| Delaware                             |   | 54-1987541               |
|--------------------------------------|--------|--------------------------|
| (State      or other jurisdiction of |   | (I.R.S.      Employer    |
| incorporation      or organization)  |   | Identification      No.) |

| 1919      Gallows Road, Suite 1050Vienna,      Virginia  22182 |
|--------------------------------------------------------------------------|
| (Address      of principal executive offices) (ZipCode)                  |

The Index toExhibits begins on Page 40

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CONVERA CORPORATION

|        |                                                                                                              | Page   |
|-------------|-------------------------------------------------------------------------------------------------------------------|--------|
|        | PART      I                                                                                                       |   |
| Item 1.     | Business                                                                                                          | 1      |
|        |                                                                                                              |   |
| Item 1A.    | Risk Factors                                                                                                      | 4      |
|        |                                                                                                              |   |
| Items 1B.   | Unresolved Staff Comments                                                                                         | 8      |
|        |                                                                                                              |   |
| Item 2.     | Properties                                                                                                        | 8      |
|        |                                                                                                              |   |
| Item 3.     | Legal Proceedings                                                                                                 | 8      |
|        |                                                                                                              |   |
| Item 4.     | Removed and Reserved                                                                                              | 8      |
|        | PART      II                                                                                                      |   |
|        |                                                                                                              |   |
| Item 5.     | Market for Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 9      |
|        |                                                                                                              |   |
| Item 6.     | Selected Financial Data                                                                                           | 10     |
|        |                                                                                                              |   |
| Item 7.     | Management's      Discussion and Analysis of Financial Condition and      Results of Operations                   | 11     |
|        |                                                                                                              |   |
| Item 7A.    | Quantitative and Qualitative Disclosures about Market      Risk                                                   | 23     |
|        |                                                                                                              |   |
| Item 8.     | Financial Statements and Supplementary Data                                                                       | 23     |
|        |                                                                                                              |   |
| Item 9.     | Changes in and Disagreements with Accountants on Accounting and      Financial Disclosure                         | 23     |
|        |                                                                                                              |   |
| Item 9A(T). | Controls and Procedures                                                                                           | 23     |
|        |                                                                                                              |   |
| Item 9B.    | Other Information                                                                                                 | 24     |
|        | PART      III                                                                                                     |   |
|        |                                                                                                              |   |
| Item 10.    | Directors, Executive Officers and Corporate      Governance                                                       | 25     |
|        |                                                                                                              |   |
| Item 11.    | Executive Compensation                                                                                            | 26     |
|        |                                                                                                              |   |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters               | 34     |
|        |                                                                                                              |   |
| Item 13.    | Certain Relationships and Related Transactions, and Director      Independence                                    | 37     |
|        |                                                                                                              |   |
| Item 14.    | Principal Accounting Fees and Services                                                                            | 38     |
|        | PART      IV                                                                                                      |   |
|        |                                                                                                              |   |
| Item 15.    | Exhibits, Financial Statement Schedules                                                                           | 39     |

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| FORWARD-LOOKINGSTATEMENTS |
|---------------------------|

| The      statements contained in this annual report on Form 10-K that are not      purely historical are “forward-looking statements” within the meaning of      Section 27A of the Securities Act of 1933 and Section 21E of the      Securities Exchange Act of 1934 (“Exchange Act”), including without      limitation statements about the expectations, beliefs, intentions or      strategies regarding the future of Convera Corporation (hereinafter      referred to as “Convera,” the “Company,” “we,” “us” and “our” through this      document). Words such as “expects,” “intends,” “plans,” “projects,”      “believes,” “estimates,” and similar expressions are used to identify      these forward-looking statements. These include, among others, statements      regarding our future expectations, performance, plans and prospects as      well as assumptions about future events. All forward-looking statements      included in this annual report are based on information available to us on      the date hereof, and we assume no obligation to update any such      forward-looking statements. The forward-looking statements contained      herein involve risks and uncertainties discussed under the heading “Risk      Factors” below. Our actual results could differ materially from those      anticipated in these forward-looking statements as a result of such      factors, including those set forth in this annual  report. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM      1. | BUSINESS      AND PLAN OF LIQUIDATION |
|--------------|---------------------------------------|

| Convera      Corporation was established through the combination of the former      Excalibur Technologies Corporation (“Excalibur”) and Intel Corporation’s      (“Intel”) Interactive Media Services (“IMS”) division on December 21,      2000.  Convera previously provided vertical search services to      trade publishers. Convera’s technology and services were designed to help      publishers build a loyal online community and increase their internet      advertising revenues. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| For      all periods before the Board authorized the filing of the Certificate of      Dissolution on January 29, 2010, the Company’s financial statements are      presented on a going concern basis of accounting. As required by generally      accepted accounting principles, the Company adopted a liquidation basis of      accounting immediately after the close of business on January 29, 2010.      Under the liquidation basis of accounting, assets are stated at their      estimated net realizable value and liabilities are stated at their      estimated settlement amounts, which estimates will be periodically      reviewed and adjusted asappropriate. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| At      January 31, 2010, the Company’s net assets in liquidation aggregated $10.6      million, or $0.20 per share based upon 53,501,183 shares of common shares      outstanding at January 31, 2010, compared to net assets of $22.7 million,      or $0.42 per share based upon 53,501,183 shares of common stock      outstanding at January 31, 2009.  Included in that total is an      amount representing the operating business related assets and liabilities      which were contributed by the Company to B2B and Technologies and      subsequently included in the Merger. The net value of those assets and      liabilities at January 31, 2010 is estimated at net realizable value and      represents the estimated net realizable value of the Company’s 33.3%      investment in VSW. All other assets are presented at estimated net      realizable value on an undiscounted basis. The amount also includes a      reserve for future estimated general and administrative expenses and other      costs during the liquidation. Estimated net realizable value reflects      economic changes and various other changed circumstances over recent      months. There can be no assurance that these estimated values will be      realized. Such amount should not be taken as an indication of the timing      or amount of future distributions to be made by the Company, if      any. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Further      liquidation distributions, if any, will be made in cash or in kind,      including in stock or ownership interests in VSW and remaining assets of      the Company. The timing and amount of interim liquidating distributions      and final liquidating distributions will depend on the amount of the      Company’s existing cash, the amount of liabilities, the timing of the      payment or satisfaction of liabilities, the amount of proceeds the Company      will receive upon the sale of the Company’s remaining assets, primarily      intangible assets (intellectual property), which is not expected to be      significant, and the extent to which reserves for current or future      liabilities are required. Accordingly, there can be no assurance that      there will be any liquidating distributions prior to a final liquidating      distribution. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Convera’s      common stock stopped trading on the NASDAQ stock market after February 8,      2010 upon the filing of the Certificate of      Dissolution.  However, the common stock continues to be traded      on Pink Sheets.  Pink Sheets is not a stock      exchange.  Rather, it is an electronic quotation system operated      by Pink OTC Markets that displays quotes from broker-dealers for      over-the-counter (OTC) securities.  Convera is headquartered at      1919 Gallows Road, Vienna, VA  22182.  Our main      corporate telephone number is (703)761-3700. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| BUSINESS      PRIOR TO LIQUIDATION |
|------------------------------------|

| We      had 30 employees at January 31, 2010.  All employees resigned on      or as of February 9, 2010 upon the Merger and joined VSW.  See      Item 1A. “Risk Factors” for a discussion of some of the risks we face      related to our former employees. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item1A.

