________________________________________________________________________________

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                           ___________________________

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2009

                         COMMISSION FILE NUMBER: 1-15863
                           ___________________________

                                 IA GLOBAL, INC.
             (Exact name of registrant as specified in its charter)
                           ___________________________

                DELAWARE                             13-4037641
     (State or other jurisdiction of      (IRS Employer Identification No.)
     incorporation or organization)

           101 CALIFORNIA STREET, SUITE 2450, SAN FRANCISCO, CA 94111
               (Address of principal executive offices) (Zip Code)

       (Registrant's telephone number, including area code) (415)-946-8828
                           ___________________________

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                 Yes [X] No [ ]

         Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (ss. 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).

                                 Yes [ ] No [ ]

         Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ]                        Accelerated filer         [ ]
Non-accelerated filer   [ ]                        Smaller reporting company [X]

         Indicated by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).

                                 Yes [ ] No [X]

         As of October 16, 2009 there were issued and outstanding 228,703,489
shares of the registrant's common stock.
________________________________________________________________________________

<PAGE>

                                 IA GLOBAL, INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I.  FINANCIAL INFORMATION

   Item 1.  Financial Statements ...........................................   3

            Consolidated Balance Sheets ....................................   3

            Consolidated Statements of Operations ..........................   4

            Consolidated Statement of Cash Flows ...........................   5

            Notes to Consolidated Financial Statements .....................   6

   Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations ......................................  35

   Item 3.  Quantitative and Qualitative Disclosures About Market Risk .....  49

   Item 4.  Controls and Procedures ........................................  49

PART II. OTHER INFORMATION

   Item 1A. Risk Factors ...................................................  49

   Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds ....  50

   Item 3.  Defaults Upon Senior Securities ................................  50

   Item 4.  Submission of Matters to a Vote of Security Holders ............  50

   Item 5.  Other Information ..............................................  50

   Item 6.  Exhibits .......................................................  51

Signatures .................................................................  53


                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements
<TABLE>
                                          IA GLOBAL, INC. AND SUBSIDIARIES
                                             CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                                                         June 30,        March 31,
                                                                                           2009            2009
                                                                                       ------------    ------------
ASSETS                                                                                  (unaudited)      (audited)
<S>                                                                                    <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents ........................................................   $  1,703,077    $  3,614,731
  Accounts receivable, net of allowance of $971,146 and $909,984, respectively .....      8,599,996       5,994,117
  Prepaid expenses .................................................................      1,088,484       1,184,572
  Notes receivable .................................................................      3,372,580       2,353,153
  Other current assets .............................................................        259,112         124,308
  Refundable taxes - foreign .......................................................      1,623,621       1,419,418
                                                                                       ------------    ------------
    Total current assets ...........................................................     16,646,870      14,690,299

EQUIPMENT, NET .....................................................................      2,001,520       2,207,849

OTHER ASSETS
  Intangible assets, net ...........................................................        522,101         555,870
  Investment in Taicom Securities Co Ltd ...........................................      2,861,365       2,861,365
  Equity investment in Slate Consulting Co Ltd .....................................      1,397,760       1,386,054
  Other assets .....................................................................      3,217,794       3,164,127
                                                                                       ------------    ------------

                                                                                       $ 26,647,410    $ 24,865,564
                                                                                       ============    ============

LIABILITIES AND STOCKHOLDER'S DEFICIT

CURRENT LIABILITIES:
  Accounts payable - trade .........................................................   $  1,758,977    $  1,578,029
  Accrued payroll taxes and social insurance taxes .................................      6,491,147       4,850,887
  Accrued liabilities - other ......................................................      8,252,813       4,657,363
  Consumption taxes received .......................................................      1,492,703       1,307,455
  Note payable - current portion of long term debt .................................     14,762,636      13,391,371
  Deferred revenue .................................................................      2,284,283       3,454,692
                                                                                       ------------    ------------
    Total current liabilities ......................................................     35,042,559      29,239,797
                                                                                       ------------    ------------

LONG TERM  LIABILITIES:
  Long term debt ...................................................................      1,085,508       1,898,231
                                                                                       ------------    ------------

STOCKHOLDER'S DEFICIT:
  Preferred stock, $.01 par value, 5,000 authorized, none outstanding ..............              -               -
  LLC Series Preferred stock, $.01 par value, 317 shares authorized
    and 317 and 0, issued and outstanding, respectively (liquidation value $317,000)        317,000               -
  Common stock, $.01 par value, 450,000,000 shares authorized,
    219,881,389 and 219,113,889, issued and outstanding, respectively ..............      2,198,815       2,191,140
  Additional paid in capital .......................................................     53,633,270      53,056,216
  Accumulated deficit ..............................................................    (63,227,024)    (59,572,442)
  Accumulated other comprehensive loss .............................................     (2,149,811)     (1,694,471)
                                                                                       ------------    ------------
                                                                                         (9,227,750)     (6,019,557)
  Less common stock in treasury, at cost ...........................................       (252,907)       (252,907)
                                                                                       ------------    ------------
    Total stockholder's deficit ....................................................     (9,480,657)     (6,272,464)
                                                                                       ------------    ------------

                                                                                       $ 26,647,410    $ 24,865,564
                                                                                       ============    ============

                                   See notes to consolidated financial statements.

                                                          3
</TABLE>
<PAGE>
<TABLE>
                                    IA GLOBAL, INC. AND SUBSIDIARIES
                                 CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
                                                                          Three Months Ended June 30,
                                                                        ------------------------------
                                                                             2009            2008
                                                                        -------------    -------------
                                                                         (unaudited)      (unaudited)
<S>                                                                     <C>              <C>
REVENUE .............................................................   $  13,378,381    $  19,688,708

COST OF SALES .......................................................       4,086,227        3,195,824
                                                                        -------------    -------------

GROSS PROFIT ........................................................       9,292,154       16,492,884

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........................      12,568,861       14,656,688
                                                                        -------------    -------------

OPERATING (LOSS) INCOME .............................................      (3,276,707)       1,836,196
                                                                        -------------    -------------

OTHER INCOME (EXPENSE):
  Interest income ...................................................             451           14,594
  Interest expense and amortization of beneficial  conversion feature         (66,926)        (283,448)
  Other income ......................................................          14,947           62,698
  Gain on equity investment in Australia Secured Financial Limited ..               -          256,119
  Gain on equity investment in GPlus Media Co Ltd ...................               -           32,635
  Gain on equity investment in Slate Consulting Co Ltd ..............          11,706           23,105
  Loss on equity investment in Taicom Securities Co Ltd .............               -         (106,536)
  Loss (gain) on foreign currency transaction adjustment ............            (215)             265
                                                                        -------------    -------------
    Total other expense .............................................         (40,037)            (568)
                                                                        -------------    -------------

(LOSS) PROFIT BEFORE INCOME TAXES ...................................      (3,316,744)       1,835,628

Income taxes - current provision ....................................         145,838        1,104,784
                                                                        -------------    -------------

Net (Loss) Profit Before Deemed Preferred Stock Dividend ............      (3,462,582)         730,844

  Deemed Preferred Stock Dividend ...................................        (192,000)               -
                                                                        -------------    -------------

Net (Loss) Profit ...................................................   $  (3,654,582)   $     730,844
                                                                        =============    =============


Basic and diluted (loss) profit per share of common-
  Basic (loss) profit per share .....................................   $       (0.02)   $           -
  Diluted (loss) profit per share ...................................   $       (0.02)   $           -

  Weighted average shares of common stock outstanding- basic ........     218,834,533      176,444,684
  Weighted average shares of common stock outstanding- diluted ......     218,834,533      180,188,687

                            See notes to consolidated financial statements.

                                                   4
</TABLE>
<PAGE>
<TABLE>
                                              IA GLOBAL, INC. AND SUBSIDIARIES
                                            CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                                                                 Three Months Ended June 30,
                                                                                                 --------------------------
                                                                                                     2009          2008
                                                                                                 -----------    -----------
                                                                                                 (unaudited)    (unaudited)
<S>                                                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss) income from operations ..........................................................   $(3,462,582)   $   730,844
  Adjustments to reconcile net income (loss) to net cash (used in) provided by
    operating activities:
      Depreciation and amortization ..........................................................       186,894        598,937
      Amortization of beneficial conversion feature ..........................................             -        104,167
      Amortization of prepaid financing ......................................................         2,053              -
      Stock based compensation ...............................................................       352,679        115,811
      Stock issued for services ..............................................................             -        159,584
      Gain on equity investments .............................................................       (11,706)      (213,233)
  Changes in operating assets and liabilities:
    Accounts receivable ......................................................................    (2,605,879)       576,368
    Prepaid expenses .........................................................................        94,035        914,720
    Notes receivable .........................................................................    (1,019,427)      (132,789)
    Other current assets .....................................................................      (134,804)      (128,116)
    Refundable taxes - foreign ...............................................................      (204,203)       777,254
    Other assets .............................................................................       (53,667)      (584,080)
    Accounts payable - trade .................................................................       180,948         88,563
    Accrued liabilities and payroll taxes ....................................................     5,235,710       (282,796)
    Consumption taxes received ...............................................................       185,248        (45,451)
    Deferred revenue .........................................................................    (1,170,409)             -
                                                                                                 -----------    -----------
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES ..........................................    (2,425,110)     2,679,783
                                                                                                 -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures .......................................................................             -     (1,089,196)
  Acquisition of subsidiary Shift Resources, Inc. ............................................             -        (35,000)
  Cash from acquisition of Shift Resources, Inc. and Asia Premier Executive Suites, Inc. .....             -         12,158
                                                                                                 -----------    -----------
NET CASH USED IN INVESTING ACTIVITIES: .......................................................             -     (1,112,038)
                                                                                                 -----------    -----------

CASH FROM FINANCING ACTIVITIES:
  Proceeds from debt .........................................................................     2,280,146      3,864,750
  Repayments of debt .........................................................................    (2,124,152)    (5,483,064)
  Proceeds from sale of common stock .........................................................        40,050        500,000
  Proceeds from sale of preferred shares .....................................................       317,000              -
                                                                                                 -----------    -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ..........................................       513,044     (1,118,314)
                                                                                                 -----------    -----------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS .........................................    (1,912,066)       449,431

EFFECT OF EXCHANGE RATE CHANGES ON CASH ......................................................           412      1,152,537

CASH AND CASH EQUIVALENTS, beginning of period ...............................................     3,614,731      1,626,862
                                                                                                 -----------    -----------

CASH AND CASH EQUIVALENTS, end of period .....................................................   $ 1,703,077    $ 3,228,830
                                                                                                 ===========    ===========

Supplemental disclosures of cash flow information:
  Interest paid ..............................................................................   $    48,907    $    81,191
  Taxes paid .................................................................................   $         -    $   386,170

Non-cash investing and financing activities:
  Deemed dividend on issuance of LLC Series Preferred Stock ..................................   $   192,000    $         -
  Conversion of debentures into Common Stock .................................................   $         -    $ 2,300,000
  Issuance of Common Stock for acquisition of Subsidiary -
  Asia Premier Executive Suites, Inc. ........................................................   $         -    $   300,000
  Issuance of Common Stock for acquisition of Subsidiary - Shift Resources, Inc. .............   $         -    $   190,000
  Issuance of Common Stock for acquisition of Investment - Taicom Securities Co., Ltd. .......   $         -    $ 5,200,000
  Issuance of Note Payable for acquisition of Subsidiary - Asia Premier Executive Suites, Inc.   $         -    $   268,000

                                       See notes to consolidated financial statements.

                                                              5
</TABLE>
<PAGE>

                        IA GLOBAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BUSINESS:

THE COMPANY AND OUR BUSINESS

         IA Global, Inc. ("IA Global" or the "Company") is a broad-based
services company with a dedicated focus on growth of existing business, together
with expansion through mergers and acquisitions in the Pacific Rim region. Our
mission is to identify and invest in business opportunities, apply our skills
and resources to nurture and enhance the performance of those businesses across
key business metrics, and to deliver accelerating shareholder value.

         To realize this plan, the Company is expanding investments in the
business process outsourcing ("BPO") and financial services sectors. These
sectors demonstrate long-term growth prospects in which we, by applying our
skills and resources, can add significant value to our investments. Beyond
Japan, we are expanding our reach to encompass the Philippines, Southeast Asia
and the outstanding growth opportunities and synergies these markets present.

         In Japan, IA Global is 100% owner of Global Hotline ("Global Hotline"
or "GHI"), except as disclosed, a BPO organization, operating several major call
centers providing outbound telemarketing services for telecommunications,
insurance, credit card and catalog products. Since our acquisition of Global
Hotline in June 2005, this business has expanded rapidly with the signing of
multi-year contracts with major corporations.

         In the Philippines, IA Global is the 100% owner of Asia Premier
Executive Suites Inc. and Shift Resources Inc., companies that have now been
merged into a single company named Global Hotline Philippines Inc.

         In the Asia Pacific region, the Company has equity investments of
20.25% in Slate Consulting Co Ltd, and 12.6%, except as disclosed, in Taicom
Securities Co Ltd ("Taicom"). These organizations provide human capital services
and investor relations and capital-raising services, as well as direct income to
the Company.

CORPORATE INFORMATION

         The Company was incorporated in Delaware on November 12, 1998. The
Company's executive offices are located at 101 California Street, Suite 2450,
San Francisco, CA 94111, with its operating units being located primarily in
Japan and the Philippines. The Company's telephone number is (415) 946-8828 and
its primary website is located at www.iaglobalinc.com. The information on our
website is not a part of this Form 10-Q.

THE COMPANY'S COMMON STOCK

         Our common stock currently trades on the NYSE AMEX market under the
symbol "IAO."

UNAUDITED FINANCIAL STATEMENTS

         The accompanying unaudited consolidated financial statements of IA
Global and our subsidiaries have been prepared in accordance with generally
accepted accounting principles ("GAAP") for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by U.S. GAAP for complete financial statements. The financial statements for the
periods ended June 30, 2009 and 2008 are unaudited and include all adjustments

                                       6
<PAGE>

necessary to a fair statement of the results of operations for the periods then
ended. All such adjustments are of a normal recurring nature. The results of the
Company's operations for any interim period are not necessarily indicative of
the results of the Company's operations for a full fiscal year. For further
information, refer to the financial statements and footnotes thereto included in
the Company's annual report on Form 10-K for the fiscal year ended March 31,
2009 as filed with the Securities and Exchange Commission ("SEC") on September
3, 2009.

         In this Form 10-Q, at "current exchange rates" is defined as the
exchange rates as of the date of the transaction.

GOING CONCERN

         These consolidated unaudited financial statements have been prepared by
management in accordance with accounting principles generally accepted in the
United States on a "going concern" basis, which presumes that the Company will
be able to realize its assets and discharge its liabilities in the normal course
of business for the foreseeable future.

         The Company has incurred operating losses for three months ended June
30, 2009 and 2008, the year ended March 31, 2009, the transition period for the
three months ended March 31, 2008, and for the years ended December 31, 2007 and
2006, as well having an accumulated deficit of approximately $63,000,000 and
$59,600,000 and a working capital deficit of approximately $18,396,000
($14,763,000 relates to the current portion of long term debt) and $14,549,000
as of June 30, 2009 and March 31, 2009. Furthermore, the Company has not
remitted and is delinquent payroll tax withholding and expenses on a timely
basis for their Japanese subsidiary Global Hotline.

         The Company's ability to continue as a going concern is dependent upon
continued development of their business outsource processing business, as well
as upon obtaining additional financing to develop the these businesses, the
ultimate realization of profits through future BPO business, and the success of
the Company's business plan. The outcome of these matters cannot be predicted at
this time. These consolidated unaudited financial statements do not include any
adjustments to the amounts and classifications of assets and liabilities that
might be necessary should the Company be unable to continue its business.

         In addition, in connection with loans payable that the Company's fully
owned subsidiary, Global Hotline, Inc., entered into, the equity shares of this
subsidiary currently held by the lender of these loans as collateral, is being
challenged by IA Global, Inc. If these shares should not be successfully
recovered, the Company's claim of ownership in this subsidiary may be limited.

RECLASSIFICATIONS

         Certain reclassifications have been made to the prior periods'
financial statements to conform to the current year classification. Thee
reclassifications had no effect on previously reported results of operations or
retained earnings.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include the
accounts of the Company and its wholly owned and majority-owned subsidiaries.
Inter-Company items and transactions have been eliminated in consolidation.

CASH AND CASH EQUIVALENTS - The Company classifies highly liquid temporary
investments with an original maturity of three months or less when purchased as
cash equivalents.

                                       7
<PAGE>

         The Company maintains cash balances at various financial institutions.
Balances at US banks are insured by the Federal Deposit Insurance Corporation up
to $250,000. Balances in Japanese banks are generally insured by the Deposit
Insurance Corporation of Japan up to 10,000,000 Yen per depositor per bank or
approximately $104,000 at of June 30, 2009. During the three months ended June
30, 2009, the Company's cash in bank deposit accounts did not exceed federally
insured limits with regards to certain accounts in the United States. At times
during the three months ended June 30, 2009 the Company's cash in bank deposit
accounts exceeded Japanese statutory limits with regards to certain accounts in
Japan. The Company has not experienced any losses in such accounts and believes
it is not exposed to any significant risk for cash on deposit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS - Accounts receivable
consists primarily of amounts due to the Company from normal business
activities. The Company maintains an allowance for doubtful accounts to reflect
the expected non-collection of accounts receivable based on past collection
history and specific risks identified within the portfolio. If the financial
condition of the customers were to deteriorate resulting in an impairment of
their ability to make payments, or if payments from customers are significantly
delayed, additional allowances might be required.

EQUIPMENT - Equipment consists of machinery, equipment and software, which are
stated at cost less accumulated depreciation and amortization. Depreciation of
machinery and equipment is computed by the accelerated or straight-line methods
over the estimated useful lives of the related assets, generally 2-5 years.
Software developed or obtained for internal use is amortized using the
straight-line method over the estimated useful life of the software, generally
2-3 years.

