| Delaware |   | 01-0623010 |
|----------|--------|------------|

| (State or      Other Jurisdiction ofIncorporation      or Organization) |   | (IRS Employer      Identification Number) |
|-------------------------------------------------------------------------|--------|-------------------------------------------|

| Large accelerated filer [    ] |   | Accelerated filer [  ] |
|--------------------------------|--------|------------------------|

| Non-accelerated filer [ ] (Do not check      if a smaller reporting company) |   | Smaller reporting company      [X] |
|------------------------------------------------------------------------------|--------|------------------------------------|

|   | Period |   | High* |   | Low* |   |
|--------|--------|--------|-------|--------|------|--------|

|   | 2007 | First Quarter |   | $.99 |   | $.56 |   |
|--------|------|---------------|--------|------|--------|------|--------|

|   |   | Second Quarter |   | $.92 |   | $.38 |   |
|--------|--------|----------------|--------|------|--------|------|--------|

|   |   | Third Quarter |   | $.48 |   | $.13 |   |
|--------|--------|---------------|--------|------|--------|------|--------|

|   |   | Fourth Quarter |   | $.528 |   | $.16 |   |
|--------|--------|----------------|--------|-------|--------|------|--------|

|   | 2008 | First Quarter |   | $.22 |   | $.10 |   |
|--------|------|---------------|--------|------|--------|------|--------|

|   |   | Second Quarter |   | $.19 |   | $.05 |   |
|--------|--------|----------------|--------|------|--------|------|--------|

|   |   | Third Quarter |   | $.19 |   | $.06 |   |
|--------|--------|---------------|--------|------|--------|------|--------|

|   |   | Fourth Quarter |   | $.08 |   | $.03 |   |
|--------|--------|----------------|--------|------|--------|------|--------|

|   | 2009 | First Quarter |   | $.20 |   | $.02 |   |
|--------|------|---------------|--------|------|--------|------|--------|

|   |  * | The foregoing prices have been adjusted      to reflect a (a) a one-share-for-every-two-shares forward split of our      common stock occurring in May 2007 and (b) a 1 -for-32 reverse      splitoccurring in February    2009. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Plan      Category |   | Number of securities      to be issued upon exercise of outstanding options, warrants and      rights |   | Weighted      averageexercise price of      outstanding options, warrants and rights |   | Number of securities      remaining available for futureissuance |
|--------------------|--------|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|

| Equity compensation plans approved by      security holders |   | -0- |   | -0- |   | -0- |
|-------------------------------------------------------------|--------|-----|--------|-----|--------|-----|

| Equity compensation plans not approved      by security holders |   | -0- |   | -0- |   | -0- |
|-----------------------------------------------------------------|--------|-----|--------|-----|--------|-----|

| Individual Compensation      Arrangements |   | -0- |   | -0- |   | -0- |
|-------------------------------------------|--------|-----|--------|-----|--------|-----|

|   | Name |   | Age |   | Position(s) |   |
|--------|------|--------|-----|--------|-------------|--------|

|   | John L. CastiglioneJason SunsteinDavid Loflin |   | 383750 |   | President, CEO andDirectorExecutive Vice President, Secretary and      DirectorExecutive Vice President and      Director |   |
|--------|-----------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|

| Name and Principal    Position | Year | Salary($) | Bonus($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan      Compensation($) | Nonqualified Deferred Compensation      Earnings($) | All Other Compensation    ($) | Total($) |
|--------------------------------|------|-----------|----------|------------------|-------------------|------------------------------------------------|-----------------------------------------------------|-------------------------------|----------|

| David Loflin | 2008 | 180,000(1) | --- | --- | --- | --- | --- | --- | 180,000(1) |
|--------------|------|------------|-----|-----|-----|-----|-----|-----|------------|

| President and Acting Chief Financial      Officer | 2007 | 384,454(2) | --- | --- | --- | --- | --- | --- | 384,454(2) |
|---------------------------------------------------|------|------------|-----|-----|-----|-----|-----|-----|------------|

| (See Note A below) | 2006 | 180,000(3) | 300,000(4) | --- | --- | --- | --- | --- | 480,000(3,4) |
|--------------------|------|------------|------------|-----|-----|-----|-----|-----|--------------|

| Waddell D. Loflin | 2008 | 120,000(5) | --- | --- | --- | --- | --- | --- | 120,000(5) |
|-------------------|------|------------|-----|-----|-----|-----|-----|-----|------------|

| Former Executive V.P. and      Secretary | 2007 | 254,968(6) | --- | --- | --- | --- | --- | --- | 254,968(6) |
|------------------------------------------|------|------------|-----|-----|-----|-----|-----|-----|------------|

|   | 2006 | 120,000(7) | 99,000(8) | --- | --- | --- | --- | --- | 219,000(7,8) |
|--------|------|------------|-----------|-----|-----|-----|-----|-----|--------------|

| Note A: | Mr. Loflin is no longer our president      or acting chief financial officer; he currently serves as one of our      Executive Vice Presidents. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Mr. David Loflin was paid $105,000 of      his 2008 salary, $75,000 of his 2008 salary was not paid. This amount has      been accrued. In addition, Mr. Loflin was issued 781,250 shares of our      common stock in payment of $225,000 in accrued  salary. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. David Loflin was paid $12,100 of      his 2007 salary, $167,900 of his 2007 salary was not paid. This amount has      been accrued. In addition, Mr. Loflin was issued 9,735,904 shares of our      common stock in payment of $204,454 in accrued  salary. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. David Loflin was paid $20,546 of      his 2006 salary; $159,454 ofhis 2006 salary was not paid. This amount was      accrued at December 31, 2006, then was paid is shares of our common stock      during 2007. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) |  Mr. David Loflin’s bonus amount      was paid by the issuance of a total of 13,000,000 shares of our common      stock. 8,000,000 of such shares were valued at $.03 per share; and      5,000,000 of such shares were valued at $.012 per share. Each valuation      reflects the closing price of our common stock, as reported by the OTC      Bulletin Board, on the respective dates of  issuance. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Waddell Loflin was paid $78,000 of      his 2008 salary; $42,000 of his 2008 salary was not paid. This amount has      been accrued. In addition, Mr. Loflin was issued 156,250 shares of our      common stock in payment of $150,000 in accrued  salary. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr. Waddell Loflin was paid $3,200 of      his 2007 salary; $116,800 of his 2007 salary was not paid. This amount has      been accrued. In addition, Mr. Loflin was issued 6,427,047 shares of our      common stock in payment of $134,968 in accrued  salary. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Mr. Waddell Loflin was paid $14,032 of      his 2006 salary; $105,968 of his 2006 salary was not paid. This amount was      accrued at December 31, 2006, then was paid is shares of our common stock      during 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Mr. Waddell Loflin’s bonus amount was      paid by the issuance of a total of 4,500,000 shares of our common      stock. 2,500,000 of such shares were valued at $.03 per share; and      2.000,000 of such shares were valued at $.012 per share. Each valuation      reflects the closing price of our common stock, as reported by the OTC      Bulletin Board, on the respective dates ofissuance. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Option Awards | StockAwards |
|--------|---------------|-------------|

