----

----

| 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) |

| Large accelerated filer   | £ | Accelerated filer  £ |   |
|-------------------------------------|--------|-------------------------------------|--------|
| Non-accelerated filer               | £ | Smaller reporting company x         |   |

----

|       |                   |                                                             | Page No. |
|------------|------------------------|------------------------------------------------------------------|----------|
| Part I     | Financial Information: |                                                             |     |
|       |                   |                                                             |     |
|       | Item 1.                | Condensed Consolidated Financial Statements                      |     |   |
|       |                   |                                                             |     |   |
|       |                   | Condensed Consolidated Balance Sheets                            | 3        |   |
|       |                   | as of December 31, 2009 (unaudited)                              |     |   |
|       |                   | and June 30, 2009                                                |     |   |
|       |                   |                                                             |     |   |
|       |                   | Condensed Consolidated Statements of Operations                  | 4        |   |
|       |                   | for the Three and Six Months Ended                               |     |   |
|       |                   | December 31, 2009 and 2008 (unaudited)                           |     |   |
|       |                   |                                                             |     |   |
|       |                   | Condensed Consolidated Statements of Cash Flows                  | 5        |   |
|       |                   | for the Six Months Ended                                         |     |   |
|       |                   | December 31, 2009 and 2008 (unaudited)                           |     |   |
|       |                   |                                                             |     |   |
|       |                   | Notes to Condensed Consolidated Financial Statements (unaudited) |   6 |   |
|       |                   |                                                             |     |   |
|       | Item 2.                | Management’s Discussion and Analysis                       | 10       |   |
|       |                   | of Financial Condition and Results of Operations                 |     |   |
|       |                   |                                                             |     |   |
|       | Item 3.                | Quantitative and Qualitative Disclosures About                   | 14       |   |
|       |                   | Market Risk                                                      |     |   |
|       |                   |                                                             |     |   |
|       | Item 4T.               | Controls and Procedures                                          | 14       |   |
|       |                   |                                                             |     |   |
| 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.                | Submission of Matters to a Vote of Security Holders              | 15       |   |
|       | Item 5.                | Other Information                                                | 15       |   |
|       | Item 6.                | Exhibits                                                         | 16       |   |
|       |                   |                                                             |     |   |
| SIGNATURES |                   | 17                                                               |     |

----

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

|                                                                                                                   |   | December 31, |        |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|----------|--------|
|                                                                                                                   |   | 2009         |        |   | 2009     |   |
|                                                                                                                   |   | (Unaudited)  |        |   |     |   |
| ASSETS                                                                                                                 |   |         |        |   |     |   |
|     CURRENT ASSETS:                                                                                |   |         |        |   |     |   |
|         Cash and Cash Equivalents                                              |   | $            | 1,169,824   |   |     | $      | 1,376,634 |   |
|         Investment in Marketable Securities                                    |   |         | 150,658     |   |     |   | 53,318 |   |
|         Accounts Receivable, Net of Allowance for Doubtful Accounts of $66,274 |   |         | 900,897     |   |     |   | 835,362 |   |
|         Prepaid Expenses                                                       |   |         | 41,010      |   |     |   | 5,647 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|               TOTAL CURRENT ASSETS               |   |         | 2,262,389   |   |     |   | 2,270,961 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|     PROPERTY AND EQUIPMENT, NET                                                                    |   |         | 595,834     |   |     |   | 385,293 |   |
|     INVESTMENTS                                                                                    |   |         | 106,426     |   |     |   | 106,426 |   |
|     DEPOSITS AND OTHER ASSETS                                                                      |   |         | 76,536      |   |     |   | 71,928 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|     DEFERRED INCOME TAX ASSET, NET OF VALUATION                                                    |   |         |        |   |     |   |   |   |
|     ALLOWANCE OF $1,703,746 and $1,723,021, respectively                                           |   |         | -           |   |     |   | - |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|               TOTAL ASSETS                       |   | $            | 3,041,185   |   |     | $      | 2,834,608 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                             |   |         |        |   |     |   |   |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|     CURRENT LIABILITIES:                                                                           |   |         |        |   |     |   |   |   |
|         Accounts Payable                                                       |   | $            | 472,951     |   |     | $      | 376,354 |   |
|         Other Accrued Expenses                                                 |   |         | 402,269     |   |     |   | 212,542 |   |
|         Accrued Payroll Expenses                                               |   |         | 30,782      |   |     |   | 197,340 |   |
|         Deferred Revenue                                                       |   |         | 141,739     |   |     |   | 95,028 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|               TOTAL LIABILITIES                  |   |         | 1,047,741   |   |     |   | 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                                                                |   |         | (11,761,135 | )      |     |   | (11,801,235 | ) |
|                                                                                                                   |   |         |        |   |     |   |   |   |
|       Total Stockholders’ Equity                                                   |   |         | 1,993,444   |   |     |   | 1,953,344 |   |
|                                                                                                                   |   |         |        |   |     |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                       |   | $            | 3,041,185   |   |     | $      | 2,834,608 |   |