INTANGIBLE ASSETS / INTELLECTUAL PROPERTY - The Company amortized the intangible
assets and intellectual property acquired in connection with the acquisition of
Global Hotline over 36 months on a straight-line basis, which was the time frame
that the management of the Company was able to project forward for future
revenue, either under agreement or through expected continued business
activities with significant telecommunications companies. The Company amortizes
the intangible assets and intellectual property acquired in connection with the
acquisition of Global Hotline Philippines, Inc. over 60 months on a
straight-line basis, which was the time frame that the management of the Company
was able to project forward for future revenue, either under agreement or
through expected continued business activities with its customers.

LONG-LIVED ASSETS - The Company reviews its long-lived assets for impairment
when changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. Long-lived assets under certain circumstances are reported
at the lower of carrying amount or fair value. Assets to be disposed of and
assets not expected to provide any future service potential to the Company are
recorded at the lower of carrying amount or fair value less cost to sell. To the
extent carrying values exceed fair values, an impairment loss is recognized in
operating results.

INVESTMENTS - The Company accounts for its investments using the equity or cost
method.

         Under the equity method, unless its value has been determined to be
other than temporarily impaired, in which case we write the investment down to
its impaired value. The Company reviews these investments periodically for
impairment and makes appropriate reductions in carrying value when an
other-than-temporary decline is evident; however, for non-marketable equity
securities, the impairment analysis requires significant judgment. During its
review, the Company evaluates the financial condition of the issuer, market
conditions, and other factors providing an indication of the fair value of the
investments. Adverse changes in market conditions or operating results of the
issuer that differ from expectation, could result in additional
other-than-temporary losses in future periods.

                                       8
<PAGE>

         Under the cost method, a long-term investment is recorded at cost until
it is sold, or disposed or until it is written down. A write-down from cost,
subsequent to becoming a cost method investment, is appropriate when dividends
received represent a liquidating dividend, that is, a dividend received in
excess of earnings subsequent to the investment date. Otherwise, any dividends
received are recorded as investment income.

FAIR VALUE OF FINANCIAL INSTRUMENTS - The Company has adopted SFAS No. 157,
"Fair Value Measurements" ("SFAS 157"), for assets and liabilities measured at
fair value on a recurring basis. SFAS 157 establishes a common definition for
fair value to be applied to existing generally accepted accounting principles
that require the use of fair value measurements, establishes a framework for
measuring fair value and expands disclosure about such fair value measurements.
The adoption of SFAS 157 did not have an impact on the Company's financial
position or operating results, but did expand certain disclosures.

         SFAS 157 defines fair value as the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Additionally, SFAS 157 requires the
use of valuation techniques that maximize the use of observable inputs and
minimize the use of unobservable inputs. These inputs are prioritized below:

      Level 1: Observable inputs such as quoted market prices in active markets
               for identical assets or liabilities

      Level 2: Observable market-based inputs or unobservable inputs that are
               corroborated by market data

      Level 3: Unobservable inputs for which there is little or no market data,
               which require the use of the reporting entity's own assumptions.

         Cash and cash equivalents of approximately $1,703,000 include money
market securities and commercial paper that are considered to be highly liquid
and easily tradable as of June 30, 2009. These securities are valued using
inputs observable in active markets for identical securities and are therefore
classified as Level 1 within our fair value hierarchy.

         In addition to SFAS 157 as noted above, SFAS No. 159, "The Fair Value
Option for Financial Assets and Financial Liabilities," was effective for the
year ended March 31, 2009 and the three months ended March 31, 2009 and 2008.
SFAS 159 expands opportunities to use fair value measurements in financial
reporting and permits entities to choose to measure many financial instruments
and certain other items at fair value. The Company did not elect the fair value
options for any of its qualifying financial instruments.

REVENUE RECOGNITION - Global Hotline's revenue is derived from its multiple call
centers undertaking the telemarketing of telecommunications products and
services, and a range of insurance products and services in Japan and other
products and services in the Philippines. Revenue is considered realized when
the services have been provided to the customer, the work has been accepted by
the customer and collectability is reasonably assured. Furthermore, if an actual
measurement of revenue cannot be determined, we defer all revenue recognition
until such time that an actual measurement can be determined. If during the
course of a contract management determines that losses are expected to be
incurred, such costs are charged to operations in the period such losses are
determined.

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. The Company recorded deferred revenue of
$2,284,000 and $3,455,000 as of June 30, 2009 and March 31, 2009, respectively.

ADVERTISING COSTS - Advertising costs are expensed as incurred. There were
minimal advertising costs incurred for the three months ended June 30, 2009 and
2008.

                                       9
<PAGE>

FOREIGN CURRENCY TRANSLATION - Foreign entities whose functional currency is the
local currency translate net assets at the end of period rates and income and
expense accounts at average exchange rates for the periods ended. Adjustments
resulting from these translations are reflected in the consolidated balance
sheet under other comprehensive income and the statement of operations under
other income (expense).

STOCK BASED COMPENSATION - Effective January 1, 2006, the Company began
recording compensation expense associated with stock-based awards and other
forms of equity compensation in accordance with SFAS 123R as interpreted by SEC
Staff Accounting Bulletin No. 107. The Company adopted the related to
stock-based awards granted subsequent to January 1, 2006 based on the grant date
fair value estimated in accordance with the provisions of SFAS 123R. In
addition, the Company records expense over the vesting period in connection with
stock options granted. The compensation expense for stock-based awards includes
an estimate for forfeitures and is recognized over the expected term of the
award on a straight-line basis.

         When stock options are granted, the fair value of each option grant is
estimated on the date of grant using the Black-Scholes valuation model and the
weighted assumptions noted in the following table.

                                             For the Three Months Ended
                                                      June 30,
                                             --------------------------
                                                 2009          2008
                                                 ----          ----
         Risk-free interest rate ..........      3.96%         3.73%
         Expected life ....................    8.00 yrs      8.00 yrs
         Dividend rate ....................      0.00%         0.00%
         Expected volatility ..............      112%          122%

         The Company recorded $352,679 and $115,811 of compensation expense, net
of related tax effects, relative to stock options for the three months ended
June 30, 2009 and 2008, respectively, in accordance with SFAS 123R. Net loss per
share (basic and diluted) associated with this expense was approximately
($0.00).

         As of June 30, 2009, there is approximately $399,536 of total
unrecognized costs related to employee granted stock options that are not
vested. These costs are expected to be recognized over a period of approximately
three years.

         The Company accounts for non-employee stock transactions in accordance
with SFAS No. 123R and EITF 96-18. The Company did not issue any shares of
common stock to non-employees during the three months ended June 30, 2009. The
Company issued 21,429 shares of common stock to non-employees at an average
exercise price of $.280 per share in the three months ended June 30, 2008. The
grants were expensed immediately. In addition, the Company issued performance
grants for 155,000 shares of common stock at an average price of $.280 per share
during the three months ended June 30, 2008. There are 273,929 stock options
outstanding that are held by non-employees as of June 30, 2009, which carry an
average exercise price of $.342 per share.

         On June 17, 2009, certain key executives, employees, and directors of
the Company voluntarily cancelled stock option grants to purchase an aggregate
of 5,439,583 shares of common stock. The grants were previously issued on
various dates and prices above $.13 per share.

                                       10
<PAGE>

         On June 17, 2009, the Company awarded stock option grants totaling
5,439,583 shares to certain key executives, employees, and directors. The grants
were priced at $.05 per share, the closing price of the Company's common stock
on June 16, 2009, the date before the scheduled compensation committee meeting
at which such grants were approved. In accordance with the 2007 Stock Incentive
Plan, the grants are vested immediately and expire on June 16, 2019. The stock
options were granted to provide a proper incentive for employees, officers and
directors and to reduce the cost of the stock option grants over the next three
years. The Company expensed $345,846 during the three months ended June 30, 2009
related to this transaction.

         On August 24, 2009, the Company awarded Mr. Scott, our Chief Financial
Officer, an option to purchase 300,000 shares of the Company's common stock. The
award were granted at the fair market price of $0.05 per share based on the
adjusted closing price on August 20, 2009, the last trading day before the board
of directors meeting at which such grant was approved. In accordance with the
2007 Stock Incentive Plan, the stock option vests quarterly over three years and
expires on August 23, 2019.

         On September 4, 2009, the Company awarded to Messrs. Hoekstra, Senda,
Henry, Garnreiter and LeClaire, directors, an option to purchase 400,000 shares
of the Company's common stock. The awards were granted at the fair market price
of $0.04 per share based on the adjusted closing price on the date of the award.
In accordance with the 2007 Stock Incentive Plan, the stock option vests
quarterly over three years and expire on September 3, 2019.

COMPREHENSIVE INCOME - The Company has adopted SFAS No. 130 "Reporting
Comprehensive Income." This statement establishes rules for the reporting of
comprehensive income and its components. Comprehensive income consists of net
loss to common shareholders and foreign currency transaction adjustments and is
presented in the Consolidated Statements of Operations and Stockholder's Equity.

INCOME TAXES - Income tax provision (benefit) is based on reported income (loss)
before income taxes. Deferred income taxes reflect the effect of temporary
differences between asset and liability amounts that are recognized for
financial reporting purposes and the amounts that are recognized for income tax
purposes. These deferred taxes are measured by applying currently enacted tax
laws in the countries and locations where the Company (or its applicable
subsidiary) operates. The Company recognizes refundable and deferred assets to
the extent that management has determined their realization. As of June 30, 2009
and March 31, 2009, the Company had refundable tax assets of $1,623,621 and
$1,419,418, respectively, based on prepayments that the Company has made that
are available to offset future taxable income.

NET LOSS PER SHARE - The Company has adopted SFAS No. 128, "Earnings per Share."
Loss per common share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding during
the period. The common stock equivalents have not been included as they are
anti-dilutive. As of June 30, 2009, there were options outstanding for the
purchase of 11,274,012 common shares, warrants for 16,695,169 common shares,
3,554,546 shares of common stock issued as collateral for loans of and potential
shares totaling 33,300,000 related to ArqueMax Ventures transactions, which
could potentially dilute future earnings per share. As of June 30, 2008, there
were options outstanding for the purchase of 10,679,471 common shares and
warrants for 2,562,243 shares of common stock, which could potentially dilute
future earnings per share.

DIVIDEND POLICY - The Company has never paid any cash dividends and intends, for
the foreseeable future, to retain any future earnings for the development of our
business. Our future dividend policy will be determined by the board of
directors on the basis of various factors, including our results of operations,
financial condition, capital requirements and investment opportunities.

                                       11
<PAGE>

USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

NOTE 3. ACQUISITIONS AND INVESTMENTS

Business Process Outsourcing ("BPO")

GLOBAL HOTLINE, INC. AND ITS SUBSIDIARIES

         The Company's acquisition of Global Hotline, a privately held Japanese
Company, closed on June 15, 2005. The transaction was structured as a share
exchange in which the Company issued 15,000,000 shares of its common stock in
exchange for 100% of Global Hotline's equity. The common stock of the Company
issued in connection with the transaction had a value of $0.207 per share, which
was the average close price during the twenty days prior to the signing of the
April 20, 2005 Share Exchange Agreement, or an aggregate value of $3,097,500.

         Global Hotline was acquired because it held two significant contracts
with a major Japanese telecommunications company that we expected to be renewed
in an industry sector that was expected to grow. The purchase price resulted in
identifiable intangible assets. Global Hotline results are included in the
financial statements of IA Global for all periods since June 15, 2005. There
were no contingent payments, options or commitments in the acquisition
agreement. There was no purchased research and development assets acquired or
written off with the acquisition.

         Global Hotline was established on September 7, 2004, as an operator of
major call centers providing outbound telemarketing services for
telecommunications and insurance products. Since our acquisition of Global
Hotline in June 2005, this business has expanded rapidly with the signing of
multi-year contracts with major corporations and the addition of credit card and
catalog product lines. As of June 30, 2009 Global Hotline operate eight call
centers in Japan and employ approximately 798 full-time and part-time employees.

         On April 14, 2009, Global Hotline announced that it had signed
agreements with KDDI for the period from April 1, 2009 to June 30, 2009. Global
Hotline agreed to sell telephone and wireless products on behalf of this
customer and will be paid primarily on an incentive basis for telephone lines
sold and an hourly rate for wireless products sold with possible bonuses if
certain volume targets are achieved, with payments due in 30 days after the
month billed. The agreements may be cancelled under certain conditions. On July
1, 2009, Global Hotline signed agreements with KDDI for the period from July 1,
2009 to September 30, 2009.

         On April 14, 2006, a 100% owned subsidiary of Global Hotline, SG
Telecom Inc. ("SG"), entered into an Agency Contract ("Agency Contract") with
Japan Telecom Invoice Co., Ltd., a Japanese company ("Japan Telecom"). Pursuant
to this agreement, SG sells various Internet and broadband products on behalf of
Japan Telecom, with sales commissions payable within 30-90 days after
confirmation by Japan Telecom. The Agency Contract is automatically renewable
for an additional year unless it is terminated by either party upon thirty days
notice before the expiration date. The Agency Contract was automatically renewed
through April 14, 2010. The Agency Contract may be cancelled under certain
conditions.

                                       12
<PAGE>

         On April 7, 2008 and September 1, 2008, SG entered into a Consent
Agreement ("Consent Agreement") with Softbank Telecom Co Ltd., a Japanese
Company ("Softbank"). Pursuant to this agreement, SG received payments in April,
June and September, 2008 for expanding telemarketing operations related to prior
agreements with Japan Telecom. The payments may require repayment in March 2011
if certain sales targets are not achieved. Based on sales for the twelve months
ended March 31, 2009, SG does not expect to repay any payments under the Consent
Agreements. The Consent Agreement may be cancelled under certain conditions.

         On May 10, 2006, a 100% owned subsidiary of Global Hotline, IA Partners
Co Ltd ("IA Partners"), entered into an Agency Agreement with AFLAC Co Ltd, a
Japanese Company ("AFLAC"). Pursuant to this Agency Agreement, IA Partners
agreed to sell insurance products starting on approximately June 1, 2006, on
behalf of AFLAC, with sales commissions payable from 30-120 days and ongoing
commissions for up to ten years, to the extent the customer continues to
maintain the insurance. The Agency Agreement is automatically renewed each year
unless it is terminated by either party upon thirty days notice before the
expiration date. The Agency Agreement was automatically renewed on May 2, 2007,
May 1, 2008 and April 14, 2009 through May 2, 2010. The Agency Agreement may be
cancelled under certain conditions.

         On October 21, 2008, IA Partners announced that a Memorandum on
Telemarketing Support and an Agency Agreement (together, the "Agreements") were
signed with AFLAC for the period June 1, 2008 through May 31, 2009. The IA
Partners has agreed to sell insurance products on behalf of AFLAC, with fees
payable based on booths operated and a percentage of the annual premium sold,
with payments due in 30 days after the month billed. The Agreements were
automatically renewed on April 1, 2009 through May 31, 2010. The Agreements may
be cancelled under certain conditions.

         On October 16, 2006, IA Partners announced an Agency Agreement with
American Home Assurance Ltd ("AHA"), a Japanese Company and a division of
American Insurance Group ("AIG"). Pursuant to this Agency Agreement, IA Partners
agreed to sell health and cancer insurance products on behalf of AHA, with sales
commission's payable from 30-120 days and ongoing commissions to the extent the
customer continues to maintain the insurance. The Agency Agreement has no
expiration date, but may be cancelled under certain conditions.

         On August 15, 2007, a 100% owned subsidiary of Global Hotline,
Inforidge Co Ltd ("Inforidge"), received notice of a signed Agency Agreement
("Agency Agreement") with American Life Insurance Company, ("Alico"), a Japanese
Company which is a subsidiary of AIG. Pursuant to this Agency Agreement,
Inforidge agreed to sell insurance products starting on August 8, 2007 on behalf
of Alico, with sales commissions payable from 30-120 days. The Agency Agreement
expires on August 8, 2008, and is automatically renewable for an additional year
unless it is terminated by either party upon thirty days notice prior to the
expiration date. The Agency Agreement may be cancelled under certain conditions.
The Agency Agreement was automatically renewed July 8, 2009 for the period and
August 8, 2009 through August 8, 2010. While the Alico contracts are in effect,
due to the AIG financial difficulties, personnel were allocated to other
contracts during the three months ended December 31, 2008 and March 31, 2009.

         On January 7, 2008, Inforidge entered into an Outbound Telemarketing
Agreement, effective as of November 30, 2007, with Alico. Pursuant to this
agreement, Inforidge will receive payments for expanding telemarketing
operations related to prior agreements with Alico. The Agreement expired on June
30, 2009. Due to the AIG financial difficulties, personnel were allocated to
other contracts during the three months ended December 31, 2008 and March 31,
2009.

ACQUISITION OF GLOBAL HOTLINE, INC.

         The Company acquired its 100% ownership of Global Hotline from Mr.
Hideki Anan (67%), Mr. Kyo Nagae (10%) and Mr. Hiroki Isobe (23%). Mr. Anan is
the CEO of Global Hotline and is an experienced Japanese telecommunications
executive. Mr. Isobe is a controlling shareholder.