| In addition to the other      information contained in this Form 10-K, you should carefully read the      following risk factors. The Plan of Dissolution involves significant risks      and uncertainties, including, without limitation, the risk factors      identified below. The risks and uncertainties described below are not the      only risks and uncertainties we face. Additional risks and uncertainties      not presently known to us or that we currently deem immaterial also may      impair our dissolution and the amount and timing of any distributions to      stockholders.  If any of the following risks actually occur, the      ultimate value of distributions to stockholders could decline      substantially.  Additionally, if any of the following risks      actually occur, the value of the shares of VSW’s common stock we received      in the Merger may decline substantially. The discussion below and      elsewhere in this report also includes forward-looking statements, and      actual events may differ substantially from those discussed in these      forward-looking statements as a result of the risks discussed      below.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We      established a contingency reserve of $3,000,000 in cash designed to      satisfy any additional claims and obligations that may arise. Although our      board of directors believes such reserve is adequate for payment of our      known and unknown liabilities, any contingency reserve may not be adequate      to cover all of our obligations and claims against us due to the      uncertainty of unknown liabilities. Under Delaware law, if we fail to      create an adequate contingency reserve for payment of our claims and      obligations during the three-year period after we file the Certificate of      Dissolution, each of our stockholders could be held liable for payment to      our creditors of such stockholder’s pro rata share of amounts owed to      creditors in excess of the contingency reserve. The liability of any of      our stockholders would be limited to the amounts previously received by      such stockholder in dissolution from us and from any liquidating trust or      trusts. Accordingly, in such event, a stockholder could be required to      return part or all of the distributions previously made to such      stockholder, and a stockholder could receive nothing from us under the      Plan of Dissolution. Moreover, if one of our stockholders has paid taxes      on amounts previously received, a repayment of all or a portion of such      amount could result in a situation in which a stockholder may incur a net      tax cost if the repayment of the amount previously distributed does not      cause a commensurate reduction in taxes payable in an amount equal to the      amount of the taxes paid on amounts previously  distributed. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The      Plan of Dissolution contemplates the orderly sale of the Company's      remaining assets and the discharge of all outstanding liabilities to third      parties and, after the establishment of appropriate reserves, the      distribution of all remaining cash to stockholders.  The amount      of operating expenses incurred by the Company during its winding down may      be higher than expected.  If the expenses to operate the Company      in accordance with the Plan of Dissolution are higher than expected, the      amount of cash to be ultimately distributed to stockholders may be      reduced. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| As      of January 31, 2010, we had an accumulated deficit of approximately $1.2      billion. We have operated at a loss for each of the past three fiscal      years. For the fiscal years ended January 31, 2010, 2009 and 2008 our net      losses were approximately $12.4 million, $22.6 million and $9.1 million,      respectively. Our loss from continuing operations for the fiscal years      ended January 31, 2010, 2009 and 2008 was $12.4 million, $22.6 million and      $27.0 million, respectively. We expect that VSW will continue the trend of      significant operating losses and uses of cash until the revenue base for      its vertical search services and editorial related advertising grows to      sufficient levels to support its expenses. Firstlight has also operated at      a loss for each of the past three fiscal years. For the fiscal years ended      December 31, 2008, 2007 and 2006, Firstlight’s net losses were      approximately $2.6 million, $3.0 million and $3.7 million, respectively.      Accordingly, we cannot assure you that VSW will generate the revenues      required to achieve or maintain profitability in the future or that the      value of its common stock will be material. VSW’s failure to achieve and      sustain its profitability will negatively impact the market value of its      common stock. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| In      order to maintain its operation and pursue business strategies, VSW may      require additional financing if the internally generated revenues are not      sufficient for such purpose, which funding may not be available to VSW on      favorable terms, if at all. The availability of such financing is further      limited by the recent tightening of the global credit markets, and the      lack of investors’ confidence in the equity markets. If VSW is not able to      obtain financing when needed or on reasonable terms, its business and      financial condition may be materially negatively impacted and thus, the      value of our ownership interest in VSW may be materially diminished. If      VSW is able to obtain financing through equity issuance, our (and our      stockholders’) existing ownership of VSW may be  diluted. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The      credit and financial markets have experienced unprecedented volatility,      stress, illiquidity and disruption around the world recently and may      continue to experience such difficulties. Many of our customers have      encountered and may continue to encounter much uncertainty and risks due      to the weakened business environment and credit availability, particularly      in the publishing area. As a result, these customers may be unable to      satisfy their contract obligations, may delay payment, or may delay      purchasing VSW’s services, which could negatively affect the business and      financial performance of VSW. In addition, the weakened business      environment has adversely impacted and may continue to adversely impact      sales of on-line ads, which could negatively affect any business and      general performance. If VSW’s business or financial performance is      negatively affected, the net realizable value of our ownership interest in      VSW may be materially diminished. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The      search industry is characterized by intense competition, rapid      technological changes, changes in customer requirements and emerging new      market segments. VSW’s competitors will include many companies that are      larger and more established and have substantially more resources than VSW      and may include start-ups as well. Potential competitors to VSW may      establish cooperative relationships among themselves or with third parties      to increase the ability of their products to address the needs of the      markets which VSW intends to serve. Accordingly, it is possible that new      competitors or alliances among competitors may emerge and rapidly acquire      significant market share. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In      order for VSW’s strategy to succeed, it must provide vertical search      services that meet the needs of the business-to-business and specialized      publishing companies. VSW will need to invest significant resources in      research and development to provide the publishers with leading-edge      search technology to help them deliver unique value to their online      community and increase online advertising revenues. To effectively      compete, VSW will need to continually improve its service offerings and      innovate by introducing new services that are responsive to the needs of      its users. The development efforts required for this are expensive. If      these developments do not generate substantial revenues, VSW’s business      and results of operations will be adversely affected and thus, the value      of our ownership interest in VSW may be materially diminished. We cannot      assure you that VSW will successfully develop any new products or      services, complete them on a timely basis or at all, achieve market      acceptance or generate significant revenues with  them. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For      the year ended December 31, 2009, Firstlight’s two largest customers      accounted for approximately 55% of its sales. VSW continues to depend on a      few customers for substantially all of its revenues.  The loss      of, or a significant reduction in orders from, any of these customers      could significantly reduce VSW’s revenues and harm its operating      results. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Significant      revenues related to Convera’s previous business, which has been merged      into VSW, and a portion of revenues related to Firstlight’s business have      been derived from publishers in the United Kingdom. For the year ended      January 31, 2010, Convera’s total revenue derived from international sales      was approximately $0.2 million, representing approximately 21% of its      total revenue. For the year ended January 31, 2009, Convera’s total      revenue derived from international sales was approximately $1.0 million,      representing approximately 76% of total revenue. For the year ended      December 31, 2009, Firstlight’s total revenue derived from sales outside      the United States was approximately $471,000, representing approximately      24% of its total revenue. For the years ended December 31, 2008 and 2007,      Firstlight’s total revenue derived from sales outside the United States      were approximately $187,000 and $445,000, respectively, representing      approximately 6% and 19% of its total revenue,    respectively. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Convera’s      international operations and sales have historically exposed it to longer      accounts receivable and payment cycles and fluctuations in currency      exchange rates. International sales had been made mostly from its U.K.      subsidiary until its closure in January 2009 and are typically denominated      in British pounds. As of January 31, 2010, approximately 7% of Convera’s      total consolidated accounts receivable were denominated in British pounds.      Since exchange rates vary, those results when translated may vary from      expectations and adversely impact overall expected profitability. VSW will      also offer its services internationally and therefore expose itself to      similar risks. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| VSW’s      international operations may expose it to a variety of other risks that      could seriously impede its financial condition and growth. These risks      include the following: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | potentially      adverse tax consequences; |
|--------------------|--------------------------------------------|

| ·   | difficulties      in complying with regulatory requirements and  standards; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | trade      restrictions and changes intariffs; |
|--------------------|------------------------------------------------|

| ·   | import      and export license requirements and  restrictions; |
|--------------------|----------------------------------------------------------------|

| ·   | regulations      on the operation of the internet in certain countries;  and |
|--------------------|------------------------------------------------------------------------------|

| ·   | uncertainty      of the effective protection of our intellectual property rights in certain      foreign countries. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| If      any of these risks described above materialize, VSW’s international sales      could decrease and our foreign operations could  suffer. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| Until      recently, Convera offered its customers its services for an agreed upon      time period in return for an agreed upon monthly charge or a share of      advertising revenues. Firstlight offered its services only in return for a      percentage of advertising revenues. The marketing and pricing      considerations of Firstlight differ greatly from those of a subscription      model. The cash flow characteristics are also different. The new pricing      model for the combined business has not been finalized and we expect it to      evolve over the first several months after the effectiveness of the      Merger. However, VSW presently intends to offer the combined ad-serving,      vertical search and micro-site service in return for a share of      advertising revenues with an initial down-payment from the publisher,      where possible. There can be no assurance that VSW’s pricing model will be      widely accepted by current and new customers and, therefore, VSW may      experience a decrease in the demand for its products and services, which      would harm its results of operations and cash  flows. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Firstlight      is involved in a litigation with its former minority shareholder, Jamara      Holdings Limited, and such entity’s chief operating officer and      shareholder, Brett Campbell Bailey. Although Firstlight believes these      legal proceedings have no merit, the outcome of litigation may be      uncertain and the costs associated with defending any litigation may have      negative financial and other effects on VSW’s financial position, results      of operations or cash flows in a particular  period. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| In      accordance with securities laws, we may not distribute shares of VSW’s      common stock to our stockholders prior to the one year anniversary of the      consummation of the Merger. In addition, the VSW shares subject to      distribution are required to be registered. Upon receipt of written notice      from us to VSW, VSW is required to use its best efforts to prepare and      file, at its own cost, a registration statement on Form 10 with the SEC      prior to the date of such distribution, registering VSW’s common stock      under the Exchange Act and to cause such common stock to be listed on the      NASDAQ Global Market or such other exchange as approved by us and to make      other filings required by law. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Although      VSW is required to use its best efforts to register and list its common      stock before such shares are distributed to our stockholders, there can be      no assurance that such registration and listing will be completed and no      certainty when the registration and listing will become effective, if      ever. As a result, our stockholders may be required under securities laws      to hold their shares of VSW common stock for an indefinite period of time      as “restricted securities” within the meaning of Rule 144 under the      Securities Act. As restricted securities, such shares may be resold only      pursuant to an effective registration statement or under the requirements      of Rule 144 or other applicable exemption from registration under the      Securities Act and as required under applicable state securities      laws. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item1B

Item2.

Item3.

Item4.  

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Item5.

|                                                                                                                                                                                                                                                                                                                                                                                  |   | High   |   |   | Low    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Fiscal      2010 (February 1, 2009 – January 31, 2010)                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| First      Quarter                                                             |   | $      | 0.28   |   |   | $      | 0.15 |   |
| Second      Quarter                                                            |   |   | 0.40   |   |   |   | 0.16 |   |
| Third      Quarter                                                             |   |   | 0.32   |   |   |   | 0.19 |   |
| Fourth      Quarter                                                            |   |   | 0.26   |   |   |   | 0.21 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Fiscal      2009 (February 1, 2008 – January 31, 2009)                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| First      Quarter                                                             |   | $      | 2.24   |   |   | $      | 1.33 |   |
| Second      Quarter                                                            |   |   | 1.72   |   |   |   | 1.03 |   |
| Third      Quarter                                                             |   |   | 1.26   |   |   |   | 0.32 |   |
| Fourth      Quarter                                                            |   |   | 0.72   |   |   |   | 0.16 |   |

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Item6. 

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Item7.  

After the close of market on February8, 2010, the Company filed a Certificate of Dissolution with the DelawareSecretary of State, pursuant to the Plan of Dissolution.  Thedescription of the terms and conditions of the Plan of Dissolution in ourcurrent report on Form 8-K filed on June 4, 2009 and a copy of the Plan filed asExhibit 2.2 thereto are incorporated herein by reference.

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| Overview      of Business (Going Concern Basis) |
|-------------------------------------------------|

| We      previously provided vertical search services to trade publishers. Our      technology and services helped publishers to build a loyal online      community and increase their internet advertising      revenues.  Utilizing our vertical search services, our customers      could create search engines customized to meet the specialized information      needs of their audience by combining publisher proprietary content with an      authoritative subset of the Web.  On March 31, 2007, we agreed      to sell the assets of our Enterprise Search business for $23.0 million in      cash to Fast Search and Transfer, Inc. (“FAST”). This transaction closed      on August 9, 2007 with FAST assuming certain obligations of the business      and retaining certain employees serving its Enterprise Search customers.      Accordingly, revenues and expenses and cash flows related to the      Enterprise Search business for the periods prior to this transaction      closing have been reflected as discontinued operations in the accompanying      Consolidated Statements of Operations and of Cash Flows.  See      further discussion in Note 3, “Discontinued Operations” in the Notes to      Consolidated Financial Statements. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Our      principal source of revenue was provided through sales of our vertical      search services to the websites of publishers of trade business and      specialist publications. Our vertical search technology was a hosted      application sold as a service to the publishers.  We generated      our revenues from contracts based on search volume or by receiving a      percentage of publishers’ advertising revenues earned by the search sites.      Many of our contracts with publishers contained monthly minimum fees that      we were entitled to receive until website advertising revenue generated by      the publishers’ search sites exceeded those monthly minimum      amounts.  Revenues were also generated from hosting publisher      web sites and from providing technical staff training. We offered      professional services to customize publisher web sites and optimize search      engines, as well as web site monetization  consulting. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We      utilized an AT&T facility to host our vertical search      services.  This facility, located in Dallas, Texas, operated      under a master hosting arrangement that expires in July 2010 with an      annual option for an extension of an additional 12 months.  We      also maintained a hosting facility in San Diego, CA, which was vacated on      January 31, 2008 in an effort to appropriately scale our hosting      infrastructure. The AT&T hosting agreement and the assets housed there      were transferred with the remainder of our operating assets and      liabilities to B2B and included in theMerger. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                  |   | Estimated      cost |   |   | Adjustments      and Payments |   |   | BalanceJanuary      31, 2010 |   |
|-------------------------------------------------------|--------|---------------------|--------|--------|-------------------------------|--------|--------|------------------------------|--------|
| Payroll,      benefits, severance and retention costs |   | $                   | 1,347  |   |                          | $      | (19    | )                            |   | $ | 1,328 |   |
| Professional      fees                                |   |                | 300    |   |                          |   | -      |                         |   |   | 300 |   |
| Other      general and administrative costs           |   |                | 1,084  |   |                          |   | (402   | )                            |   |   | 682 |   |
| Total                                                 |   | $                   | 2,731  |   |                          | $      | (421   | )                            |   | $ | 2,310 |   |

