<PAGE>

================================================================================

                                  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, 2003

                         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:  $15,717,301.

The aggregate market value of the Common Stock held by nonaffiliates of the
Registrant as of August 31, 2003 was approximately $12,396,000 based upon the
closing price of the Registrant's Common Stock on such date.

There were 22,193,029 shares of Common Stock outstanding as of August 31, 2003.

                             ---------------------

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      NONE

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 Enterprise Performance Management software
products.

         Enterprise performance management is a process by which an organization
seeks to define its strategy, measure and analyze its performance, and
ultimately manage improvements to enhance performance. In recent years several
methodologies have arisen for managing organizational performance; each
methodology represents an approach to measuring an organization's performance
against strategic goals and specific performance targets. While the Balanced
Scorecard has emerged as the premier performance management methodology, others
are certainly valid. Our customers use our products to implement one or more
performance management methodologies. Some have found it beneficial to employ
the Balanced Scorecard methodology, as well as other methodologies, including
Management by Exception, Total Quality Management, Six Sigma, ISO Certification,
Malcolm Baldrige Award for Quality, President's Award for Quality, and Value
Based Management. To our knowledge, none of the methodologies supported by CorVu
products are protected under intellectual property law.

         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

         CorVu software products are designed to enable our customers to better
measure and analyze their information, in order to achieve strategic objectives
and improve business performance. CorVu is currently shipping Version 4.2 of our
products to all eligible customers. The following product descriptions are those
of the 4.2 versions of CorBusiness(TM), CorStrategy(TM), CorPortfolio(TM) and
HyperVu(TM). Customers who have licensed previous versions of these products and
who have active maintenance agreements receive these 4.2 versions at no
additional charge, as well as the forthcoming version 4.3.


                                       2
<PAGE>


         CORBUSINESS(TM) is a Business Intelligence tool designed to address the
information analysis needs of an organization. The term Business Intelligence
(BI) generally refers to the process of accessing and analyzing data in order to
develop a more comprehensive understanding of an organization and thus, to make
better informed decisions. CorBusiness includes end-user query/reporting (i.e.,
information access and reporting), OnLine Analytical Processing (OLAP) (i.e.,
the multidimensional analysis of information, viewing data from many
perspectives and cross-examinations), executive dashboards (i.e., collections of
many key performance indicators presented on a single screen through a simple
graphical representation) and forecasting which assists the user in predicting
future events based on past data trends. Once created, the user can modify the
forecast and export them for use in demand planning/budgeting programs.
CorBusiness is able to be implemented across the web with a Java client, or
across the network in client/server mode. CorBusiness enables direct access to
all major ERP databases for data access to provide information for analysis or
for key performance measures for input to CorStrategy.

         CORSTRATEGY(TM) is designed to help companies significantly improve
business performance by integrating and automating the management processes of
strategy development, budgeting, business modeling, planning, performance
monitoring, reporting and analysis, and scorecarding. CorStrategy links and
aligns an organization's strategic resources - people, information and the
decision-making process. This creates a clear understanding of corporate
strategy and establishes accountability, while proactively monitoring actions
and performance against company targets. CorStrategy offers a 100% web-based,
centralized approach to the collection, consolidation and reporting of
performance results so organizations can quickly adjust strategies to ensure
success. CorStrategy can be configured for virtually any organizational
structure and any EPM methodology, whether deployed in one department or across
a global enterprise. Comprised of three fully integrated management applications
- CorStrategy.Scorecard, CorStrategy.Risk and CorStrategy.Finance, CorStrategy
is a unique, easily deployable, 100% web-based enterprise performance management
solution that enables managers to communicate, monitor and manage strategy.

         CorStrategy.Scorecard provides the latest innovation in scorecard
         automation; empowering users to more effectively align valuable
         resources with strategy, thus having the most strategic impact on
         performance. Offering a robust security model, out-of-the-box reporting
         options, and easy-to-use personalized briefing books,
         CorStrategy.Scorecard allows users to create interactive scorecards for
         powerful performance management. CorStrategy.Scorecard visually depicts
         how well activities are aligned with strategy, enabling the
         coordination of budgeting and project management activities.
         Additionally, Gantt charts keep users aware of the status of all
         initiatives and subordinate tasks, which help in monitoring how
         effectively activities are being accomplished.

         CorStrategy.Risk allows companies to monitor, manage and mitigate risk,
         ensure regulatory compliance and monitor corporate governance.
         CorStrategy.Risk enables organizations to collaborate, integrate, and
         share the responsibility of risk management. CorStrategy.Risk allows
         managers to go beyond pure compliance, to focus on safeguarding company
         assets, enhancing shareholder value, ensuring best practices in
         corporate governance, and performance optimization. CorStrategy.Risk
         facilitates the management of risk exposure by company, business unit,
         and key business drivers that impact risk. With CorStrategy.Risk, users
         may understand how effectively an organization is accomplishing control
         activities, and whether such activities are aligned with the strategic
         plan, which ultimately leads to successful risk mitigation.

         CorStrategy.Finance is designed to allow companies to align budgets
         with the strategy and manage the finance process as it relates to
         business strategy. CorStrategy.Finance makes it easy to provide custom
         and secure centralized control of budget reports and scorecards in a
         100% web-based environment. CorStrategy.Finance is designed for easy
         use by senior executives and requires minimal training.
         CorStrategy.Finance offers pre-defined reports and analyses to review
         projected performance or comparison to actuals, which may be exported
         to virtually any general ledger accounting system. CorStrategy.Finance
         supports the rolling forecast Beyond Budgeting methodology, and
         provides a comprehensive financial management solution to support any
         business model. This product is currently scheduled for release in the
         third calendar quarter of 2003.


                                       3
<PAGE>


         CORPORTFOLIO(TM) is designed to allow users to combine various types of
disparate reports and graphs into a single document for distribution and/or
presentation. For example, with CorPortfolio a user may create a single
electronic document, or portfolio, that contains pie graphs, bar charts,
financial statement reports, etc. Additionally, this portfolio could also
contain files not generated by a CorVu product, such as files from spreadsheets,
word processing documents or other applications. Users may then insert title
pages and a table of contents along with textual annotations that explain the
meaning of the graphs and reports included in the portfolio.

         CorVu's HYPERVU(TM) software publishes a live organizational
performance web site with one-click access to text, tables, graphics and
hyperlinks embedded as intelligent and interactive web objects, complete with
drill-down capability.

         CorVu's client 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

         In an effort to assist clients in implementing Enterprise Performance
Management software, we have developed the RapidROI Program consisting of
consulting, installation, implementation, and training services. The program is
designed to facilitate the implementation and use of our products in the
organizations of our customers, thus establishing long-term relationships. In
the RapidROI program, CorVu consultants work with customers through a
step-by-step process, confirming customer satisfaction at each stage prior to
moving on. This process typically involves:

         Initial Interview - CorVu consultants conduct interviews with client
         personnel to define the client's expectations and needs.

         Design - CorVu consultants work with client personnel to design an
         implementation agenda.

         Implementation - Installation and setup of the CorVu products ordered.

         Training - While much training occurs at each stage, most customers
         consider the assistance of consultants especially helpful when
         beginning to use CorVu's software products. Administrative training
         occurs primarily during the implementation stage.

         Performance Tuning - Depending on the customer experience, the
         adaptation of the specific CorVu product may prove necessary.

         While each of these stages may be required in varying degrees, we work
to provide customized services for our customers to assure that the
implementation of our products is successful.

Maintenance Agreements

         We also provide support services to customers with a "Software
Maintenance Agreement." Such customers are entitled to:

o    New Versions of CorVu Software
o    Help Desk Support Services
o    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


                                       4
<PAGE>


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.

(ii)     Market for our Products and Services

         Our management believes that the market for our products and services
includes small, medium and large corporations across all industry segments.
Regardless of size, all organizations are concerned with improving performance.
Leading analyst organizations agree that performance management concepts, such
as the Balanced Scorecard methodology, may be a way to achieve significant
performance improvement.

         Current information suggests that 27% of our customers are active in
the manufacturing sector and 15% are active in the government sector. We have
been targeting our sales to leading suppliers in aerospace, banking, financial
services, healthcare, hospitality, insurance, manufacturing, mining, the public
sector, telecommunications, and transportation.

(iii)    Distribution of our Products and Services

         CorVu products and services are sold through our subsidiaries' sales
offices and through "Value Added Resellers," distributors and marketing
alliances.

         Our Sales Offices - Our North American subsidiary has sales offices in
         Atlanta, Cincinnati, Dallas, and Minneapolis. In Europe, CorVu sales
         offices are located in London, Rotterdam and Stockholm. Sales offices
         for the CorVu Asia-Pacific region have been established in Sydney and
         Melbourne. 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
         Brazil, the Czech Republic, Indonesia, Mexico, Norway, the Philippines,
         Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, and
         Thailand. 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.


