The Company recently announced its plan to implement a new business line primarily focused on developing mobile solutions to exploit local commerce opportunities. The Company plans to develop strategic relationships with larger, well-known companies in the industry that can add value to our local merchant customer base, and to leverage these strategic relationships and alliances to move quickly to market a suite of state-of-the-art local commerce solutions. The Company plans to target its existing subscribers, as well as new customers, for our new product line offerings.

In connection with the Company’s new business strategy, on August 9, 2012, the Company entered into an agreement to acquire substantially all of the assets of Live Openly, Inc., a California corporation engaged in sourcing, publishing and selling discounted offers for goods and services through local retail merchants, for a purchase price of 75,000 shares of the Company’s common stock. The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter on a date to be agreed by both parties.