| Name | Number of Securities Underlying      Unexercised Options (#) Exercisable | Number of Securities Underlying      Unexercised Options (#) Unex-ercisable | Equity IncentivePlan Awards: Number of Securities      Underlying Unexercised Unearned Options (#) | Option Exercise Price    ($) | Option Expiration Date | Number of Shares or Units of Stock That      Have Not Vested (#) | Market Value of Shares or Units of      Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of      Unearned Shares, Units or Other Rights That Have Not Vested      (#) | Equity Incentive Plan Awards: Market or      Payout Value of Unearned Shares, Units or Other Rights That Have Not      Vested ($) |
|------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------|------------------------|------------------------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| John L. Castiglione | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|---------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Jason Sunstein | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|----------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| David Loflin | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|--------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Waddell D. Loflin (former officer and      director) | --- | --- | --- | --- | n/a | --- | n/a | --- | --- |
|------------------------------------------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|

| Name | Fees Earned or Paid in Cash      ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation      ($) | Nonqualified Deferred Compensation      Earnings ($) | All Other Compensation    ($) | Total($) |
|------|--------------------------------------|------------------|-------------------|-------------------------------------------------|------------------------------------------------------|-------------------------------|----------|

| CURRENT DIRECTORS |   |   |   |   |   |   |   |
|-------------------|--------|--------|--------|--------|--------|--------|--------|

| John L. Castiglione | --- | --- | --- | --- | --- | --- | --- |
|---------------------|-----|-----|-----|-----|-----|-----|-----|

| Jason Sunstein | --- | --- | --- | --- | --- | --- | --- |
|----------------|-----|-----|-----|-----|-----|-----|-----|

| David Loflin | --- | --- | --- | --- | --- | --- | --- |
|--------------|-----|-----|-----|-----|-----|-----|-----|

| FORMER DIRECTORS |   |   |   |   |   |   |   |
|------------------|--------|--------|--------|--------|--------|--------|--------|

| Waddell D. Lolfin | --- | --- | --- | --- | --- | --- | --- |
|-------------------|-----|-----|-----|-----|-----|-----|-----|

| Gregory A. Bonner | --- | 14,900(1) | --- | --- | --- | --- | 14,900(1) |
|-------------------|-----|-----------|-----|-----|-----|-----|-----------|

| Ira R. Witkin | --- | 14,900(1) | --- | --- | --- | --- | 14,900(1) |
|---------------|-----|-----------|-----|-----|-----|-----|-----------|

| Thomas J. Gray | --- | 6,000(2) | --- | --- | --- | --- | 6,000(2) |
|----------------|-----|----------|-----|-----|-----|-----|----------|

| (1) | $5,600 of this amount relates to stock      awards made in 2008; $2,100 of this amount relates to stock awards made in      2007; and $7,200 of this amount relates to stock awards made in      2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | This amount relates to stock awards      made in 2008. |
|-----|--------------------------------------------------------|

| Name of Beneficial      Owner |   | Shares |   | %      (1) |   |
|-------------------------------|--------|--------|--------|------------|--------|

| John L. CastiglioneJason SunsteinDavid LoflinAll executive officers and directors as      a group (3 persons) |   | 37,511,27234,169,13113,775,000(2)85,455,403(2) |   | 31.19%28.41%11.45%71.05% |   |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------------------------|--------|

| (1)(2) | Based on 120,263,009 shares      outstanding, including a total of 468,750 shares underlying currently      outstanding and exercisable warrants.118,750 of these shares are owned by      Phoenix Trust. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | Year Ended December      31, 2008 |   | Year Ended December      31, 2007 |   |
|--------|--------|--------|-----------------------------------|--------|-----------------------------------|--------|

|   | Audit Fees |   | $17,000 |   | $20,500 |   |
|--------|------------|--------|---------|--------|---------|--------|

|   | Audit related fees |   | $0 |   | $0 |   |
|--------|--------------------|--------|----|--------|----|--------|

|   | Tax |   | $0 |   | $0 |   |
|--------|-----|--------|----|--------|----|--------|

|   | All other fees |   | $0 |   | $0 |   |
|--------|----------------|--------|----|--------|----|--------|

|   | Exhibit      No. |   | Description |
|--------|------------------|--------|-------------|

|   | 10.1 * |   | Employment Agreement between Registrant      and John L. Castiglione. |
|--------|--------|--------|-----------------------------------------------------------------------|

|   | 10.2 * |   | Employment Agreement between Registrant      and Jason Sunstein. |
|--------|--------|--------|------------------------------------------------------------------|

|   | 10.3 * |   | Amended and Restated Employment      Agreement between Registrant and DavidLoflin. |
|--------|--------|--------|------------------------------------------------------------------------------------|

|   | 10.4 * |   | Letter Agreement between Registrant and      Newlan & Newlan, Attorneys atLaw. |
|--------|--------|--------|------------------------------------------------------------------------------------|

|   | 10.5 * |   | Management Agreement between Britespot,      Inc. and Eastern Point Communications,LLC. |
|--------|--------|--------|-----------------------------------------------------------------------------------------|

|   | 22.1 * |   | Subsidiaries of    Registrant. |
|--------|--------|--------|--------------------------------|

|   | 31.1 * |   | Certification as Adopted Pursuant to      Section 302 (a) of the Sarbanes-Oxley Act of  2002. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------|

|   | 31.2 * |   | Certification as Adopted Pursuant to      Section 302 (a) of the Sarbanes-Oxley Act of  2002. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification Pursuant to 18 U.S.C.      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act      of 2002. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 * |   | Certification Pursuant to 18 U.S.C.      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act      of 2002. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | * filed  herewith. |
|--------|--------------------|

