UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                     FOR THE FISCAL YEAR ENDED JUNE 30, 2004

                         COMMISSION FILE NO.: 000-29299

                                CORVU CORPORATION
           (Name of Small Business Issuer as specified in its charter)

          MINNESOTA                                           41-1457090
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                          Identification Number)


                  3400 WEST 66TH STREET, EDINA, MINNESOTA 55435
               (Address of principal executive offices)(Zip Code)

         Issuer's telephone number, including area code: (952) 944-7777

    SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE EXCHANGE ACT: NONE

      SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE EXCHANGE ACT:
                                  COMMON STOCK

Check  whether  the Issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  Registrant was required to file such reports),  and (2)
has been subject to such filing  requirements  for the past 90 days.
YES |X|   NO |_|

Check if disclosure  of delinquent  filers in response to Item 405 of Regulation
S-B  is not  contained  herein,  and  will  not be  contained,  to the  best  of
Registrant's   knowledge,   in  definitive   proxy  or  information   statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. |_|

Issuer's revenues for its most recent fiscal year: $16,157,663.

The  aggregate  market  value of the Common Stock held by  nonaffiliates  of the
Registrant  as of August 31, 2004 was  approximately  $5,076,000  based upon the
closing price of the Registrant's Common Stock on such date.

There were 23,970,268 shares of Common Stock outstanding as of August 31, 2004.

                       DOCUMENTS INCORPORATED BY REFERENCE
Documents  incorporated  by reference  pursuant to Rule 12b-23:  Portions of the
Registrant's  Proxy Statement for its 2004 Annual Meeting to be held on December
9, 2004 are  incorporated  by reference  into Items 9, 10, 11, 12 and 14 of Part
III.

Transitional Small Business Disclosure Format (check one). YES |_| NO |X|



<PAGE>


                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS

BUSINESS DEVELOPMENT

We are a holding company that develops and sells business performance management
software  products and related  professional  services through our subsidiaries:
CorVu North America, Inc. (incorporated in Minnesota,  responsible for North and
South  America);  CorVu Plc  (incorporated  in England,  responsible  for United
Kingdom/Europe),   CorVu  Australasia  Pty.  Ltd.  (incorporated  in  Australia,
responsible for the Australian-Pacific  region), CorVu Software Marketing,  Inc.
(incorporated  in Minnesota),  and CorVu Latin America,  Inc.  (incorporated  in
Minnesota,  currently inactive). CorVu Plc has one subsidiary,  CorVu Nordic AB,
incorporated under the laws of Sweden.  CorVu Software  Marketing,  Inc. has one
subsidiary, CorVu Software, Ltd., incorporated under the laws of England.

The Company was  incorporated  in  Minnesota as J.B  Goodhouse on September  29,
1983. On April 28, 1988, it changed its name to Lockermate  Corporation,  and on
October 20, 1992, it changed its name to Minnesota American,  Inc. Following the
merger of CorVu Corporation, a privately held company, with and into the Company
on January 14,  2000,  the  Company  continued  to operate  the  business of the
privately held company and changed its name to "CorVu Corporation".

BUSINESS OF ISSUER

(i)   Our Principal Products and Services

CorVu is a provider of performance management software products.

Performance  management  software is  designed  to manage and  monitor  business
performance in order to help  businesses  drive  profitable  growth.  The unique
CorVu solution is a  purpose-built  application for tying  performance  metrics,
initiatives,  resources and risks to strategic  objectives.  It combines the two
key technology  components  necessary for driving  breakthrough  performance,  a
Strategic  Management System and performance  metrics.  The Strategic Management
System  manages  the key  business  processes  that impact  strategy  execution,
including objective management, initiative management, resource management, risk
management  and  incentive  management.   CorVu's  Strategic  Management  System
consists of four  integrated  modules  designed  from the ground up for managing
business performance across the enterprise. The performance metrics component is
a robust business intelligence  platform for automated data exchange,  reporting
and analysis.  It automates the exchange of data from any source,  including ERP
systems, CRM systems, legacy systems, data warehouses and spreadsheets.

We generate  revenues in three  areas:  (1) sale and  licensing  of our software
products;  (2) consulting  and training  services (we refer to these services as
"professional  services");  and  (3)  maintenance  agreements  entered  into  in
connection with the sale and licensing of our products.

OUR PRODUCTS

We intend to start shipping CorVu 5 to all eligible customers in late September.
Customers who have  licensed  previous  versions of CorVu  products and who have
active  maintenance  agreements  receive  the CorVu 5 version  at no  additional
charge.

CorStrategy(TM) is the foundational  module of the CorVu 5 Strategic  Management
System.  With  comprehensive  capabilities,  including  interactive  scorecards,
strategy maps, briefing books, dashboards, and out-of-the-box reports and views,
CorStrategy(TM)   ties   performance   metrics  and   initiatives  to  strategic
objectives.  Designed to be configured to an organization's unique needs, it can
be quickly deployed and easily scaled to meet expanded requirements.

CorPlanning(TM)  enables  organizations  to plan and  budget in the  context  of
strategic  objectives  and  initiatives.  It can be quickly  deployed and easily
configured  to  an   organization's   specific  needs.   With   CorPlanning(TM),
organizations  can discuss  resource plans,  readily create  standard  financial
reports,  and make decisions within a strategic context. An integrated component
of CorVu 5, it can also be used as a stand-alone application.

CorRisk(TM)  monitors and manages the threats and  obstacles  to  achieving  the
organization's  goals and objectives.  Another integrated  component of CorVu 5,
CorRisk(TM) enables companies to mitigate risks,  ensure regulatory  compliance,
and enforce corporate governance.

CorIncentive(TM), an integrated component of CorVu 5, links employee performance
results, appraisals, reviews, and variable compensation to corporate goals.


                                       2
<PAGE>


CorBusiness(TM)  is  a  powerful  business   intelligence   platform  with  rich
capabilities for reporting,  graphical analysis,  data access, KPI alerts, OLAP,
and  management  dashboards.  A critical  component of CorVu 5,  CorBusiness(TM)
provides rapid access to data from any source and custom reporting capabilities.

CorVu's  client  (desktop)  products are available for Windows 95, 98, 2000, and
XP; Windows NT; and Linux.  CorVu's server products are available on Windows NT,
UNIX,  and Linux.  All pricing is based upon the number of users  licensed under
the agreement with the respective customer.

SERVICES

CorVu's  Professional  Services  team  is  dedicated  to  providing  a  complete
performance  management  solution for every customer and CorVu's proven RapidROI
Methodology  is designed to empower  customers  to maximize  the return on their
CorVu  software  investment.   The  RapidROI  methodology   leverages  years  of
collective  project  experience  with  CorVu  solutions  for a wide  variety  of
industries, business requirements, and technical environments.

CorVu's Professional  Services team partners with each customer to build quality
performance management solutions via three main service functions:

1)    Training Services
CorVu offers a comprehensive  array of `hands-on' courses designed to equip both
business  and  technical  users with the skills  necessary  to grow the  overall
solution.  CorVu's professional course instructors deliver both on-site training
and public  training  at various  CorVu  locations  around the globe.  All CorVu
courses are designed to give students  `hands-on'  experience in building  their
CorVu solution.

In  addition  to  the  various   technical   training  required  by  application
administrators,   solution  developers  and  system   integrators,   CorVu  also
recommends  business  user  training  which can be easily  customized  using any
customer's own  applications  and to meet specific  customer  needs.  CorVu also
offers Mentoring  Workshops to reinforce  classroom learning within a customer's
own environment.  There are many `best practice' techniques - born from years of
experience and many customer projects - which our customers can learn from CorVu
consultants.  Customers  can choose from a list of topics,  or CorVu can suggest
topics that have achieved the greatest  impact for other  customers with similar
business needs.

2)    Consulting Services
CorVu's  experienced  consultants  provide  expertise  and  experience to ensure
customers meet their business  solution  objectives and maximize their return on
the CorVu software investment. Consulting Services are available to benefit both
new and long-standing customers.  CorVu's highly skilled consultants have strong
business  awareness,  exceptional  technical  skills,  and professional  project
management experience.

For new  customers,  CorVu  consultants  use  CorVu's  RapidROI  metholodogy  to
implement the CorVu software  solutions  within the customer's  organization  to
quickly deliver a return on their CorVu software investment.

For existing customers, CorVu's consultants offer:

      o     Fast delivery of new applications or other deliverables

      o     Optimization of existing CorVu applications

      o     Mentoring and knowledge transfer for customer personnel

      o     Advisement on any specific  technical  matters,  business  issues or
            project matters

      o     Best Practices  Reviews to investigate  and recommend  opportunities
            for more effective usage of the CorVu solution

3)    Help Desk Services
Phone,  email,  and web  support is  provided  to  customers  for quick  product
questions,  issue  management,  and  enhancement  requests  for  future  product
direction

MAINTENANCE AGREEMENTS
CorVu  provides  support  services to  customers  with a  "Software  Maintenance
Agreement." Such customers are entitled to new versions of CorVu software,  Help
Desk support services and online support services.

A Software  Maintenance  Agreement is meant to give customers access to our Help
Desk staff upon experiencing a software problem or with any questions  regarding
the use of our products.  Customers  with a Software  Maintenance  Agreement may
reach our Help Desk staff via telephone,  e-mail or through our home page on the
web (www.corvu.com).  The services provided through the web are designed to make
it easier for customers to answer  questions and solve problems without the need
of direct assistance from CorVu support personnel.


                                       3
<PAGE>


(ii)  Market Analysis for CorVu's Products and Services

Key market forces -- regulatory,  competitive  and economic -- are converging to
cause  companies to look to  technology to drive  profitable  growth and improve
corporate visibility.  As a result,  performance management software has emerged
as one of the  fastest  growing  markets  in the  technology  sector.  There are
numerous  variants  of  the  name -  Enterprise  Performance  Management  (EPM),
Corporate  Performance  Management  (CPM), and Business  Performance  Management
(BPM) - used by  industry  analysts  and  vendors.  Gartner  defines CPM as "the
methodologies,  metrics,  processes,  and systems used to monitor and manage the
business performance of an enterprise."

Analysts predict that the worldwide  financial/Business  Performance  Management
market  will  increase  to $2.1  billion in 2008 with an 11.2  percent  compound
annual growth rate (CAGR) for the period from 2003 through 2008.  Based on these
predictions  the  Company  assumes  that  companies  will  continue  to  look to
performance  management  technology to not only increase revenue but to increase
visibility and accountability as well. The Company, therefore, believes that the
market demand for its performance management software should continue to grow.

(iii) Distribution of our Products and Services

CorVu  products and services  are sold  through our  subsidiaries'  direct sales
offices  and  through  "Value  Added  Resellers,"  distributors,   and  alliance
partners.

Direct Sales Offices
Our North  American  subsidiary  has direct  sales  offices in Atlanta,  Dallas,
Washington D.C. and Minneapolis. In Europe, the CorVu sales office is located in
London. Sales offices for the CorVu Asia-Pacific region have been established in
Sydney, Melbourne, Canberra, and in Shanghai, China. Direct sales activities are
concentrated on Global 1000 accounts.

Value Added Resellers (VARs)
Our VARs  are  software  companies  with  industry  applications  that  sell our
software  products  in  conjunction  with  their  own  products.  Some VARs will
private-label  CorVu products.  Current VARs offer CorVu products into a variety
of  industries,  including  manufacturing,  distribution,  warehouse  logistics,
healthcare,  insurance, mining, power/utilities,  and human resources. Under the
typical agreement  between a VAR and one of our  subsidiaries,  the VAR receives
the  non-exclusive  license  to sell  the  software  products  specified  in the
agreement and to grant  sublicenses for the use of such software to users of the
VAR's  applications.  The  license  fees paid by a VAR are a  percentage  of our
standard  license fee for the use of our  software  and may be  increased at our
discretion upon 30 days prior written  notice.  Any of the parties may terminate
the agreement  without  giving any reason by written notice 90 days prior to the
termination date. A typical VAR agreement would have a three-year term.