----

| Comtex News Network, Inc.          |
|------------------------------------|
|                               |
| Condensed Statements of Operations |
|                               |
| (Unaudited)                        |

|                                                                                                                                                                                                                                                   |   | Three months ended |       |   | Six months ended |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------|---------|
|                                                                                                                                                                                                                                                   |   | December 31,       |       |   | December 31,     |    |
|                                                                                                                                                                                                                                                   |   | 2009               |       |   | 2008             |    |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                   |   |               |       |   |             |    |   |   |   |   |   |   |
| Revenues                                                                                                                                                                                                                                               |   | $             | 1,791,708  |   |             | $  | 1,653,364 |   |   | $  | 3,605,090 |   |   | $  | 3,315,612 |   |
| Cost of Revenues                                                                                                                                                                                                                                       |   |               | 734,634    |   |             |    | 478,651 |   |   |   | 1,395,443 |   |   |   | 1,120,384 |   |
|      Gross Profit                                                                                                                                                                                                             |   |               | 1,057,074  |   |             |    | 1,174,713 |   |   |   | 2,209,647 |   |   |   | 2,195,228 |   |
| Operating Expenses:                                                                                                                                                                                                                                    |   |               |       |   |             |    |   |   |   |   |   |   |   |   |   |   |
|  Technical Operations and Support                                                                                                                                                                                                                 |   |               | 393,578    |   |             |    | 427,509 |   |   |   | 750,058 |   |   |   | 832,518 |   |
|  Sales and Marketing                                                                                                                                                                                                                              |   |               | 324,776    |   |             |    | 207,003 |   |   |   | 545,661 |   |   |   | 399,770 |   |
|  General and Administrative (Inclusive of stock-based compensation of $ 0 and $35,000, for the three months ended December 31, 2009 and 2008, respectively and $0 and $35,000, for the six months ended December 31, 2009 and 2008, respectively) |   |               | 448,715    |   |             |    | 468,220 |   |   |   | 852,157 |   |   |   | 830,376 |   |
|  Depreciation and Amortization                                                                                                                                                                                                                    |   |               | 43,000     |   |             |    | 28,970 |   |   |   | 77,472 |   |   |   | 58,088 |   |
|    Total Operating Expenses                                                                                                                                                                                                             |   |               | 1,210,069  |   |             |    | 1,131,702 |   |   |   | 2,225,348 |   |   |   | 2,120,752 |   |
|    Operating (Loss) Income                                                                                                                                                                                                              |   |               | (152,995   | )      |             |    | 43,011 |   |   |   | (15,701 | ) |   |   | 74,476 |   |
| Other income (expense), net:                                                                                                                                                                                                                           |   |               |       |   |             |    |   |   |   |   |   |   |   |   |   |   |
|  Interest Income                                                                                                                                                                                                                                  |   |               | 170        |   |             |    | 4,021 |   |   |   | 881 |   |   |   | 9,564 |   |
|  Other Income                                                                                                                                                                                                                                     |   |               | 21,581     |   |             |    | 1,147 |   |   |   | 33,388 |   |   |   | 1,252 |   |
|  Realized and unrealized gain on marketable securities                                                                                                                                                                                            |   |               | 5,183      |   |             |    | - |   |   |   | 21,912 |   |   |   | - |   |
|    Other Income , net                                                                                                                                                                                                                   |   |               | 26,934     |   |             |    | 5,168 |   |   |   | 56,181 |   |   |   | 10,816 |   |
| (Loss) Income Before Income Taxes                                                                                                                                                                                                                      |   |               | (126,061   | )      |             |    | 48,179 |   |   |   | 40,480 |   |   |   | 85,292 |   |
| (Provision) for Federal and State Income Taxes                                                                                                                                                                                                         |   |               | -          |   |             |    | (17,200 | ) |   |   | (13,763 | ) |   |   | (41,850 | ) |
| Tax Benefit of Net Operating Loss Carry forward                                                                                                                                                                                                        |   |               | -          |   |             |    | 16,400 |   |   |   | 13,383 |   |   |   | 29,000 |   |
| Net (Loss) Income                                                                                                                                                                                                                                      |   | $                  | (126,061   | )      |             | $  | 47,379 |   |   | $  | 40,100 |   |   | $  | 72,442 |   |
|                                                                                                                                                                                                                                                   |   |               |       |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Basic (Loss) Earnings Per Common Share                                                                                                                                                                                                                 |   | $             | (0.01      | )      |             | $       | 0.00 |   |   | $  | 0.00 |   |   | $ | 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                                                                                                                                                                                                               |   |               |       |   |             | $  | 0.00 |   |   | $  | 0.00 |   |   | $  | 0.00 |   |
| Weighted Average Number of Shares Assuming Dilution                                                                                                                                                                                                    |   |               | 15,913,632 |   |             |    | 15,449,855 |   |   |   | 15,852,261 |   |   |   | 15,790,723 |   |