|   |   |   |   |
|--------|--------|--------|--------|

|   | John L. CastiglionePresident and      CEO (principal executive officer) and Director |   |   |
|--------|--------------------------------------------------------------------------------------|--------|--------|

|   |
|--------|

|   |   |   |   |
|--------|--------|--------|--------|

|   | Jason SunsteinExecutive      Vice President, Acting Chief Financial Officer (principal financial      officer), Secretary, Treasurer and Director |   |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|

|   |
|--------|

|   |   |   |   |
|--------|--------|--------|--------|

|   | David LoflinExecutive      Vice President and Director |   |   |
|--------|--------------------------------------------------------|--------|--------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | CONSOLIDATED BALANCE      SHEETS |   |
|--------|----------------------------------|--------|

|   | December 31, 2008      and 2007 |   |
|--------|---------------------------------|--------|

|   | 2008 |   | 2007 |
|--------|------|--------|------|

| ASSETS |
|--------|

| Current  assets: |
|------------------|

|   | Cash | $--- |   | $294 |
|--------|------|------|--------|------|

|   | Accounts receivable | 5,300 |   | --- |
|--------|---------------------|-------|--------|-----|

|   | Total current assets | 5,300 |   | 294 |
|--------|----------------------|-------|--------|-----|

| Equipment, net of accumulated      depreciation of $102,115 and $100,911 | --- |   | 1,204 |
|--------------------------------------------------------------------------|-----|--------|-------|

| Deposits | 187,500 |   | --- |
|----------|---------|--------|-----|

|   | Total assets | $192,800 |   | $1,498 |
|--------|--------------|----------|--------|--------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY      (DEFICIT) |
|-----------------------------------------------------------|

| Current  liabilities: |
|-----------------------|

|   | Accounts payable and accrued      expenses | 18,500 |   | 4,500 |
|--------|--------------------------------------------|--------|--------|-------|

|   | Accrued expenses | 185,919 |   | 293,032 |
|--------|------------------|---------|--------|---------|

|   | Short-term payable - third      party | 30,400 |   | 30,400 |
|--------|---------------------------------------|--------|--------|--------|

|   | Short-term note payable - related      party | 23,340 |   | 41,640 |
|--------|----------------------------------------------|--------|--------|--------|

|   | Accrued interest -      shareholders | 10,930 |   | 7,582 |
|--------|--------------------------------------|--------|--------|-------|

|   | Dividend payable on preferred      stock | --- |   | 112,500 |
|--------|------------------------------------------|-----|--------|---------|

|   | Total current    liabilities | 269,089 |   | 489,654 |
|--------|------------------------------|---------|--------|---------|

| Commitments |   |   |   |
|-------------|--------|--------|--------|

| Stockholders’ equity      (deficit) |
|-------------------------------------------|

|   | Preferred stock, $.001 par value;      50,000,000 shares authorized, -0- and 500,000 shares issued and      outstanding | --- |   | 500 |
|--------|-------------------------------------------------------------------------------------------------------------------------|-----|--------|-----|

|   | Common stock, $.001 par value;      700,000,000 shares authorized, 21,500,522 and 10,688,022 shares issued and      outstanding | 21,500 |   | 10,688 |
|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|

|   | Subscription receivable | (128,000) |   | (128,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Additional paid-in    capital | 31,075,375 |   | 30,204,487 |
|--------|-------------------------------|------------|--------|------------|

|   | Deficit accumulated during the      development stage | (31,045,164) |   | (30,575,831) |
|--------|-------------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders’ equity      (deficit) | (76,289) |   | (488,156) |
|--------|-------------------------------------------------|----------|--------|-----------|

|   | Total liabilities and stockholders’      equity (deficit) | $192,800 |   | $1,498 |
|--------|-----------------------------------------------------------------|----------|--------|--------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | CONSOLIDATED      STATEMENTS OF OPERATIONS |   |
|--------|--------------------------------------------|--------|

|   | For the Years Ended      December 31, 2008 and 2007, and the Period from June 17, 2003 (Inception)      Through December 31, 2008 |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   | 2008 |   | 2007 |   |   |   | Inception Through    12/31/08 |
|--------|--------|--------|------|--------|------|--------|--------|--------|-------------------------------|

| Revenues |   |   | $5,300 |   | $--- |   |   |   | $16,084 |
|----------|--------|--------|--------|--------|------|--------|--------|--------|---------|

| Internet access costs |   |   | --- |   | --- |   |   |   | (32,850) |
|-----------------------|--------|--------|-----|--------|-----|--------|--------|--------|----------|

| Gross profit (loss) |   |   | 5,300 |   | --- |   |   |   | (16,766) |
|---------------------|--------|--------|-------|--------|-----|--------|--------|--------|----------|

| OPERATING EXPENSES |   |   |   |   |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Professional and consulting      fees |   |   | 162,000 |   | 421,584 |   |   |   | 4,345,672 |
|--------|---------------------------------------|--------|--------|---------|--------|---------|--------|--------|--------|-----------|

|   | Compensation expense |   |   | 279,087 |   | 307,200 |   |   |   | 5,461,863 |
|--------|----------------------|--------|--------|---------|--------|---------|--------|--------|--------|-----------|

|   | Depreciation and      amortization |   |   | 1,204 |   | 110,126 |   |   |   | 298,680 |
|--------|------------------------------------|--------|--------|-------|--------|---------|--------|--------|--------|---------|

|   | Impairment loss |   |   | --- |   | 664,569 |   |   |   | 17,473,096 |
|--------|-----------------|--------|--------|-----|--------|---------|--------|--------|--------|------------|

|   | General and    administrative |   |   | 28,994 |   | 2,677 |   |   |   | 3,416,299 |
|--------|-------------------------------|--------|--------|--------|--------|-------|--------|--------|--------|-----------|

|   | Total operatingexpenses |   |   | 471,285 |   | 1,506,156 |   |   |   | 30,995,610 |
|--------|-------------------------|--------|--------|---------|--------|-----------|--------|--------|--------|------------|

| LOSS FROM OPERATIONS |   |   | (465,985) |   | (1,506,156) |   |   |   | (31,012,376) |
|----------------------|--------|--------|-----------|--------|-------------|--------|--------|--------|--------------|