                                       5
<PAGE>


         CorVu Associate Partners (CAPs)- Our CAPs act as independent
         contractors working on a commission-only basis. Targeted candidates
         will bring with them a strong background in CorVu's key markets, like
         ERP systems and the Balanced Scorecard methodology. Based on their
         background, these candidates can leverage prior market experience and
         business relationships, which should allow them to identify, qualify
         and penetrate key accounts with CorVu's solutions.

       Historically, approximately 10% of our annual revenues have been received
through distributors, and 21% through VARs. Alliance Partners and CAPs - as a
group and on an individual basis - account for a nominal portion of our
business.

(iv)     Competition

         We are unaware of competitors whose products perform all of the
functions performed by CorVu's products. We compete in the market for Business
Intelligence (BI) and Enterprise Performance Management (EPM) software.

         Business Intelligence (BI) - CorBusiness is designed to address
Business Intelligence needs. Key competitors we encounter in the BI market are
Cognos and Business Objects. However, our management believes that competing
products focus only on specific business intelligence features, such as end user
query and reporting, or sophisticated programmer reporting, or multidimensional
information analysis. In contrast, CorVu products are designed to offer a suite
of integrated applications covering all of the Business Intelligence features
mentioned above.

         Balanced Scorecard - Our management is aware of several companies
offering software based on the Balanced Scorecard methodology. To date, 18
vendors have been certified by the Balanced Scorecard Collaborative, an
organization dedicated to the worldwide awareness, use, enhancement, and
integrity of the Balanced Scorecard (BSC) as a value-added management process.
We consider Hyperion, Panorama Business Views and SAS to be our most important
competitors in this area. However, we are not aware that they also offer
products that tightly integrate business intelligence applications with their
Balanced Scorecard software.

         Our management believes that our products are competitive due to
features such as ease of deployment, low overhead and administration, ease of
use, integrated application suite, and appeal to broad user requirements.

(v)      Market Analysis and Forecast

         Recent analysis of the market for Enterprise Performance Management
software includes "Worldwide Financial/Business Performance Management Software
Forecast and Analysis, 2002-2006" by IDC analysts Robert Blumstein and Henry
Morris. That study predicts that the market for such software will develop as
follows:

         "The market is estimated to increase from $921.1 million in 2001 to
$1,537.9 million in 2006, a compound growth rate (CAGR) of 10.8%, based on an
acceleration in the economy by 2004 that leads to financial growth in 2005 and
2006." Regarding the performance management market, IDC predicts, "this sector
should show the highest growth in the overall financial/BPM analytic
applications market. BPM is cross functional, and as such is unique among
analytic application categories. All other categories are function specific, yet
BPM is closely aligned with financial analytic applications for two reasons. The
ability to measure and accurately forecast financial performance is a priority
for finance. Balanced scorecarding, the most important business methodology for
BPM, emphasizes the role of nonfinancial indicators as predictors of financial
performance. This creates the need for bringing together financial and
nonfinancial metrics within the same application (i.e., cross-functional BPM)."


                                       6
<PAGE>


(vi)     Our Customers

Over 4,500 customers worldwide have licensed CorVu products. These include
companies like Ingersoll Rand, JP Morgan, Fireman's Fund Insurance, Bowne &
Company, US Army, CVS Pharmacy, Merck, Hilton Hotels Corporation, Credit Suisse,
Societe General, HM Customs & Excise, SpecSavers, BT Ignite, Robert Bosch, and
Australia Department of Veterans Affairs. 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. Our management estimates that such repeat
business accounts for approximately 38% 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.
However, we have registered the trademarks "CorVu", "Managing Business
Performance", "CorBusiness" (on the Supplemental Register), "CorManage", and
"RapidScorecard" with the U.S. Patent and Trademark Office. Applications for the
registration of the trademarks "Managing Business Performance" and "HyperVu" are
pending with the U.S. Patent and Trademark Office. The trademark "CorVu Managing
Business Performance" which includes our Company's logo has been registered in
Colombia and Venezuela; applications for the registration of that trademark are
pending in Brazil and Mexico. Once granted, the trademarks in the U.S. and in
the named Southern American Countries have a duration of ten years, with the
possibility of renewals for like terms. In Australia, a trademark for "CorVu
Your Window Into the Future" and its design is registered. This trademark will
be up for renewal in 2005. 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 2002, we spent $1,076,111 on research and development
activities, and in fiscal 2003, a total of $1,353,056. 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 2003 expense.

(ix)     Our Employees

         As of June 30, 2003, we employed 105 people in our Company and our
subsidiaries around the world. Thirty-six of these employees worked in Sales and
Marketing, 28 provided professional services such as training and general
product assistance, 20 worked in product development and 21 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.

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.


                                       7
<PAGE>


         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 $13,000 and for the London office to approximately
$14,000 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 AND RELATED STOCKHOLDER MATTERS

Our common stock is quoted on the OTC Bulletin Board under the symbol CRVU.
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.


<TABLE>
<CAPTION>
                                                          COMMON STOCK
                                                ------------------------------
FISCAL QUARTER ENDED                               HIGH BID       LOW BID
------------------------------------------------------------------------------
<S>                                               <C>            <C>
September 30, 2001                                $     .14      $     .08
December 31, 2001                                 $     .20      $     .05
March 31, 2002                                    $     .45      $     .18
June 30, 2002                                     $     .37      $     .17

September 30, 2002                                $     .42      $     .16
December 31, 2002                                 $     .57      $     .16
March 31, 2003                                    $     .60      $     .37
June 30, 2003                                     $     .96      $     .25
</TABLE>


         As of August 31, 2003, we had approximately 183 shareholders of record.
We have never paid cash dividends on our Common Stock and do not anticipate
paying dividends in the foreseeable future.

         In March 2003, the Company redeemed the remaining 200 shares of Series
A Convertible Preferred stock outstanding for $11.70 per share plus accrued but
unpaid dividends.



                                       8
<PAGE>


The following table provides information as of June 30, 2003 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...............               3,401,126                    $ 1.13                           598,874

Equity compensation plans
   not approved by
   security holders......               3,316,781                    $ 1.86                               -0-
</TABLE>


RECENT SALES OF UNREGISTERED SECURITIES

         None


                                       9
<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 No. 101, "Revenue
Recognition in Financial Statements." 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


                                       10
<PAGE>


              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, 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.

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, 2003 VERSUS JUNE 30, 2002

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 $3,375,495 (27%) from $12,341,806 for the
year ended June 30, 2002 to $15,717,301 for the year ended June 30, 2003.

         Software and license fee revenues increased $1,338,923 (22%) from
$6,150,619 in 2002 to $7,489,542 in 2003. This increase reflects an increasing
acceptance and demand for our products in the marketplace, especially in the
Balanced Scorecard area. The number of salespeople increased by 20% during the
year (totals 36) and


                                       11
<PAGE>

approximately 450 new customers were added during the year. Other factors
contributing to this improvement were an improved economy and an increased
market demand for our products.

         Maintenance fees increased $1,183,610 (35%) from $3,381,731 in 2002 to
$4,565,341 in 2003 due to an increasing customer base and strong renewals of
existing contracts.

         Consulting and other revenues increased $852,962 (30%) from $2,809,456
in 2002 to $3,662,418 in 2003 due to increased software and license fee revenue
and a strong demand for our on-going consulting and training services.

OPERATING EXPENSES:

         Operating expenses increased by $2,836,118 (24%) from $11,736,315 for
the year ended June 30, 2002 to $14,572,433 for the year ended June 30, 2003.

         Cost of consulting and other expenses increased $184,800 (6%) from
$2,945,787 in 2002 to $3,130,587 in 2003. Staffing levels remained consistent
during the year with the increase in expenses caused primarily by salary
increases and cost of living adjustments.

         Product development costs increased $276,945 (26%) from $1,076,111 in
2002 to $1,353,056 in 2003. 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 4 positions during the year as we continue to focus
on new product initiatives.

         Sales and marketing expenses increased $1,777,796 (43%) from $4,154,610
in 2002 to $5,932,406 in 2003. As stated under license fee revenues above, we
have increased staffing in this area by 20% by strategically adding salespeople
in certain parts of the world as the market demands and our strong financial
performance continues. In addition, we have increased our world-wide marketing
activities to aggressively increase market awareness and to improve lead
generation.

         General and administrative expenses increased $596,577 (17%) from
$3,559,807 in 2002 to $4,156,384 in 2003. The primary reason for increases in
this area was our increased activities in investor and broker relations that are
being done in an effort to increase and broaden our shareholder base and to
improve shareholder value.

INTEREST EXPENSE, NET:

         Interest expense, net decreased $79,020 (51%) from $155,960 in 2002 to
$76,940 in 2003. Reduced levels of interest incurring debts 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. For the year ended June 30, 2002, the value of the accumulated net
operating losses were fully reserved for.

NET INCOME:

         CorVu Corporation generated net income of $3,682,928 and $449,531 for
the years ended June 30, 2003 and 2002, respectively.


                                       12
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         Total cash and cash equivalents increased by $364,170 from $279,176 as
of June 30, 2002 to $643,346 as of June 30, 2003.