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| Results      of Operations (Going Concern Basis) |
|--------------------------------------------------|

| For      the fiscal year 2010 total revenues were $0.8 million compared to total      revenues of $1.3 million in fiscal year 2009. The net loss for fiscal 2010      was $12.4 million or $(0.23) per common share, compared to a net loss of      $22.6 million or $ (0.42) per common share in fiscal year      2009. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For      the fiscal year ended January 31, 2008, total revenues from continuing      operations were $1.1 million. The loss from continuing operations for      fiscal 2008 was $27.0 million, or $(0.51) per common share. The net loss      of $9.1 million or $(0.17) per common share in fiscal year 2008 includes a      $17.9 million gain from the sale of discontinued operations or $0.34 per      share. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                     |   | Components      of Revenue and Expenses (Going Concern Basis)  |    | Increase (Decrease) |
|----------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|--------------------------|
|                                                     |   | February      1, 2009 to                                            |    |                     | Fiscal      years ended January 31, |   | From      2009  |   |   | From      2008  |
|                                                     |   | January      29, 2010                                               |    |                     | 2009 |   | 2008  |   |  to      2010 |   | to      2009  |
|                                                     |   |  $                                                                  |    |                     | % |   |  $ |   |   | % |   | $  |   |   | % |   |   | % |   |   | % |
| Continuing      Operations:                              |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                  |   | $                                                                        | 800     |                     |   |   | 100 | % |   | $ | 1,341 |   |   |   | 100 | % |   | $ | 1,118 |   |   |   | 100 | % |   |   | -40 | % |   |   | 20 | % |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenues                                    |   |                                                                     | 2,613   |                     |   |   | 327 | % |   |   | 7,003 |   |   |   | 522 | % |   |   | 9,660 |   |   |   | 864 | % |   |   | -63 | % |   |   | -28 | % |
| Sales      and marketing                                 |   |                                                                     | 882     |                     |   |   | 110 | % |   |   | 3,340 |   |   |   | 249 | % |   |   | 3,880 |   |   |   | 347 | % |   |   | -74 | % |   |   | -14 | % |
| Research      and product development                    |   |                                                                     | 2,405   |                     |   |   | 301 | % |   |   | 4,668 |   |   |   | 348 | % |   |   | 4,652 |   |   |   | 416 | % |   |   | -48 | % |   |   | 0 | % |
| General      and administrative                          |   |                                                                     | 5,369   |                     |   |   | 671 | % |   |   | 7,040 |   |   |   | 525 | % |   |   | 11,179 |   |   |   | 1000 | % |   |   | -23 | % |   |   | -37 | % |
| Impairment      of long-lived assets                     |   |                                                                     | -       |                     |   |   | 0 | % |   |   | 3,133 |   |   |   | 234 | % |   |   | 603 |   |   |   | 54 | % |   |   | -100 | % |   |   | 420 | % |
| Total      operating expenses                            |   |                                                                     | 11,269  |                     |   |   | 1409 | % |   |   | 25,184 |   |   |   | 1878 | % |   |   | 29,974 |   |   |   | 2681 | % |   |   | -55 | % |   |   | -16 | % |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      loss                                      |   |                                                                     | (10,469 | )                        |   |   |   |   |   |   | (23,843 | ) |   |   |   |   |   |   | (28,856 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustment             |   |                                                                     | (1,961  | )                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 100 | % |   |   | - |   |
| Other      income, net                                   |   |                                                                     | 44      |                     |   |   |   |   |   |   | 1,257 |   |   |   |   |   |   |   | 1,815 |   |   |   |   |   |   |   | -96 | % |   |   | -31 | % |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before taxes                                   |   |                                                                     | (12,386 | )                        |   |   |   |   |   |   | (22,586 | ) |   |   |   |   |   |   | (27,041 | ) |   |   |   |   |   |   | -45 | % |   |   | -16 | % |
| Income      tax benefit                                  |   |                                                                     | -       |                     |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 0 | % |   |   | 0 | % |
| Loss      from continuing Operations                     |   |                                                                     | (12,386 | )                        |   |   |   |   |   |   | (22,586 | ) |   |   |   |   |   |   | (27,041 | ) |   |   |   |   |   |   | -45 | % |   |   | -16 | % |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      Operations:                            |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from discontinued operations                 |   |                                                                     | -       |                     |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 20 |   |   |   |   |   |   |   | 0 | % |   |   | -100 | % |
| Gain      on sale on disposal of discontinued operations |   |                                                                     | -       |                     |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 17,925 |   |   |   |   |   |   |   | 0 | % |   |   | -100 | % |
| Income      from discontinued operations                 |   |                                                                     | -       |                     |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 17,945 |   |   |   |   |   |   |   | 0 | % |   |   | -100 | % |
|                                                     |   |                                                                     |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                            |   | $                                                                        | (12,386 | )                        |   |   |   |   |   | $ | (22,586 | ) |   |   |   |   |   | $ | (9,096 | ) |   |   |   |   |   |   | -45 | % |   |   | 148 | % |

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| Contractual      Obligations              |   | Payments      Due By Fiscal Period (in thousands) |   |
|-------------------------------------------|--------|---------------------------------------------------|--------|
|                                      |   | Total                                             |   |   | 2011 |   |   |   |  2012-2013 |   |
| Operating      leases                     |   | $                                                 | 545    |   |   | $ | 213 |   |   | $ | 332 |   |
| Other      contractual obligations        |   |                                              | 1,032  |   |   |   | 1,032 |   |   |   | - |   |
|       Total |   | $                                                 | 1,577  |   |   | $ | 1,245 |   |   | $ | 332 |   |

| ·   | Operating      lease obligations — represents the minimum lease rental payments      under non-cancelable leases, primarily for our office space and operating      equipment in various locations around theworld. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other      contractual obligations — represents the principal amounts due on      outstanding contractual obligations relating to our hosting agreements      with AT&T for our vertical search product.  In January 2008,      we exercised our right to terminate the contract for the San Diego hosting      facility (see further discussion in Note 4 of the consolidated financial      statements).  The other contractual obligations balance includes      the termination obligation due for the San Diego hosting facility of      approximately $0.7 million, as well as 100% of the contractual obligation      for the Dallas hosting facility, although that agreement is cancelable for      a payment of 50% of the remaining balance at the time of cancellation. In      June 2009 we exercised our option to extend the AT&T Dallas hosting      facility agreement for an additional 12 months through July 31, 2010 at a      slight increase in the contractual rate that is not reflected in other      contractual obligations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           |   | January      29, 2010 |   |   | January      31, 2009 |   |   | Change |   |
|--------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|--------|--------|--------|
| Cash      and cash equivalents |   | $                     | 12,679 |   |                  | $      | 22,754 |   |   | $ | (10,075 | ) |

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Item7A.

Item8.  

Item9.  

Item 9A(T).

| (a)   | Management’s      Report on Internal Control Over Financial  Reporting |
|-----------------|------------------------------------------------------------------------------|

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| (b)   | Changes      in Internal Control Over FinancialReporting |
|-----------------|----------------------------------------------------------|

| (c)   | Evaluation      of Disclosure Controls andProcedures |
|-----------------|------------------------------------------------------|

| (d)   | Inherent      Limitations of Disclosure Controls and Internal Control Over Financial      Reporting |
|-----------------|-----------------------------------------------------------------------------------------------------|

|   | Item 9B. | Other      Information |
|--------|----------|------------------------|

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Item10.  

| Name                                 |   | Age |   | Position                                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ronald      J. Whittier                                                                                                                                                                              |   | 73  |   | Director                                                                                                                                                                                                 |
| Herbert      A. Allen III                                                                                                                                                                       |   | 42  |   | Director                                                                                                                                                                                                 |
| Jeffrey      White                                                                                                                                                                                   |   | 62  |   | Director                                                                                                                                                                                                 |
| Matthew      G. Jones                                                                                                                                                                                |   | 48  |   | Acting      Chief Executive Officer, Chief Financial Officer, Secretary and      Treasurer                                                                                                               |

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Item11. 

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| Name      and Principal Position     |   | Year   |   | Salary($) |    |   | Bonus      ($) |   |    | OptionAwards      ($) |   |   | All      OtherCompensation      ($) |   |   | Total      ($) |   |
|--------------------------------------|--------|--------|--------|-----------|---------|--------|----------------|--------|---------|-----------------------|--------|--------|-------------------------------------|--------|--------|----------------|--------|
|                                 |   |   |   |      |    |   |           |   |    |                  |   |   |                                |   |   |           |   |   |   |   |   |   |   |
| Patrick      C. Condo                |   | 2010   |   |      | 480,000 |   |           |   | — |                  |   |   | —                             |   |   |           |   |   |   | 36,922 |   |   |   | (3 | ) |   |   | 516,922 |   |
| Former      President & CEO |   | 2009   |   |      | 480,000 |   |           |   | — |                  |   |   | —                             |   |   |           | (1     | ) |   |   | 6,150 |   |   |   | (4 | ) |   |   | 486,150 |   |
|                                 |   |   |   |      |    |   |           |   |    |                  |   |   |                                |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Matthew      G. Jones                |   | 2010   |   |      | 250,000 |   |           |   | — |                  |   |   | —                             |   |   |           |   |   |   |   | 7,365 |   |   |   | (4 | ) |   |   | 257,365 |   |
| Chief      Financial Officer         |   | 2009   |   |      | 250,000 |   |           |   | 50,000  |                  |   |   | —                             |   |   |           | (2     | ) |   |   | 6,917 |   |   |   | (4 | ) |   |   | 306,917 |   |
|                                 |   |   |   |      |    |   |           |   |    |                  |   |   |                                |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)    | During      Fiscal Year 2009 Mr. Condo was granted 700,000 performance based options      at an option price of $1.92. The vesting of these options was contingent      upon the Company achieving revenue and EBIDTA of $25 million and $2.5      million, respectively, for the fiscal year ended January 31,      2011.  These options were valued using the Black-Scholes option      pricing model on the grant date and the aggregate compensation expense if      all options were to vest would have been $969,000.  The Company      concluded that the achievement of the performances was not probable and      accordingly has recorded the value of this award as  zero. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)    | During      Fiscal Year 2009 Mr. Jones was granted 300,000 performance based options      at an option price of $1.92. The vesting of these options was contingent      upon the Company achieving revenue and EBIDTA of $25 million and $2.5      million, respectively, for the fiscal year ended January 31,      2011.  These options were valued using the Black-Scholes option      pricing model on the grant date and the aggregate compensation expense if      all options were to vest would have been $300,000.  The Company      concluded that the achievement of the performances was not probable and      accordingly has recorded the value of this award as  zero. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (3)    | This      amount consist of unused vacation paid out pursuant to Mr. Condo’s      transition agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (4)    | This      amount consists of matching contributions to our 401(k)    plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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| Stock      Options    |
|-----------------------|
| Name                  |   | Number      of      Securities      Underlying      Unexercised Options Exercisable |   |   | Equity      Incentive      PlanAwards:      Number      of Securities      Underlying      Unexercised      Unearned      Options |   |   | OptionExercisePrice |   | OptionExpirationDate |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Patrick      C. Condo |   |   | 100,000 |   |   |   |   |   |   | — |   |   |   | 4.38 |   | 4/27/2010 |
|                  |   |   | 429,700 |   |   |   |   |   |   | — |   |   |   | 4.38 |   | 6/8/2011 |
|                  |   |   | 750,000 |   |   |   | (1 | ) |   |   | — |   |   |   | 4.71 |   | 11/30/2014 |
|                  |   |   | — |   |   |   | (2 | ) |   |   | 700,000 |   |   |   | 1.92 |   | 3/25/2018 |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Matthew      G. Jones |   |   | 43,750 |   |   |   | (3 | ) |   |   | 6,250 |   |   |   | 5.51 |   | 7/18/2016 |
|                  |   |   | 21,874 |   |   |   | (4 | ) |   |   | 3,126 |   |   |   | 5.58 |   | 7/24/2016 |
|                  |   |   | 168,750 |   |   |   | (5 | ) |   |   | 56,250 |   |   |   | 4.44 |   | 12/6/2016 |
|                  |   |   | 15,000 |   |   |   | (6 | ) |   |   | — |   |   |   | 3.30 |   | 8/21/2007 |
|                  |   |   | — |   |   |   | (2 | ) |   |   | 300,000 |   |   |   | 1.92 |   | 3/25/2018 |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)    | The      options vest semi-annually in eight equal installments from the 11/30/2004      grant date.                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                      |
| (2)    | The      performance-based options have three year cliff vesting from the 3/25/2008      grant date contingent on the attainment of stated revenue and EBIDTA      goals. |
|   |                                                                                                                                                                      |
| (3)    | The      options vest semi-annually in eight equal installments from the 7/18/2006      grant date.                                                                       |
|   |                                                                                                                                                                      |
| (4)    | The      options vest semi-annually in eight equal installments from the 7/24/2006      grant date.                                                                       |
|   |                                                                                                                                                                      |
| (5)    | The      options vest semi-annually in eight equal installments from the 12/6/2006      grant date.                                                                       |
|   |                                                                                                                                                                      |
| (6)    | The      options were fully vested at the 8/21/2007 grant  date.                                                                                                          |