                                       13
<PAGE>

         The cost to acquire these assets was allocated to the assets acquired
according to estimated fair values as follows:

Purchase price:
Stock ..............................................................  $3,097,500
                                                                      ----------
Net assets acquired (6/15/05):
Cash ...............................................................   1,240,037
Accounts receivable ................................................   1,782,900
Other assets .......................................................   1,370,153
Recovery of tax benefit of net operating loss acquired with
   acquisition of Global Hotline. This recovery occurred
   during the three months ended September 30, 2006 ................     486,869
                                                                      ----------
                                                                       4,879,959
                                                                      ----------
Net liabilities acquired (6/15/05):
Accrued liabilities ................................................   1,903,246
Deferred revenue ...................................................   4,196,493
Other liabilities ..................................................     628,750
                                                                      ----------
                                                                       6,728,489
                                                                      ----------
Net liabilities acquired (6/15/05) .................................   1,848,530
                                                                      ----------
Identifiable customer contracts and related customer relationships .  $4,946,030
                                                                      ==========

GLOBAL HOTLINES PHILIPPINES INC. (Unaudited)

         In the Philippines, IA Global is the 100% owner of Asia Premier
Executive Suites Inc. ("Asia Premier") and Shift Resources Inc. ("Shift"),
companies that have been merged into a single organization and operate as Global
Hotline Philippines Inc ("Global Hotline Philippines").

         On May 27, 2008, the Company acquired 100% of Asia Premier. Asia
Premier provides flexible in-bound and out-bound call center, lead generation,
and co-location service solutions to international companies. Asia Premier
facilities are equipped with fully redundant, world-class Internet and network
facilities, are capable of handling 300 or more seats, have a 24-hour back-up to
ensure clients have seamless service, consistent high-quality bandwidth and
technical support 365 days a year.

         The transaction was structured as a share exchange in which IA Global
issued 1,250,000 shares of its common stock at $.24 per share, the average
closing price during the negotiations, totaling $300,000; plus three notes
payable totaling $268,000, of which $262,000 was paid as of June 30, 2009. The
transaction was valued at $618,000.

         On April 10, 2008, the Company acquired 100% of Shift. Shift provides a
range of in-bound and out-bound call centers, lead generation and customer
service solutions for international companies across multiple time zones.

         The transaction was structured as a share exchange in which the Company
issued 826,086 shares of its common stock at $.23 per share, the average closing
price during the negotiations, totaling $190,000 plus a payment of $35,000 at
closing. The transaction was valued at $225,000.

         Asia Premier and Shift were acquired because they have contracts that
we expected to be renewed in an industry sector that was expected to grow. The
purchase price resulted in identifiable intangible assets. Their results are
included in the financial statements of IA Global for all periods since
acquisition. There were no contingent payments earned, options or commitments in
the acquisition agreement. There was no purchased research and development
assets acquired or written off with the acquisition.

                                       14
<PAGE>

         As of June 30, 2009, Global Hotline Philippines operates one call
center in the Philippines and employs 20 full-time and part-time employees and
has an 86 additional revenue generating seats related to co-location services.
In addition, it signed a long term Business Processing and Marketing Services
Agreement with HTMT Global Solutions Limited ("HTMT") on January 9, 2009. Global
Hotline Philippines will also use HTMT's infrastructure, certifications, and
extensive call center facilities to deliver services to Global Hotline
Philippines' growing client base.

Human Capital and Resources

EQUITY INVESTMENT IN SLATE CONSULTING CO LTD

         On August 24, 2007, the Company closed a 20.25% equity investment in
Slate by agreeing to issue 3,600,000 shares of common stock with a total value
of $1,440,000, or $0.40 per share, which was the average closing market price on
August 17, 2007, the day negotiations were completed. In addition, the Company
has the option to increase its equity holding in Slate to 75% based on terms to
be agreed.

         Slate is a Japanese executive search firm with operations in Tokyo and
a call center in Manila, Philippines.

         For the three months ended June 30, 2009, the Company recorded a gain
on our investment in Slate of $11,706 that increased our investment in Slate.
The investment in Slate was valued at $1,397,760 using the equity method as of
June 30, 2009.

Financial Services Equity Investments

INVESTMENT IN TAICOM SECURITIES CO LTD

         In Japan, we have a 12.6%, except as disclosed, investment as of June
30, 2009 and October 16, 2009 in Taicom Securities Co Ltd ("Taicom"), a Japanese
securities firm. Taicom provides a broad range of value-added financial services
and competitive products. These services currently include the brokerage of
Japanese commodities, options derivatives trading, foreign currency, equities
and margin as well as offering wealth management and investment consulting
services to diversified clients. In addition to offering a broad news and
information gathering network, Taicom offers creative solutions that meet the
sophisticated trading needs of its clients. Taicom is a member of the Osaka
Stock Exchange. Taicom is headquartered in Tokyo and Osaka and has three branch
offices in Japan.

         The Company is accounting for Taicom under the cost method.

June 3, 2008 Exchange Agreement
-------------------------------

         On June 3, 2008, the Company announced that it had closed a 20% equity
investment in Taicom, a Japanese securities firm. This equity investment was an
expansion of the financial services business of IA Global.

         The transaction between the Company and Taicom was structured as a
share exchange in which the Company issued 26,000,000 shares of its common stock
at $.20 per share, the close price during the negotiations in exchange for
1,389,750 Class B Preferred Shares of Taicom. The transaction was valued at
$5,200,000.

                                       15
<PAGE>

April 1, 2009 Amendment to Share Exchange Agreement
---------------------------------------------------

         On April 1, 2009, the Company, Taicom and ArqueMax Ventures, LLC
("AMV"), an entity controlled by Michael Ning, the Chairman of Taicom, entered
into an Amendment to Share Exchange Agreement (the Amendment"). Pursuant to this
Amendment, the Company returned the following Taicom Preferred Class B Stock
("Taicom Stock") for the indicated payments by Taicom:

         $ Paid By                   Shares
           Taicom         Date      Returned
         ---------    ----------    --------
         $ 130,000    12/12/2008     302,100
            50,000      2/2/2009     116,192
            41,000      4/1/2009      95,278
         ---------                  --------
         $ 221,000                   513,570
         =========                  ========

         The return of these shares of Taicom Stock reduced the Company's 20%
interest in Taicom to 876,180 shares or 16%, 14% and 12.6% as of December 12,
2008, February 2, 2009 and April 1, 2009, respectively.

         In addition, the Company agreed to issue preferred stock ("IAO
Preferred Stock"), at $1,000 per share, to AMV for the following additional
payments: $140,000 paid on or about April 7, 2009, $67,000 paid on or about
April 15, 2009 and $110,000 paid on or about April 30, 2009. The three payments
are independent of each other and the payment or non-payment of one or more
payments is not dependent on the payment or non-payment of any one or more of
the other payments. All payments were paid.

         At AMV's sole discretion, AMV may either (1) convert some or all of its
IAO Preferred Stock into 12,800,000 shares of the Company's common stock pro
rata at $0.025 per share; or (2) exchange IAO Preferred Stock for 971,458 Taicom
Stock owned by the Company pro rata. The conversion of IAO Preferred Stock into
Taicom Stock is automatically triggered in the case of certain events, including
delisting from NYSE AMEX, bankruptcy or insolvency.

April 1, 2009 Form of Performance Warrant
-----------------------------------------

         On April 1, 2009, the Company amended the Form of Performance Warrant
with Mr. Ning that was signed on December 12, 2008 ("Amended Warrant"). The
Amended Warrant reduced the number of shares of common stock that Taicom could
receive upon the closing of financings to 3,591,250 from 32,500,000 common
shares. The Company agreed to register the common stock issuable upon the
exercise of the Amended Warrant with NYSE AMEX and file a registration statement
on Form S-3 within 60 days of approval by NYSE AMEX. The Amended Warrant was
issued to an accredited investor in a transaction that was exempt from
registration pursuant to Section 4(2) of the Securities Act, and/or Regulation D
promulgated under the Securities Act.

                                       16
<PAGE>

June 8, 2009 Services Agreement
-------------------------------

         On June 8, 2009, the Company entered into a Services Agreement with
AMV. Pursuant to this agreement, AMV is providing funding to the Company of
$300,000 in exchange for IA Global Convertible Senior Debentures ("Debentures")
that carry a 12% interest rate and are due December 8, 2009. The Debentures are
convertible into 10,000,000 shares of IAO Common Stock at $0.030 per share upon
issuance. In the event Company is not able to pay back the principal amount plus
accrued interest by December 8, 2009, AMV shall have the right to convert such
Debentures into (1) the proportionate number of collateralized IAO Common
Shares, or (2) exchange 940,121 shares of Taicom Preferred Class B stock owned
by the Company pro-rata. The $300,000 in funding will be paid in five tranches
that are independent of each other and that payment or non-payment of one or
more tranches is not dependent on the payment or non-payment of any one or more
of the other tranches.

         On July 17, 2009 and September 28, 2009, AMV notified us that we were
in default under the agreement and as a result did not fund the $60,000 due June
30, 2009, July 15, 2009 and July 31, 2009. However, AMV was late in funding as
required by the agreement. AMV could claim ownership of our Taicom shares. This
would result in a loss on investment of approximately $2,861,000. Based on the
$120,000 in funding under this agreement, the Company may be required to issue
4,000,000 shares.

         In addition, the Company agreed to a share exchange with Taicom whereby
10,500,000 shares of the Company's common stock would be issued for 137,528
shares of Taicom Stock at the earlier of July 31, 2009 or the record date for
the Company's 2009 annual shareholder meeting. The IA Global shares would be
valued at $.035 per share, the price during negotiations. The Taicom Stock will
be valued at the book value for Taicom. The Taicom Stock are restricted
securities and may not be resold, distributed, collateralized, liquidated or
transferred to any person or entity. This share exchange expired July 31, 2009.

         The parties are negotiating over the Agreement.

June 2, 2009 Form of Performance Warrant
----------------------------------------

         On June 2, 2009, the Company entered into a Form of Performance Warrant
("Warrant") with AMV. The Warrant provides for 5,213,105 shares of Company
common stock to AMV at $.05 per share.

         The Warrant is exercisable for a sixty month period and requires the
payment of $300,000 in funding that is reflected in the June 8, 2009 Services
Agreement. The Company agreed to register the common stock issuable upon the
exercise of the Warrant with NYSE AMEX and file a registration statement on Form
S-3 within sixty days of approval by NYSE AMEX. The Performance Warrant was
issued to an accredited investor in a transaction that will be exempt from
registration pursuant to Section 4(2) of the Securities Act, and/or Regulation D
promulgated under the Securities Act.

         The parties are negotiating over the Form of Performance Warrant.

         The total value of our investment in Taicom was valued at $2,861,365 as
of June 30, 2009. The Company accounted for its investment in Taicom under the
cost method for the three months ended June 30, 2009.

                                       17
<PAGE>

PRO-FORMA FINANCIAL INFORMATION

         The unaudited pro-forma financial information for the equity and cost
investments for three months ended June 30, 2008 were as follows:

Three Months Ended June 30, 2008 (Unaudited)
<TABLE>
<CAPTION>
                                                                             Pre-Acquisition
                                                           Pre-Acquisition    Operations of
                                                            Operations of        Global
                                                               Taicom            Hotline         Pro Forma
                                            As Reported      Securities        Philippines     Three Months
                                           Three Months       April 1 -       April 1 - May     Ended June
                                           June 30, 2008   June 3, 2008 *      27, 2008 *        30, 2008
                                           -------------   ---------------   ---------------   ------------
<S>                                        <C>             <C>               <C>               <C>
Revenue ................................   $  19,688,708   $            -    $       37,525    $ 19,726,233
Income (loss) before extraordinary items         730,844         (260,807)             (679)        469,357
Net income (loss) ......................         730,844         (260,807)             (679)        469,358
Net profit per common share ............               -                -                 -               -
</TABLE>
* - The Taicom investment closed on June 3, 2008 and the GHP acquisitions closed
on April 10, 2008 (Shift Resources) and on May 24, 2008 (Asia Premier).

         There were no material, nonrecurring items included in the reported and
the pro-forma information.

NOTE 4. ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION

         Accounts receivable were $8,599,996 and $5,994,117 as of June 30, 2009
and March 31, 2009, respectively. The Company had the following customers that
accounted for more than 10% of our consolidated revenues, and these are their
respective percentages of consolidated revenues for the following periods:

                                           Three Months Ended    Year Ended
                                               June 30,           March 31,
                                                 2009               2009
                                           ------------------    ----------
                                               (unaudited)        (audited)
         KDDI Network Solutions .......            28%               25%
         Internet Service Partners/ NTT             -%               12%
         AIG ..........................            10%               10%
         Softbank .....................            31%               26%

-% is less than 10%.

         KDDI is a Global Hotline customer. Internet Service Partners/NTT was a
IA Partners customer. AIG is an IA Partner and Inforidge customer. Softbank is a
Global Hotline and SG Telecom customer. There were no other customers, other
than the above, that accounted for more than 10% of our consolidated revenues at
the end of the respective periods.

         KDDI accounted for 25% and 19% of accounts receivable as of June 30,
2009 and March 31, 2009, respectively. Internet Service Partners/ Japan Hotline/
NTT accounted for 9% and 17% of total accounts receivable as of June 30, 2009
and March 31, 2009, respectively. Softbank accounted for 7% and 6% of total
accounts receivable as of June 30, 2009 and March 31, 2009, respectively.

         The Company anticipates that significant customer concentration will
continue for the foreseeable future.

                                       18
<PAGE>

NOTE 5. PREPAID EXPENSES

         Prepaid expenses were $1,088,484 and $1,184,572 as of June 30, 2009 and
March 31, 2009, respectively. These assets included prepaid insurance, prepaid
financing costs and other costs incurred by the Company and prepaid hiring, rent
and other expenses incurred by Global Hotline.

NOTE 6. EQUIPMENT

         Equipment, net of accumulated depreciation, was $2,001,520 and
$2,207,849 as of June 30, 2009 and March 31, 2009, respectively. Accumulated
depreciation was $2,279,555 and $2,127,403 as of June 30, 2009 and March 31,
2009, respectively. Total depreciation expense was $152,152 and $191,219 for the
three months ended June 30, 2009 and 2008, respectively. All equipment is used
for selling, general and administrative purposes and accordingly all
depreciation is classified in selling, general and administrative expenses.

         Property and equipment is comprised of the following:

                                  Estimated
                                 Useful Lives   June 30, 2009   March 31, 2009
                                 ------------   -------------   --------------
                                                 (unaudited)      (audited)
Equipment and vehicles .......   24-60 months   $  3,333,074    $   3,387,060
Leasehold improvements .......   27-60 months        948,001          948,192
                                                ------------    -------------
                                                   4,281,075        4,335,252
Less: accumulated depreciation                    (2,279,555)      (2,127,403)
                                                ------------    -------------
                                                $  2,001,520    $   2,207,849
                                                ============    =============

NOTE 7. INTANGIBLE ASSETS

         Intangible assets as of June 30, 2009 and March 31, 2009 consisted of
the following:

                                   Estimated
                                 Useful Lives   June 30, 2009   March 31, 2009
                                 ------------   -------------   --------------
                                                 (unaudited)      (audited)
Customer contracts ...........     3-5 years    $  5,621,420    $   5,621,420
Less: accumulated amortization                    (5,099,319)      (5,065,550)
                                                ------------    -------------
    Intangible assets, net ...                  $    522,101    $     555,870
                                                ============    =============

         Total amortization expense was $33,769 and $341,129 for the three
months ended June 30, 2009 and 2008, respectively.

         The fair value of the Global Hotline intellectual property acquired was
estimated using a discounted cash flow approach based on future economic
benefits associated with agreements with significant Japanese telecommunications
companies, or through expected continued business activities with significant
telecommunications companies. In summary, the estimate was based on a projected
income approach and related discounted cash flows over three years, with
applicable risk factors assigned to assumptions in the forecasted results. The
entire $4,496,030 has been amortized as of March 31, 2009.

         The fair value of the Global Hotline Philippines intellectual property
acquired was $675,370, estimated by using a discounted cash flow approach based
on future economic benefits associated with agreements with significant Japanese
telecommunications companies, or through expected continued business activities
with its customers. In summary, the estimate was based on a projected income
approach and related discounted cash flows over five years, with applicable risk
factors assigned to assumptions in the forecasted results.

                                       19
<PAGE>

NOTE 8. OTHER ASSETS

         Other assets were $3,217,794 and $3,164,127 as of June 30, 2009 and
March 31, 2009, respectively. These assets included loans receivable from Tesco
Co Ltd ("Tesco"), employee loans receivable and bonds related to Global
Hotline's leased facilities.

NOTE 9. ACCRUED PAYROLL TAXES AND SOCIAL INSURANCE TAXES - DELINQUENT

         Accrued payroll taxes and social insurance taxes were $6,491,147 and
$4,850,887 as of June 30, 2009 and March 31, 2009, respectively. Such
liabilities primarily consisted of Japanese employee taxes deducted but not paid
since August 2008 and penalties and interest. Global Hotline has negotiated a
monthly payment schedule from March 2009 through March 2011 with respect to
$3,426,330 of the taxes and is engaged in ongoing negotiations with respect to
the remaining taxes.

NOTE 10. ACCRUED LIABILITIES

         Accrued liabilities were $8,252,813 and $4,657,362 as of June 30, 2009
and March 31, 2009, respectively. Such liabilities consisted of the following:

                                                 June 30,     March 31,
                                                   2009         2009
                                                ----------   ----------
                                                (unaudited)   (audited)
         Accrued salaries ...................   $2,015,285   $2,154,315
         Trade debt not in accounts payable .    5,613,590    1,922,998
         Accrued interest ...................      502,919      487,961
         Other accrued expenses .............      121,019       92,089
                                                ----------   ----------
                                                $8,252,813   $4,657,363
                                                ==========   ==========

NOTE 11. NOTES PAYABLE/ LONG-TERM DEBT

         Notes payable and long term debt were $15,848,144 and $15,289,602 as of
June 30, 2009 and March 31, 2009 consisted of the following:

Global Hotline, Inc.
--------------------

H Capital, Inc.
---------------

         Global Hotline, Inc. and SG Telecom received the loans below from H
Capital, Inc., an unlicensed Japanese lender.

         On February 25, 2009, Global Hotline received a 150,000,000 Yen, or
approximately $1,546,000 at current exchange rates, working capital loan. The
loan required a balloon payment on February 27, 2009.