         Net cash provided by operating activities was $67,517 for the year
ended June 30, 2003. Net cash used in investing activities was $138,842 for the
year ended June 30, 2003 reflecting the acquisition of capital assets. Net cash
provided by financing activities was $367,319 for the year ended June 30, 2003.
Proceeds from the sale of common stock and the exercise of stock options
accounted for $119,659. In addition, during the year ended June 30, 2003, the
Company had net borrowings under its line of credit facility of $250,000.

         We believe that current cash flow from operations will be sufficient to
meet our cash requirements for the next 12 months.

DISCLOSURES ABOUT CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

         The following summarizes our contractual obligations at June 30, 2003,
and the effect these contractual obligations are expected to have on our
liquidity and cash flows in future periods (in Thousands):

<TABLE>
<CAPTION>
                                          1 YEAR      1-3        OVER
                                TOTAL     OR LESS    YEARS      3 YEARS
                               ------     -------    ------     -------
<S>                          <C>        <C>        <C>        <C>
Operating leases .........     $1,788     $  555     $1,083     $  150
Note payable-stockholder..        686         --        686         --
Line of credit ...........        250        250         --         --
                               ------     ------     ------     ------
Total ....................     $2,724     $  805     $1,769     $  150
                               ------     ------     ------     ------
</TABLE>

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


                                       13
<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.


                                       14
<PAGE>


ITEM 7. CONSOLIDATED FINANCIAL STATEMENTS


                       CORVU CORPORATION AND SUBSIDIARIES
                        Consolidated Financial Statements
                             June 30, 2003 and 2002



                                       15
<PAGE>


REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To CorVu Corporation:

We have audited the accompanying consolidated balance sheets of CorVu
Corporation and subsidiaries as of June 30, 2003 and 2002, and the related
consolidated statements of operations, stockholders' deficit and cash flows for
the years then ended. These consolidated financial 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit 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 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, 2003 and 2002, and the results of their
operations and their cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America.


                                         /s/ VIRCHOW, KRAUSE & COMPANY, LLP

Minneapolis, Minnesota
August 27, 2003


                                       16
<PAGE>

                       CORVU CORPORATION AND SUBSIDIARIES
                           Consolidated Balance Sheets
                             June 30, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                             2003               2002
                                                                                         ------------      ------------
                                        ASSETS

<S>                                                                                      <C>               <C>
Current assets:
   Cash and cash equivalents .......................................................     $    643,346      $    279,176
   Trade accounts receivable, net of allowance for doubtful accounts of $183,000 and
     $160,000, respectively ........................................................        3,294,193         2,845,858
   Deferred income taxes ...........................................................        1,137,000                --
   Prepaid expenses ................................................................          279,156           154,063
   Other current assets ............................................................           67,334            43,788
                                                                                         ------------      ------------
        Total current assets .......................................................        5,421,029         3,322,885
                                                                                         ------------      ------------
Furniture, fixtures, and equipment .................................................          556,301           398,604
   Less accumulated depreciation ...................................................         (394,920)         (298,664)
                                                                                         ------------      ------------
        Net furniture, fixtures and equipment ......................................          161,381            99,940

Other assets:
   Deferred income taxes ...........................................................        1,478,000                --
                                                                                         ------------      ------------
                                                                                         $  7,060,410      $  3,422,825
                                                                                         ============      ============

                         LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
   Line of credit ..................................................................     $    250,000      $         --
   Accounts payable ................................................................        1,061,768         2,036,842
   Accrued compensation and related costs ..........................................        1,973,304         2,527,493
   Deferred revenue ................................................................        4,438,724         2,872,329
   Accrued interest ................................................................          168,664            73,232
   Other accrued expenses ..........................................................          853,999           845,168
                                                                                         ------------      ------------
        Total current liabilities ..................................................        8,746,459         8,355,064

Notes payable - stockholder ........................................................          685,767           685,767
                                                                                         ------------      ------------
        Total liabilities ..........................................................        9,432,226         9,040,831
                                                                                         ------------      ------------

Stockholders' deficit:
   Undesignated capital stock, 24,000,000 shares in 2003 and 2002, none issued .....               --                --
   Series A convertible preferred stock, $10 par value:
     1,000,000 shares authorized; none and 200 shares issued and outstanding in 2003
     and 2002, respectively ........................................................               --             2,000
   Common stock, $0.01 par value; 75,000,000 shares authorized;
     22,753,029 and 20,730,835 shares issued and outstanding in 2003 and 2002,
     respectively ..................................................................          227,474           207,252
   Additional paid-in capital ......................................................       16,886,375        16,223,744
   Stock subscription receivable ...................................................         (324,000)               --
   Accumulated deficit .............................................................      (18,509,486)      (22,191,944)
   Deferred compensation ...........................................................         (131,250)               --
   Accumulated other comprehensive income (loss) ...................................         (520,929)          140,942
                                                                                         ------------      ------------
        Total stockholders' deficit ................................................       (2,371,816)       (5,618,006)
                                                                                         ------------      ------------
        Commitments (Notes 3, 5, and 13)
        Total liabilities and stockholders' deficit ................................     $  7,060,410      $  3,422,825
                                                                                         ============      ============
</TABLE>

See accompanying notes to consolidated financial statements.


                                       17
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                      Consolidated Statements of Operations
                       Years ended June 30, 2003 and 2002

<TABLE>
<CAPTION>
                                                     2003               2002
                                                 ------------      ------------
<S>                                              <C>               <C>
Revenues:
   Software and license fees ...............     $  7,489,542      $  6,150,619
   Maintenance fees ........................        4,565,341         3,381,731
   Consulting and other ....................        3,662,418         2,809,418
                                                 ------------      ------------
        Total revenues .....................       15,717,301        12,341,806
                                                 ------------      ------------

Operating costs and expenses:
   Cost of consulting and other ............        3,130,587         2,945,787
   Product development .....................        1,353,056         1,076,111
   Sales and marketing .....................        5,932,406         4,154,610
   General and administrative ..............        4,156,384         3,559,807
                                                 ------------      ------------
        Total operating costs and expenses .       14,572,433        11,736,315
                                                 ------------      ------------

        Operating income ...................        1,144,868           605,491
Interest expense, net ......................          (76,940)         (155,960)
                                                 ------------      ------------
        Income  before income taxes ........        1,067,928           449,531
Benefit from income taxes ..................        2,615,000                --
                                                 ------------      ------------
        Net income .........................     $  3,682,928      $    449,531
                                                 ============      ============

Net income per common share--basic .........     $       0.17      $       0.02
Weighted average shares outstanding--basic .       22,197,804        20,413,148
Net income per common share--diluted .......     $       0.16      $       0.02
Weighted average shares outstanding--diluted       22,872,374        21,159,166
</TABLE>

See accompanying notes to consolidated financial statements.


                                       18
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                Consolidated Statements of Stockholders' Deficit
                       Years ended June 30, 2003 and 2002

<TABLE>
<CAPTION>

                                                      PREFERRED STOCK                COMMON STOCK                 ADDITIONAL
                                                 -------------------------  --------------------------------        PAID-IN
                                                    SHARES      AMOUNT          SHARES          AMOUNT              CAPITAL
                                                 ----------- -------------  ---------------- ---------------   --------------
<S>                                               <C>        <C>               <C>           <C>                   <C>
Balance, June 30, 2001                                  200  $      2,000        20,157,781  $      201,522        16,159,995
    Comprehensive loss:
        Net income                                       --            --                --              --                --
        Foreign currency translation adjustment          --            --                --              --                --
    Comprehensive income                                 --            --                --              --                --
    Preferred stock dividends                            --            --                --              --                --
    Non-cash charges related to equity
        transactions (Note 3)                            --            --                --              --             3,046
    Deferred compensation                                --            --                --              --                --
    Conversion of director advance into common
        stock                                            --            --            80,000             800            11,200
    Issuance of common stock                             --            --           493,054           4,930            49,503
                                                 ----------- -------------  ---------------- ---------------   ----------------
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 charges related to equity
        transactions (Note 3)                            --            --                --              --           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
                                                 =========== =============  ================ ===============   ================
</TABLE>

<TABLE>
<CAPTION>
                                                                                                    ACCUMULATED
                                                        STOCK                                          OTHER           TOTAL
                                                     SUBSCRIPTION  ACCUMULATED      DEFERRED       COMPREHENSIVE    STOCKHOLDERS'
                                                      RECEIVABLE     DEFICIT      COMPENSATION     INCOME (LOSS)      DEFICIT
                                                     ------------  ------------  -------------    --------------  ----------------
<S>                                                  <C>           <C>           <C>              <C>             <C>
Balance, June 30, 2001                                     --      (22,641,345)      (318,100)         404,137        (6,191,791)
    Comprehensive loss:
        Net income                                         --          449,531             --               --           449,531
        Foreign currency translation adjustment            --               --             --         (263,195)         (263,195)
                                                                                                                  ----------------
    Comprehensive income                                   --               --             --               --           186,336
    Preferred stock dividends                              --             (130)            --               --              (130)
    Non-cash charges related to equity
        transactions (Note 3)                              --               --             --               --             3,046
    Deferred compensation                                  --               --        318,100               --           318,100
    Conversion of director advance into common
        stock                                              --               --             --               --            12,000
    Issuance of common stock                               --               --             --               --            54,433
                                                                                                                  ----------------
                                                    ----------   --------------   ------------    --------------------------------
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 charges related to equity
        transactions (Note 3)                              --               --       (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)
                                                    ==========   ==============   ============    ================================
</TABLE>

See accompanying notes to consolidated financial statements.