Distributors
CorVu  distributors  are companies that sell technology into geographic  regions
where CorVu has no physical  presence.  Currently,  distributors  are in several
global locations,  including Argentina,  Brazil, Chile, Colombia,  Mexico, Peru,
Scotland,  Wales, Germany,  Sweden, Saudi Arabia,  Belgium,  Bulgaria,  Croatia,
Denmark,  France,  Ireland,  Italy,  Netherlands,  Norway,  Poland, Spain, Saudi
Arabia,  South Africa,  India and China.  Our  subsidiaries  typically  grant to
distributors the non-exclusive  license to sell the software products  specified
in the  distributor  agreement  and to  grant  sublicenses  for  the use of such
software.  The fees a distributor  pays are a percentage of our standard license
fee for the use of our software and may be increased at our  discretion  upon 30
days prior  written  notice.  The  agreement may be entered into for a five-year
term; termination usually requires cause such as nonperformance.

Alliance Partners
CorVu  Alliance   Partners  are  companies  that  provide  both  technology  and
management consulting and implementation services, but typically do not actually
sell software.  Recommending CorVu products as a service to their clients,  they
often greatly influence corporate sales. Alliance Partners maintain no financial
relationship  with CorVu in that they do not receive  fees in exchange for their
recommendations.  The Partners benefit from such  recommendations  because CorVu
will, if the occasion arises, refer management consulting services to them.

Historically,  approximately  30% of  our  annual  license  revenues  have  been
received through distributors and VARs.


                                       4
<PAGE>


(iv)  Competition

The  performance  management  market is an emerging  market  experiencing  rapid
growth.  Competition is entering the space from various market segments. Primary
competition  comes  from three  basic  types of  vendors -  Enterprise  Resource
Planning (ERP) vendors, Business Intelligence  (BI)/Analytic Application vendors
that offer product suites,  and Point Solution  providers that focus on a narrow
segment of  performance  management,  such as  budgeting or  scorecarding.  This
competition includes companies such as Cognos, Business Objects,  Hyperion, SAP,
Oracle, Peoplesoft, Geac, SAS, Cartesis, OutlookSoft, PB Views, and Applix.

CorVu  specializes  exclusively in performance  management  software.  The CorVu
solution is a  purpose-built  application  that was built from the ground-up for
managing all performance  management business processes and supports all popular
management  methodologies,  including  Balanced  Scorecard  and Six Sigma.  As a
purpose-built application,  it offers "buy vs. build" advantages,  such as rapid
implementation, reduced total cost of ownership, and low risk.

(vi)  Our Customers

Our  customers   include  leaders  from  a  variety  of  industries,   including
manufacturing,   financial  services,   government,   retail,   hospitality  and
pharmaceuticals.  While our customers  employ  CorVu's  solution in a variety of
ways - from daily  operational  reporting  and  analysis  to robust  performance
management systems - they share our vision of driving breakthrough  performance.
The CorVu customer base boasts the largest performance  management deployment in
the world,  the most  Balanced  Scorecard  Hall of Fame  winners,  and  numerous
reference customers that have achieved breakthrough results.

The most revenue that any single customer or partner has contributed to CorVu on
an annual basis is about 8%. In the past,  several of our customers have ordered
additional software and services, occurring within a non-predictable time frame,
that is,  from a few months of the  original  order up to a few years after that
order.  The  additional  orders  typically  have been either (a) the addition of
users for new projects, departments,  divisions etc. within a given customer, or
(b) the  purchase of new  products as these become  available.  Repeat  business
accounts for approximately 50% of our annual license revenues.

(vii) Intellectual Property

Due to the  length  of the  patent  application  procedure  on one  hand and the
necessity to continually  develop and improve our software products on the other
hand, we have not sought patent protection for any of our products.


We have a number of registrations  and pending  applications for our trademarks,
including  U.S.  registrations  for  the  trademarks   CORBUSINESS,   CORMANAGE,
CORSTRATEGY,  CORVU,  MANAGING  BUSINESS  PERFORMANCE  and  RAPIDSCORECARD;   an
Australian  registration  for CORVU YOUR  WINDOW  INTO THE  FUTURE  and  Design;
Colombian and Venezuelan  registrations for CORVU MANAGING BUSINESS  PERFORMANCE
and  Design;  U.S.  applications  to  register  the  trademark  HYPERVU;   U.S.,
Australian,   European  Union  and  United  Kingdom   applications  for  DRIVING
BREAKTHROUGH  PERFORMANCE;  and a Mexican application to register CORVU MANAGING
BUSINESS  PERFORMANCE and Design.  Typically trademark  registrations  worldwide
have a duration of ten years with the possibility of an indefinite number of ten
year renewals.


The computer code underlying our software is protected by copyright.

Contracts  under which we license the use and/or  sale of our  products  include
confidentiality   clauses  to  protect  our  products  and  any  information  in
connection with them as trade secrets.

(viii) Research and Development Activities

In fiscal 2003, we spent $1,353,056 on research and development activities,  and
in fiscal 2004, a total of $1,843,265. None of these costs was borne directly by
any customer.  We expect to continue to maintain our high level of investment in
R&D activities consistent with our fiscal year 2004 expense.

(ix)  Our Employees

As of June 30, 2004, we employed 116 people in our Company and our  subsidiaries
around the world. Forty-two of these employees worked in Sales and Marketing, 30
provided  professional services such as training and general product assistance,
24 worked in product  development  and 20 provided  general  administrative  and
help-desk  support  services.  All of our  employees are working  full-time.  No
employees are  represented  by a labor union and we consider our relations  with
employees to be good.


                                       5
<PAGE>


ITEM 2. DESCRIPTION OF PROPERTY

Our  corporate  headquarters  are located in 6,000 square feet of leased  office
space  at 3400  West  66th  Street,  Edina,  Minnesota.  Pursuant  to the  lease
agreement,  that extends to August 31, 2007,  we make monthly base rent payments
of approximately  $5,200, with annual increases of approximately 3% per year. In
addition to the rent payments, we reimburse the landlord for any operating costs
allocable  to our  premises  based upon the  rentable  square  foot  office area
allocable to our premises.  Rent payments are  approximately  $11,000 per month.
The premises include a reception area, conference and training rooms, as well as
executive and administrative offices.

The major regional centers of our subsidiaries are located in Sydney (Australia)
and London (England). Total monthly rental payments for the Sydney office amount
to about  $23,000  and for the London  office to  approximately  $15,000 in U.S.
dollars.  These amounts are subject to variations due to the applicable exchange
rates.  The lease  agreements  vary  concerning  terms and  conditions,  and are
subject to the applicable local law.

We believe that our current facilities are adequate for the current level of our
activities.  In the event we require additional facilities,  we believe we could
procure acceptable facilities.

ITEM 3. LEGAL PROCEEDINGS

We are  not a  party  to any  material  litigation  and  are  not  aware  of any
threatened litigation that would have a material adverse effect on our business.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

None.

                                    PART II.

ITEM 5. MARKET  FOR  COMMON   EQUITY,   RELATED  STOCKHOLDER  MATTERS  AND SMALL
        BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin  Board under the symbol  CRVU.OB.
Quotations  in the  following  table are based on  information  provided  by IDD
Information  Services,   Tradeline(r)  on  Lexis(R).  The  quotations  represent
inter-dealer prices, without retail markup,  markdown or commission,  and do not
necessarily represent actual transactions.

                                                          COMMON STOCK
                                                ------------------------------
FISCAL QUARTER ENDED                               HIGH BID       LOW BID
------------------------------------------------------------------------------
September 30, 2002                                $     .42      $     .17
December 31, 2002                                 $     .87      $     .16
March 31, 2003                                    $     .60      $     .37
June 30, 2003                                     $     .96      $     .28

September 30, 2003                                $    1.14      $     .65
December 31, 2003                                 $    1.20      $     .70
March 31, 2004                                    $    1.20      $     .58
June 30, 2004                                     $    1.29      $     .58



As of August 31, 2004, we had  approximately 185 shareholders of record. We have
never paid cash  dividends  on our  Common  Stock and do not  anticipate  paying
dividends in the foreseeable future.


                                       6
<PAGE>


The following table provides information as of June 30, 2004 about the Company's
equity compensation plans.

<TABLE>
<CAPTION>

                                                                                        NUMBER OF SECURITIES REMAINING
                               NUMBER OF SECURITIES TO        WEIGHTED AVERAGE        AVAILABLE FOR FUTURE ISSUANCE UNDER
                               BE ISSUED UPON EXERCISE       EXERCISE PRICE OF             EQUITY COMPENSATION PLANS
                               OF OUTSTANDING OPTIONS,      OUTSTANDING OPTIONS,      (EXCLUDING SECURITIES REFLECTED IN
                                 WARRANTS AND RIGHTS        WARRANTS AND RIGHTS                   COLUMN (A))
                             ---------------------------- -------------------------  --------------------------------------
                                         (A)                          (B)                          (C)
                             ---------------------------- -------------------------  --------------------------------------
<S>                          <C>                          <C>                        <C>
Equity compensation plans
   approved by security
   holders...............               4,074,876                    $ 0.98                           425,124

Equity compensation plans
   not approved by
   security holders*.....               2,375,640                    $ 1.74                               -0-

Total                                   6,450,516                    $ 1.26                           425,124

</TABLE>

*     Includes  individual  compensation  agreements with employees domiciled in
the U.S. and outside the U.S. as well as agreements  with certain vendors issued
in exchange for goods and services rendered.


RECENT SALES OF UNREGISTERED SECURITIES

None


                                       7
<PAGE>


ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

GENERAL

CorVu is an  international  provider of  Integrated  Business  Intelligence  and
Business Performance Management software. Our Company designs, develops, markets
and supports its  management  software  products and its services  through sales
offices  of our  subsidiaries  as  well as  through  distributors,  Value  Added
Resellers,  and Alliance  Partners.  Sales and support offices  belonging to our
subsidiaries  are located in the United  States,  Australia and Europe.  See for
details ITEM 1, Business of the Issuer.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of financial condition and results of operations are
based upon our consolidated  financial  statements,  which have been prepared in
accordance with accounting principles generally accepted in the United States of
America. The preparation of these consolidated  financial statements requires us
to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the consolidated  financial statements,  the reported
amounts of  revenues  and  expenses  during the  reporting  period,  and related
disclosures of contingent assets and liabilities for the periods indicated.  The
notes to the  consolidated  financial  statements  contained herein describe our
significant  accounting  polices  used in the  preparation  of the  consolidated
financial  statements.   On  an  on-going  basis,  we  evaluate  our  estimates,
including, but not limited to, those related to bad debts and contingencies.  We
base our estimates on  historical  experience  and on various other  assumptions
that we believe to be reasonable under the  circumstances,  the results of which
form the basis for  making  judgments  about the  carrying  values of assets and
liabilities  that are not readily  apparent from other  sources.  Actual results
could differ from these estimates under different assumptions or conditions.

We believe the critical  accounting  policies  listed  below affect  significant
judgments and estimates used in the  preparation of our  consolidated  financial
statements.

Revenue Recognition.  We recognize revenues in accordance with the provisions of
the American  Institute of Certified Public  Accountants'  Statement of Position
(SOP) 97-2, "Software Revenue Recognition," as amended by SOP 98-4 and SOP 98-9,
as well as  Technical  Practice  Aids issued  from time to time by the  American
Institute of Certified Public Accountants, and in accordance with the Securities
and  Exchange  Commission  Staff  Accounting  Bulletin  (SAB) No. 101,  "Revenue
Recognition in Financial Statements", as amended by SAB 104. We license software
under  non-cancelable   license  agreements  and  provide  related  professional
services,  including consulting,  training, and implementation services, as well
as  ongoing  customer  support  and   maintenance.   Consulting,   training  and
implementation  services are not essential to the  functionality of our software
products,  are  sold  separately  and  also  are  available  from  a  number  of
third-party  service  providers.  Accordingly,  revenues from these services are
generally   recorded   separately  from  license  fees.  Our  specific   revenue
recognition policies are as follows:

Software  License  Fees - Software  license  fee  revenues  from  end-users  and
resellers are generally  recognized when there is an executed license agreement,
software  has been  delivered  to the  customer,  the  license  fee is fixed and
payable within 12 months,  collection is deemed probable and product returns are
reasonably  estimable.  Revenues  related to multiple  element  arrangements are
allocated  to each  element  of the  arrangement  based  on the fair  values  of
elements such as license fees,  maintenance,  and  professional  services.  Fair
value is determined based on vendor specific objective evidence.


