Quarterly report pursuant to sections 13 or 15(d)

Note 14: Subsequent Events

Note 14: Subsequent Events

3 Months Ended

Dec. 31, 2012

On January 14, 2013, a settlement agreement was reached between Sunpark 2000 LLC and Telco Billing Inc., a subsidiary of the Company. The parties settled this matter for a payment by LiveDeal, Inc. to Sunpark in the amount of $112,500 and Sunparks retention of a $24,000 security deposit under the lease agreement. The settlement payment has been made and an Order for Dismissal with prejudice was entered by the Court on January 31, 2013.

Effective as of January 20, 2012, the Company appointed Jon Isaac to serve as its President and Chief Executive Officer. Mr. Isaac was previously appointed to the Companys Board of Directors on December 12, 2011. Although the Company did not enter into a written employment agreement with Mr. Isaac, he was paid an annual salary of $1 for his services as President and Chief Executive Officer and was eligible to receive bonuses in such forms and amounts as determined by the Companys Compensation Committee in its sole discretion.

On February 14, 2013, the Company entered into an employment agreement with Mr. Isaac, pursuant to which he will continue serving as its President and Chief Executive Officer for the period from January 1, 2013 to January 1, 2016. The material terms of the employment agreement are as follows:

$200,000 annual base salary throughout the term of the agreement.

Eligibility to receive performance-based bonuses in the sole discretion of the Companys Compensation Committee.

A one-time discretionary bonus of $150,000 for services performed as President and Chief Executive Officer for the previous 12 months, to be paid in cash on or before March 31, 2013. This bonus was approved by the Companys Compensation Committee.

Reimbursement for reasonable housing expenses.

Grant of options to purchase 150,000 shares of the Companys common stock, subject to continued employment on the applicable vesting dates and the other terms and conditions summarized below:

50,000 shares will vest on the first anniversary of the date of grant and be exercisable for five years after vesting at an exercise price of $5.00 per share.

50,000 shares will vest in 12 equal monthly installments, beginning on the date that is 13 months after the date of grant and ending on the second anniversary of the date of grant, and be exercisable for five years after vesting at an exercise price of $7.50 per share.

50,000 shares will vest in 12 equal monthly installments, beginning on the date that is 25 months after the date of grant and ending on the third anniversary of the date of grant, and be exercisable for five years after vesting at an exercise price of $10.00 per share.