                                       19
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                       Years ended June 30, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                           2003           2002
                                                                                       -----------    -----------
<S>                                                                                    <C>            <C>
Cash flows from operating activities:
   Net income ......................................................................   $ 3,682,928    $   449,531
   Adjustments to reconcile net income to net cash provided in operating activities:
     Depreciation ..................................................................        77,401         67,736
     Warrants and stock options vested .............................................       107,944        321,146
       Deferred income taxes .......................................................    (2,615,000)            --
     Changes in operating assets and liabilities:
        Trade accounts receivable, net .............................................      (598,335)      (295,484)
        Prepaid expenses ...........................................................      (125,093)       (58,716)
        Other current assets .......................................................       (23,546)         6,268
        Accounts payable ...........................................................    (1,175,204)    (1,526,885)
        Accrued compensation and related costs .....................................      (754,189)       (97,049)
        Deferred revenue ...........................................................     1,366,395      1,255,254
        Accrued interest ...........................................................        95,432         49,569
        Other accrued expenses .....................................................        28,784         88,873
                                                                                       -----------    -----------
          Net cash provided in operating activities ................................        67,517        260,243
                                                                                       -----------    -----------

Cash flows from investing activities:
   Capital expenditures ............................................................      (138,842)       (62,603)
                                                                                       -----------    -----------
          Net cash used in investing activities ....................................      (138,842)       (62,603)
                                                                                       -----------    -----------

Cash flows from financing activities:
   Borrowings on line of credit ....................................................       250,000             --
   Repayment of note payable .......................................................            --       (188,123)
   Borrowings notes payable- stockholder ...........................................            --        179,200
   Repayment of notes payable- stockholder .........................................            --        (43,778)
   Net proceeds from sale of common stock ..........................................       100,000         54,433
   Exercise of stock options .......................................................        19,659             --
   Redemption of preferred stock ...................................................        (2,340)            --
                                                                                       -----------    -----------
          Net cash provided by financing activities ................................       367,319          1,732
Effect of exchange rate changes on cash ............................................        68,176          2,395
                                                                                       -----------    -----------
          Net increase in cash and cash equivalents ................................       364,170        201,767
Cash and cash equivalents at beginning of year .....................................       279,176         77,409
                                                                                       -----------    -----------
Cash and cash equivalents at end of year ...........................................   $   643,346    $   279,176
                                                                                       ===========    ===========

Supplemental cash flow disclosures:
Cash paid during the year for interest .............................................   $    81,071    $    15,634
Non-cash investing and financing activities:
Common stock issued for stock subscription receivable ..............................   $   324,000    $        --
Cashless exercise of stock warrants ................................................         4,888             --
Conversion of director advance into common stock ...................................            --         12,000
</TABLE>

See accompanying notes to consolidated financial statements.


                                       20
<PAGE>

                       CORVU CORPORATION AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                             June 30, 2003 and 2002

(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. 101, "Revenue Recognition in Financial
          Statements."

          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.


                                       21
<PAGE>


     (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
          2003 and 2002, no software development costs were capitalized.

     (C)  COMPREHENSIVE INCOME

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

          Comprehensive income and its components consist of the following:

<TABLE>
<CAPTION>
                                                  2003           2002
                                              -----------    -----------
<S>                                           <C>                <C>
               Net income .................   $ 3,682,928        449,531
               Other comprehensive
                income (loss):
               Foreign currency translation
                  adjustment ..............      (661,871)      (263,195)
                                              -----------    -----------
               Comprehensive income .......   $ 3,021,057    $   186,336
                                              -----------    -----------
</TABLE>

     (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 statement of operations in the period
          they occur.

     (E)  NET INCOME PER COMMON SHARE

          Basic net income per common share is computed by dividing net income
          by the weighted average number of common shares outstanding during the
          period. Diluted net income per common share is computed by dividing
          net income 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 and 746,018 shares of dilutive securities for the
          years ended June 30, 2003 and 2002, respectively.


                                       22
<PAGE>


         Following  is a  reconciliation  of basic and  diluted  net  income per
         common share for the years ended June 30, 2003 and 2002, respectively:

<TABLE>
<CAPTION>
                                                             2003          2002
                                                          ----------    ----------
<S>                                                      <C>               <C>
               Net income                                $ 3,682,928       449,531

               Weighted average shares outstanding        22,197,804    20,413,148

               Net income per common share--basic        $      0.17          0.02

               Net income per common share -- diluted:

               Net income                                $ 3,682,928       449,531

               Weighted average shares outstanding        22,197,804    20,413,148

               Common stock equivalents                      674,570       746,018

               Weighted average shares and potential
                  diluted shares outstanding              22,872,374    21,159,166

               Net income per common share-- Diluted     $      0.16          0.02
</TABLE>

          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 and 5,236,890 shares of
          common stock with a weighted average exercise price of $2.25 and $1.88
          were outstanding at June 30, 2003 and 2002, respectively, but were
          excluded from the computation of common share equivalents for the
          years ended June 30, 2003 and 2002 because their exercise prices were
          greater than the average market price of the common shares.

     (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.


                                       23
<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:

<TABLE>
<CAPTION>
                                                                  2003              2002
                                                               ------------     ------------
<S>                                                            <C>              <C>
                  Net income (loss):
                     As reported                               $  3,682,928        449,531
                     Pro forma                                    3,490,070       (402,902)

                  Basic net income (loss) per common share:
                     As reported                                       0.17           0.02
                     Pro forma                                         0.16          (0.02)

                  Diluted net income (loss) per common share:
                     As reported                                       0.16           0.02
                     Pro forma                                         0.15          (0.02)

                  Stock based compensation:
                     As reported                                    107,944              0
                     Pro forma                                      300,802        852,433
</TABLE>

          In determining the compensation cost of options granted during years
          ended June 30, 2003 and 2002, 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:

<TABLE>
<CAPTION>
                                                                   2003             2002
                                                               --------------   -------------
<S>                                                            <C>              <C>
                     Risk-free interest rate                     2.625-4.375%      4.875-7.0%
                     Expected life of options granted                7 years         7 years
                     Expected volatility                                  84%            188%
                     Expected dividend yield                               0%              0%

</TABLE>

     (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.


                                       24
<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
          $77,401 and $67,736 for the years ended June 30, 2003 and 2002,
          respectively.

     (L)  ADVERTISING COSTS

          Advertising costs are expensed as incurred. Advertising costs totaled
          approximately $68,000 and $15,000 for the years ended June 30, 2003
          and 2002, 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. The Company had accounts receivable from one
          customer that represented approximately 12% of accounts receivable at
          June 30, 2002.

     (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, 2003 and 2002.

     (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.


                                       25
<PAGE>


(3)  STOCK OPTIONS AND WARRANTS

     The Company's 1996 Stock Option Plan (the Plan) provides for the issuance
     of up to an aggregate of 4,000,000 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 Statement of Financial Accounting Standards (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 2003 and 2002 was $0.35 and $0.46 per share, respectively.

     The activity for the Plan is summarized as follows:

<TABLE>
<CAPTION>
                                                                                       WEIGHTED-
                                                                                    AVERAGE EXERCISE
                                                                    OPTIONS         PRICE PER SHARE
                                                               -------------------  ------------------
<S>                                                            <C>                  <C>
                  Outstanding at June 30, 2001 ............             3,539,666    $           2.64
                     Granted ..............................               727,750                0.47
                     Exercised ............................                    --                  --
                     Forfeited.............................              (937,413)               1.66
                                                               -------------------   -----------------
                  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
                                                               ===================   =================
                  Options exercisable at June 30, 2003.....             2,804,472    $           1.29
                                                               ===================   =================
</TABLE>

     At June 30, 2003 and 2002, the weighted average remaining contractual life
     of outstanding options was 4.0 and 4.7 years, respectively.


                                       26
<PAGE>


     Options activity outside the Plan is summarized as follows:

<TABLE>
<CAPTION>
                                                                                       WEIGHTED-
                                                                                    AVERAGE EXERCISE
                                                                    OPTIONS         PRICE PER SHARE
                                                               -------------------  ------------------
<S>                                                            <C>                  <C>
                  Outstanding at June 30, 2001 ............             1,411,874    $           1.70
                     Granted ..............................                    --                  --
                     Exercised ............................                    --                  --
                     Forfeited.............................               (45,001)               1.97
                                                               -------------------   -----------------
                  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
                                                               ===================   =================
                  Options exercisable at June 30, 2003.....             1,349,439    $           1.69
                                                               ===================   =================
</TABLE>

     At June 30, 2003 and 2002, the weighted average remaining contractual life
     of outstanding options was 3.0 and 4.0 years, respectively.