                                       8
<PAGE>


Maintenance,  Consulting  and other -  Revenues  from  training  and  consulting
services are  recognized  as services are provided to  customers.  Revenues from
maintenance  contracts are deferred and recognized  ratably over the term of the
maintenance agreements.

Software Development Costs.  Software development costs are expensed as incurred
until  technological  feasibility is  established.  Software  development  costs
incurred  subsequent to establishing  technological  feasibility are capitalized
and  amortized  over the estimated  useful lives of the software.  Management is
required to use professional  judgment in determining  whether development costs
meet the criteria for immediate expense or capitalization.

Allowance for Doubtful  Accounts.  We maintain  allowances for doubtful accounts
for  estimated  losses  resulting  from the  inability of our  customers to make
required  payments.  If the financial  condition of specific  customers  were to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional  allowances  may be  required  or  revenue  could be  deferred  until
collectibility becomes probable.

Accounting  for Income  Taxes.  The Company  accounts for income taxes using the
asset and liability method.  Under the asset and liability method,  deferred tax
assets and  liabilities  are  recognized at the enacted rates for the future tax
consequences   attributable  to  differences  between  the  financial  statement
carrying amounts of existing tax assets and liabilities and their respective tax
basis. The effect on deferred tax assets and liabilities of a change in tax rate
is  recognized  in  income in the  period  that  includes  the  enactment  date.
Valuation  allowances  are  established  when  necessary to reduce  deferred tax
assets to the amounts expected to be realized. Any changes in the projections of
future  taxable  income may change the  deferred  asset  amount  expected  to be
realized.

Contingencies.  We are subject to the possibility of various loss  contingencies
in the normal course of business.  We accrue for loss  contingencies when a loss
is estimable and probable.

FISCAL YEAR ENDED JUNE 30, 2004 VERSUS JUNE 30, 2003

REVENUES:

CorVu derives its revenues from three sources: (i) the sale and licensing of its
software products;  (ii) consulting and training services; and (iii) maintenance
agreements in connection with the sale and licensing of software products. CorVu
recognizes  revenue in accordance with Statement of Position No. 97-2,  Software
Revenue  Recognition,  as  amended  by  Statements  of  Position  98-4 and 98-9.
Software  license revenue is recognized when all of the following  criteria have
been met: there is an executed license agreement, software has been delivered to
the  customer,  the  license  fee is fixed and  payable  within  twelve  months,
collection  is  deemed  probable  and  product  returns  are  deemed  reasonably
estimable.  Revenues related to multiple  element  arrangements are allocated to
each  element of the  arrangement  based on the fair values of elements  such as
license fees,  maintenance and professional  services.  Fair value is determined
based on vendor specific objective evidence. Maintenance revenues are recognized
ratably over the term of the  maintenance  contract,  typically 12 to 36 months.
Consulting and other revenues are recognized when services are performed.

Total  revenue  increased by $440,362 (3%) from  $15,717,301  for the year ended
June 30, 2003 to $16,157,663 for the year ended June 30, 2004.

Software and license fee revenues  decreased  $675,852  (9%) from  $7,489,542 in
2003 to $6,813,690 in 2004. Results were substantially  impacted by the decision
made in early 2004 to overhaul  and  upgrade  our sales teams  across the world,
from both a management and salesperson perspective.  During 2004, we (1) hired a
new Vice President of Sales for the Americas region in early Q1 of 2004 who then
installed a regional sales  management team and completely  overhauled the sales
team by hiring a total of 18 sales and technical pre-sales personnel,  (2) moved
an experienced and proven CorVu Sales Director from the  Asia-Pacific  region to
the  UK/European  region in Q3 of 2004 to completely  overhaul the sales process
and personnel and (3) hired an experienced  software sales manager in Q3 of 2004
to head-up the  Asia-Pacific  sales team.  In total,  we hired a total of 34 new
sales and  marketing  people  during 2004.  Because of the lead time required to
properly  train the new people plus the time required to build a sales  pipeline
and to work  through a sales cycle that  extends  anywhere  from 3-9  months,  a
significant  number of the new people did not  significantly  contribute  to our
revenues  for the year.  We are  expecting  the new sales team to  significantly
improve our software and license fee revenues in 2005.

Maintenance  fees  increased   $1,006,946  (22%)  from  $4,565,341  in  2003  to
$5,572,287  in 2004 due to an increasing  customer  base and strong  renewals of
existing  contracts.  We would expect to continue to show revenue growth in this
area, although at a more moderate growth rate, in 2005.

Consulting and other revenues increased $109,268 (3%) from $3,662,418 in 2003 to
$3,771,686  in  2004  due to a  continued  strong  demand  for  our  consulting,
implementation  and  training  services.  As software  and license fee  revenues
increase into 2005, we would expect revenues in this area to increase also.


                                       9
<PAGE>


OPERATING EXPENSES:

Operating  expenses  increased by $3,642,419 (25%) from $14,572,433 for the year
ended June 30, 2003 to $18,214,852 for the year ended June 30, 2004.

Cost of consulting and other services increased $234,570 (7%) from $3,130,587 in
2003 to $3,365,157 in 2004.  Staffing levels remained consistent during the year
with the increase in expenses caused  primarily by salary  increases and cost of
living adjustments.  As the demand for consulting services increases (along with
increased  software  and  license  sales),  we may have a need to  increase  our
staffing levels in the future.

Product  development  costs increased  $490,290 (36%) from $1,353,056 in 2003 to
$1,843,265 in 2004. We continue to maintain our high level of investment in this
area in our effort to keep improving our products.  Staffing levels in this area
were increased by four positions  during the year as we continue to focus on new
product  initiatives,  including our new  budgeting and financial  consolidation
module.

Sales and marketing expenses increased  $2,402,973 (41%) from $5,932,406 in 2003
to  $8,335,379  in 2004.  As stated under  license fee revenues  above,  we have
increased staffing in this area by 33%. We have also significantly increased our
marketing  activities to aggressively  increase market  awareness and to improve
lead generation.  This included the hiring of a Vice President of Marketing with
world-wide responsibilities in Q3 of 2004. In addition, two additional marketing
professionals  were added to the staff. We would expect this expense to continue
to increase into 2005 but at a much lower rate of growth.

General and administrative  expenses increased $514,667 (12%) from $4,156,384 in
2003 to $4,671,051  in 2004.  Increases  were  experienced  in executive  travel
costs, legal and professional fees, office rent for the new corporate offices in
Sydney, Australia and currency fluctuations.

INTEREST EXPENSE, NET:

Interest  expense,  net decreased $5,472 (7%) from $76,940 in 2003 to $71,468 in
2004. Reduced levels of interest bearing debt resulted in these savings.

BENEFIT FROM INCOME TAXES:

For the year  ended  June 30,  2003,  a  deferred  tax asset of  $2,615,000  was
recorded,  which  represents a portion of the value of accumulated net operating
losses  that will be  utilized  in future  periods to offset  federal  and state
income  tax   liabilities   that  result  from  continued   positive   financial
performance.

NET INCOME (LOSS):

CorVu Corporation  incurred a net loss of $2,128,657 and generated net income of
$3,682,928 for the years ended June 30, 2004 and 2003, respectively.


                                       10
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

Total cash and cash  equivalents  decreased by $494,871 from $643,346 as of June
30, 2003 to $148,475 as of June 30, 2004.

Net cash used in operating activities was $1,391,923 for the year ended June 30,
2004,  reflecting  the net loss  incurred  for 2004.  Net cash used in investing
activities  was  $235,647  for the year  ended  June  30,  2004  reflecting  the
acquisition  of capital  assets.  Net cash provided by financing  activities was
$1,147,811  for the year ended June 30, 2004.  Proceeds  from the sale of common
stock and the  exercise of stock  options  accounted  for  $1,445,789  and,  the
Company had net borrowings  under its line of credit  facility of $50,000 during
2004. In addition,  the Company repurchased  approximately 1.1 million shares of
its common  stock for  $154,000  and  repaid  approximately  $194,000  of a note
payable- stockholder during 2004.

The accompanying  consolidated  financial  statements are prepared  assuming the
Company will continue as a going  concern.  During the year ended June 30, 2004,
the Company generated an operating loss of $2,057,189.  As of June 30, 2004, the
Company  had an  accumulated  deficit  of  $20,792,143  and total  stockholders'
deficit of $3,257,719.


Management  expects  revenues  to  improve  as sales and  marketing  initiatives
commenced  within the last twelve months allows the Company to more  effectively
sell  its  products  and  services.  In  the  event  these  initiatives  do  not
materialize at the expected rates,  management  would seek additional  financing
through private equity  placements or would conserve cash by reducing  operating
expenses.  There can be no  assurance  that the Company  will be  successful  in
achieving these objectives. The Company's ability to continue as a going concern
is dependent  on it achieving  profitability  and  generating  cash flow to fund
operations.  We  believe  that  we  will  generate  sufficient  cash  flow  from
operations to meet our operating cash requirements for the next 12 months.

DISCLOSURES ABOUT CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

The following  summarizes our contractual  obligations at June 30, 2004, and the
effect these  contractual  obligations are expected to have on our liquidity and
cash flows in future periods (in Thousands):

                                          1 YEAR      1-3        OVER
                                TOTAL     OR LESS    YEARS      3 YEARS
                               ------     -------    ------     -------
Operating leases .........     $2,895     $   930    $1,723     $   242
Note payable-stockholder..        601          --       601          --
Line of credit ...........        300         300        --          --
                               ------     -------    ------     -------
Total ....................     $3,796     $ 1,230    $2,324     $   242
                               ------     -------    ------     -------



CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS

This Annual Report on Form 10-KSB,  including the  information  incorporated  by
reference  herein  and  the  exhibits  hereto,  may  include   "forward-looking"
statements.  Forward-looking statements broadly involve our current expectations
for future  results.  Our  forward-looking  statements  generally  relate to our
financing  plans,  trends  affecting  our  financial  condition  or  results  of
operations, our growth and operating strategy, product development,  competitive
strengths, the scope of our intellectual property rights, sales efforts, and the
declaration and payment of dividends.  Words such as "anticipates,"  "believes,"
"could" "estimates," "expects," "forecast," "intend," "may," "plan," "possible,"
"project,"  "should,"  "will" and similar  expressions  generally  identify  our
forward-looking  statements.  Any  statement  that  is  not a  historical  fact,
including estimates,  projections,  future trends and the outcome of events that
have not yet occurred, are forward-looking  statements.  Our ability to actually
achieve results consistent with our current expectations  depends  significantly
on certain  factors that may cause actual  future  results to differ  materially
from our current expectations. Some of these factors include:

o     Risks related to our Company and business, including, but not limited to:
o     control of our Company by management shareholders
o     adverse effects in connection with any loss of key personnel
o     limited market in our securities
o     limited working capital and lack of working capital financing
o     timing,  size and nature of market  opportunities  available to us and our
      ability to capitalize on these as they occur
o     our ability to maintain or increase research and development  expenditures
      to maintain current and attract new customers
o     reduction  in  information  technology  spending  by  our  current  and/or
      potential customers


                                       11
<PAGE>


o     Competitive factors, including, but not limited to:
o     pricing pressures, both in the United States and abroad
o     superior financial situation of some of our competitors
o     possible  development  of new  products  by  competitors  having  superior
      performance characteristics
o     possible   technological   advances,   intellectual  property  rights  and
      registrations obtained by competitors

o     Difficulties and delays inherent in the development, marketing and sale of
      business  intelligence  technology  and  business  performance  management
      systems, including, but not limited to:
o     the imposition of regulatory  requirements,  such as those concerning data
      privacy
o     the  failure  to  obtain,  limitations  on the  use  of,  or the  loss  of
      intellectual property rights
o     our lengthy and variable sales cycles

o     Governmental action, including, but not limited to:
o     changes  in tax and other laws and  regulations  affecting  our  business,
      including  changes in  securities  laws and changes  regarding  accounting
      policies and principles

o     Legal disputes, including, but not limited to:
o     disputes over intellectual property rights
o     product liability claims
o     claims asserting securities law violations

o     General economic conditions, including, but not limited to:
o     international and domestic business conditions
o     political instability in foreign countries
o     interest rates
o     foreign currency exchange rates
o     changes  in the rate of  inflation  o our  limited  ability  to reduce the
      impact of these conditions on our results

o     Other factors beyond our control,  including floods, fires, explosions, or
      acts of terrorism or war.