| OTHER INCOME (EXPENSE) |   |   | (3,348) |   | (3,348) |   |   |   | (32,788) |
|------------------------|--------|--------|---------|--------|---------|--------|--------|--------|----------|

| NET LOSS |   |   | $(469,333) |   | $(1,509,504) |   |   |   | $(31,045,164) |
|----------|--------|--------|------------|--------|--------------|--------|--------|--------|---------------|

| Deemed dividend on Preferred      Stock |   |   | --- |   | --- |   |   |   | $(165,442) |
|-----------------------------------------|--------|--------|-----|--------|-----|--------|--------|--------|------------|

| Cumulative Preferred      Dividends |   |   | --- |   | (30,000) |   |   |   | (112,500) |
|-------------------------------------|--------|--------|-----|--------|----------|--------|--------|--------|-----------|

| Net Loss Charged to Common      Shareholders |   |   | $(469,333) |   | $(1,539,504) |   |   |   | $(31,323,106) |
|----------------------------------------------|--------|--------|------------|--------|--------------|--------|--------|--------|---------------|

| Net loss per share applicable to common      shareholders |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted |   |   | $(0.04) |   | $(0.16) |   |   |   |   |
|--------|-------------------|--------|--------|---------|--------|---------|--------|--------|--------|--------|

| Weighted average number of shares      outstanding |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted |   |   | 12,642,086 |   | 9,877,871 |   |   |   |   |
|--------|-------------------|--------|--------|------------|--------|-----------|--------|--------|--------|--------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008 |   |
|--------|-------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Issuance of common stock to      founders | --- | $--- | 1,375,000 | $1,375 | $(375) | $--- | $--- | $1,000 |
|-------------------------------------------|-----|------|-----------|--------|--------|------|------|--------|

| Stock issued in reverse      acquisition | --- | --- | 139,900 | 140 | 979 | --- | --- | 1,119 |
|------------------------------------------|-----|-----|---------|-----|-----|-----|-----|-------|

| Stock issued for    services | --- | --- | 394,063 | 394 | 2,024,432 | --- | --- | 2,024,826 |
|------------------------------|-----|-----|---------|-----|-----------|-----|-----|-----------|

| Stock issued for cash and warrants, net      of cost | --- | --- | 625,000 | 625 | 449,375 | --- | --- | 450,000 |
|------------------------------------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Net loss | --- | --- | --- | --- | --- | --- | (2,409,433) | (2,409,433) |
|----------|-----|-----|-----|-----|-----|-----|-------------|-------------|

| Balance, December 31,    2003 | --- | --- | 2,533,963 | 2,534 | 2,474,411 | --- | (2,409,433) | 67,512 |
|-------------------------------|-----|-----|-----------|-------|-----------|-----|-------------|--------|

| Preferred stock issued for cash and      warrants | 500,000 | 500 | --- | --- | 499,500 | --- | --- | 500,000 |
|---------------------------------------------------|---------|-----|-----|-----|---------|-----|-----|---------|

| Stock issued in    acquisition | --- | --- | 25,750 | 26 | 381,074 | --- | --- | 381,100 |
|--------------------------------|-----|-----|--------|----|---------|-----|-----|---------|

| Stock issued for wi-fi      hotspots | --- | --- | 6,500 | 6 | 120,894 | --- | --- | 120,900 |
|--------------------------------------|-----|-----|-------|---|---------|-----|-----|---------|

| Stock issued for cash on option      exercise | --- | --- | 51,264 | 51 | 149,949 | --- | --- | 150,000 |
|-----------------------------------------------|-----|-----|--------|----|---------|-----|-----|---------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Stock issued for salary | --- | --- | 10,588 | 11 | 41,989 | --- | --- | 42,000 |
|-------------------------|-----|-----|--------|----|--------|-----|-----|--------|

| Stock issued for    services | --- | --- | 202,515 | 202 | 1,505,916 | --- | --- | 1,506,118 |
|------------------------------|-----|-----|---------|-----|-----------|-----|-----|-----------|

| Stock issued as bonuses | --- | --- | 172,589 | 173 | 583,255 | --- | --- | 583,428 |
|-------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Beneficial conversion feature embedded      in preferred stock and warrants | --- | --- | --- | --- | 165,442 | --- | --- | 165,442 |
|-----------------------------------------------------------------------------|-----|-----|-----|-----|---------|-----|-----|---------|

| Deemed dividend on preferred      stock | --- | --- | --- | --- | (165,442) | --- | --- | (165,442) |
|-----------------------------------------|-----|-----|-----|-----|-----------|-----|-----|-----------|

| Net loss | --- | --- | --- | --- | --- | --- | (3,382,265) | (3,382,265) |
|----------|-----|-----|-----|-----|-----|-----|-------------|-------------|

| Balance, December 31,    2004 | 500,000 | 500 | 3,003,169 | 3,003 | 5,756,988 | --- | (5,791,698) | (31,207) |
|-------------------------------|---------|-----|-----------|-------|-----------|-----|-------------|----------|

| Stock issued in    acquisition | --- | --- | 2,426,566 | 2,427 | 16,304,100 | --- | --- | 16,306,527 |
|--------------------------------|-----|-----|-----------|-------|------------|-----|-----|------------|

| Stock issued for cash on warrant      exercise | --- | --- | 266,220 | 265 | 468,735 | --- | --- | 469,000 |
|------------------------------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Stock issued for salary | --- | --- | 98,535 | 99 | 259,314 | --- | --- | 259,413 |
|-------------------------|-----|-----|--------|----|---------|-----|-----|---------|

| Shareholder receivable | --- | --- | 80,030 | 80 | 51,320 | --- | --- | 51,400 |
|------------------------|-----|-----|--------|----|--------|-----|-----|--------|

| Subscription receivable | --- | --- | --- | --- | --- | (24,400) | --- | (24,400) |
|-------------------------|-----|-----|-----|-----|-----|----------|-----|----------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Stock issued for    services | --- | --- | 627,683 | 628 | 1,187,369 | --- | --- | 1,187,997 |
|------------------------------|-----|-----|---------|-----|-----------|-----|-----|-----------|

| Stock issued for purchase      option | --- | --- | 40,625 | 41 | 50,459 | --- | --- | 50,500 |
|---------------------------------------|-----|-----|--------|----|--------|-----|-----|--------|