         On February 25, 2009, Global Hotline and subsidiaries pledged all
accounts receivable to H Capital and provided H Capital with all bank books and
corporate seals, which allows H Capital to control all cash.

         On February 27, 2009, Global Hotline received a 100,000,000 Yen, or
approximately $1,031,000 at current exchange rates, working capital loan. The
loan required a balloon payment on March 16, 2009.

         The loans include interest of 15.0%, with a default interest rate of
21.9%. A 10% fee was paid for these working capital loans. The loans were signed
by SG Telecom and are guaranteed by the two senior executives and two directors
of Global Hotline and by all Global Hotline affiliated entities.

                                       20
<PAGE>

         On approximately April 1, 2009, but effective February 25, 2009, the
Company signed a Contract of Security of Transferred Shares ("Transfer
Agreement"). In this Transfer Agreement, the Company pledged its ownership in
Global Hotline as collateral for the loans between Global Hotline and H Capital,
subject to a thirty day notice period in the case of Global Hotline's default
under the agreements. The Company did not guarantee the H Capital loans.

         On April 24, 2009, Global Hotline received 90,000,000 Yen, or
approximately $929,000 at current exchange rates, from Kyo Nagae, Chief
Financial Officer of Global Hotline, which was funded by H Capital. The loan
required a balloon on May 15, 2009. Interest of 15.0% is to be paid starting on
April 24, 2009, with a default interest rate of 21.9%. The loan was guaranteed
by all Global Hotline affiliated entities.

         On May 26, 2009, IA Global received notices from H Capital. On May 27,
2009, Global Hotline and SG Telecom did not repay the Loan as requested by H
Capital. On June 9, 2009, the unlicensed Japanese lender submitted documents
claiming ownership of the Company's ownership interest in 600 shares of Global
Hotline.

         After review by Japanese corporate counsel, the Company is challenging
the validity of the loans and the collateral claimed by H Capital and the
excessive interest rate and fees. The Company has discovered that Global Hotline
management provided stock certificates to the unlicensed lender in early March
2009 in violation of the Transfer Agreement the Company signed. The Company has
disputed all notices received from H Capital. The parties continue to negotiate
over the alleged unpaid loans.

         The principal balance due as of June 30, 2009 was 150,000,000 Yen, or
approximately $1,601,000 at current exchange rates, plus accrued interest and of
approximately 12,678,078 Yen, or approximately $135,000 at current exchange
rates. Total interest accrued during the three months ended June 30, 2009 was
9,349,000 Yen or approximately $100,000 at current exchange rates.

Mitsui Sumitomo Bank Co Ltd.
----------------------------

         On September 29, 2006, Global Hotline received a 30,000,000 Yen, or
approximately $255,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires monthly payments of 357,000 Yen
or approximately $3,000 at current exchange rates starting on October 31, 2006
with a final payment of 369,000 Yen or approximately $3,000 due on September 30,
2013. The loan provides for interest at 2.175% payable monthly starting on
September 30, 2006. On July 13, 2009, Global Hotline signed an amendment with
Mitsui Sumitomo Bank Co Ltd. The amendment requires monthly payments of 461,000
Yen or approximately $5,000 at current exchange rates starting on May 31, 2010
with a final payment of 493,000 Yen or approximately $5,000 due on September 30,
2013. A guarantee of 110,095 Yen or approximately $1,100 at current exchange
rates was paid to Tokyo Credit Guarantee Association for this amendment.

         On December 26, 2006, IA Partners received a 200,000,000 Yen, or
approximately $1,683,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a quarterly payment of principal
of 12,500,000 Yen, or approximately $105,000 at current exchange rates, starting
on March 20, 2008 with a final payment due on December 20, 2011. Interest of
2.00% plus the 3 month TIBOR totaling 2.703% was paid quarterly starting on June
20, 2007. On June 22, 2009, IA Partners signed an amendment with Mitsui Sumitomo
Bank Co Ltd adjusting the repayment date of the amount due of 137,500,000 Yen,
or approximately $1,432,000 at current exchange rates, to September 22, 2009 and
increasing the interest rate to 4.25%.

                                       21
<PAGE>

         On May 16, 2007, Global Hotline received a 50,000,000 Yen, or
approximately $415,400 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a monthly principal payment of
640,000 Yen, or approximately $5,300 at current exchange rates, starting on
December 31, 2007 with a final payment due on April 30, 2014. Interest of 2.175%
is paid monthly, with the first payment on May 16, 2007 and then monthly
starting on June 30, 2007. The loan is guaranteed by the Tokyo Guarantee
Association for a fee of 2,750,625 Yen or approximately $22,900 at current
exchange rates. On July 13, 2009, Global Hotline signed an amendment with Mitsui
Sumitomo Bank Co Ltd. The amendment requires monthly payments of 798,000 Yen or
approximately $8,000 at current exchange rates starting on May 31, 2010 with a
final payment of 816,000 Yen or approximately $9,000 due on April 30, 2014. A
guarantee of 255,552 Yen or approximately $3,000 at current exchange rates was
paid to Tokyo Credit Guarantee Association for this amendment.

         On June 19, 2007, IA Partners received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan required a balloon payment of 100,000,000
Yen, or approximately $812,000 at current exchange rates, on January 31, 2008.
Interest of 3.0% is paid quarterly starting on June 19, 2007. The parties
subsequently signed amendments extending the term to August 19, 2008. On
September 5, 2008, IA Partners signed an amendment requiring a monthly repayment
of 2,777,000 Yen, or approximately $26,000 at current exchange rates starting on
September 30, 2008. On February 2, 2009, the monthly repayment is reset over the
remaining payment term, which expires on September 30, 2009 or repayment of
88,892,000 Yen or approximately $816,000 at current exchange rates may be
required. Interest of 3.375% is payable monthly starting on September 30, 2008.
On February 5, 2009, IA Partners signed an amendment extending the terms of its
working capital loan with Mitsui Sumitomo Bank Co Ltd to March 31, 2009 and
increasing the interest rate to 3.975%. Subsequently, IA Partners signed
amendments extending the terms of its working capital loan with Mitsui Sumitomo
Bank Co Ltd to June 30, 2009. On June 30, 2009, IA Partners signed an amendment
extending the terms of its working capital loan with Mitsui Sumitomo Bank Co Ltd
to September 30, 2009 and increasing the interest rate to 4.25%.

         On June 19, 2007, Global Hotline received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a monthly payment of 1,666,000
Yen, or approximately $14,000 at current exchange rates, starting on August 1,
2007, with a final payment of 1,706,000 Yen or approximately $14,000 on June 19,
2012. Interest of 3.05% is paid monthly starting on June 19, 2007. On June 30,
2009, Global Hotline signed an amendment with Mitsui Sumitomo Bank Co Ltd. The
amendment requires a balloon payment of 63,348,000 Yen or approximately $672,000
at current exchange rates on September 30, 2009.

         On July 27, 2007, Global Hotline received a 200,000,000 Yen, or
approximately $1,623,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a balloon payment of 200,000,000
Yen, or approximately $1,623,000 at current exchange rates, on January 25, 2008.
Interest of 3.00% was to be paid on January 25, 2008. On April 30, 2008, Global
Hotline signed an amendment extending the term and interest payment to July 25,
2008. On August 1, 2008, Global Hotline amended the loan. The amendment requires
a monthly repayment of 5,555,000 Yen, or approximately $51,000 at current
exchange rates starting on August 31, 2008. On February 2, 2009, the monthly
repayment is reset over the remaining payment term, which expires on September
30, 2009 or repayment of 172,255,000 Yen or approximately $1,581,000 at current
exchange rates may be required. Interest of 3.375% is payable monthly starting
August 31, 2008. On February 5, 2009, Global Hotline signed an amendment
extending the terms of its working capital loan with Mitsui Sumitomo Bank Co Ltd
to March 31, 2009 and increasing the interest rate to 3.975%. Subsequently,
Global Hotline signed amendments extending the terms of its working capital loan
with Mitsui Sumitomo Bank Co Ltd to June 30, 2009. On June 30, 2009, Global
Hotline signed an amendment extending the terms of its working capital loan with
Mitsui Sumitomo Bank Co Ltd to September 30, 2009 and increasing the interest
rate to 4.25%.

                                       22
<PAGE>

         On February 29, 2008, Global Hotline received a 30,000,000 Yen, or
approximately $281,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires monthly payments of 358,000 Yen,
or approximately $3,400 at current exchange rates starting on March 31, 2008
with a final payment of 286,000 Yen, or approximately $2,700 at current exchange
rates on February 28, 2015. Interest of 2.375% is paid monthly starting on March
31, 2008. The loan is guaranteed by Tokyo Credit Guarantee Association. On July
13, 2009, Global Hotline signed an amendment with Mitsui Sumitomo Bank Co Ltd.
The amendment requires monthly payments of 430,000 Yen or approximately $5,000
at current exchange rates starting on May 31, 2010 with a final payment of
478,000 Yen or approximately $5,000 due on February 28, 2015. A guarantee of
92,526 Yen or approximately $1,000 at current exchange rates was paid to Tokyo
Credit Guarantee Association for this amendment.

Mitsubishi Tokyo UFJ Bank Co Ltd.
---------------------------------

         On July 31, 2007, IA Partners received a 150,000,000 Yen, or
approximately $1,217,000 at current exchange rates, working capital loan from
Mitsubishi Tokyo UFJ Bank Co Ltd. The loan requires a quarterly payment of
7,500,000 Yen, or approximately $61,000 at current exchange rates, starting on
October 31, 2007, with a final payment due on July 25, 2012. Interest of 2.81%
is paid quarterly starting on October 31, 2007.

         On July 31, 2007, Global Hotline received a 350,000,000 Yen, or
approximately $2,840,000 at current exchange rates, working capital loan from
Mitsubishi Tokyo UFJ Bank Co Ltd. The loan requires quarterly payments of
17,500,000 Yen, or approximately $142,000 at current exchange rates, starting on
October 31, 2007, with a final payment due on July 31, 2012. Interest of 2.775%
is paid quarterly starting on October 31, 2007.

         On February 15, 2008, Global Hotline received a 120,000,000 Yen, or
approximately $1,109,000 at current exchange rates, bond from Mitsubishi UFJ
Bank Co Ltd. The loan requires semi-annual payments of 8,400,000 Yen, or
approximately $78,000 at current exchange rates starting on August 31, 2008 with
a final payment of 10,800,000 Yen, or approximately $100,000 at current exchange
rates on February 27, 2015. Interest of 1.36% is paid semi-annually starting on
August 31, 2008. The bond is guaranteed by Mitsubishi UFJ Bank Co Ltd and Tokyo
Credit Guarantee Association at 100% and 80% of the principal, respectively.
Global Hotline paid a bank fee of 8,066,620 Yen or approximately $79,000 at
current exchange rates.

Mizuho Bank Co Ltd.
-------------------

         On July 17, 2007, Global Hotline received a 150,000,000 Yen, or
approximately $1,217,000 at current exchange rates, bond from Mizuho Bank Co.
Ltd. The bond requires a semi-annual payment of 15,000,000 Yen, or approximately
$122,000 at current exchange rates, starting on December 19, 2007, with a final
payment due on June 29, 2012. Interest of 1.64% is paid semi-annually starting
on December 19, 2007. Global Hotline paid a bank fee of 3,388,965 Yen, or
approximately $28,000 at current exchange rates. In July 2009, Mizuho Bank Co
Ltd agreed to freeze all payments through September 30, 2009.

         On June 4, 2008, Global Hotline signed a working capital loan agreement
with Mizuho Bank Co Ltd for 270,000,000 Yen, or approximately $2,607,000, at the
then current exchange rate. The loan requires principal monthly payments of
22,500,000 Yen, or approximately $217,000 at the then current exchange rate,
plus interest of 2.375%, starting on July 5, 2008, with a final payment due on
June 5, 2009. In July 2009, Mizuho Bank Co Ltd agreed to freeze all remaining
payments through September 30, 2009.

                                       23
<PAGE>

         On March 12, 2009, Global Hotline signed a working capital loan
agreement with Mizuho Bank Co Ltd for 30,000,000 Yen, or approximately $304,000,
at the then current exchange rate. The loan requires principal monthly payments
of 250,000 Yen, or approximately $3,000 at the then current exchange rate, plus
interest of 2.4%, starting on April 12, 2009, with a final payment due on March
12, 2019. The loan is guaranteed by Tokyo Guarantee Association. In July 2009,
Mizuho Bank Co Ltd agreed to freeze all remaining payments through September 30,
2009.

Other Banks
-----------

         On December 25, 2006, Global Hotline received a 30,000,000 Yen, or
approximately $252,000 at current exchange rates, working capital loan from
Resona Bank Co. Ltd. The loan requires monthly payments of 910,000 Yen or
approximately $8,000 at current exchange rates starting on April 30, 2007 with a
final payment of 880,000 Yen or approximately $7,000 due on December 25, 2009.
The loan provides for interest at 2.225% with interest payments starting on
April 30, 2007 and is guaranteed by Tokyo Guarantee Association. On July 13,
2009, Global Hotline signed an amendment with Resona Bank Co Ltd. The amendment
requires monthly payments of 910,000 Yen or approximately $10,000 at current
exchange rates starting on June 30, 2010 with a final payment of 880,000 Yen or
approximately $9,000 due on December 27, 2010.

         On August 29, 2008, Global Hotline received a 10,000,000 Yen, or
approximately $95,000 at current exchange rates working capital loan from
Higashi-Nippon Bank Co Ltd. The loan requires a monthly payment of 833,000 Yen,
or approximately $8,000 at current exchange rates starting on September 25, 2008
with a final payment on August 25, 2009. Interest of 2.70% is to be paid
starting on October 6, 2008. The loan is guaranteed by Tokyo Credit Guarantee
Association. Global Hotline paid a bank fee of 68,250 Yen or approximately
$6,000 at current exchange rates. In July 2009, Higashi-Nippon Bank Co Ltd
agreed to freeze all remaining payments through September 30, 2009.

         On September 28, 2007, IA Partners received a 30,000,000 Yen, or
approximately $260,000 at current exchange rates, working capital loan from
Resona Bank Co. Ltd. The loan requires monthly payments of 2,500,000 Yen or
approximately $22,000 at current exchange rates starting on October 31, 2007
with a final payment of 2,500,000 Yen or approximately $22,000 due on September
26, 2008. The loan provides for interest at 1.875% with interest payments
starting on October 31, 2007. In July 2009, Resona Bank Co Ltd agreed to freeze
all payments through September 30, 2009.

         On January 30, 2009, Global Hotline received a 10,000,000 Yen or
$100,000 at current exchange rates from Customer Relation Telemarketing
("CRTM"), a former customer. The loan requires a balloon payment and interest of
1.875% on January 29, 2010. The loan was repaid on July 3, 2009. The loan was
not secured or guaranteed.

         On February 4, 2009, Global Hotline received a 5,000,000 Yen or $56,000
at current exchange rates from CRTM, a former customer. The loan requires a
balloon payment and interest of 1.875% on January 29, 2010. The loan was repaid
on July 3, 2009. The loan was not secured or guaranteed.

         On March 9, 2009, Global Hotline received a 30,000,000 Yen, or
approximately $304,000 at current exchange rates working capital loan from
Yachiyo Bank Co Ltd. The loan requires a monthly payment of 5,000,000 Yen, or
approximately $53,000 at current exchange rates starting on April 5, 2009 with a
final payment on September 5, 2009. Interest of 2.75% is to be paid starting on
April 5, 2009. In July 2009, Yachiyo Co Ltd agreed to freeze all payments
through September 30, 2009.

                                       24
<PAGE>

         All of the above loans are also guaranteed by Hideki Anan, the CEO of
Global Hotline. As of February 25, 2009, all Global Hotline assets are
collateralized to H Capital. On approximately April 1, 2009, the Company pledged
its ownership in Global Hotline as collateral for the loans, subject to a thirty
day notice period in the case of default under the agreement.

         At June 30, 2009, Global Hotline had total indebtedness of $15.5
million. Global Hotline will need to repay or refinance $14.6 million by June
30, 2010, including approximately $14.4 million that is due as of October 16,
2009.

         On April 30, 2009, Global Hotline entered into negotiations to
refinance $12,379,000 in debt with its Japanese banks. Global Hotline is
proposing to refinance this debt on a long-term basis and freeze any payments in
the short term. To date, all banks but Mitsubishi Tokyo UFJ Bank Co Ltd. have
agreed to freeze all payments through September 30, 2009. Global Hotline
continues to negotiate with our Japanese banks on the repayment of the debt.

Other Global Hotline, Inc.
--------------------------

         In June, 2009, Inforidge Co Ltd. received a 120,000,000 Yen, or
approximately $1,348,000 at current exchange rates working capital loan from
Neutral Co Ltd and their business partner Bansei Securities, Japanese
corporations. Interest of 4% and principal payments are being negotiated. The
loan is collateralized by future accounts receivable on the insurance contracts
and 70% of the Inforidge shares owned by Global Hotline.

IA Global, Inc.
---------------

         On July 14, 2008 and August 11, 2008, the Company entered into three
year loan agreements with Artemis Capital Group LLC, pursuant to which the
Company received loans in the principal amount totaling approximately $199,500
at an interest rate of 7.0% per annum. The interest was payable quarterly
starting on October 2008. The Company issued 3,000,000 shares of common stock as
of September 30, 2008 and 554,546 shares of common stock on November 19, 2008,
which serve as collateral for the loans. In addition, the Company paid $34,613
in fees, which are being amortized over the life of the loan. At the termination
of the loans, the Company may repay the loans, forfeit the shares to the lender
or renew the loans on a year by year basis based on mutually agreeable terms.
The loan cannot be terminated within the first eighteen months of the loan and
after this period, it can be repaid with a 10% penalty. Total interest expense
for these loans for the three months ended June 30, 2009 was $3,491.