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|                         |   | Fees      Earned or Paid in Cash |    |   | Option      Awards |   |   | All      Other Compensation |   |   | Total |      |
|------------------------------|--------|----------------------------------|---------|--------|--------------------|--------|--------|-----------------------------|--------|--------|-------|-----------|
|                         |   | ($)                              |    |   | ($)(1)             |   |   | ($)                         |   |   | ($)   |      |
| Ronald      J. Whittier      |   |                             | 100,000 |   |               |   | -      |                        |   |   | 4,000 |  (2) |   |   | 104,000 |   |
| Eli      S. Jacobs (3)       |   |                             | 8,000   |   |               |   | -      |                        |   |   | -     |      |   |   | 8,000 |   |
| Ajay      Menon (3)          |   |                             | 20,000  |   |               |   | -      |                        |   |   | -     |      |   |   | 20,000 |   |
| Carl      J. Rickertsen (3)  |   |                             | 16,000  |   |               |   | -      |                        |   |   | -     |      |   |   | 16,000 |   |
| Jeffrey      White           |   |                             | 20,000  |   |               |   | -      |                        |   |   | -     |      |   |   | 20,000 |   |
| John      C. Botts (3)       |   |                             | -       |   |               |   | -      |                        |   |   | -     |      |   |   | - |   |
| Alexander      F. Parker (3) |   |                             | 8,000   |   |               |   | -      |                        |   |   | -     |      |   |   | 8,000 |   |

| (1)    | All      of the options held by the individuals named in this table were granted      prior to the beginning of Fiscal 2010 and, accordingly, no dollar amount      is required to be reported in respect of these options. The aggregate      number of shares of Common Stock underlying options outstanding at      January 31, 2010 for each individual named in this table were:      (a) Mr. Whittier — 925,000 shares;      (b) Mr. Jacobs — 30,834 shares;      (c) Mr. Menon — 25,000 shares;      (d) Mr. Rickertsen — 65,000 shares;      (e) Mr. White — 85,000 shares;      (f) Mr. Botts — 25,000 shares; and      (g) Mr. Parker — 25,000 shares. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (2)    | This      amount consists of Company matching contributions to the 401(k)      plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3)    | This      individual no longer serves on the Company’s Board of Directors as of      January 29, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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| Item 12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matter |
|----------|---------------------------------------------------------------------------------------------------------|

| Plan Category                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Number      ofSecurities      to beIssued      UponExercise      ofOutstandingOptions,      Warrantsand      Rights (1) |      |   | Weighted-AverageExercise      Price ofOutstandingOptions,      Warrantsand      Rights |   |   | Number      ofSecuritiesRemaining      Availablefor      Future IssuanceUnder      EquityCompensation      Plans(ExcludingSecuritiesReflected      in Column (a)) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                    |      |   |                                                                                   |   |   |                                                                                                                                                              |   |
| Equity      compensation plans approved by stockholders:                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                    | 5,459,159 |   |                                                                                   | $      | 3.68   |                                                                                                                                                              |   |   | 4,737,307 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                    |      |   |                                                                                   |   |   |                                                                                                                                                              |   |   |   |   |
| Equity      compensation plans not approved by stockholders:                                                                                                                                                                                                                                                                                                                                                                                    |   | None                                                                                                                    |      |   |                                                                                   | N/A    |   |                                                                                                                                                              | None   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                    |      |   |                                                                                   |   |   |                                                                                                                                                              |   |   |   |   |
| Total                                                                        |   |                                                                                                                    | 5,459,159 |   |                                                                                   | $      | 3.68   |                                                                                                                                                              |   |   | 4,737,307 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                    |      |   |                                                                                   |   |   |                                                                                                                                                              |   |   |   |   |
| (1) The      totals in this column reflect outstanding stock options, as the Company      has not granted warrants or rights to employees.                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |

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| Name      and Address of Beneficial Owner**                               |   | Amount      and Nature ofBeneficial      Ownership (1) |       |   | Percent      of Class (%) |
|---------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|--------|---------------------------|
| Allen      Holding Inc.                                              |   |                                                   | 11,728,587 |   |                      |   | (2 | ) |   |   |   | 21.0 |   |
| LMM      LLC                                                              |   |                                                   | 4,443,889  |   |                      |   | (3 | ) |   |   |   | 7.9 |   |
| Susan      K. Allen                                                       |   |                                                   | 3,170,369  |   |                      |   | (5 | ) |   |   |   | 5.7 |   |
| Ronald      J. Whittier                                                   |   |                                                   | 1,359,771  |   |                      |   | (6 | ) |   |   |   | 2.4 |   |
| Herbert      A. Allen                                                     |   |                                                   | 17,276,457 |   |                      |   | (7 | ) |   |   |   | 30.9 |   |
| Herbert      A. Allen III                                            |   |                                                   | 605,787    |   |                      |   | (8 | ) |   |   |   | 1.1 |   |
| Eli      S. Jacobs                                                        |   |                                                   | 30,834     |   |                      |   | (9 | ) |   |   |   | * |   |
| Ajay      Menon                                                           |   |                                                   | 25,000     |   |                      |   | (10 | ) |   |   |   | * |   |
| Carl      J. Rickertsen                                                   |   |                                                   | 65,000     |   |                      |   | (11 | ) |   |   |   | * |   |
| Jeffrey      White                                                        |   |                                                   | 85,000     |   |                      |   | (12 | ) |   |   |   | * |   |
| John      C. Botts                                                        |   |                                                   | 25,000     |   |                      |   | (13 | ) |   |   |   | * |   |
| Alexander      F. Parker                                                  |   |                                                   | 25,000     |   |                      |   | (14 | ) |   |   |   | * |   |
| Patrick      C. Condo                                                     |   |                                                   | 1,430,655  |   |                      |   | (15 | ) |   |   |   | 2.6 |   |
| Matthew      G. Jones                                                     |   |                                                   | 8,008      |   |                      |   |   |   |   |   |   | * |   |
| All      directors and executive officers as a group    (11 persons) |   |                                                   | 20,936,513 |   |                      |   | (16 | ) |   |   |   | 37.4 |   |

| *  | Represents      less than one percent of the outstanding common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **      | Unless      otherwise indicated, the address should be: c/o Convera Corporation, at      1919 Gallows Road, Suite 1050, Vienna, Virginia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (1)     | To      our knowledge, each person or entity listed has sole voting and investment      power as to the shares indicated, except as described    below.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (2)     | Includes      shares owned by Allen & Company Incorporated (“ACI”), a      wholly-owned subsidiary of Allen Holding Inc. (“AHI”). Does not include      any shares held directly by Herbert A. Allen, Herbert A. Allen III,      Susan K. Allen, Bruce Allen and certain of their affiliates, who together      with AHI and ACI may be considered a “group,” as such term is defined by      Section 13(d) of the Securities Exchange Act of 1934      (“Section 13(d)”), and as disclosed in the Amendment No. 4 on      Schedule 13D filed by such parties with the SEC on July 14,      2005. The address for AHI is 711 Fifth Avenue, NY, NY    10022. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (3)     | As      reported in an Amendment No. 7 to Schedule 13G filed with the      SEC by LMM, LLC and Legg Mason Opportunity Trust on December 31,      2009. The address for this holder is 100 International Drive, Baltimore,      MD 21202.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (4)     | As      reported in an Amendment No. 6 to Schedule 13G filed with the      SEC by Ashford Capital Management, Inc. on July 8, 2009. The address for      this holder is P.O. Box 4172, Wilmington, DE19807.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (5)     | Does      not include shares owned by AHI, ACI, Herbert A. Allen, Herbert A.      Allen III, Bruce Allen and certain of their affiliates, who together      with Ms. Allen may be considered a “group,” as such term is defined      by Section 13(d). The address for Ms. Allen is 711 Fifth Avenue,      NY, NY 10022.                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (6)     | Includes      outstanding options to purchase 925,000 shares, which were      exercisable on or within 60 days of April 30,  2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7)    | Mr.      Allen served on the Company’s Board of Directors until January 29,      2010.  Includes the shares held directly by AHI, ACI and Allen      SBH Investments LLC (“SBH”). Mr. Allen, a stockholder and the      President and Chief Executive Officer of AHI, the President and Chief      Executive Officer of ACI and a stockholder and the Managing Member,      President and Chief Executive Officer of SBH, may be deemed a beneficial      owner of the shares held by AHI, ACI and SBH. Mr. Allen disclaims      beneficial ownership of the securities reported to be held by AHI, ACI and      SBH, except to the extent of his pecuniary interest therein. Also includes      25,000 shares underlying outstanding stock options exercisable within      60 days of April 30, 2010 held by Mr. Allen. Does not include      shares owned by Herbert A. Allen III, Susan K. Allen, Bruce Allen and      certain of their affiliates, who together with Mr. Allen, AHI, ACI      and SBH may be considered a “group,” as such term is defined by      Section 13(d). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (8)    | Includes      196,667 shares owned by Allen & Company LLC and 383,820      shares owned by HAGC Partners, L.P, as to which Mr. Herbert A.      Allen III shares voting and disposition authority. Also includes      outstanding options to purchase 25,000 shares, which were exercisable      on or within 60 days of April 30, 2010. Mr. Allen disclaims      beneficial ownership of the shares held by Allen & Company LLC,      except to the extent of his pecuniary interest therein. Does not include      shares owned by AHI, ACI, SBH, Herbert A. Allen, Susan K. Allen, Bruce      Allen and certain of their affiliates, who together with Mr. Herbert      A. Allen III may be considered a “group,” as such term is defined by      Section 13(d).                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (9)    | Mr.      Jacobs served on the Company’s Board of Directors until January 29,      2010.  Represents outstanding options to purchase      30,834 shares, which were exercisable on or within 60 days of      April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (10)   | Mr.      Menon served on the Company’s Board of Directors until January 29,      2010.  Represents outstanding options to purchase      25,000 shares, which were exercisable on or within 60 days of      April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (11)   | Mr.      Rickertsen served on the Company’s Board of Directors until January 29,      2010.  Represents outstanding options to purchase      65,000 shares, which were exercisable on or within 60 days of      April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (12)   | Represents      outstanding options to purchase 85,000 shares, which were exercisable      on or within 60 days of April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (13)   | Mr.      Botts served on the Company’s Board of Directors until January 29,      2010.  Represents outstanding options to purchase      25,000 shares, which were exercisable on or within 60 days of      April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (14)   | Mr.      Parker served on the Company’s Board of Directors until January 29,      2010.  Represents outstanding options to purchase      25,000 shares, which were exercisable on or within 60 days of      April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (15)   | Includes      outstanding options to purchase 1,179,700 shares, which were      exercisable on or within 60 days of April 30, 2010.  Mr.      Condo is no longer the President and Chief Executive Officer of Convera,      pursuant to the Transition Agreement by and between Convera and Mr. Condo      dated May 29, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (16)   | Includes      outstanding options to purchase 2,410,534 shares, which were      exercisable on or within 60 days of April 30, 2010. Also includes the      shares held by the entities described in footnotes (7) and (8)  above      deemed to be beneficially owned by Herbert A. Allen and Herbert A.      Allen III, respectively.  Includes amounts with respect to      directors that ceased to serve on the Board of Directors as of January 29,      2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