| Stock issued as bonuses | --- | --- | 479,687 | 480 | 880,970 | --- | --- | 881,450 |
|-------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Warrant expense | --- | --- | --- | --- | 2,072,603 | --- | --- | 2,072,603 |
|-----------------|-----|-----|-----|-----|-----------|-----|-----|-----------|

| Stock issued for waiver | --- | --- | 31,250 | 31 | 37,969 | --- | --- | 38,000 |
|-------------------------|-----|-----|--------|----|--------|-----|-----|--------|

| Donated capital, officers’      salaries | --- | --- | --- | --- | 279,808 | --- | --- | 279,808 |
|------------------------------------------------|-----|-----|-----|-----|---------|-----|-----|---------|

| Cumulative dividend on preferred      stock | --- | --- | --- | --- | (52,500) | --- | --- | (52,500) |
|---------------------------------------------|-----|-----|-----|-----|----------|-----|-----|----------|

| Net loss | --- | --- | --- | --- | --- | --- | (21,572,574) | (21,572,574) |
|----------|-----|-----|-----|-----|-----|-----|--------------|--------------|

| Balance, December 31,    2005 | 500,000 | 500 | 7,053,765 | 7,054 | 27,297,135 | (24,400) | (27,364,272) | (83,983) |
|-------------------------------|---------|-----|-----------|-------|------------|----------|--------------|----------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Stock issued asbonuses: |   |   |   |   |   |   |   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

| January 2006 | --- | --- | 146,875 | 147 | 140,853 | --- | --- | 141,000 |
|--------------|-----|-----|---------|-----|---------|-----|-----|---------|

| July 2006 | --- | --- | 193,750 | 194 | 185,806 | --- | --- | 186,000 |
|-----------|-----|-----|---------|-----|---------|-----|-----|---------|

| November 2006 | --- | --- | 225,000 | 225 | 86,175 | --- | --- | 86,400 |
|---------------|-----|-----|---------|-----|--------|-----|-----|--------|

| Stock issued for    services: |   |   |   |   |   |   |   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

| January 2006 | --- | --- | 93,750 | 94 | 89,906 | --- | --- | 90,000 |
|--------------|-----|-----|--------|----|--------|-----|-----|--------|

| February 2006 | --- | --- | 34,598 | 35 | 27,784 | --- | --- | 27,819 |
|---------------|-----|-----|--------|----|--------|-----|-----|--------|

| March 2006 | --- | --- | 12,500 | 12 | 9,628 | --- | --- | 9,640 |
|------------|-----|-----|--------|----|-------|-----|-----|-------|

| April 2006 | --- | --- | 23,125 | 23 | 32,403 | --- | --- | 32,426 |
|------------|-----|-----|--------|----|--------|-----|-----|--------|

| May 2006 | --- | --- | 5,207 | 5 | 4,393 | --- | --- | 4,398 |
|----------|-----|-----|-------|---|-------|-----|-----|-------|

| June 2006 | --- | --- | 6,250 | 6 | 9,754 | --- | --- | 9,760 |
|-----------|-----|-----|-------|---|-------|-----|-----|-------|

| July 2006 | --- | --- | 12,500 | 12 | 11,188 | --- | --- | 11,200 |
|-----------|-----|-----|--------|----|--------|-----|-----|--------|

| August 2006 | --- | --- | 218,006 | 218 | 192,544 | --- | --- | 192,762 |
|-------------|-----|-----|---------|-----|---------|-----|-----|---------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| September 2006 | --- | --- | 159,375 | 159 | 91,741 | --- | --- | 91,900 |
|----------------|-----|-----|---------|-----|--------|-----|-----|--------|

| October 2006 | --- | --- | 15,625 | 16 | 8,604 | --- | --- | 8,620 |
|--------------|-----|-----|--------|----|-------|-----|-----|-------|

| November 2006 | --- | --- | 231,562 | 232 | 86,270 | --- | --- | 86,502 |
|---------------|-----|-----|---------|-----|--------|-----|-----|--------|

| Stock issued for exercise of      warrants | --- | --- | 234,167 | 234 | 199,766 | (200,000) | --- | --- |
|--------------------------------------------|-----|-----|---------|-----|---------|-----------|-----|-----|

| Cash received for subscription      receivable | --- | --- | --- | --- | --- | 96,400 | --- | 96,400 |
|------------------------------------------------|-----|-----|-----|-----|-----|--------|-----|--------|

| Issuance of warrants for      patents | --- | --- | --- | --- | 485,133 | --- | --- | 485,133 |
|---------------------------------------|-----|-----|-----|-----|---------|-----|-----|---------|

| Warrants issued for      services | --- | --- | --- | --- | 127,786 | --- | --- | 127,786 |
|-----------------------------------|-----|-----|-----|-----|---------|-----|-----|---------|

| Stock issued for cash | --- | --- | 37,500 | 38 | 17,962 | --- | --- | 18,000 |
|-----------------------|-----|-----|--------|----|--------|-----|-----|--------|

| Stock issued for    software | --- | --- | 250,000 | 250 | 375,750 | --- | --- | 376,000 |
|------------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Stock issued for loan      payment | --- | --- | 62,500 | 62 | 47,938 | --- | --- | 48,000 |
|------------------------------------|-----|-----|--------|----|--------|-----|-----|--------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Dividend payable on preferred      stock | --- | --- | --- | --- | (30,000) | --- | --- | (30,000) |
|------------------------------------------|-----|-----|-----|-----|----------|-----|-----|----------|

| Net loss | --- | --- | --- | --- | --- | --- | (1,702,055) | (1,702,055) |
|----------|-----|-----|-----|-----|-----|-----|-------------|-------------|

| Balance, December 31,    2006 | 500,000 | 500 | 9,016,055 | 9,016 | 29,498,519 | (128,000) | (29,066,327) | 313,708 |
|-------------------------------|---------|-----|-----------|-------|------------|-----------|--------------|---------|

| Stock issued for    services: |   |   |   |   |   |   |   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

|  February 2007 | --- | --- | 63,750 | 64 | 37,634 | --- | --- | 37,698 |
|---------------------|-----|-----|--------|----|--------|-----|-----|--------|

| March 2007 | --- | --- | 237,500 | 238 | 170,762 | --- | --- | 171,000 |
|------------|-----|-----|---------|-----|---------|-----|-----|---------|