         All the IA Global loans were used for working capital.

NOTE 12. RELATED PARTY RELATIONSHIPS WITH OUR CONTROLLING SHAREHOLDER GROUP AND
         CERTAIN RELATIONSHIPS

         As of June 30, 2009, IAJ LBO Fund, PBAA Fund Limited, Terra Firma,
Inter Asset Japan Co Ltd ("IAJ"), IA Turkey and Hiroki Isobe, (collectively, the
"Controlling Shareholders") collectively hold approximately 35.0% of our common
stock. These Controlling Shareholders have stated in a Schedule 13D that they
may be deemed to constitute a "group" for the purposes of Rule 13d-3 under the
Exchange Act. Hiroki Isobe controls each of our Controlling Shareholders.

         The following unaudited table provides details on the affiliated
parties owned or controlled by the Company's Controlling Stockholders and
certain other entities, as of June 30, 2009, that are relevant for purposes of
understanding the related party transactions that have taken place:

                                       25
<PAGE>

Ownership:

IA Global, Inc. owns:
      Global Hotline, Inc........................................... 100.0%
      Global Hotline Philippines, Inc............................... 100.0%  (1)
      IA Global Japan Co Ltd........................................ 100.0%
      Slate Consulting Co Ltd....................................... 20.25%
      Australian Secured Financial Limited..........................  36.0%
      Taicom Securities Co Ltd......................................  12.6%  (2)

Global Hotline, Inc. owns:
      Inforidge Co Ltd.............................................. 100.0%
      IA Partners Co Ltd............................................ 100.0%
      SG Telecom, Inc............................................... 100.0%

Inter Asset Japan LBO No. 1 Fund owns:
      IA Global, Inc................................................  13.6%  (3)

PBAA Fund Ltd. owns:
      IA Global, Inc................................................  11.0%  (3)

Terra Firma Fund Ltd. owns:
      IA Global, Inc................................................   6.0%  (3)

Inter Asset Japan Co., Ltd. owns:
      IA Global, Inc................................................   1.0%  (3)

IA Turkey Equity Portfolio Ltd owns:
      IA Global, Inc................................................   1.1%  (3)

Mr. Hiroki Isobe owns:
      IA Global, Inc................................................   2.4%  (3)
      Tesco Co Ltd..................................................  23.0%

(1) Established on July 4, 2008. Asia Premier and Shift Resources operate as
    Global Hotline Philippines, Inc.

(2) Equity investment of 20% closed June 3, 2008 and was reduced to 16% on
    December 12, 2008, 14% on February 2, 2009 and 12.6% on April 1, 2009,
    except as disclosed.

(3) Based on a Schedule 13D (Amendment No. 22) filed with the SEC on February
    24, 2009.

INTER ASSET JAPAN RELATIONSHIP WITH TESCO CO LTD

         IAJ owns a 23% minority ownership percentage in Tesco. Global Hotline
has an agent agreement with Tesco to sell their lighting products. Tesco owes
Global Hotline approximately $2,310,110 and $2,310,110 as of June 30, 2009 and
March 31, 2009, respectively. Hideki Anan and Kyo Nagae are directors of Tesco.
During the twelve months ended March 31, 2009, we deferred $814,787 in revenues
with Tesco.

DEREK SCHNEIDEMAN LOAN TO MICHAEL NING

         On June 23, 2009, Derek Schneideman, our CEO, loaned Michael Ning, a
shareholder who owns or controls approximately 12.5 % of the Company, $35,000.

                                       26
<PAGE>

NOTE 13. EQUITY TRANSACTIONS/ TREASURY STOCK

         During the three months ended June 30, 2009, the following stockholder
equity events occurred:

         On April 20, 2009, the Company agreed to issue 317 shares of ArqueMax
Ventures, LLC Series Preferred Stock ("IAO Preferred Stock") of the Company. The
IAO Preferred Stock, $.01 par value, was sold at $1,000 per share, has a
liquidation value of $317,000 and has no voting rights.

         At AMV's sole discretion, AMV may either (1) convert some or all of its
IAO Preferred Stock into 12,800,000 shares of the Company's common stock pro
rata at $0.025 per share; or (2) exchange IAO Preferred Stock for 971,458 Taicom
Stock owned by the Company pro rata. The conversion of IAO Preferred Stock into
Taicom Stock is automatically triggered in the case of certain events, including
delisting from NYSE AMEX, bankruptcy or insolvency.

         The Company recorded a deemed dividend of $192,000, upon the issuance
of the Preferred Stock, due to the conversion price per share being below market
on the date of issuance.

         On May 12, 2009, the Company sold 600,000 shares of common stock to A
to B Capital Special Situations Fund LP for $30,000 or $0.05 per share, the
closing price on May 12, 2009, the date the subscription agreement was signed.
On May 12, 2009, the Company issued warrants for a total of 428,571 shares of
common stock to A to B Capital Special Situations Fund LP related to the common
stock they purchased on May 12, 2009. The warrants are exercisable at $.07 per
share, above the market price on May 12, 2009, and expire on May 14, 2012.

         On May 21, 2009, the Company issued 750,000 performance warrants to
acquire shares of common stock to the Sterling Group, Inc. for consulting
services. The warrants are exercisable at $.10 per share and expire on May 20,
2012. If registered, the warrants may be called by the Company if the share
price closes above $.20 for five days.

         On May 21, 2009, the Company issued 250,000 performance warrants to
acquire shares of common stock to Marc Page for consulting services. The
warrants are exercisable at $.10 per share and expire on May 20, 2012.

         On June 10, 2009, the Company sold 167,500 shares of common stock to
Derek Schneideman, its Chief Executive Officer, for $10,050 or $0.06 per share,
the closing price on June 10, 2009, the date the subscription agreement was
signed.

         The common stock was issued to the accredited investors in a
transaction that will be exempt from registration pursuant to Section 4(2) of
the Securities Act, and/or Regulation D promulgated under the Securities Act.

         During the period subsequent to June 30, 2009, the following
stockholder equity events occurred:

Private Placement with Inter Asset Japan LBO No 1 Fund

         On August 2, 2009, the Company entered into a Stock Purchase Agreement
("Agreement 1") with Inter Asset Japan LBO No 1 Fund, an existing shareholder of
the Company (the "Shareholder"). Under the terms of the Agreement 1, the Company
agreed to issue and sell to the Shareholder 1,500,000 shares (the "Shares") of
the Company's common stock, par value $0.01 per share, for an aggregate purchase
price of $60,000, or $0.04 per share (the "Purchase Price"). The Company issued
and sold the Shares to the Shareholder in reliance on the exemption from the
registration requirements set forth in the Securities Act of 1933 (the
"Securities Act") provided under Section 4(2) of the Securities Act and
Regulation D promulgated by the Securities and Exchange Commission (the "SEC")
under the Securities Act.

                                       27
<PAGE>

         Agreement 1 contains certain representations and warranties of the
Shareholder and the Company, including customary investment-related
representations provided by the Shareholder, as well as acknowledgements by the
Shareholder that it has reviewed certain disclosures of the Company (including
the periodic reports that the Company has filed with the SEC) and that the
Company's issuance of the Shares has not been registered with the SEC or
qualified under any state securities laws. The Company provided customary
representations regarding, among other things, its organization, capital
structure, subsidiaries, disclosure reports, absence of certain legal or
governmental proceedings, financial statements, tax matters, insurance matters,
real property and other assets, and compliance with applicable laws and
regulations.

         Agreement 1 also grants the Shareholder registration rights that it may
exercise at its option and provides the Shareholder with a right of first offer
if the Company proposes to issue securities in the future (subject to certain
customary exceptions). Finally, the Shareholder has the right to demand that the
Company redeem all or any portion of the Shares at any time on or after October
31, 2009, for a redemption price equal to the greater of the Purchase Price or
the listed market price for the Company's common stock as of the redemption
date.

         On August 17, 2009, the Company entered into a Stock Purchase Agreement
("Agreement 2") with Inter Asset Japan LBO No 1 Fund. Under the terms of
Agreement 2, the Company agreed to issue and sell to the Shareholder 5,000,000
shares of the our common stock for an aggregate purchase price of $200,000, or
$0.04 per share.

         Also under the terms of the Agreement, the Shareholder has committed to
purchase, and the Company agreed to issue and sell to the Shareholder,
additional shares of the Company's common stock in accordance with the following
schedule:

   o  2,500,000 shares at a purchase price of US$.04 per share, or an aggregate
      price of US$100,000 on or before September 4, 2009.

   o  1,250,000 shares at a purchase price of US$.04 per share, or an aggregate
      price of US$50,000 on or before September 18, 2009.

   o  50,000,000 shares at a purchase price of US$.04 per share, or an aggregate
      price of US$2,000,000 on or before November 10, 2009.

         The Shareholder's obligation to purchase the foregoing shares by the
date specified is conditioned upon the representations and warranties of the
Company contained in Agreement 2 being accurate as of the date of such closing.

         Finally, the Shareholder has the option, but not the obligation, to
purchase, on or before December 31, 2009, an additional 50,000,000 shares of
Common Stock at a purchase price of US$.04 per share, or an aggregate price of
US$2,000,000.

         The Company issued and sold the shares of common stock to the
Shareholder in reliance on the exemption from the registration requirements set
forth in the Securities Act of 1933 (the "Securities Act") provided under
Section 4(2) of the Securities Act and Regulation D promulgated by the
Securities and Exchange Commission (the "SEC") under the Securities Act.

                                       28
<PAGE>

         Agreement 2 contains certain representations and warranties of the
Shareholder and the Company, including customary investment-related
representations provided by the Shareholder, as well as acknowledgements by the
Shareholder that it has reviewed certain disclosures of the Company (including
the periodic reports that the Company has filed with the SEC) and that the
Company's issuance of the shares has not been registered with the SEC or
qualified under any state securities laws. The Company provided customary
representations regarding, among other things, its organization, capital
structure, subsidiaries, disclosure reports, absence of certain legal or
governmental proceedings, financial statements, tax matters, insurance matters,
real property and other assets, and compliance with applicable laws and
regulations.

         Agreement 2 also grants the Shareholder registration rights that it may
exercise at its option and provides the Shareholder with a right of first offer
if the Company proposes to issue securities in the future (subject to certain
customary exceptions).

Equity Line of Credit Transaction with Ascendiant Capital Group, LLC

         On September 29, 2009, the Company entered into a Securities Purchase
Agreement with Ascendiant Capital Group, LLC ("Ascendiant"), pursuant to which
Ascendiant agreed to purchase up to $5,000,000 worth of shares of the Company's
common stock from time to time over a 24-month period, provided that certain
conditions are met. The financing arrangement entered into by IA Global and
Ascendiant is commonly referred to as an "equity line of credit" or an "equity
drawdown facility."

         Under the terms of the Securities Purchase Agreement, Ascendiant will
not be obligated to purchase shares of IA Global's common stock unless and until
certain conditions are met, including but not limited to (i) approval of the
transaction by the NYSE Amex, and (ii) the Company files by November 13, 2009
and the Securities and Exchange Commission (the "SEC") declares effective by
January 27, 2010 a Registration Statement on Form S-1 (the "Registration
Statement") registering Ascendiant's resale of any shares purchased by it under
the equity drawdown facility. The customary terms and conditions associated with
Ascendiant's registration rights are set forth in a Registration Rights
Agreement that was also entered into by the parties on September 29, 2009.

         If and when the SEC declares the Registration Statement effective, IA
Global will have the right to sell and issue to Ascendiant, and Ascendiant will
be obligated to purchase from IA Global, up to $5,000,000 worth of shares of the
Company's common stock over a 24-month period beginning on such date (the
"Commitment Period"). IA Global will be entitled to sell such shares from time
to time during the Commitment Period by delivering a draw down notice to
Ascendiant. In such draw down notices, IA Global will be required to specify the
dollar amount of shares that it intends to sell to Ascendiant, which will be
spread over a nine-trading-day pricing period. For each draw, IA Global will be
required to deliver the shares sold to Ascendiant in three installments
(following the third, sixth and ninth trading days in the pricing period,
respectively). Ascendiant is entitled to liquidated damages in connection with
certain delays in the delivery of its shares.

         The Securities Purchase Agreement also provides for the following terms
and conditions:

      o  Purchase Price - 90% of IA Global's volume-weighted average price
         ("VWAP").

      o  Threshold Price - IA Global may specify a price below which it will not
         sell shares during the applicable nine-trading-day pricing period. If
         the purchase price falls below the threshold price on any day(s) during
         the pricing period, such day(s) will be removed from the pricing period
         (and Ascendiant's investment amount will be reduced by 1/9 for each
         such day).

                                       29
<PAGE>

      o  Maximum Draw - 15% of IA Global's total trading volume for the
         10-trading-day period immediately preceding the applicable draw down,
         times the average VWAP during such period (but in no event more than
         $250,000).

      o  Minimum Draw - None.

      o  Minimum Time Between Draw Down Pricing Periods - Two trading days.

      o  Minimum Use of Facility - IA Global is obligated to sell at least
         $1,000,000 worth of shares of its common stock to Ascendiant during the
         Commitment Period.

      o  Commitment Fees - Upon NYSE Amex approval, IA Global will be obligated
         to issue 2,371,917 shares of its common stock to Ascendiant ($125,000
         worth of shares based on the Company's closing bid price on the trading
         day immediately prior to the date of the Securities Purchase
         Agreement). If and when the SEC declares the Registration Statement
         effective, IA Global will be obligated to issue another $125,000 worth
         of shares of its common stock in four installments over a period of 90
         days following the effectiveness date.

      o  Other Fees and Expenses - IA Global has agreed to pay $10,000 to
         Ascendiant's legal counsel for the legal fees and expenses it incurred
         in connection with negotiating and documenting the equity line of
         credit. Pursuant to separate agreements, IA Global has also agreed to
         pay an aggregate of 3.0% in finder's fees (to be paid in connection
         with each draw down).

      o  Indemnification - Ascendiant is entitled to customary indemnification
         from IA Global for any losses or liabilities it suffers as a result of
         any breach by IA Global of any provisions of the Securities Purchase
         Agreement, or as a result of any lawsuit brought by any stockholder of
         IA Global (except stockholders who are officers, directors or principal
         stockholders of IA Global).

      o  Conditions to Ascendiant's Obligation to Purchase Shares - Trading in
         IA Global's common stock must not be suspended by the SEC or the NYSE
         Amex (or other applicable trading market); IA Global must not have
         experienced a material adverse effect; all liquidated damages and other
         amounts owing to Ascendiant must be paid in full; the Registration
         Statement must be effective with respect to Ascendiant's resale of all
         shares purchased under the equity drawdown facility; there must be a
         sufficient number of authorized but unissued shares of IA Global common
         stock; and the issuance must not cause Ascendiant to own more than
         9.99% of the then outstanding shares of IA Global common stock, or more
         than 19.9% of the number of shares of common stock outstanding on
         September 29, 2009 to have been issued under the equity drawdown
         facility (without shareholder approval).

      o  Termination - The Securities Purchase Agreement will terminate if IA
         Global's common stock is not listed on one of several specified trading
         markets (which include the NYSE Amex, OTC Bulletin Board and Pink
         Sheets, among others); if IA Global files for protection from its
         creditors; or if the Registration Statement is not declared effective
         by the SEC by June 29, 2010. IA Global may terminate the Securities
         Purchase Agreement if Ascendiant fails to fund a draw down within 10
         trading days after the end of the applicable settlement period, or if
         the SEC provides comments on the Registration Statement requiring
         certain changes in the transaction structure and/or documents.

                                       30
<PAGE>

         The Securities Purchase Agreement also contains certain representations
and warranties of IA Global and Ascendiant, including customary
investment-related representations provided by Ascendiant, as well as
acknowledgements by Ascendiant that it has reviewed certain disclosures of the
Company (including the periodic reports that the Company has filed with the SEC)
and that the Company's issuance of the shares has not been registered with the
SEC or qualified under any state securities laws. IA Global provided customary
representations regarding, among other things, its organization, capital
structure, subsidiaries, disclosure reports, absence of certain legal or
governmental proceedings, financial statements, tax matters, insurance matters,
real property and other assets, and compliance with applicable laws and
regulations. IA Global's representations and warranties are qualified in their
entirety (to the extent applicable) by the Company's disclosures in the reports
it files with the SEC. IA Global also delivered confidential disclosure
schedules qualifying certain of its representations and warranties in connection
with executing and delivering the Securities Purchase Agreement.

         The shares to be issued by IA Global to Ascendiant under the Securities
Purchase Agreement will be issued in private placements in reliance upon the
exemption from the registration requirements set forth in the Securities Act of
1933 (the "Securities Act") provided for in Section 4(2) of the Securities Act,
and the rules promulgated by the SEC thereunder.

NOTE 14. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Legal Proceedings

         On April 30, 2009, Global Hotline entered into negotiations to
refinance $12,379,000 in debt with its Japanese banks. Global Hotline is
proposing to refinance this debt on a long-term basis and freeze any payments in
the short term. To date, all banks but Mitsubishi Tokyo UFJ Bank Co Ltd. have
agreed to freeze all payments through September 30, 2009. Global Hotline
continues to negotiate with our Japanese banks on the repayment of the debt.

         On May 26, 2009, IA Global received notices from H Capital. On May 27,
2009, Global Hotline and SG Telecom did not repay the Loan as requested by H
Capital. On June 9, 2009, the unlicensed Japanese lender submitted documents
claiming ownership of the Company's ownership interest in 600 shares of Global
Hotline.

         After review by Japanese corporate counsel, the Company is challenging
the validity of the loans and the collateral claimed by H Capital and the
excessive interest rate and fees. The Company has discovered that Global Hotline
management provided stock certificates to the unlicensed lender in early March
2009 in violation of the Transfer Agreement the Company signed. The Company has
disputed all notices received from H Capital. The parties continue to negotiate
over the alleged unpaid loans.