     The following tables summarize information about stock options outstanding
     as of June 30, 2003:

<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               326,000                5.1    $          0.11            213,004     $        0.12
              0.14-0.20               271,000                4.7               0.19            233,336              0.20
              0.24-0.37               714,000                5.0               0.28            562,172              0.27
              0.38-0.42               418,000                5.8               0.40            191,000              0.39
              0.59-0.92               337,875                3.8               0.78            295,875              0.77
              1.25-1.78             1,424,939                3.3               1.39          1,399,773              1.39
              2.50-3.00             1,234,751                2.3               2.64          1,234,751              2.64
                7.00                   24,000                3.7               7.00             24,000              7.00
         -----------------   -----------------  -----------------   ----------------   ----------------    --------------
            $ 0.08-7.00             4,750,565                3.8    $          1.29          4,153,911     $        1.42
         =================   =================  =================   ================   ================    ==============
</TABLE>

     Warrants and options issued to third parties

     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. The remaining $131,250 is included as deferred
     compensation in the 2003 balance sheet. 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 expected life of five years.


                                       27
<PAGE>


     During 2002, the Company issued a warrant to purchase 10,000 shares of
     common stock at $0.26 per share to a vendor. The warrant is exercisable
     from the date of grant through May 2007. The fair value of the warrant at
     the date of grant was estimated to be approximately $1,500 using the
     Black-Scholes pricing model which was expensed in the 2002 consolidated
     statement of operations. The following assumptions were used to calculate
     the expense: dividend yield of 0%; expected volatility of 60%; risk-free
     interest rate of 5.0%; and expected life of five years.

     As of June 30, 2003, warrants to purchase a total of 1,967,342 shares of
     common stock were outstanding at exercise prices ranging from $0.15-$7.00
     per share, expiring through June 2008.

     Information regarding the Company's warrants is summarized below:

<TABLE>
<CAPTION>
                                                                                       WEIGHTED-
                                                                                       AVERAGE
                                                                                       EXERCISE
                                                                                      PRICE PER
                                                                   NUMBER               SHARE
                                                                -------------        ------------
<S>                                                             <C>                  <C>
                  Outstanding at June 30, 2001 .............       3,797,099         $      5.11
                     Granted ...............................          10,000                0.26
                     Exercised .............................              --                  --
                     Forfeited..............................      (1,954,339)               8.00
                                                                -------------        ------------
                  Outstanding at June 30, 2002 .............       1,852,760         $      2.04
                     Granted ...............................         300,000                0.37
                     Exercised .............................        (506,250)               0.01
                     Forfeited..............................        (112,500)               1.04
                                                                -------------        ------------
                  Outstanding at June 30, 2003..............       1,967,342         $      1.98
                                                                =============        ============
</TABLE>


                                       28
<PAGE>


(4)  INCOME TAXES

     The Company has incurred cumulative net operating losses since inception.

     The income tax benefit differed from the amount computed by applying the
     U.S. federal income tax rate of 34% to income before income taxes as a
     result of the following:

<TABLE>
<CAPTION>
                                                                                       2003         2002
                                                                                   -------------  ----------
<S>                                                                                <C>            <C>
                  Federal statutory tax rate benefits..........................            34.0%       34.0%
                  State tax, net of federal benefit............................             2.0         4.0
                  Reduction of net operating losses............................           100.0          --
                  Benefits related to foreign operations.......................            (5.5)      (18.1)
                  Change in valuation allowance................................          (377.6)      (34.2)
                  Permanent differences and other..............................             2.2        14.3%
                                                                                   -------------  ----------
                  Effective tax rate...........................................          (244.9)%        --%
                                                                                   =============  ==========
</TABLE>

     The tax effect of temporary differences that give rise to significant
     portions of the deferred tax assets as of June 30 is presented below (in
     thousands):

<TABLE>
<CAPTION>
                                                                                       2003          2002
                                                                                   ------------- -------------
<S>                                                                                <C>           <C>
                  Deferred income tax assets:
                     Foreign net operating loss carryforwards..................    $       2,376 $      2,531
                     U.S. and state net operating loss carryforwards and
                       credits.................................................            2,066        3,375
                     Miscellaneous reserves and accruals.......................              337          291
                                                                                   ------------- -------------
                          Total gross deferred tax assets......................            4,779        6,197
                  Less: Valuation allowance....................................           (2,164)      (6,197)
                                                                                   ------------- -------------
                          Net deferred income tax assets.......................    $       2,615 $         --
                                                                                   ============= =============
</TABLE>

     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, 2003. As of June 30, 2002, the Company fully
     reserved for the deferred tax assets as of that date.

     As of June 30, 2003, the Company has reported U.S. net operating loss
     carryforwards of approximately $5,480,000. The net operating loss
     carryforwards expire in the years 2010 through 2021.

     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.

(5)  COMMITMENTS AND CONTINGENCIES

     OPERATING LEASES


                                       29
<PAGE>


     The Company leases certain facilities and equipment under noncancelable
     operating leases that expire at various dates through 2008. Future minimum
     lease commitments under these operating leases are as follows:

<TABLE>
<CAPTION>
             YEAR ENDING JUNE 30:
             --------------------
<S>                                                  <C>
             2004................................    $         555,000
             2005................................              438,000
             2006................................              337,000
             2007................................              308,000
             2008................................              150,000
                                                     ------------------
                                                     $       1,788,000
                                                     ==================
</TABLE>

     Rent expense under operating leases for the years ended June 30, 2003 and
     2002 were $915,000 and $744,000, 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.

     In October 2002, the Company was named as a defendant in a lawsuit brought
     by the bankruptcy trustee of the subsidiary corporation of a customer. The
     suit claims the Company received a fraudulent payment as defined in the
     United States Bankruptcy Code. During 1999, the Company sold and installed
     software for the customer. Subsequently, the Company received payment
     totaling approximately $160,000 from the customer's subsidiary corporation.
     No assurance can be given on the outcome of this suit. The Company and its
     legal counsel believe that the Company has meritorious defenses to the
     action. The trustee in bankruptcy has filed a suit seeking the return of
     the $160,000 on the theory that the party making the payment (the
     subsidiary corporation of the customer) received no benefit from the
     transaction.

(6)  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, 2004.
     The notes are secured by substantially all the assets of the Company.
     Balances due under these notes were approximately $686,000 as of June 30,
     2003 and 2002, respectively plus accrued interest of approximately $81,000
     and $73,000, as of June 30, 2003 and 2002, respectively. These amounts have
     been included in accrued interest in the accompanying balance sheets.
     Interest expense was approximately $62,000 for the years ended June 30,
     2003 and 2002, respectively.

(7)  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,
     2003) and is secured 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, 2003 was $250,000, which is included in the
     accompanying consolidated balance sheet. Interest expense for the year
     ended June 30, 2003 was approximately $500, which is included in interest
     expense in the accompanying consolidated statement of operations.


                                       30
<PAGE>


(8)  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:

<TABLE>
<CAPTION>
                                                                YEAR ENDED JUNE 30,
                                                    --------------------------------------------
                                                            2003                   2002
                                                    ---------------------   --------------------
<S>                                                 <C>                     <C>
                  Total Revenues:
                     United States...............   $          6,080,000              5,429,000
                     Australia...................              5,316,000              4,150,000
                     United Kingdom..............              4,321,000              2,763,000
                                                    ---------------------   --------------------
                                                    $         15,717,000             12,342,000
                                                    =====================   ====================


                  Long-Lived Assets:
                     United States...............   $            100,000                 28,000
                     Australia...................                 26,000                 30,000
                     United Kingdom..............                 35,000                 41,000
                                                    ---------------------   --------------------
                                                    $            161,000                100,000
                                                    =====================   ====================
</TABLE>


(9)  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.

(10) CREDITOR SETTLEMENT AGREEMENT

     In November 2001 the Company entered into a Stipulation of Settlement
     agreement with a creditor for approximately $976,000 under which the
     Company agreed to make quarterly principal payments through December 2003,
     at which time it would also pay accrued interest on the unpaid principal
     balance from the date of the agreement to December 2003 at a rate of 9% per
     annum. In the event of default, the obligation would be accelerated, the
     interest rate would be increased to 15% and legal fees in the amount of
     $100,000 would become due. The Company has granted a security interest in
     the receivables of CorVu North America, Inc. as part of this settlement. As
     of June 30, 2003 and 2002, the balance under this obligation, which is
     included in accounts payable in the accompanying consolidated balance
     sheets, was approximately $112,000 and $650,000, respectively, including
     accrued interest.

(11) NEW ACCOUNTING PRONOUNCEMENTS

     In October 2002, the Financial Accounting Standards Board (FASB) issued
     Statement of Financial Standards (SFAS) No. 147, "Acquisitions of Certain
     Financial Institutions". SFAS No. 147 is effective October 1, 2002. The
     adoption of SFAS No. 147 did not have a material effect on the Company's
     consolidated financial statements.