Table of Contents

 Item13. 

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Table of Contents

Item14.

|                       |   | 2010   |     |   | 2009   |   |
|----------------------------|--------|--------|----------|--------|--------|--------|
|                       |   |   |     |   |   |   |
| Audit      Fees(1)         |   | $      | 297,500, |   |   | $      | 412,500 |   |
| Audit-Related      Fees(2) |   |   | 62,013   |   |   |   | — |   |
| Tax      Fees(3)           |   |   | —  |   |   |   | — |   |
| All      Other Fees        |   |   | —  |   |   |   | — |   |
| Total                      |   | $      | 359,513  |   |   | $      | 412,500 |   |

|   |                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | Audit      fees represent fees for professional services provided in connection with      the audit of our financial statement, review of our quarterly financial      statements and audit services provided in connection with other statutory      or regulatory filings. |
|   |                                                                                                                                                                                                                                                                         |
| (2)    | Audit-related      fees generally include accounting advisory fees related to transactions      impacting our financial statements and auditor consents required to be      included in certain filings with the SEC.                                                        |
|   |                                                                                                                                                                                                                                                                         |
| (3)    | Tax      fees principally include tax advisory fees and tax compliance      fees.                                                                                                                                                                                            |

----

Table of Contents

Item15.

|   | (a) | Documents      filed as part of Form 10-K |
|--------|-----|-------------------------------------------|

|   | 1. | Financial      Statements: |
|--------|----|----------------------------|

|   | The      following financial statements of Convera Corporation are submitted in a      separate section pursuant to the requirements of Form 10-K, Part I, Item      8: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Index      to Consolidated FinancialStatements |
|--------|------------------------------------------------|

|   | Report      of Independent Registered Public AccountingFirm |
|--------|-------------------------------------------------------------|

|   | Consolidated      Statement of Net Assets in Liquidation (Liquidation  Basis) |
|--------|-------------------------------------------------------------------------------|

|   | Consolidated      Statement of Changes in Net Assets in Liquidation (Liquidation      Basis) |
|--------|----------------------------------------------------------------------------------------------|

|   | Consolidated      Balance Sheet (Going Concern Basis) |
|--------|-------------------------------------------------------|

|   | Consolidated      Statements of Operations and Comprehensive Loss (Going Concern      Basis) |
|--------|----------------------------------------------------------------------------------------------|

|   | Consolidated      Statements of Shareholders' Equity (Going Concern  Basis) |
|--------|-----------------------------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows (Going ConcernBasis) |
|--------|-----------------------------------------------------------------|

|   | Notes      to Consolidated FinancialStatements |
|--------|------------------------------------------------|

----

Table of Contents

Exhibit Index

| Exhibit      No. |   | Exhibit      Title                                                                                                                                                |   | Incorporated      by Reference fromthe      Following Documents     |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|             |   |                                                                                                                                                              |   |                                                                |
| 2.1              |   | Plan      of Dissolution and Liquidation of Convera Corporation                                                                                              |   | Schedule      14C, September 25, 2009, Annex A                      |
| 2.2              |   | Amended      and Restated Agreement and Plan of Merger                                                                                                       |   | Schedule      14C, September 25, 2009, Annex B                      |
| 3.1              |   | Amended      and Restated Certificate of Incorporation of Convera                                                                                                 |   | Form      S-4 (Registration No. 333-50172), November 17, 2000  |
| 3.2              |   | Amendment      to the Certificate of Incorporation of Convera                                                                                                |   | Schedule      14C, September 25, 2009, Annex E                      |
| 3.3              |   | By-laws      of Convera (Amended and Restated)                                                                                                               |   | Form      10-K, April 3, 2009, Exhibit 3.2                     |
| 3.4              |   | Amendment      to By-Laws                                                                                                                                         |   | Form      10-K, March 31, 2006, Exhibit 3.3                    |
| 10.1             |   | AT&T      Master Agreement dated August 24, 2004                                                                                                              |   | Form      10-K, April 1, 2005, Exhibit 10.19                   |
| 10.2             |   | Convera      2000 Stock Option Plan (Amended and Restated)                                                                                                        |   | Form      10-K, April 3, 2009, Exhibit 10.2                    |
| 10.3             |   | Transition      Agreement with Patrick C. Condo dated May 29, 2009                                                                                           |   | Schedule      14C, September 25, 2009, Annex D                 |
| 10.4             |   | Transition      Agreement with Matthew G. Jones dated April 22, 2010                                                                                         |   | Form      8-K, April 27, 2010, Exhibit 10.1                         |
| 31.1             |   | Certification of Chief Executive Officer pursuant to      Rule 13a-14(a)/15d-14(a)                                                                           |   | Filed      Herewith                                            |
| 31.2             |   | Certification of Chief Financial Officer pursuant to      Rule 13a-14(a)/15d-14(a)                                                                           |   | Filed      Herewith                                            |
| 32.1             |   | Certification of Chief Executive Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002  |   | Filed      Herewith                                       |
| 32.2             |   | Certification of Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002       |   | Filed      Herewith                                            |

----

|   | CONVERA      CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | By:       /s/ Matthew G.      Jones                                                                       Matthew      G. JonesActing      Chief Executive Officer andChief      Financial Officer |

| Signature                                                                                                                                      | Title                                                                                                                             | Date               |
|------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| /s/Matthew G. Jones       Matthew      G. Jones                                                        | Acting      Chief Executive Officer and Chief Financial Officer(Principal      Executive Officer and Principal Financial Officer) | May      18, 2010  |
| /s/Ronald J.      Whittier        Ronald      J. Whittier                                         | Director                                                                                                                          | May      18, 2010  |
| /s/Herbert A. Allen,      III      Herbert      A. Allen, III                                               | Director                                                                                                                          | May      18, 2010  |
| /s/Jeffrey White                       Jeffrey      White | Director                                                                                                                          | May      18, 2010  |

----

|   Index to Consolidated Financial Statements                                                                                                                                                                                                                 | Page |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| Report of Independent Registered Public Accounting      Firm                                                                                                                                                                                                           | F-1  |
| Consolidated Statement of Net Assets in Liquidation      (Liquidation Basis)As of January 31,      2010                                                                                                                                                                | F-2  |
| Consolidated Statement of Changes in Net Assets in Liquidation      (Liquidation Basis)For the period of      January 29, 2010 to January 31, 2010                                                                                                                     | F-3  |
| Consolidated Balance Sheet (Going Concern      Basis)As of January 31,      2009                                                                                                                                                                                       | F-4  |
| Consolidated      Statements of Operations and Comprehensive Loss (Going      Concern Basis)         For the period      February 1, 2009 to January 29, 2010 and the fiscal years ended January      31,  2009 and 2008  | F-5  |
| Consolidated Statements of Shareholders' Equity (Going Concern      Basis)For the period from      February 1, 2009 to January 29, 2010 and the fiscal years ended January      31,  2009 and 2008                                                           | F-6  |
| Consolidated Statements of Cash Flows (Going Concern      Basis)For the period from      February 1, 2009 to January 29, 2010 and the fiscal years ended January      31,  2009 and 2008                                                                     | F-7  |
| Notes to Consolidated Financial Statements                                                                                                                                                                                                                             | F-8  |

----

Index to Consolidated FinancialStatements

Report of Independent Registered Public Accounting Firm

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | January      31, 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |
| Cash      and cash      equivalents                                                                                              |   | $                     | 10,995 |   |
| Restricted      cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  | 1,684  |   |
| Total      cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                  | 12,679 |   |
| Accounts      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                  | 18     |   |
| Prepaid      expenses and other      assets                                                                                      |   |                  | 579    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |
| Estimated      net realizable value of operating assets and liabilities contributed in      VSW merger excluding $1,684 presented as restricted cash                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  | 259    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  | -      |   |
| Total      assets                                                                                                                                              |   | $                     | 13,535 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |
| LIABILITIES      AND NET ASSETS IN LIQUIDATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                  |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |
| Accounts      payable                                                                                                                                          |   | $                     | 129    |   |
| Accrued      expenses                                                                                                                                          |   |                  | 472    |   |
| Accrued      liquidation      costs                                                                                                                            |   |                  | 2,310  |   |
| Total      liabilities                                                                                                                                                                            |   |                  | 2,911  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |
| Commitments      and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                  | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |
| Net      assets in      liquidation                                                                                              |   | $                | 10,624 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

|                                                                                                       |   |                  |   |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
|                                                                                                       |   | January      31, 2010 |   |
|                                                                                                       |   |                  |   |
| Shareholders'      equity – January 29, 2010 (going concern basis)                                   |   | $                     | 12,750 |   |
| Adjustments      relating to adoption of liquidation basis of accounting:                                  |   |                  |   |   |
| Adjustment      to net realizable value of operating assets and liabilities contributed in      VSW merger |   |                  | 604    |   |
| Accrual      of estimated costs of liquidation and termination                                             |   |                  | (2,310 | ) |
| Prepaid      assets written-off in adopting liquidation basis of    accounting                             |   |                  | (420   | ) |
|                                                                                                       |   |                  |   |   |
| Net      assets in liquidation – January 29, 2010                                                    |   |                  | 10,624 |   |
|                                                                                                       |   |                  |   |   |
| Changes      in net assets in liquidation – January 29, 2010 to January 31,      2010                |   |                  | -      |   |
|                                                                                                       |   |                  |   |   |
| Net      assets in liquidation – January 31, 2010                                                    |   | $                     | 10,624 |   |
|                                                                                                       |   |                  |   |   |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