         The principal balance due as of June 30, 2009 was 150,000,000 Yen, or
approximately $1,601,000 at current exchange rates, plus accrued interest and of
approximately 12,678,078 Yen, or approximately $135,000 at current exchange
rates. Total interest accrued during the three months ended June 30, 2009 was
9,349,000 Yen or approximately $100,000 at current exchange rates.

         On July 17, 2009 and September 28, 2009, AMV notified us that we were
in default under the agreement and as a result did not fund the $60,000 due June
30, 2009, July 15, 2009 and July 31, 2009. However, AMV was late in funding as
required by the agreement. AMV could claim ownership of our Taicom shares. This
would result in a loss on investment of approximately $2,861,000. Based on the
$120,000 in funding under this agreement, the Company may be required to issue
4,000,000 shares.

                                       31
<PAGE>

Employment Agreements

Agreements with Derek Schneideman

         On August 2, 2009, Derek Schneideman resigned as the Company's Chief
Executive Officer and as a member of the Board, effective immediately upon the
Company's filing of the 2009 Form 10-K, which occurred on September 3, 2009. Mr.
Schneideman did not resign from the Board due to any disagreement with the
Company relating to the Company's operations, policies or practices.

         In connection with Mr. Schneideman's resignation, he and the Company
entered into a Separation Agreement and Full Release of Claims (the "Separation
Agreement"), which was effective as of August 2, 2009. Pursuant to the
Separation Agreement, the Company agreed to make the following severance
payments to Mr. Schneideman:

      o  $100,000 payable upon the Company's filing of the 2009 Form 10-K with
         the SEC, provided that Mr. Schneideman executes the certifications
         required in connection with filing the 2009 Form 10-K; and

      o  $100,000 payable 60 days following the effective date of Mr.
         Schneideman's resignation, provided that (i) the Company's filings with
         the SEC are not determined to contain materially inaccurate
         information, material representations or material omissions, (ii)
         evidence of fraud or illegal acts on the part of Mr. Schneideman is not
         discovered, and (iii) Mr. Schneideman has not made any
         misrepresentations in connection with its purchase of the Shares, as
         described above.

         If Mr. Schneideman exercises his limited right to revoke the Separation
Agreement, he will not be entitled to receive either of the payments described
above. Mr. Schneideman was also paid $31,994 and is owed $20,833 as of October
16, 2009 for accrued but unpaid salary, benefits and business expense
reimbursements as of the date of the Separation Agreement.

         The Separation Agreement provides that Mr. Schneideman will continue to
provide services to the Company as a consultant for a period of 12 months
following the effective date of his resignation as Chief Executive Officer. In
exchange for such services (which include services related to preparing the
Company's proxy statement for its 2009 Annual Meeting of Stockholders), the
Company will pay Mr. Schneideman $2,000 per month. The Company is entitled to
terminate the consulting relationship upon 30 days advance notice and payment of
the consulting fee to which Mr. Schneideman would be entitled in the 30 days
following such notice.

         In consideration of and for the severance payments and consulting
arrangement described above, Mr. Schneideman provided a broad release in favor
of the Company with respect to any and all rights, claims, demands, causes of
actions and liabilities of any nature relating to his employment with the
Company, the termination of such employment, and/or his entry into the
Separation Agreement.

         Finally, the Separation Agreement also contains customary provisions
with respect to confidentiality, non-disclosure, non-solicitation,
non-disparagement and Mr. Schneideman's return of any property of the Company in
his possession.

Agreements with Mark Scott

         On August 24, 2009, the Company entered into a new Employment Agreement
with Mark Scott, which replaces his Employment Agreement dated September 5,
2007.

                                       32
<PAGE>

         Mark Scott's Employment Agreement ("Scott Agreement") has a one-year
term beginning on August 24, 2009, and is renewable on a mutually agreeable
basis. The Company will pay Mr. Scott an annual base salary of $96,000, and will
provide for participation in the Company's benefit programs available to other
senior executives (including group insurance arrangements). Also under the Scott
Agreement, Mr. Scott is eligible for discretionary performance bonuses based
upon performance criteria to be determined by the Company's Compensation
Committee based on criteria under development. If Mr. Scott's employment is
terminated without Cause (as defined in the Scott Agreement), Mr. Scott will be
entitled to a payment equal to one year's annual base salary paid at the
Company's discretion in a lump sum or over the next year.

         On August 24, 2009, the board of directors awarded Mr. Scott 200,000
shares of Restricted Stock. The award was granted at the fair market price of
$0.05 per share based on the adjusted closing price on August 20, 2009, the last
trading day before the board of director meeting. In accordance with the 2007
Stock Incentive Plan, the Restricted Stock vests on November 23, 2009.

Leases

         The Company is obligated under various non-cancelable operating leases
for their various facilities and certain equipment. Certain facilities have
cancellation options of 1-6 months notice.

         The aggregate unaudited future minimum lease payments, to the extent
the leases have early cancellation options and excluding escalation charges, are
as follows:

         Years Ended June 30,
                 2010 .......   $1,950,981
                 2011 .......      662,102
                 2012 .......      338,402
                 2013 .......      116,304
                 2014 .......       20,422
                                ----------
                 Total ......   $3,088,211
                                ==========

NOTE 15. INDUSTRY SEGMENT AND GEOGRAPHIC INFORMATION

         IA Global, Inc. is a broad-based services Company with a dedicated
focus on growth of existing business, together with expansion through mergers
and acquisitions in the Pacific Rim region. It is organized by subsidiary or
equity investment. Each subsidiary or equity investment reported to the Chief
Executive Officer who has been designated as the Chief Operating Decision Maker
("CODM") as defined by SFAS No. 131 "Disclosures About Segments of an Enterprise
and Related Information"("SFAS 131"). The CODM allocates resources to each of
the companies using information regarding revenues, operating income (loss) and
total assets.

         The following subsidiaries are the only reportable segments under the
criteria of SFAS 131 (i) IA Global, the parent Company, operates as a strategic
holding Company with a dedicated focus on growth of existing business, together
with expansion mergers and acquisitions in the Pacific Rim region, (ii) Global
Hotline, which operates exclusively in Japan, and is an operator of major call
centers providing business process outsourcing of telemarketing for
telecommunications and insurance products, (iii) Slate, our equity investments
in the human capital and resource sector, and (iv) Taicom, our equity investment
in the Japanese securities sector.

                                       33
<PAGE>

         The following unaudited table presents revenues, operating income
(loss) and total assets by Company for the three months ended June 30, 2009 and
2008:
<TABLE>
(dollars in thousands)
<CAPTION>
                                                                       Global
                                                       Global         Hotlines
                                      IA Global,      Hotline,      Philippines      Equity
Company                                  Inc.           Inc.            Inc.       Investments      Total
                                      ----------      --------      -----------    -----------    --------
<S>                                    <C>            <C>            <C>            <C>           <C>
Three Months Ended June 30, 2009-
     Revenue ....................      $      -       $ 13,331       $     47       $      -      $ 13,378
     Operating loss .............        (1,010)        (2,160)          (107)             -        (3,277)
     Total assets ...............            92         21,579            716          4,260        26,647

Three Months Ended June 30, 2008-
     Revenue ....................      $      -       $ 19,542       $    146       $      -      $ 19,688
     Operating (loss) profit ....          (807)         2,657            (14)             -         1,836
     Total assets ...............           362         25,336            868         15,120        41,686

<CAPTION>
Geographic Region                        U.S.          Japan        Philippines     Australia       Total
                                       --------       --------      -----------     ---------     --------
<S>                                    <C>            <C>            <C>            <C>           <C>
Three Months Ended June 30, 2009-
     Revenue ....................      $      -       $ 13,331       $     47       $      -      $ 13,378
     Operating loss .............        (1,010)        (2,160)          (107)             -        (3,277)
     Total assets ...............            92         25,839            716              -        26,647

Three Months Ended June 30, 2008-
     Revenue ....................      $      -       $ 19,542       $    146       $      -      $ 19,688
     Operating (loss) profit ....          (807)         2,657            (14)             -         1,836
     Total assets ...............           264         33,328            868          7,226        41,686
</TABLE>

The following reconciles operating loss to net loss:

(dollars in thousands)
                                        Three Months Ended June 30,
                                        ---------------------------
                                           2009              2008
                                         -------           -------
Operating loss ...................       $(3,277)          $ 1,836
Other expense ....................           (40)                -
                                         -------           -------
(Loss) before income taxes .......        (3,317)            1,836
Income tax provision .............           146             1,105
                                         -------           -------
Net (loss) profit before deemed
 preferred stock dividend ........        (3,463)              731
Deemed preferred stock dividend ..          (192)                -
                                         -------           -------
Net (loss) profit ................       $(3,655)          $   731
                                         =======           =======

                                       34
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         Forward-looking statements in this report reflect the good-faith
judgment of our management and the statements are based on facts and factors as
we currently know them. Forward-looking statements are subject to risks and
uncertainties and actual results and outcomes may differ materially from the
results and outcomes discussed in the forward-looking statements. Factors that
could cause or contribute to such differences in results and outcomes include,
but are not limited to, those discussed below and in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" as well as those
discussed elsewhere in this report. Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of
this report. We undertake no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may arise after
the date of the report.

INTRODUCTION

         We had revenues of $57.1 million for the twelve months ended March 31,
2009 as compared to $38.7 million for the twelve months ended March 31, 2008. We
incurred a net loss $20.2 million for the twelve months ended March 31, 2009 as
compared to a net loss of $7.1 million for the twelve months ended March 31,
2008.

         During the three months ended June 30, 2009, IA Global obtained loans
of $2.3 million in the aggregate and we repaid loans of $2.1 million owed by
Global Hotline.

         As of February 25, 2009, all Global Hotline assets were pledged as
collateral to H Capital. On approximately April 1, 2009, the Company pledged its
ownership in Global Hotline as collateral for the loans, subject to a thirty day
notice period in the case of default under the agreement.

         At June 30, 2009, Global Hotline had total indebtedness of $15.5
million. Global Hotline will need to repay or refinance $14.6 million by June
30, 2010, including approximately $14.4 million that is due as of October 16,
2009.

         Certain recent developments relating to the outstanding indebtedness of
IA Global and our subsidiaries, including our ongoing negotiations with our
Japanese lenders, are described in more detail in the notes to the financial
statements set forth in this Form 10-Q (see Part I, Item 1 - Financial
Statements). Our recent efforts to generate additional liquidity, including
through sales of its common stock, are also described in more detail in such
financial statement notes.

THE COMPANY AND OUR BUSINESS

         IA Global, Inc. ("IA Global" or the "Company") is a broad-based
services company with a dedicated focus on growth of existing business, together
with expansion through mergers and acquisitions in the Pacific Rim region. Our
mission is to identify and invest in business opportunities, apply our skills
and resources to nurture and enhance the performance of those businesses across
key business metrics, and to deliver accelerating shareholder value.

         To realize this plan, the Company is expanding investments in the
business process outsourcing ("BPO") and financial services sectors. These
sectors demonstrate long-term growth prospects in which we, by applying our
skills and resources, can add significant value to our investments. Beyond
Japan, we are expanding our reach to encompass the Philippines, Southeast Asia
and the outstanding growth opportunities and synergies these markets present.

                                       35
<PAGE>

         IA Global takes a long-term approach to its acquisitions and
partnerships. It is built on the belief that our people, combining pragmatic
hands-on management with extensive operations and financial experience, have the
expertise to grow the businesses we invest in, to optimize their potential and
provide increasing returns on investment over the long run. IA Global has
acquired a select portfolio of investments in Japan and the Philippines,
targeted and developed with the aim of producing outstanding growth and
profitability. This has laid the foundation for a medium term plan to establish
a broad network of complementary subsidiaries and majority-owned investments in
the greater Pacific Rim region.

BUSINESS PROCESS OUTSOURCING

         In Japan, IA Global is 100% owner of Global Hotline, except as
disclosed, a BPO organization, operating several major call centers providing
outbound telemarketing services for telecommunications, insurance, credit cards
and catalog products. Since our acquisition of Global Hotline in June 2005, this
business has expanded rapidly with the signing of significant multi-year
contracts with major corporations.

         This growth has been driven by new contracts, process improvements,
infrastructure expansion, and macro economic trends such as the ongoing gains in
the Japanese economy, consistent year on year growth in targeted industries,
higher disposable incomes, and the increasingly rapid growth of the senior
citizen demographic. As of June 30, 2009, Global Hotline employed 798 full and
part-time personnel to support these multi-million dollar contracts. In the
Philippines, we acquired 100% of Shift Resources Inc.("Shift") on April 10, 2008
and Asia Premier Executive Suites Inc. ("Asia Premier") on May 27, 2008,
multi-service call center operations that have now been merged into a single
company operating as Global Hotline Philippines.

HUMAN CAPITAL AND RESOURCES

         IA Global has a 20.25% equity investment in Slate Consulting Co Ltd
("Slate"). Slate is a Japan-headquartered executive search firm with operations
and business entities in Tokyo and a call center in Manila, Philippines.

FINANCIAL SERVICES

         In Japan, we have a 12.6% investment, except as disclosed, as of
October 16, 2009 in Taicom Securities Co Ltd ("Taicom"), a Japanese securities
firm. Taicom provides a broad range of value-added financial services and
competitive products. These services currently include the brokerage of Japanese
commodities, options derivatives trading, foreign currency, equities and margin
as well as offering wealth management and investment consulting services to
diversified clients. In addition to offering a broad news and information
gathering network, Taicom offers creative solutions that meet the sophisticated
trading needs of its clients.

         Taicom is a member of the Osaka Stock Exchange. Taicom is headquartered
in Tokyo and in Osaka and has three branch offices in Japan.

CORPORATE INFORMATION

         We were incorporated in Delaware on November 12, 1998. The Company's
executive offices are located at 101 California Street, Suite 2450, San
Francisco, CA 94111, with its operating units being located primarily in Japan,
and the Philippines. The Company's telephone number is (415) 946-8828 and its
primary website is located at www.iaglobalinc.com. The information on our
website is not a part of this Form 10-Q.

                                       36
<PAGE>

THE COMPANY'S COMMON STOCK

         Our common stock currently trades on the NYSE AMEX Exchange ("NYSE
AMEX") under the symbol "IAO."

KEY MARKET PRIORITIES

         Our key market opportunities are as follows:

         - Improve profitability by increasing sales and gross margins and
reducing expenses.

         - Expand our Global Hotline Japan operations by adding new contracts
and product offerings.

         - Expand our Global Hotlines Philippines operations through a marketing
agreement with HTMT, and partnering programs with Jones Lang LaSalle and SPi
Technologies, and new product offerings.

         - Expand our reach to encompass the Philippines, Southeast Asia and the
growth opportunities and synergies these markets present. Our long-term "Buy to
Hold" approach to our investments gives our management team time to
comprehensively analyze, understand and select the companies we invest in, their
sectors and competition in depth, and to accurately gauge their potential.

         - Enhance the performance of those businesses across key business
metrics, and to deliver accelerating shareholder value.

         - Enhance our investor relation services.

PRIMARY RISKS AND UNCERTAINTIES

         We are exposed to various risks related to legal claims, our need for
additional financing, our level of indebtedness, our NYSE AMEX listing, our
investment in Taicom Securities Co Ltd, declining economic conditions, our
Global Hotline business, our controlling shareholder groups, the sale of
significant numbers of our shares and a volatile market price for our common
stock. These risks and uncertainties are discussed in more detail below in this
item.

                                       37
<PAGE>

RESULTS OF OPERATIONS

         The following table presents certain consolidated statement of
operations information and presentation of that data as a percentage of change
from period-to-period.
<TABLE>
(dollars in thousands)
<CAPTION>
                                                                                   Three Months Ended June 30,
                                                                      ----------------------------------------------------
                                                                         2009          2008       $ Variance    % Variance
                                                                      -----------   -----------   ----------    ----------
                                                                      (unaudited)   (unaudited)
<S>                                                                    <C>           <C>           <C>           <C>
Revenue ..........................................................     $ 13,378      $ 19,688      $ (6,310)       -32.0%
Cost of sales ....................................................        4,086         3,195           891         27.9%
                                                                       --------      --------      --------      -------
Gross profit .....................................................        9,292        16,493        (7,201)       -43.7%
Selling, general and administrative expenses .....................       12,569        14,657        (2,088)       -14.2%
                                                                       --------      --------      --------      -------
Operating (loss) income ..........................................       (3,277)        1,836        (5,113)       278.5%
                                                                       --------      --------      --------      -------
Other income (expense):
Interest income ..................................................            -            15           (15)      -100.0%
Interest expense and amortization of beneficial conversion feature          (67)         (283)          216        -76.3%
Other income .....................................................           15            63           (48)       -76.2%
Gain on equity investment in Australia Secured Financial Limited .            -           256          (256)      -100.0%
Gain on equity investment in GPlus Media Co Ltd ..................            -            33           (33)      -100.0%
Gain on equity investment in Slate Consulting Co Ltd .............           12            23           (11)       -47.8%
Loss on equity investment in Taicom Securities Co Ltd ............            -          (107)          107        100.0%
                                                                       --------      --------      --------      -------
Total other expense ..............................................          (40)            -           (40)       100.0%
                                                                       --------      --------      --------      -------
(Loss) profit before income taxes ................................       (3,317)        1,836        (5,153)       280.7%
Income taxes- current provision ..................................          146         1,105          (959)       -86.8%
                                                                       --------      --------      --------      -------
Net (loss) profit before deemed preferred stock dividend .........       (3,463)          731        (4,194)       573.7%
Deemed preferred stock dividend ..................................         (192)            -          (192)       100.0%
                                                                       --------      --------      --------      -------
Net (loss) profit ................................................     $ (3,655)     $    731      $ (4,386)       600.0%
                                                                       ========      ========      ========      =======
</TABLE>

THREE MONTHS ENDED JUNE 30, 2009 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
2008

         Net revenue for the three months ended June 30, 2009 decreased
$6,310,000 to $13,378,000 as compared to $19,688,000 for the three months ended
June 30, 2008.