You must carefully consider forward-looking  statements and understand that such
statements involve a variety of risks and uncertainties,  known and unknown, and
may be  affected by  inaccurate  assumptions.  It is not  possible to foresee or
identify all factors  that may affect our  forward-looking  statements,  and you
should not  consider any list of such  factors to be an  exhaustive  list of all
risks,  uncertainties  or  potentially  inaccurate  assumptions  affecting  such
forward-looking statements.

We caution you to consider carefully these factors as well as any other specific
factors  discussed with each specific  forward-looking  statement in this annual
report. In some cases, these factors have affected,  and in the future (together
with other unknown factors) could affect,  our ability to implement our business
strategy  and  may  cause  actual  results  to  differ   materially  from  those
contemplated by such forward-looking  statements.  No assurance can be made that
any expectation, estimate or projection contained in a forward-looking statement
can be achieved.

We also caution you that  forward-looking  statements  speak only as of the date
made. We undertake no obligation to update any  forward-looking  statement,  but
investors are advised to consult any further  disclosures  by us on this subject
in our filings with the Securities and Exchange Commission,  especially on Forms
10-KSB,  10-QSB,  and 8-K (if any),  in which we discuss in more detail  various
important  factors  that could cause actual  results to differ from  expected or
historic  results.  We intend to take advantage of the safe harbor provisions of
the  Private   Securities   Litigation   Reform  Act  of  1995   regarding   our
forward-looking  statements, and are including the preceding cautionary language
for the express purpose of enabling us to use the protections of the safe harbor
with respect to all forward-looking statements.


                                       12
<PAGE>


ITEM 7. CONSOLIDATED FINANCIAL STATEMENTS

                       CORVU CORPORATION AND SUBSIDIARIES
                        Consolidated Financial Statements
                             June 30, 2004 and 2003



                                       13
<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Stockholders, Board of Directors, and Audit Committee
CorVu Corporation and Subsidiaries


We  have  audited  the  accompanying   consolidated   balance  sheets  of  CorVu
Corporation  and  Subsidiaries  as of June 30,  2004  and  2003 and the  related
consolidated statements of operations,  stockholders' deficit and cash flows for
the years then ended.  These statements are the  responsibility of the Company's
management.  Our  responsibility is to express an opinion on these  consolidated
financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  the  audits to  obtain  reasonable  assurance  about  whether  the
consolidated  financial statements are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the  consolidated  financial  statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall consolidated  financial statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material  respects,  the financial  position of CorVu Corporation
and  Subsidiaries  as of June  30,  2004  and  2003  and the  results  of  their
operations and their cash flows for the years then ended in conformity with U.S.
generally accepted accounting principles.


                                              /s/ VIRCHOW, KRAUSE & COMPANY, LLP
Minneapolis, Minnesota
September 8, 2004


                                       14
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                           Consolidated Balance Sheets
                             June 30, 2004 and 2003

<TABLE>
<CAPTION>

                                                          2004             2003
                                                      ------------    ------------
<S>                                                   <C>             <C>
                                        ASSETS

Current assets:
   Cash and cash equivalents ......................   $    148,475    $    643,346
   Trade accounts receivable, net of allowance for
    doubtful accounts of $112,000 and $183,000,
     respectively .................................      4,207,058       3,294,193
   Deferred income taxes ..........................        727,000       1,137,000
   Prepaid expenses ...............................        209,777         279,156
   Other current assets ...........................         75,607          67,334
                                                      ------------    ------------
        Total current assets ......................      5,367,917       5,421,029
                                                      ------------    ------------
Furniture, fixtures, and equipment ................        725,744         556,301
   Less accumulated depreciation ..................       (463,125)       (394,920)
                                                      ------------    ------------
        Net furniture, fixtures and equipment .....        262,619         161,381

Other assets:

   Deferred income taxes ..........................      1,888,000       1,478,000
                                                      ------------    ------------
                                                      $  7,518,536    $  7,060,410
                                                      ============    ============

                     LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

   Line of credit .................................   $    300,000    $    250,000
   Accounts payable ...............................      1,489,123       1,061,768
   Accrued compensation and related costs .........      2,425,730       1,973,304
   Deferred revenue ...............................      4,948,118       4,438,724
   Accrued interest ...............................        100,534         168,664
   Other accrued expenses .........................        911,966         853,999
                                                      ------------    ------------
        Total current liabilities .................     10,175,471       8,746,459

Notes payable - stockholder .......................        600,784         685,767
                                                      ------------    ------------
        Total liabilities .........................     10,776,255       9,432,226
                                                      ------------    ------------

Stockholders' deficit:

   Undesignated capital stock, 24,000,000 shares
    at June 30, 2004 and 2003, none issued ........             --              --
   Series A convertible preferred stock, $10 par
     value:
     1,000,000 shares authorized; none issued and
      outstanding at June 30, 2004 and 2003,
      respectively ................................             --              --
   Common stock, $0.01 par value; 75,000,000
    shares authorized;
     23,970,268 and 22,753,029 shares issued and
       outstanding at June 30, 2004 and 2003,
       respectively ...............................        239,703         227,474
   Additional paid-in capital .....................     18,026,955      16,886,375
   Stock subscription receivable ..................             --        (324,000)
   Accumulated deficit ............................    (20,792,143)    (18,509,486)
   Deferred compensation ..........................        (23,616)       (131,250)
   Accumulated other comprehensive loss ...........       (708,618)       (520,929)
                                                      ------------    ------------
        Total stockholders' deficit ...............     (3,257,719)     (2,371,816)
                                                      ------------    ------------
        Commitments (Notes 4, 6, and 14)

        Total liabilities and stockholders' deficit   $  7,518,536    $  7,060,410
                                                      ============    ============
</TABLE>


See accompanying notes to consolidated financial statements.


                                       15
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                      Consolidated Statements of Operations
                       Years ended June 30, 2004 and 2003

                                                     2004               2003
                                                 ------------      ------------
Revenues:

   Software and license fees ...............     $  6,813,690      $  7,489,542
   Maintenance fees ........................        5,572,287         4,565,341
   Consulting and other ....................        3,771,686         3,662,418
                                                 ------------      ------------
        Total revenues .....................       16,157,663        15,717,301
                                                 ------------      ------------

Operating costs and expenses:
   Cost of consulting and other services....        3,365,157         3,130,587
   Product development .....................        1,843,265         1,353,056
   Sales and marketing .....................        8,335,379         5,932,406
   General and administrative ..............        4,671,051         4,156,384
                                                 ------------      ------------
        Total operating costs and expenses .       18,214,852        14,572,433
                                                 ------------      ------------

        Operating income (loss).............       (2,057,189)        1,144,868
Interest expense, net ......................          (71,468)          (76,940)
                                                 ------------      ------------
        Income (loss) before income taxes ..       (2,128,657)        1,067,928
Benefit from income taxes ..................               --         2,615,000
                                                 ------------      ------------
        Net income (loss)...................     $ (2,128,657)     $  3,682,928
                                                 ============      ============

Net income (loss)per common share--basic....     $      (0.09)     $       0.17
Weighted average shares outstanding--basic...      23,079,416        22,197,804
Net income (loss) per common share--diluted      $      (0.09)     $       0.16
Weighted average shares outstanding--diluted       23,079,416        22,872,374


See accompanying notes to consolidated financial statements.


                                       16
<PAGE>

<TABLE>
<CAPTION>
                                                CORVU CORPORATION AND SUBSIDIARIES
                                         Consolidated Statements of Stockholders' Deficit
                                                Years ended June 30, 2004 and 2003


                                                      PREFERRED STOCK                COMMON STOCK                 ADDITIONAL
                                                 ------------------------     -----------------------------        PAID-IN
                                                    SHARES      AMOUNT          SHARES          AMOUNT              CAPITAL
                                                 ----------  ------------     -------------  --------------    --------------
<S>                                              <C>         <C>              <C>            <C>               <C>
Balance, June 30, 2002                                  200  $      2,000        20,730,835  $      207,252    $   16,223,744
    Comprehensive income:
        Net income                                       --            --                --              --                --
        Foreign currency translation adjustment          --            --                --              --                --
    Comprehensive income                                 --            --                --              --                --
    Preferred stock dividends                            --            --                --              --                --
    Preferred stock redemption                         (200)       (2,000)               --              --                --
    Exercise of stock options                            --            --            66,734             667            18,992
    Exercise of stock warrants                           --            --           488,792           4,888            (4,888)
    Non-cash transactions related to equity
        transactions (Note 4)                            --            --                --              --           239,194
    Issuance of common stock                             --            --         1,466,668          14,667           409,333
                                                 ----------  ------------     -------------  --------------    --------------
Balance, June 30, 2003                                   --            --        22,753,029         227,474        16,886,375

Comprehensive loss:

        Net loss                                         --            --                --              --                --
        Foreign currency translation adjustment          --            --                --              --                --
    Comprehensive loss                                   --            --                --              --                --
    Repurchase of common stock                           --            --        (1,087,097)        (10,871)         (313,129)
    Exercise of stock options                            --            --           204,335           2,044            47,078
    Non-cash transactions related to equity
        transactions (Note 4)                            --            --                --              --            31,020
    Issuance of common stock                             --            --         2,100,001          21,056         1,375,611
                                                 ----------  ------------     -------------  --------------    --------------
Balance, June 30, 2004                                   --  $         --        23,970,268  $      239,703    $   18,026,955
                                                 ==========  ============     =============  ==============    ==============


                                                                                                ACCUMULATED
                                                    STOCK                                          OTHER           TOTAL
                                                 SUBSCRIPTION  ACCUMULATED      DEFERRED       COMPREHENSIVE    STOCKHOLDERS'
                                                  RECEIVABLE     DEFICIT      COMPENSATION     INCOME (LOSS)      DEFICIT
                                                 ------------  ------------  -------------    --------------    -------------
Balance, June 30, 2002                           $         --  $(22,191,944) $          --    $      140,942    $  (5,618,006)
    Comprehensive income:
        Net income                                         --     3,682,928             --                --        3,682,928
        Foreign currency translation adjustment            --            --             --          (661,871)        (661,871)
                                                                                                                -------------
    Comprehensive income                                   --            --             --                --        3,021,057
    Preferred stock dividends                              --          (130)            --                --             (130)
    Preferred stock redemption                             --          (340)            --                --           (2,340)
    Exercise of stock options                              --            --             --                --           19,659
    Exercise of stock warrants                             --            --             --                --               --
    Non-cash transactions related to equity
        transactions (Note 4)                              --            --       (131,250)               --          107,944
    Issuance of common stock                         (324,000)           --             --                --          100,000
                                                 ------------  ------------  -------------    --------------    -------------
Balance, June 30, 2003                               (324,000)  (18,509,486)      (131,250)         (520,929)      (2,371,816)

Comprehensive loss:
        Net loss                                           --    (2,128,657)            --                --       (2,128,657)
        Foreign currency translation adjustment            --            --             --          (187,689)        (187,689)
                                                                                                                -------------
    Comprehensive loss                                     --            --             --                --       (2,316,346)
    Repurchase of common stock                        324,000      (154,000)            --                --         (154,000)
    Exercise of stock options                              --            --             --                --           49,122
    Non-cash transactions related to equity
        transactions (Note 4)                              --            --        107,634                --          138,654
    Issuance of common stock                               --            --             --                --        1,396,667
                                                 ------------  ------------  -------------    --------------    -------------
Balance, June 30, 2004                           $         --  $(20,792,143) $     (23,616)   $     (708,618)   $  (3,257,719)
                                                 ============  ============  =============    ==============    =============
</TABLE>



See accompanying notes to consolidated financial statements.