----

| COMTEX NEWS NETWORK, INC.             |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS |

|                                                                                                                |   | Six Months Ended |      |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|
|                                                                                                                |   | December 31,     |      |
|                                                                                                                |   | (Unaudited)      |      |
|                                                                                                                |   | 2009             |      |   | 2008 |   |
| Cash Flows from Operating Activities:                                                                               |   |             |      |   |   |   |
|     Net Income                                                                                  |   | $                | 40,100    |   |   | $  | 72,442 |   |
|     Adjustments to reconcile net income to net                                                  |   |             |      |   |   |   |   |   |
|     cash provided by (used in) operating activities:                                            |   |             |      |   |   |   |   |   |
|         Depreciation and Amortization                                       |   |             | 77,473    |   |   |   | 58,088 |   |
|         Unrealized (Gain) Loss on Marketable Securities                     |   |             | (8,294    | ) |   |   | - |   |
|         Stock-Based Compensation                                            |   |             | -         |   |   |   | 35,000 |   |
|         Changes in Assets and Liabilities:                                  |   |             |      |   |   |   |   |   |
|             Accounts Receivable                         |   |             | (65,535   | ) |   |   | 66,563 |   |
|             Prepaid Expenses                            |   |             | (35,363   | ) |   |   | 11,551 |   |
|             (Purchase) Sale of Marketable Securities    |   |             | (89,046   | ) |   |   | - |   |
|                                                                                                                |   |             |      |   |   |   |   |   |
|             Deposits and Other Assets                   |   |             | (4,608    | ) |   |   |   |   |
|             Accounts Payable and Other Accrued Expenses |   |             | 88,985    |   |   |   | (287,686 | ) |
|             Accrued Payroll Expenses                    |   |             | 30,782    |   |   |   | 53,213 |   |
|             Deferred Revenue                            |   |             | 46,710    |   |   |   | (9,801 | ) |
|         Net Cash Provided By (Used in) Operating Activities                 |   |             | 81,204    |   |   |   | (630 | ) |
|                                                                                                                |   |             |      |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                               |   |             |      |   |   |   |   |   |
|     Purchase of Property and Equipment                                                          |   |             | (288,014  | ) |   |   | (15,130 | ) |
|     Net Cash (Used in) Investing Activities                                                     |   |             | (288,014  | ) |   |   | (15,130 | ) |
|                                                                                                                |   |             |      |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                                               |   |             |      |   |   |   |   |   |
|         Net Cash (Used in) Financing Activities                             |   |             | -         |   |   |   | - |   |
|                                                                                                                |   |             |      |   |   |   |   |   |
| Net (Decrease) Increase in Cash and Cash Equivalents                                                                |   |             | (206,810  | ) |   |   | (15,760 | ) |
|                                                                                                                |   |             |      |   |   |   |   |   |
| Cash and Cash Equivalents at Beginning of Period                                                                    |   |             | 1,376,634 |   |   |   | 1,520,831 |   |
| Cash and Cash Equivalents at End of Period                                                                          |   | $           | 1,169,824 |   |   | $  | 1,505,071 |   |