| ASSETS                                                                                                                                                  |   |                  |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|
|                                                                                                                                                    |   | January      31, 2009 |       |
| Current      Assets:                                                                                                                                    |   |                  |       |
| Cash      and cash equivalents                                                                                                                          |   | $                     | 22,754     |   |
| Accounts      receivable, net of allowance for doubtful accounts of $165                                                                                |   |                  | 620        |   |
| Prepaid      expenses and other                                                                                                                         |   |                  | 447        |   |
| Total      current assets                                                                                                                               |   |                  | 23,821     |   |
|                                                                                                                                                    |   |                  |       |   |
| Equipment      and leasehold improvements, net of accumulated depreciation of      $9,672                                                               |   |                  | 460        |   |
| Other      assets                                                                                                                                       |   |                  | 596        |   |
| Total      assets                                                                                                                                       |   | $                     | 24,877     |   |
|                                                                                                                                                    |   |                  |       |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                         |   |                  |       |   |
|                                                                                                                                                    |   |                  |       |   |
| Current      Liabilities:                                                                                                                               |   |                  |       |   |
| Accounts      payable                                                                                                                                   |   | $                     | 502        |   |
| Accrued      expenses                                                                                                                                   |   |                  | 1,675      |   |
| Deferred      revenues                                                                                                                                  |   |                  | 4          |   |
| Total      liabilities                                                                                                                                  |   |                  | 2,181      |   |
|                                                                                                                                                    |   |                  |       |   |
| Commitments      and Contingencies                                                                                                                      |   |                  | -          |   |
|                                                                                                                                                    |   |                  |       |   |
| Shareholders'      Equity:                                                                                                                              |   |                  |       |   |
| Common      stock Class A, $0.01 par value, 100,000,000 shares      authorized;  54,157,738 shares issued; 53,501,183 shares      outstanding |   |                  | 540        |   |
| Treasury      stock at cost, 656,555 shares                                                                                                             |   |                  | (1,517     | ) |
| Additional      paid-in-capital                                                                                                                         |   |                  | 1,172,965  |   |
| Accumulated      deficit                                                                                                                                |   |                  | (1,147,215 | ) |
| Accumulated      other comprehensive loss                                                                                                               |   |                  | (2,077     | ) |
| Total      shareholders' equity                                                                                                                         |   |                  | 22,696     |   |
| Total      liabilities and shareholders' equity                                                                                                         |   | $                     | 24,877     |   |
|                                                                                                                                                    |   |                  |       |   |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  For      the Period   |             |                            |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------------|---------------------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  February      1, 2009 |             | For      the Fiscal Years Ended |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  to                    |             | January      31,                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |  January      29, 2010 |             |  2009                      |   |   |  2008 |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        |             |                            |   |   |       |   |   |
| Hosted      services                                                                                                             |   | $                           | 800              |                            |   | $      | 1,341      |   |   | $ | 1,118 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Cost      of      revenues                                                                                                       |   |                        | 2,613            |                            |   |   | 7,003      |   |   |   | 9,660 |   |
| Sales      and      marketing                                                                                                    |   |                        | 882              |                            |   |   | 3,340      |   |   |   | 3,880 |   |
| Research and product      development                                                                                            |   |                        | 2,405            |                            |   |   | 4,668      |   |   |   | 4,652 |   |
| General and      administrative                                                                                                  |   |                        | 5,369            |                            |   |   | 7,040      |   |   |   | 11,179 |   |
| Impairment of capitalized      software development costs, software and equipment                                                                                                                                                                                                                                                                                                                                                       |   |                        | -                |                            |   |   | 3,133      |   |   |   | 603 |   |
| Total operating      expenses                                                                                                    |   |                        | 11,269           |                            |   |   | 25,184     |   |   |   | 29,974 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Operating      loss                                                                                          |   |                        | (10,469          | )                               |   |   | (23,843    | )      |   |   | (28,856 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Foreign      currency translation losses related to the dissolution of our foreign      subsidiaries                                                                                                                                                                                                                                                                                                                                    |   |                        | (1,961           | )                               |   |   | -          |   |   |   | - |   |
| Other      income,      net                                                                                  |   |                        | 44               |                            |   |   | 1,257      |   |   |   | 1,815 |   |
| Loss      from continuing      operations                                                                    |   |                        | (12,386          | )                               |   |   | (22,586    | )      |   |   | (27,041 | ) |
| Income      from discontinued operations, net of tax benefit of $0, $0 and $241,      respectively                                                                                                                                                                                                                                                                                                                                      |   |                        | -                |                            |   |   | -          |   |   |   | 20 |   |
| Gain      from sale of discontinued RetrievalWare operations                                                                                                                                                                                                                                                                                                                                                                            |   |                        |  -          |                            |   |   |  -    |   |   |   |  17,925 |   |
| Income      from discontinued      operations                                                                |   |                        | -                |                            |   |   | -          |   |   |   | 17,945 |   |
| Net      loss                                                                                                |   | $                           | (12,386          | )                               |   | $      | (22,586    | )      |   | $ | (9,096 | ) |
| Basic      and diluted net income (loss) per common share:                                                                                                                                                                                                                                                                                                                                                                              |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Continuing      operations                                                                                                                      |   | $                           | (0.23            | )                               |   | $      | (0.42      | )      |   | $ | (0.51 | ) |
| Discontinued      operations                                                                                                                    |   |                        | -                |                            |   |   | -          |   |   |   | 0.34 |   |
| Basic      and diluted net loss per common share                                                                                                                                                                                                                                                                                                                                                                                        |   | $                           | (0.23            | )                               |   | $      | (0.42      | )      |   | $ | (0.17 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Weighted-average      number of common shares outstanding – Basic and diluted                                                                                                                                                                                                                                                                                                                                                     |   |                        |  53,501,183 |                            |   |   | 53,328,029 |   |   |   |  53,145,955 |   |
| Comprehensive      loss:                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |             |                            |   |   |       |   |   |   |   |   |
| Net      loss                                                                                                                    |   | $                           | (12,386          | )                               |   | $      | (22,586    | )      |   | $ | (9,096 | ) |
| Foreign      currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                            |   |                        | 2,077            |                            |   |   | (292       | )      |   |   | (490 | ) |
| Comprehensive      loss                                                                                      |   | $                           | (10,309          | )                               |   | $      | (22,878    | )      |   | $ | (9,586 | ) |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

|                                                   |   | Common      Stock |       |   | Treasury      Stock |   |   | Additional |   |   |     |   |   | Accumulated      Other Compre-hensive |   |   |                     |   |
|--------------------------------------------------------|--------|-------------------|------------|--------|---------------------|--------|--------|------------|--------|--------|----------|--------|--------|---------------------------------------|--------|--------|--------------------------|--------|
|                                                   |   | Shares            |       |   | Amount              |   |   | Shares     |   |   | Amount   |   |   | Paid-inCapital                        |   |   | Accumulated      Deficit |   |   | Income      (Loss) |   |   | Total |   |
| Balance,      January 31, 2007                         |   |              | 53,469,299 |   |                | $      | 534    |       |   |   | (656,555 | )      |   | $                                     | (1,517 | )      |                     | $      | 1,168,908 |   |   | $ | (1,115,533 | ) |   | $ | (1,295 | ) |   | $ | 51,097 |   |
|                                                   |   |              |       |   |                |   |   |       |   |   |     |   |   |                                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock upon exercise of options |   |              | 337,125    |   |                |   | 3      |       |   |   | -        |   |   |                                  | -      |   |                     |   | 817 |   |   |   | - |   |   |   | - |   |   |   | 820 |   |
| Stock-based      compensation                          |   |              | 141,325    |   |                |   | 1      |       |   |   | -        |   |   |                                  | -      |   |                     |   | 403 |   |   |   | - |   |   |   | - |   |   |   | 404 |   |
| Foreign      currency translation adjustment           |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | - |   |   |   | (490 | ) |   |   | (490 | ) |
| Net      loss                                          |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | (9,096 | ) |   |   | - |   |   |   | (9,096 | ) |
| Balance,      January 31, 2008                         |   |              | 53,947,749 |   |                |   | 538    |       |   |   | (656,555 | )      |   |                                  | (1,517 | )      |                     |   | 1,170,128 |   |   |   | (1,124,629 | ) |   |   | (1,785 | ) |   |   | 42,735 |   |
|                                                   |   |              |       |   |                |   |   |       |   |   |     |   |   |                                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                          |   |              | 209,989    |   |                |   | 2      |       |   |   | -        |   |   |                                  | -      |   |                     |   | 2,837 |   |   |   | - |   |   |   | - |   |   |   | 2,839 |   |
| Foreign      currency translation adjustment           |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | - |   |   |   | (292 | ) |   |   | (292 | ) |
| Net      loss                                          |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | (22,586 | ) |   |   | - |   |   |   | (22,586 | ) |
| Balance,      January 31, 2009                         |   |              | 54,157,738 |   |                |   | 540    |       |   |   | (656,555 | )      |   |                                  | (1,517 | )      |                     |   | 1,172,965 |   |   |   | (1,147,215 | ) |   |   | (2,077 | ) |   |   | 22,696 |   |
|                                                   |   |              |       |   |                |   |   |       |   |   |     |   |   |                                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                          |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | 363 |   |   |   | - |   |   |   | - |   |   | $ | 363 |   |
| Foreign      currency translation adjustment           |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | - |   |   |   | 2,077 |   |   |   | 2,077 |   |
| Net      loss                                          |   |              | -          |   |                |   | -      |       |   |   | -        |   |   |                                  | -      |   |                     |   | - |   |   |   | (12,386 | ) |   |   | - |   |   |   | (12,386 | ) |
| Balance,      January 29, 2010                         |   |              | 54,157,738 |   |                | $      | 540    |       |   |   | (656,555 | )      |   | $                                     | (1,517 | )      |                     | $      | 1,173,328 |   |   | $ | (1,159,601 | ) |   | $ | - |   |   | $ | 12,750 |   |
|                                                   |   |              |       |   |                |   |   |       |   |   |     |   |   |                                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | February      1, 2009 to |    |   | For      the Fiscal Year EndedJanuary      31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | January      29, 2010    |    |   | 2009                                           |   |   | 2008 |   |
| Cash      Flows from Operating Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |    |   |                                           |   |   |   |   |
| Loss      from continuing operations (period prior to liquidation      accounting)                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                        | (12,386 | )      |                                           | $      | (22,586 | ) |   | $ | (27,041 | ) |
| Adjustments      to reconcile loss from continuing operations to net cash used in operating      activities from continuing operations:                                                                                                                                                                                                                                                                                                                                                                              |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Depreciation      and      amortization                                                                                                           |   |                     | 423     |   |                                           |   | 2,688 |   |   |   | 2,611 |   |
| Provision      for doubtful      accounts                                                                                                         |   |                     | 82      |   |                                           |   | 195 |   |   |   | - |   |
| Stock-based      compensation                                                                                                                     |   |                     | 363     |   |                                           |   | 2,867 |   |   |   | 425 |   |
| Gain      on disposal of      assets                                                                                                              |   |                     | (98     | )      |                                           |   | (7 | ) |   |   | - |   |
| Impairment      of capitalized software development costs, software and      equipment                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                     | -       |   |                                           |   | 3,133 |   |   |   | 603 |   |
| Foreign      currency loss (gain) related to the liquidation of foreign      subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     | 2,047   |   |                                           |   | - |   |   |   | - |   |
| Changes      in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Restricted      cash                                                                                                                                                       |   |                     | -       |   |                                           |   | - |   |   |   | 71 |   |
| Accounts      receivable                                                                                                                                                   |   |                     | 384     |   |                                           |   | (779 | ) |   |   | (9 | ) |
| Prepaid      expenses and other      assets                                                                                                                                |   |                     | (195    | )      |                                           |   | 163 |   |   |   | (141 | ) |
| Accounts      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     | (751    | )      |                                           |   | (688 | ) |   |   | (1,166 | ) |
| Deferred      revenues                                                                                                                                                     |   |                     | (8      | )      |                                           |   | (633 | ) |   |   | (10 | ) |
| Net      cash used in operating activities from continuing    operations                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     | (10,139 | )      |                                           |   | (15,647 | ) |   |   | (24,657 | ) |
| Net      cash provided by operating activities from discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                     | -       |   |                                           |   | - |   |   |   | 1,672 |   |
| Net      cash used in operating      activities                                                                                                             |   |                     | (10,139 | )      |                                           |   | (15,647 | ) |   |   | (22,985 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Cash      Flows from Investing Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Proceeds      from the sale of RetrievalWare business, net of direct    costs                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                     | -       |   |                                           |   | - |   |   |   | 16,419 |   |
| Proceeds      from escrow receivable related to sale of RetrievalWare      business                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     | -       |   |                                           |   | 4,000 |   |   |   | - |   |
| Payments      of working capital adjustment related to sale of RetrievalWare      business                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     | -       |   |                                           |   | (968 | ) |   |   | - |   |
| Purchases      of equipment and leasehold improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                     | (43     | )      |                                           |   | (1,112 | ) |   |   | (4,347 | ) |
| Proceeds      from disposal of      assets                                                                                    |   |                     | 107     |   |                                           |   | 63 |   |   |   | - |   |
| Net      cash provided by investing activities from continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                     | 64      |   |                                           |   | 1,983 |   |   |   | 12,072 |   |
| Net      cash used in investing activities from discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     | -       |   |                                           |   | - |   |   |   | (4 | ) |
| Net      cash provided by investing      activities                                                                                                         |   |                     | 64      |   |                                           |   | 1,983 |   |   |   | 12,068 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Cash      Flows from Financing Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Proceeds      from the exercise of stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                     | -       |   |                                           |   | - |   |   |   | 820 |   |
| Net      payments from the issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     | -       |   |                                           |   | (28 | ) |   |   | (197 | ) |
| Net      cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                     | -       |   |                                           |   | (28 | ) |   |   | 623 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Effect      of Exchange Rate Changes on Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                     | -  |   |                                           |   | (195 | ) |   |   | (498 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Net      Decrease in Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                     | (10,075 | )      |                                           |   | (13,887 | ) |   |   | (10,792 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     | 22,754  |   |                                           |   | 36,641 |   |   |   | 47,433 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |                                           |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents, end of      period                                                                            |   | $                        | 12,679  |   |                                           | $      | 22,754 |   |   | $ | 36,641 |   |