                                                         17
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                       Years ended June 30, 2004 and 2003

                                                         2004           2003
                                                     -----------    -----------
Cash flows from operating activities:

   Net income (loss) ..............................  $(2,128,657)   $ 3,682,928
   Adjustments to reconcile net income (loss) to
    net cash provided in (used by) operating
     activities:
     Depreciation .................................      134,409         77,401
     Warrants and stock options vested ............      138,654        107,944
       Deferred income taxes ......................           --     (2,615,000)
     Changes in operating assets and liabilities:
        Trade accounts receivable, net ............   (1,312,865)      (598,335)
        Prepaid expenses ..........................       69,379       (125,093)
        Other current assets ......................       (8,273)       (23,546)
        Accounts payable ..........................      527,355     (1,175,204)
        Accrued compensation and related costs ....      502,426       (754,189)
        Deferred revenue ..........................      559,394      1,366,395
        Accrued interest ..........................      (68,130)        95,432
        Other accrued expenses ....................      194,385         28,784
                                                     -----------    -----------
          Net cash provided (used) in operating
           activities .............................   (1,391,923)        67,517
                                                     -----------    -----------

Cash flows from investing activities:

   Capital expenditures ...........................     (235,647)      (138,842)
                                                     -----------    -----------
          Net cash used in investing activities ...     (235,647)      (138,842)
                                                     -----------    -----------

Cash flows from financing activities:

   Borrowings on line of credit ...................       50,000        250,000
   Repayment of notes payable- stockholder ........     (193,978)            --
   Net proceeds from sale of common stock .........    1,396,667        100,000
   Exercise of stock options ......................       49,122         19,659
   Repurchase of common stock .....................     (154,000)            --
   Redemption of preferred stock ..................           --         (2,340)
                                                     -----------    -----------
          Net cash provided by financing activities    1,147,811        367,319
Effect of exchange rate changes on cash ...........      (15,112)        68,176
                                                     -----------    -----------
          Net increase (decrease) in cash and cash
           equivalents ............................     (494,871)       364,170
Cash and cash equivalents at beginning of year ....      643,346        279,176
                                                     -----------    -----------
Cash and cash equivalents at end of year ..........  $   148,475    $   643,346
                                                     ===========    ===========

Supplemental cash flow disclosures:

Cash paid during the year for interest ............  $   149,628    $    81,071
Non-cash investing and financing activities:
Common stock issued for stock subscription
   receivable .....................................  $        --    $   324,000
Cancellation of stock subscription and exercise of
   stock option ...................................     (324,000)            --
Cashless exercise of stock warrants ...............           --          4,888


See accompanying notes to consolidated financial statements.


                                       18
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             June 30, 2004 and 2003

(1)   DESCRIPTION OF BUSINESS AND CONSOLIDATED FINANCIAL STATEMENT PRESENTATION

(A)   ORGANIZATION

CorVu  Corporation  (the  Company  or CorVu)  is an  international  provider  of
Integrated Business Intelligence and Business Performance  Management Solutions.
The Company designs, develops,  markets, and supports its proprietary management
software solutions. CorVu is a Minnesota corporation.

The  Company's  products  and services are sold through both direct and indirect
channels.  Sales and support  offices are located in the United  States  (U.S.),
Australia, and United Kingdom/Europe.

(B)   BASIS OF CONSOLIDATED FINANCIAL STATEMENT PRESENTATION

The accompanying  consolidated  financial statements include the accounts of the
Company  and  its  wholly   owned   subsidiaries.   Intercompany   accounts  and
transactions have been eliminated in consolidation.

(2)   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(A)   REVENUE RECOGNITION

The  Company  recognizes  revenues  in  accordance  with the  provisions  of the
American Institute of Certified Public  Accountants  Statement of Position (SOP)
97-2,  "Software  Revenue  Recognition," as amended by SOP 98-4 and SOP 98-9, as
well as  Technical  Practice  Aids  issued  from  time  to time by the  American
Institute of Certified Public Accountants, and in accordance with the Securities
and Exchange  Commission  Staff  Accounting  Bulletin  No.  (SAB) 101,  "Revenue
Recognition in Financial Statements", as amended by SAB 104.

Software  license revenue is recognized when all of the following  criteria have
been met: there is an executed license agreement, software has been delivered to
the  customer,  the  license  fee is fixed and  payable  within  twelve  months,
collection  is deemed  probable and product  returns are  reasonably  estimable.
Revenues related to multiple element  arrangements are allocated to each element
of the  arrangement  based on the fair values of elements  such as license fees,
maintenance, and professional services. Fair value is determined based on vendor
specific objective  evidence.  Maintenance  revenues are recognized ratably over
the term of the maintenance contract,  typically 12 to 36 months. Consulting and
other revenues are recognized when services are performed.

Deferred  revenue  represents  payment  received or amounts billed in advance of
services to be performed. Billing occurs within 30 days of scheduled performance
of services.

(B)   RESEARCH AND DEVELOPMENT

Expenditures  for software  research and  development  are expensed as incurred.
Such  costs are  required  to be  expensed  until the point  that  technological
feasibility  of  the  software  is  established.  Technological  feasibility  is
determined  after a working model has been  completed.  The  Company's  software
research and development costs primarily relate to software  development  during
the period  prior to  technological  feasibility  and are  expensed as incurred.
During fiscal 2004 and 2003, no software development costs were capitalized.


                                       19
<PAGE>


(C)   COMPREHENSIVE INCOME (LOSS)

Comprehensive  income  (loss)  represents  the change in  stockholders'  deficit
resulting from other than stockholder investments and distributions. Accumulated
other comprehensive loss in the consolidated statements of stockholders' deficit
is solely comprised of the accumulated foreign currency translation adjustment.

Comprehensive  income (loss) and its components consist of the following for the
year ended June 30:

                                   2004           2003
                               -----------    -----------
Net income (loss)...........   $(2,128,657)     3,682,928
Other comprehensive
 income (loss):
Foreign currency translation
   adjustment ..............      (187,689)      (661,871)
                               -----------    -----------
Comprehensive income (loss).   $(2,316,346)   $ 3,021,057
                               -----------    -----------



(D)   FOREIGN CURRENCY TRANSLATION

The functional  currency of the Company's  subsidiaries  is the local  currency.
Accordingly, the Company translates all assets and liabilities into U.S. dollars
at current rates. Revenues,  costs, and expenses are translated at average rates
during each reporting period. Gains and losses resulting from the translation of
the  consolidated  financial  statements are excluded from results of operations
and are  reflected  as a  translation  adjustment  and a separate  component  of
stockholders' deficit.

Gains and losses resulting from foreign currency  transactions are recognized in
the consolidated statements of operations in the period they occur.

(E)   NET INCOME (LOSS) PER COMMON SHARE

Basic net income  (loss) per common  share is computed  by  dividing  net income
(loss) by the weighted  average number of common shares  outstanding  during the
period.  Diluted net income  (loss) per common share is computed by dividing net
income (loss) by the weighted  average number of common shares  outstanding plus
all  additional  common stock that would have been  outstanding  if  potentially
dilutive  common  stock  related to stock  options and warrants had been issued.
Weighted average shares outstanding-diluted  includes 674,570 shares of dilutive
securities for the year ended June 30, 2003.  Dilutive common  equivalent shares
have not been included in the  computation of diluted net loss per share for the
year ended June 30, 2004 because their inclusion would be anti-dilutive.


                                       20
<PAGE>


Following is a reconciliation  of basic and diluted net income (loss) per common
share for the years ended June 30:

                                              2004          2003
                                           ----------    ----------
Net income (loss)                         $(2,128,657)    3,682,928

Weighted average shares outstanding        23,079,416    22,197,804

Net income (loss) per common share-Basic  $     (0.09)         0.17

Net income Loss) per common share -Diluted:

Net income (loss)                         $(2,128,657)    3,682,928

Weighted average shares outstanding        23,079,416    22,197,804

Common stock equivalents                           --       674,570

Weighted average shares and potential
   diluted shares outstanding              23,079,416    22,872,374

Net income (loss)per common share-Diluted $     (0.09)         0.16



The Company uses the treasury  method for calculating the dilutive effect of the
stock options and warrants (using the average market price).

Options  and  warrants  to  purchase  4,145,575  shares of common  stock  with a
weighted  average exercise price of $2.25 were outstanding at June 30, 2003, but
were  excluded from the  computation  of common share  equivalents  for the year
ended June 30, 2003 because their exercise  prices were greater than the average
market price of the common shares. All options and warrants  outstanding at June
30, 2004 were excluded from the computation of common share  equivalents for the
year ended June 30, 2004 because their  inclusion  would be  anti-dilutive.  The
number of anti-dilutive shares at June 30, 2004 is 8,068,223.

(F)   STOCK-BASED COMPENSATION

In accordance with Accounting  Principles Board (APB) Opinion No. 25 and related
interpretations, the Company uses the intrinsic value-based method for measuring
stock-based compensation cost which measures compensation cost as the excess, if
any, of quoted market price of the Company's common stock at the grant date over
the amount the employee must pay for the stock. The Company's  general policy is
to grant stock options at fair value at the date of grant.  Options and warrants
issued to non-employees  are recorded at fair value, as required by Statement of
Financial  Accounting  Standards  (SFAS) No. 123,  "Accounting  for  Stock-Based
Compensation",  using the Black Scholes pricing method.  The Company has adopted
the disclosure  only  provisions of SFAS No. 148,  "Accounting  for  Stock-Based
Compensation".


                                       21
<PAGE>


Had compensation cost been recognized based on the fair values of options at the
grant dates  consistent  with the  provisions of SFAS No. 123, the Company's net
income  (loss) and basic and  diluted net income  (loss) per common  share would
have been changed to the  following  pro forma  amounts for the years ended June
30:

                                                 2004              2003
                                             ------------      -----------
Net income (loss):
   As reported                               $ (2,128,657)     $ 3,682,928
   Pro forma                                   (2,594,805)       3,490,070

Basic net income (loss) per common share:
   As reported                                      (0.09)            0.17
   Pro forma                                        (0.11)            0.16

Diluted net income (loss) per common share:
   As reported                                      (0.09)            0.16
   Pro forma                                        (0.11)            0.15

Stock based compensation:
   As reported                                     34,604          107,944
   Pro forma                                      466,148          192,858


In determining the compensation  cost of options granted during years ended June
30, 2004 and 2003,  as  specified by SFAS No. 123, the fair value of each option
grant has been  estimated  on the date of grant using the  Black-Scholes  option
pricing model and the weighted average  assumptions  used in these  calculations
are summarized as follows:

                                                 2004             2003
                                             ------------     ------------
Risk-free interest rate                       2.625-4.000%     2.625-4.375%
Expected life of options granted                  7 years          7 years
Expected volatility                                   122%              84%
Expected dividend yield                                 0%               0%


(G)   INCOME TAXES

The Company  accounts  for income  taxes using the asset and  liability  method.
Under the asset and liability  method,  deferred tax assets and  liabilities are
recognized at the enacted rates for the future tax consequences  attributable to
differences  between the financial  statement  carrying  amounts of existing tax
assets and  liabilities and their  respective tax basis.  The effect on deferred
tax assets and  liabilities  of a change in tax rate is  recognized in income in
the  period  that  includes  the  enactment  date.   Valuation   allowances  are
established when necessary to reduce deferred tax assets to the amounts expected
to be realized.

(H)   SEGMENT REPORTING

The Company is an international seller of performance management software in the
United States, Australia and the United Kingdom/Europe. Management believes that
the Company meets the criteria for  aggregating  its  operating  segments into a
single reporting segment.

(I)   FAIR VALUE OF FINANCIAL INSTRUMENTS

The  carrying  value  of the  Company's  financial  instruments  (cash  and cash
equivalents,  trade accounts  receivable and accounts  payable) because of their
short-term nature,  approximates fair value. The carrying value of notes payable
approximates  fair value  because the current  rates  approximate  market  rates
available on similar instruments and terms.


                                       22
<PAGE>


(J)   CASH AND CASH EQUIVALENTS

Cash equivalents  consist of highly liquid money market accounts carried at cost
plus accrued  interest,  which  approximates  market value. The Company deposits
cash in high credit quality  financial  institutions.  The balances at times may
exceed federally insured limits. All cash equivalents have remaining  maturities
of 90 days or less when purchased.

(K)   FURNITURE, FIXTURES AND EQUIPMENT, NET

Furniture, fixtures and equipment consists of property, equipment, furniture and
computers and are stated at cost less accumulated depreciation.  Depreciation is
calculated using the straight-line method over the estimated useful lives of the
respective  assets that generally range from three to seven years.  Depreciation
expense  was  $134,409  and  $77,401 for the years ended June 30, 2004 and 2003,
respectively.

