued Expenses        |   |   | 313,523 |   |   |   | (286,995 | ) |
|             Accrued Payroll Expenses                           |   |   | (115,452 | ) |   |   | 47,372 |   |
|             Deferred Revenue                                   |   |   | 31,525 |   |   |   | (13,915 | ) |
|         Net Cash (Used In) Provided By Operating Activities                        |   |   | (574,711 | ) |   |   | 54,858 |   |
| Cash Flows from Investing Activities:                                                                                      |   |   |   |   |   |   |   |   |
|     Purchase of Investments                                                                            |   |   | (40,000 | ) |   |   |   |   |
|     Purchase of Property and Equipment                                                                 |   |   | (331,425 | ) |   |   | (34,057 | ) |
|     Net Cash (Used In) Investing Activities                                                            |   |   | (371,425 | ) |   |   | (34,057 | ) |
| Cash Flows from Financing Activities:                                                                                      |   |   |   |   |   |   |   |   |
|     Decrease in Broker Margin Account                                                                  |   |   | - |   |   |   | - |   |
|         Net Cash (Used In) Financing Activities                                    |   |   | - |   |   |   | - |   |
| Net (Decrease) Increase in Cash and Cash Equivalents                                                                       |   |   | (946,136 | ) |   |   | 20,801 |   |
| Cash and Cash Equivalents at Beginning of Period                                                                           |   |   | 1,376,634 |   |   |   | 1,520,831 |   |
| Cash and Cash Equivalents at End of Period                                                                                 |   | $ | 430,498 |   |   | $ | 1,541,632 |   |

----

| 1.  | Summary of Significant Accounting Policies Basis of Presentation |
|----------|-----------------------------------------------------------------------|

----

| ●   | Quoted prices for similar assets or liabilities in active markets; |
|---------------------|--------------------------------------------------------------------|

| ●   | Quoted prices for identical or similar assets in non-active markets; |
|---------------------|----------------------------------------------------------------------|

| ●   | Inputs other than quoted prices that are observable for the asset or liability; and |
|---------------------|-------------------------------------------------------------------------------------|

| ●   | Inputs that are derived principally from or corroborated by other observable market data. |
|---------------------|-------------------------------------------------------------------------------------------|

|                      |   | Fair Value Measurement on September 30, 2009     |      |
|---------------------------|--------|--------------------------------------------------|-----------|
|                      |   | Quoted Price inActive Marketsfor IdenticalAssets |      |   | SignificantOtherObservableInputs |   |   | SignificantUnobservableInputs |   |
|                      |   | Level 1                                          |      |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |                                             |      |   |   |   |   |   |   |
| Cash and cash equivalents |   | $                                                | 430,498   |   |   | $ | - |   |   | $ | - |   |
| Marketable securities     |   |                                             | 708,638   |   |   |   | - |   |   |   |   |   |
|                      |   |                                             |      |   |   |   |   |   |   |   |   |   |
|                      |   | $                                                | 1,139,136 |   |   | $ | - |   |   | $ | - |   |

----

----

| 2.  | Commitments and Contingencies |
|----------|-------------------------------|

|   | Fiscal year endingJune 30, |   | Minimum RentalCommitments |    |
|--------|----------------------------|--------|---------------------------|---------|
|   | 2010                       |   | $                         | 94,346  |   |
|   | 2011                       |   |                      | 296,085 |   |
|   | 2012                       |   |                      | 187,859 |   |
|   | 2013                       |   |                      | 184,082 |   |
|   | 2014 and thereafter        |   |                      | 168,874 |   |
|   |                       |   | $                         | 931,246 |   |

----

----

----

----

|   |             |   |  Contractual Obligations |   |
|--------|------------------|--------|-------------------------------|--------|
|   |             |   | FY 2010                       |   |   | FY 2011 |   |   | FY 2012 |   |   | FY 2013 |   |   | FY 2014and thereafter |   |   | Total |   |
|   | Operating Leases |   | $                             | 94,346 |   |   | $ | 296,085 |   |   | $ | 187,859 |   |   | $ | 184,082 |   |   | $ | 168,874 |   |   | $ | 931,246 |   |

----

|   |                          |   | Nine Months     |   |
|--------|-------------------------------|--------|-----------------|--------|
|   |                          |   | Ended March 31, |   |
|   |                          |   | 2010            |   |   | 2009 |   |
|   | Reconciliation to EBITDA:     |   |            |   |   |   |   |
|   | Net (Loss) Income             |   | $               | (151   | ) |   | $ | 39 |   |
|   | Stock-Based Compensation      |   |            | -      |   |   |   | 35 |   |
|   | Depreciation and Amortization |   |            | 124    |   |   |   | 88 |   |
|   | Interest/Other Expenses, net  |   |            | (117   | ) |   |   | (29 | ) |
|   | Income Taxes, net             |   |            | 1      |   |   |   | 14 |   |
|   | EBITDA                        |   | $               | (143   | ) |   | $ | 147 |   |

----

----

| 10.1   | Employment Agreement with Dr. C.W. Gilluly effective July 1, 2009  (incorporated by reference to the Company’s Quarterly Report Form 10-Q for the period ended September 30, 2009). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------------------|-----------------------------------------------------------------------------------------------------|

| 31.2   | Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------------------|------------------------------------------------------------------------------------------------------------------------|

| 32.1   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------------------|-----------------------------------------------------------------------------------------------------|

| 32.2   | Certification of Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------------------|------------------------------------------------------------------------------------------------------------------------|

----

| May 14, 2010 | By:    | /s/ Chip Brian                                                     |   |
|--------------|--------|--------------------------------------------------------------------|--------|
|         |   | Chip Brian                                                         |
|         |   | President and Chief Executive Officer(Principal Executive Officer) |

| May 14, 2010 | By:    | /s/Paul Sledz                                                                  |   |
|--------------|--------|--------------------------------------------------------------------------------|--------|
|         |   | Paul Sledz                                                                     |
|         |   | Corporate Controller and Treasurer(Principal Financial and Accounting Officer) |