         The decrease was due the reduction in AIG revenues, termination of our
NTT contracts and a softening of our revenues from our telecommunication
contracts during the three months ended June 30, 2009.

COST OF SALES

         Cost of sales for the three months ended June 30, 2009 increased
$891,000 to $4,086,000 as compared to $3,195,000 for the three months ended June
30, 2008.

         The increase resulted from outside agent, outsourcing and other costs
at Global Hotline.

                                       38
<PAGE>

EXPENSES

         Selling, general and administrative expenses for the three months ended
June 30, 2009 decreased $2,088,000 to $12,569,000 as compared $14,657,000 for
the three months ended June 30, 2008. This was due to reduced operating expenses
of $2,334,000 at Global Hotline, offset by increased operating expenses at IA
Global of $353,000 related to the implementation of SFAS 123R and legal and
$251,000 related to the forensic audit expenses. Global Hotline headcount was
reduced during the three months ended March 31, 2009.

         The selling, general and administrative expenses consisted primarily of
employee and independent contractor expenses, rent, overhead, equipment and
depreciation, amortization of identifiable intangible assets and intellectual
property, professional and consulting fees, sales and marketing costs, investor
relations, legal, stock option and other general and administrative costs.

OTHER INCOME/EXPENSE

         Other expense for the three months ended June 30, 2009 was $40,000 as
compared to other expense of $0 for the three months ended June 30, 2008. The
other expense increase was primarily related to interest expense and
amortization of the beneficial conversion feature of $67,000.

         The 2008 other expense was primarily related to interest expense and
amortization of beneficial conversion feature of $283,000, offset by a net gain
on equity investments of $205,000.

NET LOSS

         Net loss for the three months ended June 30, 2009 was $3,655,000 as
compared to a net profit of $731,000 for the three months ended June 30, 2008
Decreased gross margin of $7,201,000 was offset by decreased operating expenses
of $5,113,000 and income taxes of $959,000.

LIQUIDITY AND CAPITAL RESOURCES

         We had cash of approximately $1.7 million, a net working capital
deficit of approximately $18.4 million (due to the current portion of long term
debt of $14.8 million) and total indebtedness of $15.8 million as of June 30,
2009.

         During the three months ended June 30, 2009, IA Global obtained loans
of $2.3 million in the aggregate and we repaid loans of $2.1 million owed by
Global Hotline.

         As of February 25, 2009, all Global Hotline assets were pledged as
collateral to H Capital. On approximately April 1, 2009, the Company pledged its
ownership in Global Hotline as collateral for the loans, subject to a thirty day
notice period in the case of default under the agreement.

         On February 25, 2009, Global Hotline and subsidiaries pledged all
accounts receivable to H Capital and provided H Capital with all bank books and
corporate seals, which allows H Capital to control all cash.

         Certain recent developments relating to the outstanding indebtedness of
IA Global and our subsidiaries, including our ongoing negotiations with our
Japanese lenders, are described in more detail in the notes to the financial
statements set forth in this Form 10-Q (see Part I, Item 1 - Financial
Statements). The Company's recent efforts to generate additional liquidity,
including through sales of its common stock, are also described in more detail
in such financial statement notes.

                                       39
<PAGE>

         IA Global and each subsidiary manage their cash flow independently. IA
Global funds its operations from loans, convertible debentures, inter-Company
borrowings, loans collateralized by stock, management service fees and dividends
from its equity investments. Global Hotline funds its operations from bank debt
and at times needs to refinance this bank debt. Global Hotline Philippines funds
its operations from inter-Company borrowings.

         Each entity will need to obtain additional financing in order to
continue our current operations, service our debt repayments and acquire
businesses. There can be no assurance that we will be able to secure funding, or
that if such funding is available, whether the terms or conditions would be
acceptable to us.

         Volatility and disruption of financial markets could affect our access
to credit. The current difficult economic market environment is causing
contraction in the availability of credit in the marketplace. This could
potentially reduce or eliminate the sources of liquidity for the Company.

         If the Company is unable to obtain additional financing, we may need to
restructure our operations, divest all or a portion of our business or file for
bankruptcy.

         Since inception, we have financed our operations primarily through
sales of our equity securities in our initial public offering and from several
private placements, loans and capital contributions, primarily from related
parties. Net cash proceeds from these items have totaled approximately $20.9
million as of March 31, 2009, with approximately $8.8 million raised in the
initial public offering, $8.6 million raised in private placements, $4.0 million
raised in the conversion of debt and $0.7 million used for the share repurchase
program. In addition, we have issued equity for non-cash items totaling $32.1
million, including $7.0 million from the ASFL equity investment, $4.1 million
from the Taicom equity investment, $1.4 million each from the GPlus and Slate
equity investments, $.3 and $.2 million related to the Asia Premier and Shift
acquisition, respectively, $7.1 million issued for services, $3.6 million
related to a beneficial conversion feature, $3.9 million from debenture
conversions, and $3.1 million related to the Global Hotline acquisition.
Additional funding was obtained from notes payable and long term debt of
approximately $15.3 million.

OPERATING ACTIVITIES

         Net cash used in operating activities for the three months ended June
30, 2009 was $2.4 million. This amount was primarily related to a net loss of
$3.5 million, an increase in accounts receivable of $2.6 million, an increase in
notes receivable of $1.0 million and a decrease in deferred revenue of $1.2,
offset by depreciation and amortization and other non-cash expenses of $.2
million, and an increase in accrued liabilities and payroll taxes of $5.2
million.

FINANCING ACTIVITIES

         Net cash provided by financing activities for the three months ended
June 30, 2009 was $.5 million.

         During the three months ended June 30, 2009, Global Hotline entered
into loans of approximately $2.3 million and repaid loans of $2.1 million.

                                       40
<PAGE>

         Other Material Commitments. The Company's unaudited contractual cash
obligations as of June 30, 2009 are summarized in the table below (1):
<TABLE>
<CAPTION>
Contractual                           Less Than                                Greater Than
Cash Obligations          Total        1 Year       1-3 Years     3-5 Years      5 Years
--------------------   -----------   -----------   -----------   -----------   -----------
<S>                    <C>           <C>           <C>           <C>           <C>
Operating leases ...   $ 3,088,210   $ 1,950,981   $ 1,000,503   $   136,726   $         0
Note payable .......    15,848,144    14,762,636       678,120       371,070        36,318
Capital expenditures       100,000       100,000             0             0             0
Acquisitions .......             0             0             0             0             0
                       -----------   -----------   -----------   -----------   -----------
                       $19,036,354   $16,813,617   $ 1,678,623   $   507,796   $    36,318
                       ===========   ===========   ===========   ===========   ===========
</TABLE>
(1) Based on the end of period exchange rate.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

         The application of GAAP involves the exercise of varying degrees of
judgment. On an ongoing basis, we evaluate our estimates and judgments based on
historical experience and various other factors that are believed to be
reasonable under the circumstances. Actual results may differ from these
estimates under different assumptions or conditions. We believe that of our
significant accounting policies (see summary of significant accounting policies
more fully described in Note 2 of notes to consolidated financial statements),
the following policies involve a higher degree of judgment and/or complexity:

INCOME TAXES

         We are subject to income taxes in both the U.S. and foreign (Japan and
Philippines) jurisdictions. Significant judgment is required in determining the
provision for income taxes. We recorded a valuation for the deferred tax assets
from our net operating losses carried forward in the US due to IA Global, Inc.
not demonstrating any consistent profitable operations. In Japan, Global Hotline
has a refundable tax asset which we expect to realize from future income. In the
event that the actual results differ from these estimates or we adjust these
estimates in future periods, we may need to adjust the recorded valuation.

STOCK-BASED COMPENSATION

         Effective January 1, 2006, we began recording compensation expense
associated with stock-based awards and other forms of equity compensation in
accordance with SFAS 123R as interpreted by SEC Staff Accounting Bulletin No.
107. We adopted the modified prospective transition method provided for under
SFAS 123R and consequently has not retroactively adjusted results from prior
periods. Under this transition method, compensation cost associated with
stock-based awards recognized in 2006 includes 1) quarterly amortization related
to the remaining unvested portion of stock-based awards granted prior to
December 15, 2005, based on the grant date fair value estimated in accordance
with the original provisions of SFAS 123; and 2) quarterly amortization related
to stock-based awards granted subsequent to January 1, 2006 based on the grant
date fair value estimated in accordance with the provisions of SFAS 123R. In
addition, we record expense over the vesting period in connection with stock
options granted. The compensation expense for stock-based awards includes an
estimate for forfeitures and is recognized over the expected term of the award
on a straight line basis.

                                       41
<PAGE>

REVENUE RECOGNITION

         Global Hotline revenue was derived from its multiple call centers
undertaking the telemarketing of telecommunications products and services, and a
range of insurance products and services in Japan. Revenue is considered
realized when the services have been provided to the customer, the work has been
accepted by the customer and collectability is reasonably assured. Furthermore,
if an actual measurement of revenue cannot be determined, we defer all revenue
recognition until such time that an actual measurement can be determined. If
during the course of a contract management determines that losses are expected
to be incurred, such costs are charged to operations in the period such losses
are determined.

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. We recorded deferred revenue of $2.3 million
and $3.5 as of June 30, 2009 and March 31, 2009, respectively.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

         Accounts receivable consists primarily of amounts due us from our
normal business activities. We maintain reserves to reflect the expected
non-collection of accounts receivable based on past collection history and
specific risks identified within our portfolio. If the financial condition of
our customers were to deteriorate resulting in an impairment of their ability to
make payments, or if payments from customers are significantly delayed,
additional allowances might be required.

INVESTMENTS

         We account for our investments using the equity method unless its value
has been determined to be other than temporarily impaired, in which case we
write the investment down to its impaired value. We review these investments
periodically for impairment and make appropriate reductions in carrying value
when an other-than-temporary decline is evident; however, for non-marketable
equity securities, the impairment analysis requires significant judgment. During
our review, we evaluate the financial condition of the issuer, market
conditions, and other factors providing an indication of the fair value of the
investments. Adverse changes in market conditions or operating results of the
issuer that differ from expectation, could result in additional other-than-
temporary losses in future periods. Our equity investments for Slate and Taicom
were not considered permanently impaired as of June 30, 2009.

FACTORS THAT MAY AFFECT FUTURE RESULTS

         The following factors, in addition to the other information contained
in this report, should be considered carefully in evaluating us and our
prospects. This report (including without limitation the following factors that
may affect operating results) contains forward-looking statements (within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) regarding us and our business, financial condition, results of operations
and prospects. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates" and similar expressions or variations of such
words are intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this report.
Additionally, statements concerning future matters such as the development of
new products, enhancements or technologies, projections of revenues and
profitability, possible changes in legislation and other statements regarding
matters that are not historical are forward-looking statements.

                                       42
<PAGE>

         Forward-looking statements in this report reflect the good faith
judgment of our management and the statements are based on facts and factors as
we currently know them. Forward-looking statements are subject to risks and
uncertainties and actual results and outcomes may differ materially from the
results and outcomes discussed in the forward-looking statements. Factors that
could cause or contribute to such differences in results and outcomes include,
but are not limited to, those discussed below and in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" as well as those
discussed elsewhere in this report. Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of
this report. We undertake no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may arise after
the date of the report.

THE COMPANY COULD BE EXPOSED TO LEGAL CLAIMS

         We could be exposed to legal claims.

         On April 30, 2009, Global Hotline entered into negotiations to
refinance $12,379,000 in debt with its Japanese banks. Global Hotline is
proposing to refinance this debt on a long-term basis and freeze any payments in
the short term. To date, all banks but Mitsubishi Tokyo UFJ Bank Co Ltd. have
agreed to freeze all payments through September 30, 2009. Global Hotline
continues to negotiate with our Japanese banks on the repayment of the debt.

         On May 26, 2009, we received notices from H Capital. On May 27, 2009,
Global Hotline and SG Telecom did not repay the Loan as requested by H Capital.
On June 9, 2009, the unlicensed Japanese lender submitted documents claiming
ownership of the Company's ownership interest in 600 shares of Global Hotline.

         After review by Japanese corporate counsel, we are challenging the
validity of the loans and the collateral claimed by H Capital and the excessive
interest rate and fees. We discovered that Global Hotline management provided
stock certificates to the unlicensed lender in early March 2009 in violation of
the Transfer Agreement the Company signed. We have disputed all notices received
from H Capital. The parties continue to negotiate over the alleged unpaid loans.

         The principal balance due as of June 30, 2009 was 150,000,000 Yen, or
approximately $1,601,000 at current exchange rates, plus accrued interest and of
approximately 12,678,078 Yen, or approximately $135,000 at current exchange
rates. Total interest accrued during the three months ended June 30, 2009 was
9,349,000 Yen or approximately $100,000 at current exchange rates.

         On July 17, 2009 and September 28, 2009, AMV notified us that we were
in default under the agreement and as a result did not fund the $60,000 due June
30, 2009, July 15, 2009 and July 31, 2009. However, AMV was late in funding as
required by the agreement. AMV could claim ownership of our Taicom shares. This
would result in a loss on investment of approximately $2,861,000. Based on the
$120,000 in funding under this agreement, the Company may be required to issue
4,000,000 shares.

WE WILL NEED ADDITIONAL FINANCING TO SUPPORT OUR OPERATIONS

         Each entity will need to obtain additional financing in order to
continue our current operations, service our debt repayments and acquire
businesses. There can be no assurance that we will be able to secure funding, or
that if such funding is available, whether the terms or conditions would be
acceptable to us. If the Company is unable to obtain additional financing, we
may need to restructure our operations, divest all or a portion of our business
or file for bankruptcy by Global Hotline and/ or IA Global.

         Our recent efforts to generate additional liquidity, including through
sales of our common stock, are described in more detail in the financial
statement notes set forth in this report.

                                       43
<PAGE>

         If we raise additional capital through borrowing or other debt
financing, we will incur substantial interest expense. Sales of additional
equity securities will dilute on a pro rata basis the percentage ownership of
all holders of common stock. When we raise more equity capital in the future, it
will result in substantial dilution to our current stockholders.

OUR LEVEL OF INDEBTEDNESS AND THE TERMS OF OUR FINANCING ARRANGEMENTS MAY
ADVERSELY AFFECT OPERATIONS

         On April 30, 2009, Global Hotline entered into negotiations to
refinance $12,379,000 in debt with its Japanese banks. Global Hotline is
proposing to refinance this debt on a long-term basis and freeze any payments in
the short term. To date, all banks but Mitsubishi Tokyo UFJ Bank Co Ltd. have
agreed to freeze all payments through September 30, 2009. Global Hotline
continues to negotiate with our Japanese banks on the repayment of the debt.

         As of February 25, 2009, all Global Hotline assets, including accounts
receivable are collateralized to H Capital. On approximately April 1, 2009, the
Company pledged its ownership in Global Hotline as collateral for the alleged
loans, subject to a thirty day notice period in the case of default under the
agreement.

         On May 26, 2009, we received notices from H Capital. On May 27, 2009,
Global Hotline and SG Telecom did not repay the Loan as requested by H Capital.
On June 9, 2009, the unlicensed Japanese lender submitted documents claiming
ownership of the Company's ownership interest in 600 shares of Global Hotline.

         After review by Japanese corporate counsel, we are challenging the
validity of the loans and the collateral claimed by H Capital and the excessive
interest rate and fees. We discovered that Global Hotline management provided
stock certificates to the unlicensed lender in early March 2009 in violation of
the Transfer Agreement the Company signed. We have disputed all notices received
from H Capital. The parties continue to negotiate over the alleged unpaid loans.

         The principal balance due as of June 30, 2009 was 150,000,000 Yen, or
approximately $1,601,000 at current exchange rates, plus accrued interest and of
approximately 12,678,078 Yen, or approximately $135,000 at current exchange
rates. Total interest accrued during the three months ended June 30, 2009 was
9,349,000 Yen or approximately $100,000 at current exchange rates.

         Our level of indebtedness and the terms of our financing arrangements
Could result in or contribute to:

      o  a bankruptcy filing by Global Hotline and/ or IA Global.

      o  a default under the loan agreements;

      o  a collateral call by a lender, including the loss of our Global Hotline
         subsidiary;

      o  lawsuits with lenders;

      o  our inability to obtain additional financing to support capital
         expansion plans and for working capital and other purposes on
         acceptable terms or at all;

      o  a diversion of substantial cash flow from our operations and expansion
         plans in order to service our debt obligations;

      o  a competitive disadvantage compared to less leveraged competitors and
         competitors that have better access to capital resources.

                                       44
<PAGE>

         Our ability to make scheduled payments on our debt and other fixed
obligations will depend on our future operating performance and cash flows,
which in turn will depend on prevailing economic and political conditions and
financial, competitive, regulatory, business and other factors, many of which
are beyond our control.

         Our ability to renegotiate the terms of our loans will depend on our
negotiations with our Japanese banks and H Capital.

         We are principally dependent upon our operating cash flows to fund our
operations and to make scheduled payments on debt and other fixed obligations.
We cannot assure you that we will be able to generate sufficient cash flows from
our operations to pay our debt and other fixed obligations as they become due,
and if we fail to do so our business could be harmed. If the Company is unable
to obtain additional financing or renegotiate the terms of our loans, we may
need to restructure our operations, divest all or a portion of our business,
provide the Global Hotline business in a collateral call or file for bankruptcy.

         See also our risk factor "We will need additional financing to support
our operations and acquire businesses," above.

WE ARE NOT IN COMPLIANCE WITH CERTAIN NYSE AMEX REQUIREMENTS FOR CONTINUED
LISTING

         Pursuant to NYSE AMEX listing rules, our common stock could be delisted
from NYSE AMEX if we do not meet certain standards regarding our financial
condition, operating results and share price, including, among other factors,
maintaining adequate stockholders' equity and market capitalization and
minimizing losses from continuing operations over multiple years.