----

Index to Consolidated FinancialStatements

CONVERA CORPORATION AND SUBSIDIARIES

| Convera      Corporation (and subsidiaries, collectively, the “Company”) was      established through the combination of the former Excalibur Technologies      Corporation (“Excalibur”) and Intel Corporation’s (“Intel”) Interactive      Media Services (“IMS”) division on December 21, 2000.  Prior to      the Plan of Dissolution and Merger discussed below, Convera provided      vertical search services to trade publishers. Convera’s technology and      services were designed to help publishers build a loyal online community      and increase their internet advertising  revenues. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For      all the periods preceding the Board’s authorization of the filing of the      Certificate of Dissolution on January 29, 2010, the Company’s financial      statements are presented on a going concern basis of accounting. As      required by generally accepted accounting principles, the Company adopted      a liquidation basis of accounting as of the close of business on January      29, 2010. Under the liquidation basis of accounting, assets are stated at      their estimated net realizable value and liabilities are stated at their      estimated settlement amounts, which estimates will be periodically      reviewed and adjusted asappropriate. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

In April 2009, the FASB issuedaccounting standards under ASC 825 “Financial Instruments” (previously FASBStaff Position (“FSP”) SFAS No. 107-1 and Accounting Principles Board(“APB”) Opinion No. 28-1) which extend the annual financial statementdisclosure requirements for financial instruments to interim reporting periodsof publicly traded companies. The new standards were effective for interim andannual reporting periods ending after June 15, 2009.  Theimplementation of these standards during the second quarter of Fiscal Year 2010did not have a material effect on the Company’s results of operations andfinancial position.

----

Index to Consolidated FinancialStatements

| We      entered into a transition services agreement under which we were      reimbursed for services rendered and expenses incurred related to the      transfer of finance, accounting and contracts functions of the Enterprise      Search business to FAST. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                       |   | Fiscal      year ended January 31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                       |   |                                    |   |
| Revenue                                                                        |   | $                                       | 5,729  |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |                                    |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                   |   |                                    |   |   |
| Cost      of      revenues                                                                         |   |                                    | 2,019  |   |
| Sales      and      marketing                                                                      |   |                                    | 1,423  |   |
| Research      and product      development                                                         |   |                                    | 2,000  |   |
| General      and      administrative                                                               |   |                                    | 267    |   |
| Total      expenses                                                                                                    |   |                                    | 5,709  |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |                                    |   |   |
| Gain      on sale of discontinued operations                                                                                                                                                                                                                                                                                                                                               |   |                                    | 17,925 |   |
| Income      from discontinued operations                                                                                                                                                                                                                                                                                                                                                   |   | $                                       | 17,945 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |                                    |   |   |

----

Index to Consolidated FinancialStatements

|                                                                                                                                                                                                                                                                                                                                                                            |   | Year      Ended January 31, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
| Continuing      Operations                                                                                                                                                                                                                                                                                                                                                      |   |                             |   |
| Cost      of      revenues                                                                                                 |   | $                                | 70     |   |
| Sales      and      marketing                                                                                              |   |                             | 29     |   |
| Research      and product development                                                                                                                                                                                                                                                                                                                                           |   |                             | 739    |   |
| General      and      administrative                                                                                       |   |                             | 948    |   |
| Continuing      Operations      Total                                                        |   | $                                | 1,786  |   |
| Discontinued      Operations                                                                 |   |                             | 207    |   |
| Total                                                                                        |   | $                                | 1,993  |   |

----

Index to Consolidated FinancialStatements

|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Computer      equipment                                                                 |   | $      | 7,300  |   |
| Office      furniture                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 2,295  |   |
| Leasehold      improvements                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 537    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 10,132 |   |
| Less      accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (9,672 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 460    |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued      payroll and      bonuses                                                                 |   | $      | 191    |   |   | $      | 406 |   |
| Accrued      audit and accounting fees                                                                                                                                                                                                                                                                                                                                                                                                |   |   | -      |   |   |   | 257 |   |
| Restructuring      reserve*                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | -      |   |   |   | 780 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 281    |   |   |   | 232 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $      | 472    |   |   | $      | 1,675 |   |

----

Index to Consolidated FinancialStatements

|                    |   |                  |   |   | Fair value measurement at reporting date using              |   |
|-------------------------|--------|-----------------------|--------|--------|-------------------------------------------------------------------------------------------|--------|
| Description             |   | January      31, 2010 |   |   | Quoted Prices in ActiveMarkets forIdentical Assets(Level      1) |   |   | Significant OtherObservable Inputs(Level      2) |   |   | SignificantUnobservableInputs(Level      3) |   |
| Assets                  |   |                  |   |   |                                                                                      |   |   |   |   |   |   |   |
| Cash      equivalents:  |   |                  |   |   |                                                                                      |   |   |   |   |   |   |   |
| Money      market funds |   | $                     | 11,378 |   |                                                                                      | $      | 11,378 |   |   | $ | - |   |   | $ | - |   |

|                                                                                                                                                                                                                                                                                                      |   | For      the Period Ended |   | For      the Fiscal Years Ended January 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|---------------------------------------------|
|                                                                                                                                                                                                                                                                                                      |   | January      29, 2010     |   | 2009                                        |   | 2008 |
|                                                                                                                                                                                                                                                                                                      |   |                      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      loss at statutory rate                                                                                                                                                                                                                                                                       |   | $                         | (4,335 | )                                           |   |   | (35 | )      % |   |   | $ | (7,905 | ) |   |   | (35 | )      % |   |   | $ | (3,184 | ) |   |   | (35 | )      % |
| Effect      of:                                                                                                                                                                                                                                                                                           |   |                      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State      benefits, net of federal benefits                                                                                                                                                                                                                                                              |   |                      | (483   | )                                           |   |   | (4 | ) |   |   |   | (881 | ) |   |   | (4 | ) |   |   |   | (355 | ) |   |   | (4 | ) |
| Lower      effective foreign tax rate                                                                                                                                                                                                                                                                     |   |                      | (277   | )                                           |   |   | (2 | ) |   |   |   | 909 |   |   |   | 4 |   |   |   |   | 867 |   |   |   | 9 |   |
| Expiration/use      of NOL carryforward                                                                                                                                                                                                                                                                   |   |                      | 2,345  |                                        |   |   | 19 |   |   |   |   | 2,182 |   |   |   | 10 |   |   |   |   | 4,892 |   |   |   | 54 |   |
| Abandonment      of foreign NOL carryforwards                                                                                                                                                                                                                                                             |   |                      | 9,655  |                                        |   |   | 78 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of stock      options                                             |   |                      | 68     |                                        |   |   | 1 |   |   |   |   | 543 |   |   |   | 2 |   |   |   |   | 279 |   |   |   | 3 |   |
| Other                                                                         |   |                      | (1,226 | )                                           |   |   | (10 | ) |   |   |   | 1,136 |   |   |   | 5 |   |   |   |   | 254 |   |   |   | 3 |   |
| Valuation      allowance                                                      |   |                      | (5,747 | )                                           |   |   | (46 | ) |   |   |   | 4,016 |   |   |   | 18 |   |   |   |   | (2,753 | ) |   |   | (30 | ) |
| Net      deferred tax      assets                                             |   | $                         | -      |                                        |   |   | 0 |  % |   |   | $ | - |   |   |   | 0 |  % |   |   | $ | - |   |   |   | 0 |  % |

|                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010   |    |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred      tax assets:                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |   |   |
| Net      operating loss      carryforwards                                                         |   | $      | 82,756  |   |   | $      | 85,349 |   |
| Capitalized      software development costs                                                                                                                                                                                                                                                                                                                                                |   |   | 14,113  |   |   |   | 17,202 |   |
| Stock      Compensation                                                                            |   |   | 1,096   |   |   |   | 1,096 |   |
| Deferred      revenue                                                                              |   |   | 52      |   |   |   | 1 |   |
| Restructuring      Reserve                                                                         |   |   | 291     |   |   |   | 291 |   |
| Other                                                                                              |   |   | (78     | )      |   |   | 37 |   |
| Total      deferred tax      assets                                                                |   |   | 98,230  |   |   |   | 103,976 |   |
| Valuation      allowance                                                                           |   |   | (98,230 | )      |   |   | (103,976 | ) |
| Net      deferred tax      assets                                                                  |   | $      | -       |   |   | $      | - |   |