| May 2007 | --- | --- | 250,000 | 250 | 39,750 | --- | --- | 40,000 |
|----------|-----|-----|---------|-----|--------|-----|-----|--------|

| August 2007 | --- | --- | 31,250 | 31 | 4,469 | --- | --- | 4,500 |
|-------------|-----|-----|--------|----|-------|-----|-----|-------|

| September 2007 | --- | --- | 125,000 | 125 | 31,475 | --- | --- | 31,600 |
|----------------|-----|-----|---------|-----|--------|-----|-----|--------|

| November 2007 | --- | --- | 406,250 | 406 | 90,594 | --- | --- | 91,000 |
|---------------|-----|-----|---------|-----|--------|-----|-----|--------|

| December 2007 | --- | --- | 15,625 | 16 | 2,984 | --- | --- | 3,000 |
|---------------|-----|-----|--------|----|-------|-----|-----|-------|

| Contribution to capital from      shareholder | --- | --- | --- | --- | 5,220 | --- | --- | 5,220 |
|-----------------------------------------------|-----|-----|-----|-----|-------|-----|-----|-------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Contribution to capital from contract      party | --- | --- | --- | --- | 25,200 | --- | --- | 25,200 |
|--------------------------------------------------|-----|-----|-----|-----|--------|-----|-----|--------|

| Stock issued for accrued      salary | --- | --- | 505,092 | 505 | 338,917 | --- | --- | 339,422 |
|--------------------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Stock issued forbonuses | --- | --- | 6,250 | 6 | 4,194 | --- | --- | 4,200 |
|-------------------------|-----|-----|-------|---|-------|-----|-----|-------|

| Contribution to capital from contract      party | --- | --- | --- | --- | 5,200 | --- | --- | 5,200 |
|--------------------------------------------------|-----|-----|-----|-----|-------|-----|-----|-------|

| Conversion of contribution to capital      from contract party to loan proceeds | --- | --- | --- | --- | (30,400) | --- | --- | (30,400) |
|---------------------------------------------------------------------------------|-----|-----|-----|-----|----------|-----|-----|----------|

| Stock issued for cash | --- | --- | 31,250 | 31 | 9,969 | --- | --- | 10,000 |
|-----------------------|-----|-----|--------|----|-------|-----|-----|--------|

| Dividend payable on preferred      stock | --- | --- | --- | --- | (30,000) | --- | --- | (30,000) |
|------------------------------------------|-----|-----|-----|-----|----------|-----|-----|----------|

| Net loss | --- | --- | --- | --- | --- | --- | (1,509,504) | (1,509,504) |
|----------|-----|-----|-----|-----|-----|-----|-------------|-------------|

| Balance, December 31,    2007 | 500,000 | 500 | 10,688,022 | 10,688 | 30,204,487 | (128,000) | (30,575,831) | (488,156) |
|-------------------------------|---------|-----|------------|--------|------------|-----------|--------------|-----------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| Dividend payable | --- | --- | --- | --- | (15,000) | --- | --- | (15,000) |
|------------------|-----|-----|-----|-----|----------|-----|-----|----------|

| Cancellation of preferred      stock | (500,000) | (500) | --- | --- | 500 | --- | --- | --- |
|--------------------------------------|-----------|-------|-----|-----|-----|-----|-----|-----|

| Stock issued for preferred      stock | --- | --- | 781,250 | 781 | (781) | --- | --- | --- |
|---------------------------------------|-----|-----|---------|-----|-------|-----|-----|-----|

| Stock issued for    bonuses: |   |   |   |   |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

| May 2008 | --- | --- | 93,750 | 94 | 5,906 | --- | --- | 6,000 |
|----------|-----|-----|--------|----|-------|-----|-----|-------|

| December 2008 | --- | --- | 125,000 | 125 | 5,075 | --- | --- | 5,200 |
|---------------|-----|-----|---------|-----|-------|-----|-----|-------|

| Stock issued for salary | --- | --- | 937,500 | 937 | 374,063 | --- | --- | 375,000 |
|-------------------------|-----|-----|---------|-----|---------|-----|-----|---------|

| Stock issued for cash | --- | --- | 625,000 | 625 | 49,375 | --- | --- | 50,000 |
|-----------------------|-----|-----|---------|-----|--------|-----|-----|--------|

| Stock issued for consulting      services: |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

| May 2008 | --- | --- | 281,250 | 281 | 17,719 | --- | --- | 18,000 |
|----------|-----|-----|---------|-----|--------|-----|-----|--------|

| July 2008 | --- | --- | 1,093,750 | 1,094 | 105,906 | --- | --- | 107,000 |
|-----------|-----|-----|-----------|-------|---------|-----|-----|---------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | STATEMENT OF      STOCKHOLDERS’ (DEFICIT) EQUITY |   |
|--------|--------------------------------------------------------|--------|

|   | For the Period from      June 17, 2003 (Inception), Through December 31, 2008    (cont.) |   |
|--------|------------------------------------------------------------------------------------------|--------|

|   |
|--------|

|   | Preferred      Stock | Common      Stock |   |
|--------|----------------------|-------------------|--------|

|   |   | Shares | Amount | Shares | Amount | Additional Paid-in      Capital | Subscription      Receivable | Deficit Accumulated      during Development Stage | Total |
|--------|--------|--------|--------|--------|--------|---------------------------------|------------------------------|---------------------------------------------------|-------|

| December 2008 | --- | --- | 625,000 | 625 | 19,375 | --- | --- | 20,000 |
|---------------|-----|-----|---------|-----|--------|-----|-----|--------|

| Stock issued for option | --- | --- | 6,250,000 | 6,250 | 181,250 | --- | --- | 187,500 |
|-------------------------|-----|-----|-----------|-------|---------|-----|-----|---------|

| Forgiveness of dividend      payable | --- | --- | --- | --- | 127,500 | --- | --- | 127,500 |
|--------------------------------------|-----|-----|-----|-----|---------|-----|-----|---------|

| Net loss | --- | --- | --- | --- | --- | --- | (469,333) | (469,333) |
|----------|-----|-----|-----|-----|-----|-----|-----------|-----------|