(L)   ADVERTISING COSTS

Advertising   costs  are  expensed  as  incurred.   Advertising   costs  totaled
approximately  $130,000  and $68,000 for the years ended June 30, 2004 and 2003,
respectively.

(M)   BUSINESS AND CREDIT CONCENTRATIONS

Financial  instruments that potentially subject the Company to concentrations of
credit risk consist  primarily of trade accounts  receivable.  The Company sells
principally  to resellers  and end users in the United  States,  Australia,  and
United  Kingdom/Europe.  The Company performs ongoing credit  evaluations of its
customers and trade accounts receivable are unsecured.  On a periodic basis, the
Company  evaluates its accounts  receivable  based on history of past write-offs
and  collections  and current credit  conditions and  accordingly  adjusts their
allowance  for doubtful  accounts.  Past due accounts  are  determined  based on
individual  customer terms and the policy of write-offs  and collection  efforts
vary based on account  circumstances.  The Company  does not accrue  interest on
outstanding accounts receivable balances.

(N)   IMPAIRMENT OF LONG-LIVED ASSETS AND ASSETS TO BE DISPOSED OF

Long-lived  assets  and  certain  identifiable   intangibles  are  reviewed  for
impairment  whenever  events  or  changes  in  circumstances  indicate  that the
carrying amount of an asset may not be recoverable.  Recoverability of assets to
be held and used is measured by a comparison of the carrying  amount of an asset
to future net  undiscounted  cash flows  expected to be  generated by the asset.
Assets to be disposed of are  reported  at the lower of the  carrying  amount or
fair value less costs to sell. The Company did not record any impairment charges
for the years ended June 30, 2004 and 2003.

(O)   USE OF ESTIMATES

The  preparation  of  consolidated   financial  statements  in  conformity  with
accounting  principles  generally  accepted  in the  United  States  of  America
requires  management to make estimates and assumptions  that affect the reported
amounts of assets and liabilities and disclosure of those assets and liabilities
at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting  period.  A change in the facts and  circumstances
surrounding these estimates could result in a change to the estimates and impact
future operating results.

(3)   LIQUIDITY

The accompanying  consolidated  financial  statements are prepared  assuming the
Company will continue as a going  concern.  During the year ended June 30, 2004,
the Company generated an operating loss of $2,057,189.  As of June 30, 2004, the
Company  had an  accumulated  deficit  of  $20,792,143  and total  stockholders'
deficit of $3,257,719.

Management  expects  revenues  to  improve  as sales and  marketing  initiatives
commenced  within the last twelve months allows the Company to more  effectively
sell  its  products  and  services.  In  the  event  these  initiatives  do  not
materialize at the expected rates,  management  would seek additional  financing
through private equity  placements or would conserve cash by reducing  operating
expenses.  There can be no  assurance  that the Company  will be  successful  in
achieving these objectives. The Company's ability to continue as a going concern
is dependent  on it achieving  profitability  and  generating  cash flow to fund
operations.


                                       23
<PAGE>


(4)   STOCK OPTIONS AND WARRANTS

STOCK OPTIONS

The Company's  1996 Stock Option Plan (the Plan) provides for the issuance of up
to an aggregate of 4,500,000 shares of common stock to employees, directors, and
consultants.  The Plan provides for the issuance of incentive  and  nonqualified
stock options.

Under the Plan, the exercise price for incentive  stock options is at least 100%
of the fair  market  value on the date of the  grant.  The  exercise  price  for
incentive stock options is at least 110% of the fair market value on the date of
the grant for persons  with  greater than 10% of the voting power of all classes
of stock.  Options  generally  expire in seven years;  however,  incentive stock
options may expire in five years if the optionee  owns stock  representing  more
than 10% of the  voting  power of all  classes  of stock.  Vesting  periods  are
determined by a compensation  committee  appointed by the board of directors and
generally provide for shares to vest ratably over three years.

Under SFAS No. 123 Accounting for Stock-Based Compensation, the weighted average
estimated fair value of stock options  granted at exercise price equal to market
price of  grant  date  during  2004 and 2003 was  $0.75  and  $0.35  per  share,
respectively.

The activity for the Plan is summarized as follows:

                                                               WEIGHTED-
                                                                AVERAGE
                                                               EXERCISE
                                                                 PRICE
                                               OPTIONS         PER SHARE
                                             ------------     ----------
Outstanding at June 30, 2002 ............       3,330,003     $     1.19
   Granted ..............................         397,000           0.45
   Exercised ............................         (66,734)          0.29
   Forfeited.............................        (259,143)          0.98
                                             ------------     ----------
Outstanding at June 30, 2003 ............       3,401,126     $     1.13
   Granted ..............................       1,485,750           0.85
   Exercised ............................        (204,335)          0.24
   Forfeited.............................        (607,665)          1.68
                                             ------------     ----------
Outstanding at June 30, 2004.............       4,074,876     $     0.98
                                             ============     ==========
Options exercisable at June 30, 2003.....       2,804,472     $     1.29
                                             ============     ==========
Options exercisable at June 30, 2004.....       2,921,043     $     1.07
                                             ============     ==========


At June 30, 2004 and 2003, the weighted  average  remaining  contractual life of
outstanding options was 4.5 and 4.0 years, respectively.

During  fiscal  2004,  the  Company  issued five year stock  options,  valued at
$58,220 using the Black Scholes pricing model, to purchase up to an aggregate of
80,000 shares of common stock at prices  ranging from  $0.82-$1.10  per share to
directors in exchange for services. Of this amount, $34,604 has been included in
the consolidated  statement of operations for the year ended June 30, 2004, with
the remaining  $23,616  included in deferred  compensation  in the  consolidated
balance sheet as of June 30, 2004.

During  fiscal  2003,  the  Company  issued five year stock  options,  valued at
$17,385 using the Black Scholes pricing model, to purchase up to an aggregate of
50,000  shares of common  stock at a prices of $0.39 per share to  directors  in
exchange for services. This amount was included in the consolidated statement of
operations for the year ended June 30, 2003.


                                       24
<PAGE>


Options activity outside the Plan is summarized as follows:

                                                               WEIGHTED-
                                                                AVERAGE
                                                               EXERCISE
                                                                 PRICE
                                                OPTIONS        PER SHARE
                                             ------------     ----------
Outstanding at June 30, 2002 ............       1,366,877     $     1.69
   Granted ..............................              --             --
   Exercised ............................              --             --
   Forfeited.............................         (17,438)          1.78
                                             ------------     ----------
Outstanding at June 30, 2003 ............       1,349,439     $     1.69
   Granted ..............................           4,500           1.78
   Exercised ............................              --             --
   Forfeited.............................         (27,000)          2.41
                                             ------------     ----------
Outstanding at June 30, 2004.............       1,326,939     $     1.67
                                             ============     ==========
Options exercisable at June 30, 2003.....       1,349,439     $     1.69
                                             ============     ==========
Options exercisable at June 30, 2004.....       1,326,939     $     1.67
                                             ============     ==========


At June 30, 2004 and 2003, the weighted  average  remaining  contractual life of
outstanding options was 2.0 and 3.0 years, respectively.

The following tables summarize information about stock options outstanding as of
June 30, 2004:

<TABLE>
<CAPTION>

                             OPTIONS OUTSTANDING                 OPTIONS EXERCISABLE
                 -------------------------------------------- ---------------------------
                              WEIGHTED-AVERAGE     WEIGHTED-                   WEIGHTED-
                                  REMAINING         AVERAGE                     AVERAGE
EXERCISE           NUMBER        CONTRACTUAL       EXERCISE     NUMBER         EXERCISE
PRICES           OUTSTANDING        LIFE             PRICE    EXERCISABLE        PRICE
--------------   -----------  ----------------   ------------ -----------   -------------
<S>              <C>          <C>                <C>          <C>           <C>
   $ 0.08-0.12       266,000               4.0   $       0.12     266,000   $        0.12
     0.14-0.20       227,000               3.7           0.19     227,000            0.19
     0.24-0.35       557,000               3.9           0.27     524,000            0.27
     0.38-0.42       418,000               4.8           0.40     304,667            0.40
     0.58-0.85     1,005,000               6.2           0.72     357,500            0.75
     0.90-1.33     1,775,875               3.7           1.21   1,415,875            1.26
     1.50-1.78       242,064               2.0           1.77     242,064            1.77
     2.50-3.00       886,876               1.7           2.67     886,876            2.67
     7.00             24,000               2.7           7.00      24,000            7.00
--------------   -----------  ----------------   ------------ -----------   -------------
   $ 0.08-7.00     5,401,815               3.9   $       1.15   4,247,982   $        1.26
==============   ===========  ================   ============ ===========   =============
</TABLE>


                                       25
<PAGE>


WARRANTS ISSUED TO THIRD PARTIES

During fiscal 2004,  the Company issued three and five year warrants to purchase
up to an  aggregate  of 699,066  shares of common  stock at prices  ranging from
$0.90-$1.25  per  share  to  various  investors  and a  broker  under a  private
placement  which expire  through  November  2008.  The  warrants  were issued in
connection with the sale of 2,100,001 shares of common stock at a price of $0.75
per share,  the proceeds of which totaled  approximately  $1.4  million,  net of
associated expenses of approximately $55,000.

During  fiscal 2003,  the Company  issued two warrants to purchase up to 300,000
shares of common  stock  each  (total  600,000  shares)  at $0.37 per share to a
vendor.  The warrants are  exercisable 50% upon issuance and 50% on November 16,
2003,  through  May 2008.  One  warrant  was  issued in  exchange  for  investor
relations  services  and the other was issued in exchange  for  capital  raising
activities. The fair value of the warrants at the date of grant was estimated to
be approximately $175,000 using the Black-Scholes pricing model, with a total of
$43,750  expensed  in the 2003  consolidated  statement  of  operations.  Of the
remaining amount of $131,250, which was included as deferred compensation in the
2003 balance sheet,  $43,750 was expensed in the 2004 consolidated  statement of
operations and $87,500 relating to capital raising  activities offset additional
paid-in capital.  The following  assumptions were used to calculate the expense:
dividend yield of 0%;  expected  volatility of 84%;  risk-free  interest rate of
2.62%; and an expected life of five years.

As of June 30, 2004,  warrants to purchase a total of 2,666,408 shares of common
stock were  outstanding at exercise  prices ranging from  $0.15-$7.00 per share,
expiring through November 2008.

Information regarding the Company's warrants is summarized below:

                                                                WEIGHTED-
                                                                AVERAGE
                                                                EXERCISE
                                                               PRICE PER
                                                  NUMBER         SHARE
                                              ------------    -----------
Outstanding at June 30, 2002 .............       1,852,760    $      2.04
   Granted ...............................         733,332           0.34
   Exercised .............................        (506,250)          0.01
   Forfeited..............................        (112,500)          1.04
                                              -------------   -----------
Outstanding at June 30, 2003 .............       1,967,342    $      1.98
   Granted ...............................         699,066           1.22
   Exercised .............................              --             --
   Forfeited..............................              --             --
                                              ------------    -----------
Outstanding at June 30, 2004..............       2,666,408    $      1.78
                                              ============    ===========


                                       26
<PAGE>


(5)   INCOME TAXES

The Company has incurred cumulative net operating losses since inception. Income
tax computed at the U.S. federal  statutory rate reconciled to the effective tax
rate as follows for the years ended June 30:

                                                         2004        2003
                                                       --------    --------
Federal statutory tax rate benefits.................      (34.0)%      34.0%
State tax, net of federal benefit...................       (4.0)        2.0
Reduction of net operating losses...................         --       100.0
Provision (benefits) related to foreign operations..       18.3        (5.5)
Change in valuation allowance.......................       31.4      (377.6)
Permanent differences and other.....................      (11.7)        2.2%
                                                       --------    --------
Effective tax rate..................................         -- %    (244.9)%
                                                       ========    ========


The  Company  has  recorded  a  valuation  allowance  as  follows at June 30 (in
thousands):

                                                         2004        2003
                                                       --------    --------
Deferred income tax assets:
   Foreign net operating loss carryforwards.........   $  2,811    $  2,376
   U.S. and state net operating loss carryforwards
    and credits......................................     2,351       2,066
   Miscellaneous reserves and accruals..............        286         337
                                                       --------    --------
        Total gross deferred tax assets.............      5,448       4,779
Less: Valuation allowance...........................     (2,833)     (2,164)
                                                       --------    --------
        Net deferred income tax assets..............   $  2,615    $  2,615
                                                       ========    ========


The majority of the valuation  allowance  relates to the U.K. net deferred asset
and the uncertainty of realizing the related benefits.