----

----

|   | ● | 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. |

|                      |   | for IdenticalAssets |      |   | ObservableInputs |    |   | UnobservableInputs |   |
|---------------------------|--------|---------------------|-----------|--------|------------------|---------|--------|--------------------|--------|
|                      |   | Level 1             |      |   | Level 2          |    |   | Level 3            |   |
| Assets:                   |   |                |      |   |             |    |   |               |   |
| Cash and cash equivalents |   | $                   | 1,169,824 |   |             | $  | -      |               |   | $  | - |   |
| Marketable securities     |   |                | 150,658   |   |             |    | -      |               |   |   |   |   |
|                      |   |                |      |   |             |    |   |               |   |   |   |   |
|                      |   | $              | 1,320,482 |   |             | $  | -      |               |   | $  | - |   |

----

----

| Fiscal year endingJune 30, |   | Minimum RentalCommitments |    |
|----------------------------|--------|---------------------------|---------|
| 2010                       |   | $                         | 150,781 |   |
| 2011                       |   |                      | 239,219 |   |
| 2012                       |   |                      | 130,992 |   |
| 2013                       |   |                      | 127,216 |   |
| 2014                       |   |                      | 97,790  |   |
|                       |   | $                    | 745,998 |   |

----

----

----

----

|   |             |   Contractual Obligations |
|--------|------------------|-------------------------------------|
|   |             |  FY 2010                       | FY 2011 | FY 2012 | FY 2013 | FY 2014 | Total |
|   | Operating Leases | $150,781                            | $239,219 | $130,992 | $127,216 | $97,790 | $745,998 |

----

|   |                                            |   | Ended December 31, |   |
|--------|-------------------------------------------------|--------|--------------------|--------|
|   |                                            |   | 2009               |   |   | 2008 |   |
|   |                                            |   |               |   |   |   |   |
|   | Reconciliation to EBITDA:                       |   |               |   |   |   |   |
|   |                                            |   |               |   |   |   |   |   |   |
|   |    Net Income                    |   | $             | 40     |   |   | $  | 72 |   |
|   |                                            |   |               |   |   |   |   |   |   |
|   |    Stock-Based Compensation      |   |               | -      |   |   |   | 35 |   |
|   |                                            |   |               |   |   |   |   |   |   |
|   |    Depreciation and Amortization |   |               | 77     |   |   |   | 58 |   |
|   |                                            |   |               |   |   |   |   |   |   |
|   |    Interest/Other Expenses, net  |   |               | (56    | ) |   |   | (11 | ) |
|   |                                            |   |               |   |   |   |   |   |   |
|   |    Income Taxes, net             |   |               | -      |   |   |   | 13 |   |
|   |    EBITDA                        |   | $             | 61     |   |   | $  | 167 |   |

----

----

|   |   |                                                                                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   | 10.1   | Employment Agreement with Dr. C.W. Gilluly effective July 1, 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. |

----

----

|              |                      |                                         |
|-------------------|---------------------------|----------------------------------------------|
|              | COMTEX NEWS NETWORK, INC. |
|              |                      | (Registrant)                                 |
|              |                      |                                         |   |
| February 16, 2010 | By:                       | /s/ Chip Brian                               |   |
|              |                      | Chip Brian                                   |   |
|              |                      | President and Chief Executive Officer        |
|              |                      | (Principal Executive Officer)                |
|              |                      |                                         |   |
|              |                      |                                         |   |
| February 16, 2010 | By:                       | /s/ Paul Sledz                               |   |
|              |                      | Paul Sledz                                   |   |
|              |                      | Corporate Controller & Treasurer         |
|              |                      | (Principal Financial and Accounting Officer) |