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Restructuring Activities
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9 Months Ended |
|---|---|
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Jun. 30, 2011
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| Restructuring Activities |
Note 4: Restructuring Activities
On
November 30, 2010, the Board of Directors of LiveDeal, Inc. (the
“Company”) approved a reduction in force that resulted
in the termination of 36 employees of the Company, or approximately
60% of the Company’s workforce, effective December 1,
2010. The reduction in force was related to the
Company’s ongoing restructuring and cost reduction efforts
and strategy of focusing its resources on the development and
expansion of its core InstantProfile product, the successor to the
Company’s LEC-billed directory product. All
terminated employees were involved in the marketing and sale of the
Company’s InstantPromote product by its subsidiary, Local
Marketing Experts, Inc.
During
the three and nine months ended June 30, 2011, the Company incurred
expenses of $0 and $99,319 respectively, in connection with the
reduction in force, of which $37,500 were incurred for one-time
employee termination benefits payable in cash. The
remaining expenses relate to salaries and wages payable in cash to
the affected employees. All amounts were paid as of December
31, 2010 and no additional expenses pertaining to this reduction in
force are expected to be incurred subsequent to June 30,
2011.
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