                                       31
<PAGE>


     In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
     Compensation - Transition and Disclosure." SFAS No. 148 is an amendment to
     SFAS No. 123 providing alternative methods of transition for a voluntary
     change to the fair value based method of accounting for stock-based
     employee compensation and also requires additional disclosures about the
     method of accounting for stock-based employee compensation. The amendments
     are effective for financial statements for fiscal years ending after
     December 31, 2002 and for the interim periods beginning after December 15,
     2002. The Company has currently chosen to not adopt the voluntary change to
     the fair value based method of accounting for stock-based employee
     compensation, pursuant to SFAS No. 148, which, if adopted, could have a
     material effect on the Company's consolidated financial statements.

     In April 2003, the FASB issued Statement of Financial Accounting Standards
     (SFAS) No. 149, "Amendment of Statement 133 on Derivative Instruments and
     Hedging Activities," effective for contracts entered into or modified after
     June 30, 2003. This amendment clarifies when a contract meets the
     characteristics of a derivative, clarifies when a derivate contains a
     financing component and amends certain other existing pronouncements. The
     Company believes the adoption of SFAS No. 149 will not have a material
     effect on the Company's consolidated financial statements.

     In May 2003, the FASB issued Statement of Financial Accounting Standards
     (SFAS) No. 150, "Accounting for Certain Financial Instruments with
     Characteristics of both Liabilities and Equity." SFAS No. 150 is effective
     for financial instruments entered into or modified after May 31, 2003, and
     otherwise is effective at the beginning of the first interim period
     beginning after June 15, 2003. SFAS No. 150 requires the classification as
     a liability of any financial instruments with a mandatory redemption
     feature, an obligation to repurchase equity shares, or a conditional
     obligation based on the issuance of a variable number of its equity shares.
     The Company does not have any financial instruments as defined by SFAS No.
     150. The Company believes the adoption of SFAS No. 150 will not have a
     material effect on the Company's consolidated financial statements.

     In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's
     Accounting and Disclosure Requirements for Guarantees, Including Indirect
     Guarantees of Indebtedness of Others" (FIN 45). FIN 45 clarifies the
     requirements for a guarantor's accounting for and disclosure of certain
     guarantees issued and outstanding. The initial recognition and initial
     measurement provisions of FIN 45 are applicable to guarantees issued or
     modified after December 31, 2002. The disclosure requirements of FIN 45 are
     effective for financial statements for periods ending after December 15,
     2002. The adoption of FIN 45 did not impact the Company's consolidated
     financial statements.

     In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation
     of Variable Interest Entities" (FIN 46). FIN 46 states that companies that
     have exposure to the economic risks and potential rewards from another
     entity's assets and activities have a controlling financial interest in a
     variable interest entity and should consolidate the entity, despite the
     absence of clear control through a voting equity interest. The
     consolidation requirements apply to all variable interest entities created
     after January 31, 2003. For variable interest entities that existed prior
     to February 1, 2003, the consolidation requirements are effective for
     annual or interim periods beginning after June 15, 2003. Disclosure of
     significant variable interest entities is required in all financial
     statements issued after January 31, 2003, regardless of when the variable
     interest was created. The Company does not expect the adoption of FIN 46 to
     have a material impact on the Company's consolidated financial statements.

(12) 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, 2003 and 2002.


                                       32
<PAGE>


(13) 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. See Note 15- Subsequent Events.

(14) 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. See Note 15- Subsequent Events.

(15) SUBSEQUENT EVENTS (UNAUDITED)

     On July 30, 2003, the Company entered into a restructuring agreement with
     GlobalNet pursuant to which GlobalNet ceased to provide 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
     purchased 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.

     Under separate agreements, the Company has the option to purchase up to
     440,000 shares at a price of $0.62 per share from GlobalNet on or before
     September 15, 2003. The Company would pay for these shares by reducing the
     principal balance of the promissory note held by $118,800 and making cash
     payments totaling $154,000. In addition, for the remaining 200,000 shares
     of common stock held by GlobalNet, the Company has the option to convert
     those shares into 112,903 fully paid shares by reducing the remaining
     principal balance under the promissory note ($54,000) to zero.


                                       33
<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.

                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH SECTION 16(A) OF THE EXCHANGE ACT

DIRECTORS AND EXECUTIVE OFFICERS

         The following table sets forth the name, age and position of each
person who currently serves as a director and/or officer of our Company as of
August 31, 2003. Our directors serve for an indefinite term that expires at the
next regular meeting of our shareholders, and until such directors' successors
are elected and qualified, or until such directors' earlier death, resignation,
disqualification or removal as provided by law.


<TABLE>
<CAPTION>
         NAME                                          AGE                              POSITION
         ----------------------------------------  ------------- --------------------------------------------------------
<S>                                                <C>           <C>
         James L. Mandel.......................         46       Chairman
         David C. Carlson......................         46       Chief Financial Officer; Director
         Ismail Kurdi..........................         34       Director
         Justin MacIntosh......................         53       President, Chief Executive Officer; Director
         Alan M. Missroon, Jr..................         40       Senior Vice President of Corporate Strategy; Director
</TABLE>


         James L. Mandel (Director). Mr. Mandel has been a director of CorVu
since 1987. He has been the Chief Executive Officer and a director of Vicom,
Inc. since September 1998. Vicom is a full service telecommunications company
which files reports under the Securities Exchange Act of 1934 and is
headquartered in Minneapolis. From January 1997 to September 1998, he was
Chairman of Call 4 Wireless LLC and from January 1992 to February 1997, he
served as a Vice President of Grand Casinos, Inc. He currently spends
approximately 10% of his time on CorVu's business affairs.

         David C. Carlson (Chief Financial Officer; Director). Before joining
CorVu Corporation as Chief Financial Officer in July 1996, Mr. Carlson gained
extensive experience in the area of accounting and business operations. He
served from July 1979 to July 1984 in the audit division of Arthur Andersen &
Co. From July 1984 to April 1989, he held the position of Controller and later,
Vice President of Finance at Canterbury Downs, a horse racing facility. He
joined the Minnesota Timberwolves, a professional sports franchise, in April
1989 as Controller, a position he subsequently held at a local health and
fitness chain until May 1996; the sports franchise and the health and fitness
chain were under common ownership. Mr. Carlson is responsible for all areas of


                                       34
<PAGE>


financial management of our Company. He became a member of the board of
directors of CorVu Corporation in December 1996.

         Ismail Kurdi (Director). Mr. Kurdi received a Bachelor of Science from
Boston University in May 1992. From September 1992 to September 1993, he was
with Oxy USA, a subsidiary of Occidental Petroleum. In October 1993, he
relocated back to England where he is a real estate developer and investor. He
serves on the board of directors for several British property companies that are
not reporting companies. Mr. Kurdi was elected to the board of directors of
CorVu Corporation in December 1996. He currently spends approximately 10% of his
time on CorVu's business affairs.

         Justin M. MacIntosh (President, Chief Executive Officer; Director).
After a career in the equity and real estate markets in Australia, Mr. MacIntosh
founded MACS Software Company, a provider of business application software, in
1977. He served as Chairman and CEO of MACS until he sold the company in 1984.
From 1985 to 1990, Mr MacIntosh served as a corporate consultant until late in
1990, when he founded the former parent company of CorVu in Australia. Since the
incorporation of CorVu Corporation in Minnesota in September 1995, Mr. MacIntosh
has served as Chairman, President and Chief Executive Officer, and as a director
of the Company.

         Alan M. Missroon, Jr. (Senior Vice President of Corporate Strategy;
Director). Mr. Missroon gained his knowledge of the business intelligence market
while working at Burroughs Corporation (Unisys) and during his eight years (from
July 1987 to November 95) at IQ Software Corporation in which he held a variety
of positions in sales, sales management, product design, and marketing. From
December 1995 to December 1996, he worked at Praxis International. During 2002
and 2003, Mr. Missroon was responsible for directing the salesforce in the
Americas region. In September 2003, Mr. Missroon was appointed as Senior Vice
President of Corporate Strategy, leading strategic relations with the analyst
and investor community and guiding the strategic direction of CorVu and its
products. He joined CorVu Corporation in January 1997 and was elected as one of
the directors of CorVu Corporation in February 1997.


                                       35
<PAGE>


SECTION 16(A) REPORTING COMPLIANCE

         Section 16(a) of the Securities Exchange Act of 1934 requires CorVu's
executive officers and directors, and persons who own more than 10 percent of
our common stock, to file with the Securities and Exchange Commission initial
reports of ownership and reports of changes in ownership of common stock and
other equity securities of CorVu. Officers, directors and greater than 10%
shareholders ("Insiders") are required by SEC regulations to furnish us with
copies of all Section 16(a) forms they file.

         To our knowledge, based on a review of the copies of such reports
furnished to us, for the fiscal year ended June 30, 2003 all Section 16(a)
filing requirements applicable to Insiders were complied with, except that James
Mandel was late filing one Form 4 reporting one transaction and Ismail Kurdi was
late filing one Form 4 reporting one transaction.