In  assessing  the  realization  of deferred  tax assets,  management  considers
whether it is more likely than not that some  portion or all of the deferred tax
assets will not be realized.  The ultimate realization of deferred tax assets is
dependent  upon the  generation of future  taxable  income during the periods in
which those temporary differences become deductible.

Based on the  level of  historical  taxable  income  and  projections  of future
taxable income over the periods in which the deferred tax assets are deductible,
during  2003,  the  Company  recorded  a  deferred  tax asset of  $2,615,000.  A
valuation  allowance  has been  provided for the  remaining  deferred tax assets
related to certain foreign net operating loss carryforwards as of June 30, 2004.
The change in valuation  allowance  was $669,000  and  $4,033,000  for the years
ended June 30, 2004 and 2003, respectively.

As of June 30,  2004,  the  Company  has  reported  U.S.  net  Federal and State
operating  loss  carryforwards  of  approximately   $6,100,000  and  $2,800,000,
respectively.  The net  operating  loss  carryforwards  expire in the years 2010
through 2024.

Federal tax laws  impose  significant  restrictions  on the  utilization  of net
operating  loss  carryforwards  in the  event of a change  in  ownership  of the
Company  that  constitutes  an  "ownership  change," as defined by the  Internal
Revenue Code,  Section 382. The Company's net operating loss carryforward may be
subject to the above limitations.


                                       27
<PAGE>


(6) COMMITMENTS AND CONTINGENCIES

OPERATING LEASES

The  Company  leases  certain  facilities  and  equipment  under   noncancelable
operating leases that expire at various dates through 2009. Future minimum lease
commitments under these operating leases are as follows:

YEAR ENDING JUNE 30:
--------------------
2005................................    $    930,000
2006................................         670,000
2007................................         603,000
2008................................         450,000
2009................................         242,000
                                        ------------
                                        $  2,895,000
                                        ============


Rent expense under  operating  leases for the years ended June 30, 2004 and 2003
was $1,155,000 and $915,000, respectively.

LEGAL PROCEEDINGS

The Company is involved in legal actions in the ordinary course of its business.
Although the outcome of any such legal actions  cannot be predicted,  management
believes  that there are no pending legal  proceedings  against or involving the
Company for which the outcome is likely to have a material  adverse  effect upon
the Company's financial position, results of operations, or cash flow.

(7)   NOTES PAYABLE - STOCKHOLDER

The Company has received interest-bearing advances from a stockholder under term
notes.  The notes bear  interest at 8.5% per annum and expire  December 31, 2006
with the right to demand  payment on or after  September 30, 2005. The notes are
collateralized  by  substantially  all the assets of the  Company.  Balances due
under these notes were  approximately  $601,000 and $686,000 as of June 30, 2004
and 2003,  respectively  plus  accrued  interest of  approximately  $100,000 and
$81,000,  as of June 30, 2004 and 2003,  respectively.  These  amounts have been
included in accrued  interest in the accompanying  consolidated  balance sheets.
Interest expense was approximately  $58,000 and $62,000 for the years ended June
30, 2004 and 2003,  respectively.  These notes are  subordinated to the lines of
credit discussed in Notes 8 and 15.

(8)   LINE OF CREDIT

In April 2003,  the Company  entered  into a one-year  revolving  line of credit
agreement  with a bank  with a credit  limit  of  $300,000.  The line of  credit
carries  an  interest  rate  based on the prime  rate plus 2% (6.25% at June 30,
2004) and is collateralized  by the assets of its wholly-owned  subsidiary CorVu
North America,  Inc. and is guaranteed by the Company. The amount outstanding as
of June 30, 2004 and 2003 was  $300,000  and  $250,000,  respectively,  which is
included in the accompanying  consolidated balance sheets.  Interest expense for
the years  ended  June 30,  2004 and 2003 was  approximately  $14,000  and $500,
respectively,  which  is  included  in  interest  expense  in  the  accompanying
consolidated  statements of operations.  In April 2004, the due date of the line
of credit was extended to July 2004.  Subsequent  to June 30, 2004,  the line of
credit  was  repaid  and  replaced  by  another  credit  facility  (See Note 15-
Subsequent Event).


                                       28
<PAGE>


(9)   INDUSTRY SEGMENT AND OPERATIONS BY GEOGRAPHIC AREAS:

The Company operates  predominantly in one industry  segment,  being the design,
development,  support  and  marketing  of its  proprietary  management  software
solutions.  The geographic distributions of the Company's revenue and long-lived
assets are summarized in the following table:

                                         YEAR ENDED JUNE 30,
                                  ------------------------------
                                        2004            2003
                                  --------------    ------------
Total Revenues:
   United States...............   $    6,096,000       6,080,000
   Australia...................        5,724,000       5,316,000
   United Kingdom..............        4,338,000       4,321,000
                                  --------------    ------------
                                  $   16,158,000      15,717,000
                                  ==============    ============


Long-Lived Assets:
   United States...............   $      109,000         100,000
   Australia...................           47,000          26,000
   United Kingdom..............          107,000          35,000
                                  --------------    ------------
                                  $      263,000         161,000
                                  ==============    ============


(10)  PREFERRED STOCK

The Series A Convertible Preferred Stock ($10 par value) bears a 6.5% cumulative
dividend rate payable  January 1 and July 1 of each year. Each share of Series A
Convertible  Preferred  Stock is convertible  into eight shares of common stock.
The Holder of each share of Series A Convertible  Preferred Stock is entitled to
eight votes, subject to adjustment. Upon an involuntary or voluntary liquidation
or  dissolution  of the  Company  at any  time,  the  holders  of the  Series  A
Convertible Preferred Stock are entitled to receive a liquidation  preference of
$10 per share.  The preferred  stock may be called for redemption in whole or in
part by the Company for a redemption  price of $11.70 per share.  In March 2003,
the Company  redeemed  all 200 shares of  preferred  stock then  outstanding  by
paying the redemption price plus all accrued but unpaid dividends.

(11)  PROFIT SHARING AND 401(K) RETIREMENT PLAN

The  Company  has a  pre-tax  salary  reduction/profit  sharing  plan  under the
provisions of Section 401(k) of the Internal  Revenue Code that covers employees
meeting  certain  eligibility  requirements.   Any  employer  contributions  are
discretionary.  There were no Company contributions for the years ended June 30,
2004 and 2003.

(12)  CONSULTING AGREEMENT

In  September  2002,  the  Company  entered  into a  consulting  agreement  with
GlobalNet Venture Partners,  L.L.C.  (GlobalNet) to provide management  advisory
services for a period of 30 months. In exchange for these services,  the Company
paid  GlobalNet  a fee of $26,500 per month.  In  addition,  GlobalNet  can earn
additional  fees under the agreement as a result of its involvement in obtaining
financing and for introducing and developing strategic  partnerships that result
in revenue to the Company.  The agreement can be terminated by either party upon
60 days  written  notice.  As part of the  services  to be  provided  under this
agreement, a principal of GlobalNet agreed to serve as the Company's Chairman of
the Board for a period of 24 months.

On July 1,  2003,  the  Company  entered  into a  restructuring  agreement  with
GlobalNet  pursuant  to which  GlobalNet  ceased to provide  monthly  consulting
services to the Company. As part of the restructuring  agreement,  the Principal
of GlobalNet  who was serving as the  Company's  Chairman of the Board  resigned
from that position effective July 31, 2003. In addition, the Company repurchased
560,000  shares  of the  Company's  common  stock  that was  previously  held by
GlobalNet for a price of $0.27 per share by canceling $151,200 of the promissory
note that existed  between the two parties and adjusting the balance of the note
to $172,800 (See Note 13).


                                       29
<PAGE>


(13)  STOCK PURCHASE

In September  2002, the Company sold 1.2 million shares of the Company's  common
stock  to  GlobalNet  at a price  of  $0.27  per  share  under a stock  purchase
agreement.  GlobalNet paid the entire  purchase price by delivering a promissory
note to the Company and pledged the stock  purchased  as security  for the note.
The note,  which expires in September  2009,  bears an interest rate of 5.5% per
annum  through  September 2, 2009,  with  interest  payable  quarterly  starting
September 30, 2002. The note is a limited  recourse note in that in the event of
non-payment, the Company's only recourse is against the pledged shares.

On September 15, 2003,  under  separate  agreements,  the Company  exercised its
option to repurchase 440,000 shares at a price of $0.62 per share from GlobalNet
by reducing the principal  balance of the  promissory  note held by $118,800 and
agreeing to make cash payments totaling $154,000. In addition, for the remaining
200,000 shares of common stock held by GlobalNet,  the Company  converted  those
shares  into  112,903  fully paid  shares by reducing  the  remaining  principal
balance under the promissory note ($54,000) to zero (See Note 12).

(14)  SALE OF COMMON STOCK

During the year ended June 30, 2004, the Company sold 2,100,001 shares of common
stock at a price of $0.75  per share to  several  accredited  investors  under a
private placement, the proceeds of which totaled approximately $1.4 million, net
of associated expenses. In connection  therewith,  the Company issued three year
warrants  to the  investors  which  allows  them to  purchase a total of 630,000
shares of common stock at a price of $1.25 per share.  In addition,  the Company
issued five year warrants in exchange for services  performed in connection with
the private  placement  for a total of 69,066  shares of common  stock at prices
ranging from $.90-$1.25 per share.

(15)  SUBSEQUENT EVENT

In July 2004,  the Company  entered into a one-year  financing  agreement with a
bank that  provides  financing  based on  eligible  receivables  up to a maximum
amount of $800,000.  The financing  agreement  carries an interest rate based on
the prime rate plus 2% and is  collateralized by substantially all assets of its
wholly-owned  subsidiary  CorVu North  America,  Inc. and is  guaranteed  by the
Company.  In addition,  the Company will pay an additional fee equal to 0.5% per
month of the  outstanding  balance on each  financed  receivable.  The financing
agreement  also  called  for an  up-front  loan fee  equal to 1% of the  maximum
facility.  In connection  with this  agreement,  the Company issued a seven year
warrant to  purchase up to 38,867  shares of common  stock at a price of $0.6175
per share that expires in July 2011.  The fair value of the warrants at the date
of grant were  estimated to be  approximately  $21,000  using the  Black-Scholes
pricing model, which will be charged to operations on a straight-line basis over
the term of the facility.  The following  assumptions were used to calculate the
fair value of the warrants:  dividend yield of 0%; expected  volatility of 122%;
risk-free interest rate of 3.625%; and an expected life of seven years. Proceeds
of this facility were used to retire the line of credit as described in Note 8.


                                       30
<PAGE>


ITEM 8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
         FINANCIAL DISCLOSURE

None

ITEM 8A. CONTROLS AND PROCEDURES

As of the end of the period  covered by this  report,  the Company  conducted an
evaluation,  under  the  supervision  and with the  participation  of the  Chief
Executive  Officer and Chief  Financial  Officer,  of the  Company's  disclosure
controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities Exchange Act of 1934 (the "Exchange Act")). Based on this evaluation,
the Chief  Executive  Officer and Chief  Financial  Officer  concluded  that the
Company's  disclosure  controls  and  procedures  are  effective  to ensure that
information  required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded,  processed,  summarized and reported
within the time periods  specified in Securities and Exchange  Commission  rules
and forms.  There was no change in the Company's internal control over financial
reporting  during the Company's most recently  completed fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.

ITEM 8B. OTHER INFORMATION

All  information  required to be  reported on a Form 8-K has been  reported on a
Form 8-K.


                                       31
<PAGE>


                                    PART III

ITEM 9.  DIRECTORS, AND EXECUTIVE OFFICERS OF REGISTRANT

The  information  required  by this item is  incorporated  by  reference  to the
sections labeled "Election of Directors",  "Section 16(a) Reporting  Compliance"
and "Code of Ethics" that appear in the definitive  proxy statement for the 2004
Annual Meeting of Shareholders.