| Balance, December 31,    2008 | --- | $--- | 21,500,522 | $21,500 | $31,075,375 | $(128,000) | $(31,045,164) | $(76,289) |
|-------------------------------|-----|------|------------|---------|-------------|------------|---------------|-----------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | CONSOLIDATED      STATEMENTS OF CASH FLOWS |   |
|--------|--------------------------------------------|--------|

|   | For the Years Ended      December 31, 2008 and 2007, and the Period from June 17, 2003 (Inception),      Through December 31, 2008 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   | 2008 |   | 2007 |   |   |   | Inception Through      12/31/08 |
|--------|--------|--------|------|--------|------|--------|--------|--------|---------------------------------|

| CASH FLOWS FROM OPERATING    ACTIVITIES |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

| Net loss |   | $(469,333) |   | $(1,509,504) |   |   |   | $(31,045,164) |
|----------|--------|------------|--------|--------------|--------|--------|--------|---------------|

|   | Adjustments to reconcile net loss to      cash used in operating activities: |   |   |   |   |   |   |   |   |
|--------|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Depreciation |   | 1,204 |   | 2,000 |   |   |   | 298,680 |
|--------|--------------|--------|-------|--------|-------|--------|--------|--------|---------|

|   | Stock issued for services and      bonuses |   | 531,200 |   | 6,075,213 |   |   |   | 8,807,898 |
|--------|--------------------------------------------|--------|---------|--------|-----------|--------|--------|--------|-----------|

|   | Impairment loss and write-down of      assets |   | --- |   | 780,515 |   |   |   | 17,473,096 |
|--------|-----------------------------------------------|--------|-----|--------|---------|--------|--------|--------|------------|

|   | Warrant expense |   | --- |   | 87,820 |   |   |   | 2,200,389 |
|--------|-----------------|--------|-----|--------|--------|--------|--------|--------|-----------|

|   | Donated capital, officers’      salaries |   | --- |   | 10,000 |   |   |   | 279,808 |
|--------|------------------------------------------------|--------|-----|--------|--------|--------|--------|--------|---------|

|   | Loss on debt    extinguishment |   | --- |   | (2,122) |   |   |   | 23,000 |
|--------|--------------------------------|--------|-----|--------|---------|--------|--------|--------|--------|

|   | Changes in assets and      liabilities: |   |   |   |   |   |   |   |   |
|--------|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Accounts receivable |   | (5,300) |   | --- |   |   |   | (5,300) |
|--------|---------------------|--------|---------|--------|-----|--------|--------|--------|---------|

|   | Accrued expenses |   | (107,113) |   | (43,554) |   |   |   | 185,919 |
|--------|------------------|--------|-----------|--------|----------|--------|--------|--------|---------|

|   | Accrued interest |   | 3,348 |   | 7,582 |   |   |   | 10,930 |
|--------|------------------|--------|-------|--------|-------|--------|--------|--------|--------|

|   | Accounts payable |   | 14,000 |   | 3,000 |   |   |   | 18,500 |
|--------|------------------|--------|--------|--------|-------|--------|--------|--------|--------|

| CASH FLOWS USED IN OPERATING    ACTIVITIES |   | (31,994) |   | (45,361) |   |   |   | (1,752,244) |
|-------------------------------------------------|--------|----------|--------|----------|--------|--------|--------|-------------|

|   |
|--------|

| CASH FLOWS FROM INVESTING    ACTIVITIES |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Purchase of equipment |   | --- |   | --- |   |   |   | (102,116) |
|--------|-----------------------|--------|-----|--------|-----|--------|--------|--------|-----------|

| CASH FLOWS USED IN INVESTING    ACTIVITIES |   | --- |   | --- |   |   |   | (102,116) |
|-------------------------------------------------|--------|-----|--------|-----|--------|--------|--------|-----------|

|   |
|--------|

|   | UBROADCAST,      INC. |   |
|--------|-----------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | CONSOLIDATED      STATEMENTS OF CASH FLOWS |   |
|--------|--------------------------------------------|--------|

|   | For the Years Ended      December 31, 2008 and 2007, and the Period from June 17, 2003 (Inception),      Through December 31, 2008 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|

|   |   |   | 2008 |   | 2007 |   |   |   | Inception Through      12/31/08 |
|--------|--------|--------|------|--------|------|--------|--------|--------|---------------------------------|

| CASH FLOWS FROM FINANCING    ACTIVITIES |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Repayment of related party      advances |   | (18,300) |   | --- |   |   |   | (77,300) |
|--------|------------------------------------------|--------|----------|--------|-----|--------|--------|--------|----------|

|   | Proceeds from related party      advances |   | --- |   | --- |   |   |   | 100,640 |
|--------|-------------------------------------------|--------|-----|--------|-----|--------|--------|--------|---------|

|   | Sale of preferred stock with      warrants |   | --- |   | --- |   |   |   | 500,000 |
|--------|--------------------------------------------|--------|-----|--------|-----|--------|--------|--------|---------|

|   | Proceeds from exercise of      warrants |   | --- |   | --- |   |   |   | 742,400 |
|--------|-----------------------------------------|--------|-----|--------|-----|--------|--------|--------|---------|

|   | Shareholder contributions to      capital |   | --- |   | 5,220 |   |   |   | 5,220 |
|--------|-------------------------------------------|--------|-----|--------|-------|--------|--------|--------|-------|

|   | Proceeds from short term      payable |   | --- |   | 30,400 |   |   |   | 55,400 |
|--------|---------------------------------------|--------|-----|--------|--------|--------|--------|--------|--------|

|   | Sale of common stock,    net |   | 50,000 |   | 10,000 |   |   |   | 528,000 |
|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|

| CASH FLOWS PROVIDED BY FINANCING    ACTIVITIES |   | 31,700 |   | 45,620 |   |   |   | 1,854,360 |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|

|   |
|--------|

| NET INCREASE (DECREASE) IN      CASH |   | (294) |   | 259 |   |   |   | --- |
|--------------------------------------|--------|-------|--------|-----|--------|--------|--------|-----|

| Cash, beginning of    period |   | 294 |   | 35 |   |   |   | --- |
|------------------------------|--------|-----|--------|----|--------|--------|--------|-----|

| Cash, end of period |   | $--- |   | $294 |   |   |   | $--- |
|---------------------|--------|------|--------|------|--------|--------|--------|------|