                                       36
<PAGE>

ITEM 10. EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

         The following table sets forth all cash compensation paid or to be paid
by CorVu, as well as certain other compensation, paid or accrued, during each of
CorVu's last three fiscal years to the Chief Executive Officer and other
executive officers whose total annual salary and bonus paid or accrued during
fiscal year 2003 exceeded $100,000.

<TABLE>
<CAPTION>
                                                                               LONG TERM COMPENSATION
                                                                        ------------------------------------
                                                                                AWARDS             PAYOUTS
                                                                       ------------------------   ----------
                                                                       RESTRICTED    SECURITIES
NAME AND                          ANNUAL COMPENSATION        SALES       STOCK       UNDERLYING      LTIP        ALL OTHER
PRINCIPAL                FISCAL  ----------------------   COMMISSIONS    AWARDS        OPTIONS      PAYOUTS   COMPENSATION
POSITION                  YEAR    SALARY ($)  BONUS ($)        $           $              #            $           $
-------------------      ------  -----------  ---------   -----------  ----------    ----------     -------   -------------
<S>                      <C>     <C>          <C>         <C>          <C>           <C>            <C>       <C>
Justin MacIntosh(1)       2003     325,160     231,447       53,898         --            --           --          --
   Chief Executive        2002     278,818     192,656       20,594         --            --           --          --
   Officer                2001     276,800       --           --            --           40,000        --          --

David C. Carlson          2003     137,500      24,415        --            --          100,000        --          --
   Chief Financial        2002     116,667      29,166        --            --            --           --          --
   Officer                2001     115,000      13,500        --            --          125,000        --          --

Alan M. Missroon, Jr.
   Senior Vice            2003     150,000       --         103,130         --          100,000        --          --
   President of           2002     150,000       --          63,587         --            --           --          --
   Corporate Strategy     2001     150,000      20,000        --            --          125,000        --          --
</TABLE>

-------------
(1)  $100,000 of 2001 salary amounts was subsequently forgiven by Mr. MacIntosh
     as part of his amended employment contract.


                                       37
<PAGE>


OPTION GRANTS DURING  2003 FISCAL YEAR

<TABLE>
<CAPTION>
                                                         Percent of Total
                                Number of Shares        Options Granted to       Exercise or
                               Underlying Options           Employees          Base Price Per
Name                             Granted  (1)             in Fiscal Year           Share          Expiration Date
----                          -------------------      --------------------        ------         ---------------
<S>                           <C>                      <C>                     <C>                <C>
David C. Carlson                  100,000 (1)                 25.2%                 $0.42            11/10/08
Alan M. Missroon                  100,000 (1)                 25.2%                 $0.42            11/10/08
</TABLE>


(1)  Options are exercisable in installments of 20,000 shares on November 11,
     2002, 40,000 shares on November 11, 2003 and 40,000 shares on November 11,
     2004.

OPTION EXERCISES DURING 2003 FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES

         No options were exercised by the named executive officers during fiscal
2003. The following table provides information related to the number and value
of options held at June 30, 2003:

<TABLE>
<CAPTION>
                                         NUMBER OF SECURITIES
                                        UNDERLYING UNEXERCISED                        VALUE OF UNEXERCISED IN-THE-
                                      OPTIONS AT FISCAL YEAR END                  MONEY OPTIONS AT FISCAL YEAR END(1)
                           -------------------------------------------------- ---------------------------------------------
NAME                             EXERCISABLE             UNEXERCISABLE            EXERCISABLE           UNEXERCISABLE
-------------------------- ------------------------ ------------------------- ---------------------  ----------------------
<S>                        <C>                      <C>                       <C>                    <C>
Justin MacIntosh                           940,000                        --  $             30,400   $                 -0-

David C. Carlson                           392,500                    80,000  $             86,475   $              43,200

Alan M. Missroon, Jr.                      355,000                    80,000  $             81,750   $              43,200

</TABLE>

----------------
(1)  Value is calculated on the basis of the difference between the option
     exercise price and $0.96, the average of the closing bid and ask price on
     June 30, 2003, as quoted on the OTC Bulletin Board.


                                       38
<PAGE>


EMPLOYMENT AGREEMENTS

         Effective July 1, 1999, CorVu entered into a three-year employment
agreement with Justin MacIntosh. Pursuant to the agreement, Mr. MacIntosh serves
as our Chairman, President and Chief Executive Officer. During the term of the
agreement, Mr. MacIntosh was to be paid annual base salaries of $330,000 for the
first employment year, $380,000 for the second and $420,000 for the third
employment year. He was also granted options to purchase a total of 675,000
shares of our Company's common stock at $1.33 per share, with 225,000 of these
options vesting at the beginning of each employment year. Subsequently, on
January 1, 2001, CorVu reached an agreement with Mr. MacIntosh on an amendment
to his employment agreement. Base compensation was reduced to $180,000 per year.
In addition, Mr. MacIntosh was to receive bonus compensation based on the
achievement of certain pre-determined audited annual earnings before interest
and taxes. As part of this amendment, Mr. MacIntosh agreed to forgive
approximately $242,000 of compensation owed as of December 31, 2000. Mr.
MacIntosh will participate in any retirement, welfare and other benefit program
our Company provides for its executive officers. Mr. MacIntosh will receive
payments in the amount of at least 9 monthly installments of his annual base
salary in effect at the time of termination if we terminate his employment
without cause. Mr. MacIntosh is subject to certain confidentiality and
non-compete provisions under the agreement. In addition, Mr. MacIntosh receives
an annual salary of approximately $99,000 for his duties as Managing Director of
CorVu Australasia Pty Ltd and , effective October 1, 2001, an override
commission equal to 2.5% of all license revenue for the United Kingdom/Europe
region for his duties as Sales Director in that region. On February 28, 2003,
CorVu reached an agreement with Mr. MacIntosh on a further amendment to his
employment agreement whereby in addition to Mr. MacIntosh's base salary, he
became eligible to receive bonus compensation based on the Company's achievement
of certain pre-determined audited annual earnings before income taxes for the
Company's fiscal year 2003 retroactive to July 1, 2002.

         Effective July 15, 1996, CorVu entered into a one-year employment
agreement with David C. Carlson that was amended as of July 20, 1998. Pursuant
to the agreement Mr. Carlson serves as our Chief Financial Officer. The term of
the agreement is automatically renewed for successive one-year periods unless
the agreement has been terminated earlier. Effective July 15, 2002, Mr. Carlson
received an annual base salary in the amount of $137,500 and up to an additional
33% quarterly bonus payments, based on attaining quarterly business plan
results. Mr. Carlson will participate in any retirement, welfare and other
benefit program our Company provides for its executive officers. Both parties to
the agreement can terminate the agreement without cause upon 60 days prior
written notice. Mr. Carlson is subject to certain confidentiality provisions
under the agreement.

         Effective January 2, 1997, CorVu entered into a one-year employment
agreement with Alan M. Missroon, Jr.. The agreement is automatically renewed for
successive one year terms unless terminated earlier. Mr. Missroon receives an
annual base salary of $150,000 and an override commission equal to 2.5% of all
license and services revenue for The Americas region. Mr. Missroon will
participate in any retirement, welfare and other benefit program our Company
provides for its executive officers. If we terminate his employment without
cause, Mr. Missroon will receive his base salary for a period of three months
after the date of termination, with an additional one month of base pay added
for each year of employment up to a maximum of six months. Mr. Missroon is
subject to certain confidentiality and non-compete provisions under the
agreement.


                                       39
<PAGE>


DIRECTORS' COMPENSATION

         For fiscal year 2002, directors who are not employees of CorVu were
compensated at the rate of $1,225 per month plus $1,225 for each Board meeting
attended and $500 for each committee meeting attended. In addition, on July 11,
2001, each nonemployee director received a five-year nonqualified option to
purchase 10,000 shares at an exercise price of $0.12 per share, which was the
market value of CorVu's common stock on the date of grant.

         For fiscal year 2003, directors who are not employees of CorVu were
compensated at the rate of $1,250 per month plus $1,250 for each Board meeting
attended and $1,000 for each committee meeting attended. In addition, on July 1,
2002, each nonemployee director received a five-year nonqualified option to
purchase 25,000 shares at an exercise price of $0.39 per share, which was the
market value of CorVu's common stock on the date of grant.


                                       40
<PAGE>


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

The following table provides information as of August 31, 2003, concerning the
beneficial ownership of our Company's common stock by (i) each director of the
company, (ii) each executive officer named in the Summary Compensation Table,
(iii) the persons known by us to own more than 5% of our outstanding common
stock, and (iv) all directors and executive officers as a group. Except as
otherwise indicated, the persons named in the table have sole voting and
investment power with respect to all shares of common stock owned by them.