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

|                                                                                     |   | Going      Concern Basis |
|------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                     |   | February      1, 2009    |   | For      the Fiscal Years Ended |   |
|                                                                                     |   | through                  |   | January      31, |
|                                                                                     |   | January      29, 2010    |   | 2009 |   | 2008 |
| Continuing      Operations Numerator:                                                    |   |                     |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                     |   | $                        | (12,386 | ) |   | $ | (22,586 | ) |   | $ | (27,041 | ) |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Discontinued      Operations Numerator:                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Income      from discontinued operations                                                 |   | $                        | - |   |   | $ | - |   |   | $ | 17,945 |   |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net      loss numerator:                                                                 |   | $                        | (12,386 | ) |   | $ | (22,586 | ) |   | $ | (9,096 | ) |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Denominator      Continuing and Discontinued                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Operations:                                                                              |   |                     |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding – basic and      diluted |   |                     | 53,501,183 |   |   |   | 53,328,029 |   |   |   | 53,145,955 |   |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net loss per common share from continuing      operations         |   | $                        | (0.23 | ) |   | $ | (0.42 | ) |   | $ | (0.51 | ) |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net income per common share from discontinued      operations     |   | $                        | - |   |   | $ | - |   |   | $ | 0.34 |   |
|                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net loss per share                                                |   | $                        | (0.23 | ) |   | $ | (0.42 | ) |   | $ | (0.17 | ) |

| Using      the treasury stock method, the following equity instruments were not      included in the computation of diluted net loss per common share because      their effect would beanti-dilutive: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | February      1, 2009 |      |   | For      the Fiscal Years Ended |   |
|---------------------|--------|-----------------------|-----------|--------|---------------------------------|--------|
|                |   | through               |      |   | January      31,                |   |
|                |   | January      29, 2010 |      |   | 2009                            |   |   | 2008 |   |
|                |   |                  |      |   |                            |   |   |   |   |
| Stock      options  |   |                  | 5,459,159 |   |                            |   | 7,371,811 |   |   |   | 5,054,756 |   |
| Deferred      stock |   |                  | -         |   |                            |   | - |   |   |   | 300,000 |   |

----

Index to Consolidated FinancialStatements

|                                                                                                                                                                                                                                                                                                                     |   |  Number      of Options |       |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Contractual Term (Years) |   |   | Aggregate      Intrinsic Value(In      thousands) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|--------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Outstanding,      January 31, 2009                                                                                                                                                                                                                                                                                       |   |                         | 7,371,811  |   |                                 | $      | 3.68   |                                                     |   |   |                                              |   |   |   |
| Pre-Vest      Cancelled                                                            |   |                         | (819,688   | )      |                                 |   | 2.28   |                                                     |   |   |                                              |   |   |   |
| Post-Vest      Cancelled                                                           |   |                         | (1,092,964 | )      |                                 |   | 4.72   |                                                     |   |   |                                              |   |   |   |
| Outstanding,      January 29, 2010                                                                                                                                                                                                                                                                                       |   |                         | 5,459,159  |   |                                 | $      | 3.68   |                                                     |   |   | 5.15                                              |   |   | $ | - |   |
| Vested      or expected to      vest                                               |   |                         | 3,432,225  |   |                                 | $      | 4.65   |                                                     |   |   | 3.42                                              |   |   | $ | - |   |
| Exercisable,      January 29, 2010                                                                                                                                                                                                                                                                                       |   |                         | 3,432,225  |   |                                 | $      | 4.65   |                                                     |   |   | 3.42                                              |   |   | $ | - |   |

|                                                                                                                                                                                                                                                                                                                               |   | For      the fiscal years ended January 31, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                                                                                                                                                                                                                                                                               |   | 2009                                        |   | 2008 |
| Expected      term of stock options                                                                                                                                                                                                                                                                                                |   | 4.67      years                             |   | 3.16      years |
| Expected      volatility                                                           |   | 68%                                         |   | 68% |
| Risk      free interest      rates                                                 |   | 2.5%      to 3.0%                           |   | 4.0%      to 5.0% |
| Dividend      yield                                                                |   | None                                        |   | None |
|                                                                                                                                                                                                                                                                                                                               |   |                                        |   |   |
| Weighted      average grant date fair value of options granted during the      period                                                                                                                                                                                                                                              |   | $1.06                                       |   | $1.38 |

----

Index to Consolidated FinancialStatements

----

Index to Consolidated FinancialStatements

|                                  |   | February      1, 2009 |   |   | Fiscal      Year Ended |   |
|---------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|
|                                  |   | through               |   |   | January      31,       |   |
|                                  |   | January      29, 2010 |   |   | 2009                   |   |   | 2008 |   |
| Continuing      Operations            |   |                  |   |   |                   |   |   |   |   |
| Cost      of revenues                 |   | $                     | 31     |   |                   | $      | 266 |   |   | $ | 269 |   |
| Sales      and marketing              |   |                  | 26     |   |                   |   | 431 |   |   |   | 200 |   |
| Research      and product development |   |                  | 45     |   |                   |   | 849 |   |   |   | (795 | ) |
| General      and administrative       |   |                  | 261    |   |                   |   | 1,253 |   |   |   | 751 |   |
| Continuing      Operations Total      |   |                  | 363    |   |                   |   | 2,799 |   |   |   | 425 |   |
| Discontinued      Operations          |   |                  | -      |   |                   |   | - |   |   |   | 176 |   |
| Total                                 |   | $                     | 363    |   |                   | $      | 2,799 |   |   | $ | 601 |   |

|  Year      Ending January      31,                                                                                            |   | Operating      Leases |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
| 2011                      |   | $                     | 213    |   |
| 2012                      |   |                  | 163    |   |
| 2013                      |   |                  | 169    |   |
|                                                                                                                               |   | $                     | 545    |   |

----

Index to Consolidated FinancialStatements

|                                                                                                                                                                                                                                                                                                                                                                                |   | February      1,2009  |   |   | For      the Fiscal Year Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                |   | To                    |   |   | January      31,               |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   | January      29, 2010 |   |   | 2009                           |   |   | 2008 |   |
| Sales      to customers:                                                                                                                                                                                                                                                                                                                                                            |   |                  |   |   |                           |   |   |   |   |
| United      States                                                                               |   | $                     | 631    |   |                           | $      | 318 |   |   | $ | 139 |   |
| United      Kingdom                                                                              |   |                  | 169    |   |                           |   | 768 |   |   |   | 979 |   |
| All      Other                                                                                   |   |                  | -      |   |                           |   | 255 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   | $                     | 800    |   |                           | $      | 1,341 |   |   | $ | 1,118 |   |
| Long-lived      assets:                                                           |   |                  |   |   |                           |   |   |   |   |   |   |   |
| United      States                                                                               |   | $                     | -      |   |                           | $      | 1,042 |   |   | $ | 5,459 |   |
| All      Other                                                                                   |   |                  | -      |   |                           |   | 14 |   |   |   | 83 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   | $                     | -      |   |                           | $      | 1,056 |   |   | $ | 5,542 |   |

----

Index to Consolidated FinancialStatements

|                                                                                        |   | February      1, 2009 |   |   | For      the Fiscal Year Ended |   |
|---------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------------------------------|--------|
|                                                                                        |   | to                    |   |   | January      31,               |   |
|                                                                                        |   | January      31, 2010 |   |   | 2009                           |   |   | 2008 |   |
| Supplemental      Disclosures of Non-cash Investing and FinancingActivities:                |   |                  |   |   |                           |   |   |   |   |
| Cash      paid related to stock awarded under deferred stock compensation      arrangements |   | $                     | -      |   |                           | $      | 28 |   |   | $ | 197 |   |
| Cash      paid for interest                                                                 |   | $                     | -      |   |                           | $      | 2 |   |   | $ | 2 |   |

|                                                        |   | 1st      Quarter |   |   | 2nd      Quarter |   |   | 3rd      Quarter |   |   | 4th      Quarter |   |
|-------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                        |   |             |   |   |             |   |   |             |   |   |             |   |
| February      1, 2009 toJanuary      29, 2010               |   |             |   |   |             |   |   |             |   |   |             |   |
| Revenues                                                    |   | $                | 199    |   |             | $      | 190    |             |   | $      | 205              |   |   | $ | 206 |   |
| Operating      loss                                         |   |             | (2,990 | )      |             |   | (3,117 | )                |   |   | (2,343           | )      |   |   | (2,018 | ) |
| Foreign      Exchange loss due to liquidation of subsidiary |   |             | -      |   |             |   | -      |             |   |   | -                |   |   |   | (1,961 | ) |
| Other      income                                           |   |             | 11     |   |             |   | 13     |             |   |   | 11               |   |   |   | 8 |   |
| Net      loss                                               |   | $                | (2,979 | )      |             | $      | (3,104 | )                |   | $      | (2,332           | )      |   | $ | (3,971 | ) |
|                                                        |   |             |   |   |             |   |   |             |   |   |             |   |   |   |   |   |
| Basic      and diluted loss per common share                |   | $                | (0.06  | )      |             | $      | (0.06  | )                |   | $      | (0.04            | )      |   | $ | (0.07 | ) |
|                                                        |   |             |   |   |             |   |   |             |   |   |             |   |   |   |   |   |
| Fiscal      Year 2009                                       |   |             |   |   |             |   |   |             |   |   |             |   |   |   |   |   |
| Revenues                                                    |   | $                | 402    |   |             | $      | 469    |             |   | $      | 239              |   |   | $ | 231 |   |
| Operating      loss                                         |   |             | (5,605 | )      |             |   | (4,571 | )                |   |   | (6,068           | )      |   |   | (7,599 | ) |
| Other      income                                           |   |             | 179    |   |             |   | 945    |             |   |   | 98               |   |   |   | 35 |   |
| Impairment      of long-lived assets                        |   |             | -      |   |             |   |   |             |   |   | -                |   |   |   | 3,133 |   |
| Net      loss                                               |   | $                | (5,426 | )      |             | $      | (3,626 | )                |   | $      | (5,970           | )      |   | $ | (7,564 | ) |
|                                                        |   |             |   |   |             |   |   |             |   |   |             |   |   |   |   |   |
| Basic      and diluted loss per common share                |   | $                | (0.10  | )      |             | $      | (0.07  | )                |   | $      | (0.11            | )      |   | $ | (0.14 | ) |
|                                                        |   |             |   |   |             |   |   |             |   |   |             |   |   |   |   |   |

----

Index to Consolidated FinancialStatements