|   |
|--------|

| Supplemental    information: |   |
|------------------------------|--------|

| Income taxes paid |   | $--- |   | $--- |   |   |   | $--- |
|-------------------|--------|------|--------|------|--------|--------|--------|------|

| Interest paid |   | $--- |   | $--- |   |   |   | $--- |
|---------------|--------|------|--------|------|--------|--------|--------|------|

|   |
|--------|

| Non-cash Investing and Financing      Activities: |   |
|---------------------------------------------------|--------|

| Stock issued fordeposit |   | $187,500 |   | $--- |   |   |   | $187,000 |
|-------------------------|--------|----------|--------|------|--------|--------|--------|----------|

| Accrued dividends contributed as      paid-in capital |   | $(112,500) |   | $--- |   |   |   | $(112,500) |
|-------------------------------------------------------|--------|------------|--------|------|--------|--------|--------|------------|

| Cumulative dividends on preferred      stock |   | $--- |   | $30,000 |   |   |   | $112,500 |
|----------------------------------------------|--------|------|--------|---------|--------|--------|--------|----------|

| Stock issued in    acquisition |   | $--- |   | $--- |   |   |   | $16,687,627 |
|--------------------------------|--------|------|--------|------|--------|--------|--------|-------------|

| Stock issued for wi-fi      hotspots |   | $--- |   | $--- |   |   |   | $120,000 |
|--------------------------------------|--------|------|--------|------|--------|--------|--------|----------|

| Warrants issued for    patent |   | $--- |   | $--- |   |   |   | $485,133 |
|-------------------------------|--------|------|--------|------|--------|--------|--------|----------|

| Stock issued for    software |   | $--- |   | $--- |   |   |   | $376,000 |
|------------------------------|--------|------|--------|------|--------|--------|--------|----------|

| Stock issued for payment of note      payable |   | $--- |   | $--- |   |   |   | $25,000 |
|-----------------------------------------------|--------|------|--------|------|--------|--------|--------|---------|

| The accompanying notes are an integral      part of these statements. |
|-----------------------------------------------------------------------|

|   | UBROADCAST, INC. |   |
|--------|------------------|--------|

|   | (a development stage      company) |   |
|--------|------------------------------------|--------|

|   | NOTES TO      CONSOLIDATED FINANCIAL STATEMENTS |   |
|--------|-------------------------------------------------|--------|

|   | December 31,      2008 |   |
|--------|------------------------|--------|

| Note      1 | Basis of      Presentation |
|-------------|----------------------------|

| Note    2 | Going      Concern |
|-----------|--------------------|

| Note    3 | Acquisitions |
|-----------|--------------|

| Note    4 | Intangible Assets      and Software |
|-----------|-------------------------------------|

| Note    5 | Notes      Payable |
|-----------|--------------------|

| Note    6 | Income      Taxes |
|-----------|-------------------|

| Note    7 | Capital      Stock |
|-----------|--------------------|

| Note    8 | Warrants |
|-----------|----------|

|   | Exercise      Price |   | Number of      Shares |   | Remaining      Life |   | Exercisable Number      of Shares |   |
|--------|---------------------|--------|-----------------------|--------|---------------------|--------|-----------------------------------|--------|

|   | $32.00 |   | 156,250 |   | April 2009 |   | 156,250 |   |
|--------|--------|--------|---------|--------|------------|--------|---------|--------|

|   | $1.28 |   | 109,375 |   | November 2010 |   | 109,375 |   |
|--------|-------|--------|---------|--------|---------------|--------|---------|--------|

|   | $1.12 |   | 203,125 |   | March 2011 |   | 203,125 |   |
|--------|-------|--------|---------|--------|------------|--------|---------|--------|

|   | At      12/31/08 |   | 468,750 |   |   |   | 468,750 |   |
|--------|------------------|--------|---------|--------|--------|--------|---------|--------|

| Note    9 | Commitments |
|-----------|-------------|

| Note    10 | Expired      Agreement |
|------------|------------------------|

| Note    11 | Subsequent      Events |
|------------|------------------------|

|   |   |   | UBI |   |   |   |   |
|--------|--------|--------|-----|--------|--------|--------|--------|

| Cash and cash    equivalents |   |   | $(140) |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|

| Accounts receivable |   |   | 45,000 |   |   |   |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|

|   | Total current assets |   |   | 44,860 |   |   |   |   |
|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|

| Property and equipment, at      cost |   |   | 5,710 |   |   |   |   |
|--------------------------------------|--------|--------|-------|--------|--------|--------|--------|

|   | Less: Accumulated      depreciation |   |   | (584) |   |   |   |   |
|--------|-------------------------------------|--------|--------|-------|--------|--------|--------|--------|

|   | Net property and    equipment |   |   | 5,126 |   |   |   |   |
|--------|-------------------------------|--------|--------|-------|--------|--------|--------|--------|

| Other assets |   |   |   |   |   |   |   |
|--------------|--------|--------|--------|--------|--------|--------|--------|

|   | Software development |   |   | 851,278 |   |   |   |   |
|--------|----------------------|--------|--------|---------|--------|--------|--------|--------|

|   | Good will |   |   | 1,246,608 |   |   |   |   |
|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|

| Total assets |   |   | $2,147,872 |   |   |   |   |
|--------------|--------|--------|------------|--------|--------|--------|--------|

| Total current    liabilities |   |   | $244,622 |   |   |   |   |
|------------------------------|--------|--------|----------|--------|--------|--------|--------|

| Shareholders’ Equity      (Deficit) |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|

|   | Common stock |   |   | 15,206 |   |   |   |   |
|--------|--------------|--------|--------|--------|--------|--------|--------|--------|

|   | Subscription receivable |   |   | --- |   |   |   |   |
|--------|-------------------------|--------|--------|-----|--------|--------|--------|--------|

|   | Additional paid-in    capital |   |   | 2,710,161 |   |   |   |   |
|--------|-------------------------------|--------|--------|-----------|--------|--------|--------|--------|

|   | Accumulated deficit |   |   | (822,117) |   |   |   |   |
|--------|---------------------|--------|--------|-----------|--------|--------|--------|--------|

|   | Total shareholders’    equity |   |   | 1,903,250 |   |   |   |   |
|--------|-------------------------------------|--------|--------|-----------|--------|--------|--------|--------|

|   |   |   | $2,147,872 |   |   |   |   |
|--------|--------|--------|------------|--------|--------|--------|--------|