<TABLE>
<CAPTION>
                                                                         COMMON STOCK
        NAME OR IDENTITY OF                           ------------------------------------------------
        BENEFICIAL OWNER                              NUMBER OF SHARES(1)                     PERCENT
        & MANAGEMENT                                  BENEFICIALLY OWNED                      OF CLASS
        ------------                                  ------------------                      --------
<S>                                                   <C>                                     <C>
        David C. Carlson(2)                                562,910(3)                           2.5%
        Ismail Kurdi(2)                                  1,674,492(4)                           7.5%
        Justin M. MacIntosh(2)                           8,508,488(5)                          36.8%
        James L. Mandel(2)                                 254,061(6)                           1.1%
        Alan M. Missroon, Jr.(2)                           484,677(7)                           2.1%
        Directors and executive
           officers as a group                          11,484,628(8)                          47.8%
        Troy Rollo (9)                                   1,124,867(9)                           5.0%
        Opella Holdings Limited(10)                      7,541,733(11)                         34.0%
        Dominic K.K. Sum(10)                             7,541,733(12)                         34.0%
        ----------------------------------------------------------------------------------------------
</TABLE>


(1)  For each person or group, any securities that the person or group has the
     right to acquire within 60 days pursuant to options, warrants, conversion
     privileges or other rights, have been added to the total amount of
     outstanding shares when determining the percent owned by such person or
     group.

(2)  Address: 3400 West 66th Street, Suite 445, Edina, MN 55435.

(3)  Mr. Carlson's beneficial ownership includes 392,500 shares that may be
     purchased upon exercise of options. Mr. Carlson disclaims beneficial
     ownership of 194,444 of the shares that may be purchased upon exercise of
     options because the pecuniary interest in these shares was transferred to
     his ex-spouse under a divorce decree from January 2003.

(4)  Mr. Kurdi's beneficial ownership includes 45,000 shares that may be
     purchased upon exercise of options.

(5)  Mr. MacIntosh's beneficial ownership includes (i) 7,541,733 shares
     registered in the name of Barleigh Wells Limited (see also footnotes 12 and
     13), (ii) 940,000 shares that may be purchased upon exercise of options
     held by Mr. MacIntosh, and (iii) 250,744 shares held by Mr. MacIntosh's
     spouse and a company controlled by his spouse. Mr. MacIntosh disclaims
     beneficial ownership of the shares owned by his spouse.

(6)  Mr. Mandel's beneficial ownership includes (i) 80,000 shares that may be
     purchased upon exercise of options held by Mr. Mandel and (ii) 15,350
     shares held by Mr. Mandel's spouse. Mr. Mandel disclaims beneficial
     ownership of the shares owned by his spouse.


                                       41
<PAGE>


(7)  Mr. Missroon's beneficial ownership includes 355,000 shares that may be
     purchased upon exercise of stock options.

(8)  Includes 1,812,500 shares that may be purchased upon exercise of stock
     options.

(9)  Mr. Rollo's beneficial ownership includes 142,542 shares that may be
     purchased upon exercise of stock options.

(10) Address: C/-Crispin & Jeffery, Level 2, 57 Grosvenor Street, Neutral Bay
     NSW 2089, AUSTRALIA.

(11) Address: c/o Tempio Corporate Consultants Limited, Suite 701, 7/F, 6-8
     Pottinger Street, Central, HONG KONG.

(12) Opella Holdings Limited as trustee of The Asia Pacific Technology Trust is
     the beneficial owner of 7,541,733 shares of Common Stock registered in the
     name of Barleigh Wells Limited as street name holder. Opella Holdings
     Limited shares beneficial ownership of the shares with Mr. MacIntosh (see
     footnote 5) and Mr. Sum (see footnote 13).

(13) Mr. Sum is the sole shareholder of Opella Holdings Limited (see footnote
     12). The director of Opella Holdings Limited is Pio Services Limited whose
     sole shareholder is Tempio Group of Companies Limited which in turn is
     wholly owned by Mr. Sum. Pio Services Limited has two directors, one of
     which is Mr. Sum.


                                       42
<PAGE>

ITEM 12.              CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Delia MacIntosh, the wife of Justin MacIntosh, the President, Chief
Executive Officer of CorVu and one of our Directors, has advanced money to CorVu
under term notes. As of the end of fiscal year 2003, CorVu owed approximately
$767,000 on these notes, including accrued interest of approximately $81,000.
The term notes bear interest at 8.5% per annum and are due on demand at any time
on or after September 30, 2004. The notes expire December 31, 2006 and are
secured by substantially all of the assets of the Company.

         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 was to earn
additional fees under the agreement as a result of its involvement in obtaining
financing and for introducing and developing strategic partnerships resulting in
revenue to the Company. As part of the services to be provided under that
agreement, John A. Bohn, a principal of GlobalNet, agreed to serve as the
Company's Chairman of the Board for a period of 24 months. On July 30, 2003, the
Company entered into a restructuring agreement with GlobalNet pursuant to which
GlobalNet ceased providing consulting services to CorVu. As part of the
restructuring agreement, Mr. Bohn resigned from his positions as director and
Chairman of the Board effective July 31, 2003.

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


                                       43
<PAGE>


ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES

The aggregate fees billed by the Company's auditors for professional services
rendered in connection with the audit of the Company's annual consolidated
financial statements for fiscal 2003 and 2002 and reviews of the consolidated
financial statements included in the Company's Forms 10-KSB for fiscal 2003 and
2002 were $48,690 and $45,595, respectively.

AUDIT-RELATED FEES

For fiscal 2003 and 2002, the Company's auditors did not bill any fees for
assurance and related services that are reasonably related to the performance of
the audit or review of the Company's financial statements and are not reported
under "Audit Fees" above.

TAX FEES

The aggregate fees billed by the Company's auditors for professional services
for tax compliance, tax advice, and tax planning were $25,205 and $16,475 for
fiscal 2003 and 2002, respectively.

ALL OTHER FEES

The aggregate fees billed by the Company's auditors for all other non-audit
services rendered to the Company, such as attending meetings and other
miscellaneous financial consulting, in fiscal 2003 and 2002 were $9,815 and
$8,490, respectively.

AUDIT COMMITTEE

The audit committee meets prior to filing of any Form 10-QSB or 10-KSB to
approve those filings. In addition, the committee meets to discuss audit plans
and anticipated fees for audit and tax work prior to the commencement of that
work. Approximately 90% of all fees paid to our independent auditors are
pre-approved by the audit committee.

                                       44
<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:  September 17, 2003              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.

                               (Power of Attorney)

         Each person whose signature appears below constitutes and appoints
JUSTIN M. MACINTOSH and DAVID C. CARLSON as true and lawful attorneys-in-fact
and agents, each acting alone, with full power of substitution and
resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign any or all amendments to this Annual Report on Form 10-KSB
and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting unto
said attorneys-in-fact and agents, each acting alone, full power and authority
to do and perform each and every act and thing requisite and necessary to be
done in and about the premises, as fully to all intents and purposes as he might
or could do in person, hereby ratifying and confirming all said
attorneys-in-fact and agents, each acting alone, or his substitute or
substitutes, may lawfully do or cause to be done by virtue thereof.


<TABLE>
<CAPTION>
SIGNATURE AND TITLE                                                                                        DATE
------------------------------------------------------------------------------------------      ----------------------------
<S>                                                                                             <C>
/s/ Justin M. MacIntosh
----------------------------------------------------------------
Justin M. MacIntosh, President and Chief Executive Officer                                          September 17, 2003
(principal executive officer)

/s/ David C. Carlson
----------------------------------------------------------------
David C. Carlson, Chief Financial Officer and Director                                              September 17, 2003
(principal financial and accounting officer)

/s/ Ismail Kurdi
----------------------------------------------------------------
Ismail Kurdi, Director                                                                              September 17, 2003

/s/ James L. Mandel
----------------------------------------------------------------
James L. Mandel, Chairman of the Board                                                              September 17, 2003

/s/ Alan M. Missroon, Jr.
----------------------------------------------------------------
Alan M. Missroon, Jr., Director                                                                     September 17, 2003

</TABLE>


                                       45
<PAGE>

                                CORVU CORPORATION
                                EXHIBIT INDEX FOR
                 FORM 10-KSB FOR FISCAL YEAR ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
        EXHIBIT
        NUMBER                             DESCRIPTION
        ---------     ----------------------------------------------------------
        <S>           <C>
           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

           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       Commercial Lease between Viestall Pty. and CorVu
                      Australasia Pty. Ltd., dated April 15, 1999, for the
                      premises at Level 4, 1 James Place, North
                      Sydney-incorporated by reference to Exhibit 10.8 to
                      Registrant's Form 10-SB, File No. 000-29299
</TABLE>


                                       46
<PAGE>

<TABLE>
<CAPTION>
        <S>           <C>
           10.9       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

           10.10      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

           10.11      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

           10.12      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

           10.13      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

           10.14      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

           10.15*     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

           10.16*     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

           10.17*     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

           10.18      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

           10.19      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

           10.20      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
</TABLE>


                                       47
<PAGE>

<TABLE>
<CAPTION>
        <S>           <C>
           10.21      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

           10.22      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

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

           21         Subsidiaries of CorVu Corporation

           23         Consent of Independent Auditors - 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
</TABLE>

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