ITEM 10. EXECUTIVE COMPENSATION

The  information  required  by this item is  incorporated  by  reference  to the
section labeled  "Executive  Compensation"  that appears in the definitive proxy
statement for the 2004 Annual Meeting of Shareholders.

ITEM 11. SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS AND MANAGEMENT AND
         RELATED STOCK MATTERS

The  information  required  by this item is  incorporated  by  reference  to the
section  labeled  "Principal  Shareholders  and Management  Shareholdings"  that
appears  in the  definitive  proxy  statement  for the 2004  Annual  Meeting  of
Shareholders.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The  information  required  by this item is  incorporated  by  reference  to the
section labeled Certain  Relationships and Related  Transactions that appears in
the definitive proxy statement for the 2004 Annual Meeting of Shareholders.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits.

See  "Exhibit  Index"  immediately  following  the  signature  page of this Form
10-KSB.

(a)   Reports on Form 8-K.

None

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The  information  required  by this item is  incorporated  by  reference  to the
section labeled "Ratification of Selection of Independent Auditors" that appears
in the definitive proxy statement for the 2004 Annual Meeting of Shareholders.


                                       32
<PAGE>


SIGNATURES

In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
caused this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                CORVU CORPORATION

Dated:  October 8, 2004                         By: /s/ Justin M. MacIntosh
                                                  ------------------------------
                                                  Justin M. MacIntosh
                                                  Chief Executive Officer

In  accordance  with the  Exchange  Act,  this  Report  has been  signed  by the
following  persons on behalf of the  Registrant and in the capacities and on the
dates indicated.

SIGNATURE AND TITLE                                                 DATE
----------------------------------------------------------    ------------------
/s/ Justin M. MacIntosh
----------------------------------------------------------
Justin M. MacIntosh, President and Chief Executive Officer     October 8, 2004
(principal executive officer)

/s/ David C. Carlson
----------------------------------------------------------
David C. Carlson, Chief Financial Officer and Director         October 8, 2004
(principal financial and accounting officer)

/s/ Ismail Kurdi
----------------------------------------------------------
Ismail Kurdi, Director                                         October 8, 2004

/s/ James L. Mandel
----------------------------------------------------------
James L. Mandel, Chairman of the Board                         October 8, 2004

/s/ Gary Smaby
----------------------------------------------------------
Gary Smaby, Director                                           October 8, 2004

/s/ Daniel Fishback
----------------------------------------------------------
Daniel Fishback, Director                                      October 8, 2004


                                       33
<PAGE>


                                CORVU CORPORATION
                                EXHIBIT INDEX FOR
                 FORM 10-KSB FOR FISCAL YEAR ENDED JUNE 30, 2004


EXHIBIT
NUMBER                                     DESCRIPTION
---------         --------------------------------------------------------------
   2              Agreement and Plan of Reorganization between CorVu Corporation
                  and  Minnesota  American,   Inc.  dated  as  of  November  17,
                  1999--incorporated  by reference to Exhibit 2 to  Registrant's
                  Form 10-SB, File No. 000-29299

   3.1            Articles  of  Incorporation  of the  Registrant  as amended to
                  date--incorporated by reference to Exhibit 3.1 to Registrant's
                  Form 10-SB, File No. 000-29299

   3.2            Bylaws--incorporated  by  reference  to  Exhibit  3.2  to  the
                  Registrant's Form 10-SB, File No. 000-29299

   4              Rights of Holders of Series A Convertible Preferred Stock--see
                  Article 3 of Articles of Incorporation (Exhibit 3.1)

   10.1           Subscription  Agreement and Letter of Investment Intent, dated
                  April  27,  1999,   from  Ismail  Kurdi,   accepted  by  CorVu
                  Corporation,  to Purchase  150,000  Shares of Common Stock and
                  Warrants to Purchase  150,000  Shares of Common Stock of CorVu
                  Corporation,  including  Warrant to Ismail  Kurdi to  Purchase
                  150,000     Shares     of     Common     Stock     of    CorVu
                  Corporation--incorporated  by  reference  to  Exhibit  10.1 to
                  Registrant's Form 10-SB, File No. 000-29299

   10.2           Subscription  Agreement and Letter of Investment Intent, dated
                  June  30,  1999,   from  Ismail   Kurdi,   accepted  by  CorVu
                  Corporation,  to Purchase  125,000  Shares of Common Stock and
                  Warrants to Purchase  125,000  Shares of Common Stock of CorVu
                  Corporation,  including  Warrant to Ismail  Kurdi to  Purchase
                  125,000     Shares     of     Common     Stock     of    CorVu
                  Corporation--incorporated  by  reference  to  Exhibit  10.2 to
                  Registrant's Form 10-SB, File No. 000-29299

   10.3           Subscription  Agreement and Letter of Investment Intent, dated
                  June 30,  1999,  from Ismail  Kurdi to  Subscribe  for 395,000
                  Shares  of  Common   Stock  of  CorVu   Corporation   in  full
                  satisfaction  and  payment of cash  advances--incorporated  by
                  reference to Exhibit 10.3 to Registrant's Form 10-SB, File No.
                  000-29299

   10.4*          Employment  Agreement between Registrant and Justin MacIntosh,
                  dated July 1,  1999--incorporated by reference to Exhibit 10.4
                  to Registrant's Form 10-SB, File No. 000-29299

   10.5*          Employment  Agreement between Registrant and David C. Carlson,
                  dated July 15, 1996 and amended July 20, 1999--incorporated by
                  reference to Exhibit 10.5 to Registrant's Form 10-SB, File No.
                  000-29299

   10.6*          Employment  Agreement between Registrant and Alan M. Missroon,
                  dated  January 2,  1997--incorporated  by reference to Exhibit
                  10.6 to Registrant's Form 10-SB, File No. 000-29299


                                       34
<PAGE>


EXHIBIT
NUMBER                                     DESCRIPTION
---------         --------------------------------------------------------------
   10.7           Lease Agreement between United Properties  Investment LLC. and
                  CorVu  Corporation  for  premises  at 3400 West  66th  Street,
                  Edina,  Minnesota-incorporated by reference to Exhibit 10.7 to
                  Registrant's  Form  10-KSB for the fiscal  year ended June 30,
                  2002, File No. 000-29299

   10.8           Underlease  between  Michael John Haynes,  Raymond John Evans,
                  Terrance  Guy Hawker and CorVu PLC and CorVu  Corporation  for
                  premises   at  Craven   House,   40  Uxbridge   Road,   London
                  W5--incorporated  by reference to Exhibit 10.9 to Registrant's
                  Form 10-SB, File No. 000-29299

   10.9           Loan Agreement  between CorVu Australasia Pty Ltd, CorVu North
                  America,  Inc.,  CorVu PLC and Integral  Business Finance Pty.
                  Limited--incorporated   by  reference  to  Exhibit   10.10  to
                  Registrant's Form 10-SB, File No. 000-29299

   10.10          Specific and Floating  Charge / Deed of Charge  between  CorVu
                  Australasia  Pty  Ltd.  and  Integral  Business  Finance  Pty.
                  Limited--incorporated   by  reference  to  Exhibit   10.11  to
                  Registrant's Form 10-SB, File No. 000-29299

   10.11          Letter  Agreement  between  CorVu  Corporation  and Jon  Adams
                  Financial Co., L.L.P.,  dated 12 May, 1999, as amended October
                  27,  1999--incorporated  by  reference  to  Exhibit  10.12  to
                  Registrant's Form 10-SB, File No. 000-29299

   10.12          Bridge Loan  Agreement  dated as of November  15, 1999 between
                  CorVu Corporation and Gildea Management  Company - The Network
                  Funds, including Subordinated Unsecured Convertible Promissory
                  Note for  $250,000,  and Warrant  for up to 250,000  Shares of
                  Common  Stock of CorVu  Corporation,  both as of November  15,
                  1999--incorporated   by   reference   to   Exhibit   10.13  to
                  Registrant's Form 10-SB, File No. 000-29299

   10.13          Bridge Loan  Agreement  dated as of November  15, 1999 between
                  CorVu  Corporation and Calton,  Inc.,  including  Subordinated
                  Unsecured  Convertible   Promissory  Note  for  $250,000,  and
                  Warrant  for up to  250,000  Shares of  Common  Stock of CorVu
                  Corporation,  both as of November  15,  1999--incorporated  by
                  reference to Exhibit 10.14 to  Registrant's  Form 10-SB,  File
                  No. 000-29299

   10.14*         CorVu  Corporation  1996 Stock Option Plan, as amended through
                  November  30, 1999 and approved by the  shareholders  at their
                  meeting on January  13,  2000--incorporated  by  reference  to
                  Exhibit 10.15 to Registrant's Form 10-SB, File No. 000-29299

   10.15*         Minnesota American,  Inc. 1993 Stock Incentive Plan as amended
                  and approved by the  shareholders  at their meeting on January
                  30,  1996--incorporated  by  reference  to  Exhibit  10.16  to
                  Registrant's Form 10-SB, File No. 000-29299


                                       35
<PAGE>


EXHIBIT
NUMBER                                     DESCRIPTION
---------         --------------------------------------------------------------
   10.16*         Amendment to Employment  Agreement  between CorVu  Corporation
                  and Justin MacIntosh,  dated January 1,  2001--incorporated by
                  reference to Exhibit 10.16 to Registrant's Form 10-KSB for the
                  fiscal year ended June 30, 2001, File No. 000-29299

   10.17          Letter Agreement dated June 19, 2002 between CorVu Corporation
                  and GlobalNet Venture Partners,  LLC-incorporated by reference
                  to Exhibit  10.7 to  Registrant's  Form  10-KSB for the fiscal
                  year ended June 30, 2002, File No. 000-29299

   10.18          Stock  Purchase  Agreement  dated June 19, 2002 between  CorVu
                  Corporation and GlobalNet Venture Partners,  LLC--incorporated
                  by reference to Exhibit A to Schedule 13D of GlobalNet Venture
                  Partners, LLC filed September 19, 2002

   10.19          Amendment dated September 3, 2002 to Stock Purchase  Agreement
                  dated June 19, 2002 between  CorVu  Corporation  and GlobalNet
                  Venture Partners,  LLC--incorporated by reference to Exhibit B
                  to  Schedule  13D of  GlobalNet  Venture  Partners,  LLC filed
                  September 19, 2002

   10.20          Secured  Promissory  Note  dated  September  3,  2002  in  the
                  principal amount of $324,000 from GlobalNet  Venture Partners,
                  LLC to CorVu Corporation--incorporated by reference to Exhibit
                  C to Schedule 13D of  GlobalNet  Venture  Partners,  LLC filed
                  September 19, 2002

   10.21          Pledge  Agreement  dated  September 3, 2002 between  GlobalNet
                  Venture Partners,  LLC and CorVu  Corporation-incorporated  by
                  reference to Exhibit D to Schedule  13D of  GlobalNet  Venture
                  Partners, LLC filed September 19, 2002

   10.22*         Amendment  No.  2  to  Employment   Agreement   between  CorVu
                  Corporation and Justin MacIntosh, dated February 28, 2003

   10.23*         Amendment  No.  3  to  Employment   Agreement   between  CorVu
                  Corporation and Justin MacIntosh, dated December 18, 2003**

   10.24          Commercial Lease between Perpetual Trustee Company Limited and
                  CorVu  Australia Pty. Ltd., dated  March 1, 2004, for premises
                  Suite 1, Level 8, Tower A, Zenith Centre, 801 Pacific Highway,
                  Chatswood, NSW**

   21             Subsidiaries of CorVu Corporation

   23             Consent  of  Independent  Registered  Public  Accounting  Firm
                  Virchow, Krause & Company, LLP

   24             Power of Attorney  (contained  on Signature  Page of this Form
                  10-KSB)

   31.1           Certification  of Chief Executive  Officer Pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002

   31.2           Certification  of Chief Financial  Officer Pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002

   32             Certification  of Chief Executive  Officer and Chief Financial
                  Officer Pursuant to Section 906 of the  Sarbanes-Oxley  Act of
                  2002

o     Indicates  a  management  contract  or  compensatory  plan or  arrangement
      required to be filed as an exhibit to this Form 10-KSB.

o     ** Filed herewith

                                       36