         The Company received a Deficiency Letter from the NYSE AMEX, dated July
10, 2009. In this letter, NYSE AMEX Staff determined that the Company's
securities have been selling for a low price per share for a substantial period
of time and, pursuant to Section 1003(f)(v) of the NYSE AMEX Company Guide (the
"Company Guide"), the Company's continued listing is predicated on it effecting
a reverse stock split of its common stock by January 11, 2010. The Company will
review a reverse stock split in accordance with the Deficiency Letter.

         The Company was previously notified by Staff that the Exchange deemed
it appropriate for the Company to effect a reverse stock split to address its
low selling price.

         The Company also received a Deficiency Letter from the NYSE AMEX, dated
July 14, 2009. In this letter, NYSE AMEX Staff determined that the Company has
not filed its Form 10K for the twelve months ended March 31, 2009.

         The Company received a Deficiency Letter from the NYSE AMEX, dated
August 19, 2009. In this letter, Staff has now determined that the Company has
not filed its Form 10-Q for the three months ended June 30, 2009.

         The timely filing of these reports is a condition of the Company's
continuing listing on NYSE AMEX, as required by Sections 134 and 1101 of the
Company Guide. In addition, the Company's failure to file this report is a
material violation of its listing agreement with NYSE AMEX. Pursuant to 1003(d)
of the Company Guide, the Exchange is authorized to suspend, and unless prompt
corrective action is taken, remove the Company's security from NYSE AMEX. The
Company submitted a plan to the Exchange on August 4, 2009 and September 3, 2009
and brought the Company in compliance with Sections 134 and 1101 of the
Exchanges Company Guide by October 16, 2009.

                                       45
<PAGE>

         The Company received a Deficiency Letter from the NYSE AMEX, dated
September 25, 2009. In this letter, NYSE Amex staff accepted IA Global's plan to
bring the Company back into compliance with Sections 134 and 1101 of the NYSE
Amex's Company Guide by October 12, 2009. IA Global expects to regain compliance
with Sections 134 and 1101 of the Company Guide by filing its Quarterly Report
on Form 10-Q for the quarterly period ended June 30, 2009 with the Securities
and Exchange Commission on or before October 12, 2009.

         In its letter, the staff also indicated that the Company is not in
compliance with certain additional continued listing standards set forth in Part
10 of the Company Guide. Specifically, the Company is not in compliance with (i)
Section 1003(a)(i) of the Company Guide, since its total shareholders' equity is
less than $2 million and the Company has reported losses from continuing
operations and net losses in two out of the three most recent fiscal years; (ii)
Section 1003(a)(ii) of the Company Guide, since its total shareholders' equity
is less than $4 million and the Company has reported losses from continuing
operations and net losses in three out of the four most recent fiscal years;
(iii) Section 1003(a)(iii) of the Company Guide, since its total shareholders'
equity is less than $6 million and the Company has reported losses from
continuing operations and net losses in the five most recent fiscal years; and
(iv) Section 1003(a)(iv) of the Company Guide, since the Company sustained
losses so substantial in relation to its overall operations or its existing
financial resources or its financial condition has become so impaired that is
appears questionable, in the opinion of the NYSE Amex, that the Company will be
able to continue operations and/or meet its obligations as they mature.

         In order to maintain its listing on the NYSE Amex, the Company must
submit a plan by October 9, 2009 that addresses how it will regain compliance
with Section 1003(a)(iv) of the Company Guide by March 25, 2010 and Section
1003(a)(i), (ii) and (iii) of the Company Guide by March 25, 2011. The Company
will be subject to periodic review by the NYSE Amex staff during the extension
period. Failure to make progress consistent with the plan or to regain
compliance with the continued listing standards by the end of the extension
period could result in the Company being delisted from the NYSE Amex. The
Company expects to submit its plan to regain compliance with the continued
listing standards and within the time periods described above on or before the
October 9, 2009 deadline.

         If our securities are delisted from NYSE AMEX, we believe they will be
quoted again for trading on the OTC Bulletin Board, which may depress demand for
our shares and limit market liquidity due to the reluctance or inability of
certain investors to buy stocks on the OTC Bulletin Board. Consequently, an
investor may find it more difficult to trade our securities, which may adversely
affect the ability to resell securities purchased from the selling stockholders.

WE ARE IN DEFAULT UNDER THE JUNE 8, 2009 SERVICES AGREEMENT WITH ARQUEMAX
VENTURES, LLC

         On July 17, 2009 and September 28, 2009, AMV notified us that we were
in default under the agreement and as a result did not fund the $60,000 due June
30, 2009, July 15, 2009 and July 31, 2009. However, AMV was late in funding as
required by the agreement. AMV could claim ownership of our Taicom shares. This
would result in a loss on investment of approximately $2,861,000. Based on the
$120,000 in funding under this agreement, the Company may be required to issue
4,000,000 shares.

                                       46
<PAGE>

DECLINING GENERAL ECONOMIC, BUSINESS, OR INDUSTRY CONDITIONS MAY CAUSE REDUCED
REVENUES AND PROFITABILITY

         Recently, concerns over inflation, energy costs, geopolitical issues,
the availability and cost of credit, the U.S. mortgage market and a declining
real estate market in the U.S. have contributed to increased volatility and
diminished expectations for the global economy and expectations of slower global
economic growth going forward. These factors, combined with volatile oil prices,
declining business and consumer confidence and increased unemployment, have
precipitated an a recession. If the economic climate in the U.S. or abroad does
not improve from its current condition or continues to deteriorate, our
customers or potential customers could reduce or delay their purchases of our
products, which would adversely impact our revenues and our ability to manage
inventory levels, collect customer receivables and ultimately our profitability.

         Volatility and disruption of financial markets could affect our access
to credit. The current difficult economic market environment has caused
contraction in the availability of credit in the marketplace. This could
potentially reduce or eliminate sources of liquidity for the Company.

WE ARE EXPOSED TO CHANGES IN THE TELECOMMUNICATION AND INSURANCE INDUSTRIES

         Global Hotline may be affected by the following factors that would
impact its ability to operate as a telemarketer of telecommunications and
insurance products in Japan and the Philippines.

      o  The businesses have unfunded payroll and social insurance taxes of
         approximately 800 million Yen or approximately $9.0 million at current
         exchange rates as of September 30, 2009;

      o  The businesses have a concentration of major customers, including AIG;

      o  The businesses require cash and liquidity to operate;

      o  Its contracts with telecommunication and insurance companies may not be
         renewed;

      o  The cost to hire and train staff to startup new contracts and the
         related debt to fund this expansion;

      o  Increased usage of wireless technology for telephone and internet
         usage;

      o  Passing of new or changes in existing legislation;

      o  Impact of privacy laws;

      o  New competitors;

      o  Decreased pricing;

      o  Changes in the availability of employees or wages paid to employees to
         operate the call centers; and

      o  Loss of key personnel.

         Our business is dependent upon our ability to operate efficiently by
maintaining tight control on cash flows. Any change in these factors could
adversely affect our ability to achieve the contract rates and to operate as a
telemarketer of telecommunications and insurance products in Japan. This could
result in inadequate cash flow for operations and debt repayments, which would
have a material adverse effect on our business, prospects, financial condition
and results of operations and result in a bankruptcy filing by Global Hotline
and/ or IA Global.

                                       47
<PAGE>

OUR CONTROLLING SHAREHOLDER GROUP HAS SUBSTANTIAL INFLUENCE OVER OUR COMPANY

         As of June 30, 2009, IAJ LBO Fund, PBAA Fund Limited, Terra Firma,
Inter Asset Japan Co Ltd ("IAJ"), IA Turkey and Hiroki Isobe, (collectively, the
"Controlling Shareholders") collectively hold approximately 35.0% of our common
stock. These Controlling Shareholders have stated in a Schedule 13D that they
may be deemed to constitute a "group" for the purposes of Rule 13d-3 under the
Exchange Act. Hiroki Isobe controls each of our Controlling Shareholders.

         IAJ could cause a change of control of our board of directors if in
combination with another large shareholder elects candidates of their choice to
the board at a shareholder meeting, and approve or disapprove any matter
requiring stockholder approval, regardless of how our other shareholders may
vote. Further, under Delaware law, IAJ could have a significant influence over
our affairs, if in combination with another large shareholder, including the
power to cause, delay or prevent a change in control or sale of the Company,
which in turn could adversely affect the market price of our common stock.

THE SALE OF A SIGNIFICANT NUMBER OF OUR SHARES OF COMMON STOCK COULD DEPRESS THE
PRICE OF OUR COMMON STOCK

         Sales or issuances of a large number of shares of common stock
(including pursuant to the equity line of credit transaction that we recently
entered into with Ascendiant Capital Group, LLC, which is described in more
detail elsewhere in this report) in the public market or the perception that
sales may occur could cause the market price of our common stock to decline. As
of June 30, 2009, 219.5 million shares of common stock were outstanding.
Significant shares of common stock are held by our principal shareholders, other
Company insiders and other large shareholders. As "affiliates" (as defined under
Rule 144 of the Securities Act ("Rule 144")) of the Company, our principal
shareholders, other Company insiders and other large shareholders may only sell
their shares of common stock in the public market pursuant to an effective
registration statement or in compliance with Rule 144.

THE MARKET PRICE OF OUR COMMON STOCK MAY BE VOLATILE

         The market price of our common stock has been and is likely in the
future to be volatile. Our common stock price may fluctuate in response to
factors such as:

      o  A bankruptcy filing by Global Hotline and/ or IA Global,

      o  Announcements by us regarding liquidity, significant acquisitions,
         equity investments and divestitures, strategic relationships, addition
         or loss of significant customers and contracts, capital expenditure
         commitments, loan, note payable and agreement defaults, loss of our
         subsidiaries and impairment of assets and our NYSE AMEX listing,

      o  Issuance of convertible or equity securities for general or merger and
         acquisition purposes,

      o  Issuance or repayment of debt, accounts payable or convertible debt for
         general or merger and acquisition purposes,

      o  Alleged manipulation of our stock price,

      o  Sale of a significant number of our common stock by shareholders,

      o  General market and economic conditions,

      o  Quarterly variations in our operating results,

      o  Defending significant litigation,

      o  Investor relation activities,

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<PAGE>

      o  Announcements of technological innovations,

      o  New product introductions by us or our competitors,

      o  Competitive activities,

      o  Additions or departures of key personnel,

      o  Issuance of loans to customers or related or affiliated parties, and

      o  Foreign exchange gains and losses.

         These broad market and industry factors may have a material adverse
effect on the market price of our common stock, regardless of our actual
operating performance. These factors could have a material adverse effect on our
business, financial condition and results of operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FOREIGN CURRENCY RISK

         We were exposed to foreign currency risks due to our operations in
Japan and the Philippines and our equity investments in Japan. We do not trade
in hedging instruments or "other than trading" instruments and we are exposed to
foreign currency exchange risks.

INTEREST RATE RISK

         We are exposed to interest rate risk at Global Hotline. As of June 30,
2009, total debt was $15,522,644. Debt totaling $1,694,871 is exposed to
variable interest rates with current interest rates of 2.13% to 4.25%.

         The Company does not trade in hedging instruments or "other than
trading" instruments and is exposed to interest rate risks. We believe that the
impact of a 10% increase or decline in interest rates would not be material to
our financial condition and results of operations.

ITEM 4. CONTROLS AND PROCEDURES

         Our principal executive and financial officers evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2009. Based on
this evaluation, our principal executive and financial officers concluded that,
as of June 30, 2009, our disclosure controls and procedures were effective in
ensuring that (1) information to be disclosed in reports we file under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified by the rules and forms promulgated under the Exchange Act and
(2) information required to be disclosed in reports filed under the Exchange Act
is accumulated and communicated to the principal executive officer and principal
financial officer as appropriate to allow timely decisions regarding required
disclosure. There were no changes in the Company's internal control over
financial reporting that occurred during the Company's last fiscal quarter that
have materially affected or are reasonably likely to materially affect the
Company's internal control over financial reporting.

                           PART II - OTHER INFORMATION

ITEM 1A. RISK FACTORS

         For information regarding factors that could affect our results of
operations, financial condition and liquidity, see the risk factors discussion
provided under "Factors that May Affect Future Results" included in Item 2
(Management Discussion and Analysis of Financial Conditions and Results of
Operations) of this Quarterly Report on Form 10-Q.

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<PAGE>

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

         During the three months ended June 30, 2009, the Company made the
following sales of equity securities pursuant to the exemption from registration
provided under Section 4(2) of the Securities Act:

         On May 12, 2009, the Company sold 600,000 shares of common stock to A
to B Capital Special Situations Fund LP for $30,000 or $0.05 per share, the
closing price on May 12, 2009, the date the subscription agreement was signed.
On May 12, 2009, the Company issued warrants for a total of 428,571 shares of
common stock to A to B Capital Special Situations Fund LP related to the common
stock they purchased on May 12, 2009. The warrants are exercisable at $.07 per
share, above the market price on May 12, 2009, and expire on May 14, 2012.

         On May 21, 2009, the Company issued 750,000 performance warrants to
acquire shares of common stock to the Sterling Group, Inc. for consulting
services. The warrants are exercisable at $.10 per share and expire on May 20,
2012. If registered, the warrants maybe called by the Company if the share price
closes above $.20 for five days.

         On May 21, 2009, the Company issued 250,000 performance warrants to
acquire shares of common stock to Marc Page for consulting services. The
warrants are exercisable at $.10 per share and expire on May 20, 2012.

         On June 10, 2009, the Company sold 167,500 shares of common stock to
Derek Schneideman, its Chief Executive Officer, for $10,050 or $0.06 per share,
the closing price on June 10, 2009, the date the subscription agreement was
signed.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         The indebtedness of IA Global and our subsidiaries, including Global
Hotline, is described in detail in Note 11 of the notes to the financial
statements set forth in this Form 10-Q (See Part I, Item 1 - Financial
Statements). As disclosed therein, IA Global and its subsidiaries had $15.8 of
total indebtedness as of June 30, 2009, and we are currently in default with
respect to $14.6 of that amount due to late payments of principal and/or
interest under certain loan agreements. Reference is also made to our dispute
with H Capital regarding IA Global's and Global Hotline's obligations to such
entity under certain loan agreements.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

         IA Global, Inc. announced the following results of its special meeting
of stockholders held on June 1, 2009:

(i) Approved the Amendment of our Certificate of Incorporation increasing in the
number of authorized common shares from 300,000,000 to 450,000,000 by the
following vote:

For 118,852,425 Against 2,567,300 Abstain 44,300

(ii) Rejected the Issuance of Shares of Common Stock in Connection with Certain
Transactions by the following vote:

For 52,218,263 Against 69,201,562 Abstain 44,200

ITEM 5. OTHER INFORMATION

         As described in detail in Note 11 of the notes to the financial
statements set forth in this Form 10-Q (See Part I, Item 1 - Financial
Statements), the Company is challenging the validity of the loans and the
collateral claimed by H Capital and the excessive interest rate and fees.

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<PAGE>

         Under the various agreements, H Capital terminated Hideki Anan and Kyo
Nagae as Chief Executive Officer and Chief Financial Officer, respectively, of
Global Hotline on October 1, 2009. In addition, H Capital began a general
downsizing of the headcount at Global Hotline and notified certain immaterial
customers that contracts were being terminated. They have assumed the accounting
responsibility for Global Hotline on an outsourced basis during the three months
ended September 30, 2009. This is complicating the ability of the Company to
file future Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K with
the SEC. If we are unable to file these reports timely, it would ultimately lead
to our inability to maintain our listing on NYSE AMEX or other markets.
Additionally, if we are unable to file our periodic reports timely with the SEC,
we will be precluded from filing a registration statement on Form S-1 in
connection with the Ascendient Capital financing and, therefore, would be unable
to close on or utilize that equity line of credit.

         On October 7, 2009, we filed a civil lawsuit in the Tokyo District
Court. The lawsuit seeks to invalidate the agreements between IA Global, Global
Hotline and H Capital.

         The parties continue to negotiate over the alleged unpaid loans.

ITEM 6.  EXHIBITS

Exhibit
No.                               Description
-------  -----------------------------------------------------------------------
3.1      Certificate of Designations, Rights and Preferences of the ArqueMax
         Ventures, LLC Series Preferred Stock of IA Global, Inc. dated April 20,
         2009. (6)

10.1     Loan Agreement dated April 24, 2009 by and between Kyo Nagae and Global
         Hotline, Inc. and subsidiaries H Capital, Inc. (Translated from
         Japanese) (2)

10.2     Amendment to Share Exchange Agreement dated April 1, 2009 by and
         between IA Global, Inc., Taicom Securities Co Ltd and ArqueMax
         Ventures, LLC. (3)

10.3     Form of Performance Warrant dated April 1, 2009 by and between IA
         Global, Inc. and Michael Ning. (3)

10.4     Services Agreement dated April 1, 2009 by and between IA Global, Inc.
         and ArqueMax Ventures , LLC. (3)

10.5     Application Form for (Change to) Loan on Bills dated April 23, 2009 by
         and between Global Hotline, Inc. and Mitsui Sumitomo Bank Co Ltd.
         (Translated From Japanese) (2)

10.6     Application Form for (Change to) Loan on Bills dated April 23, 2009 by
         and between IA Partners, Inc. and Mitsui Sumitomo Bank Co Ltd.
         (Translated From Japanese) (2)

10.7     Extension of Services Agreement dated May 31, 2009 by and between IA
         Global, Inc. and ArqueMax Ventures , LLC. (4)

10.8     Services Agreement dated June 8, 2009 by and between IA Global, Inc.
         and ArqueMax Ventures, LLC. (5)

10.9     Form of Performance Warrant dated June 2, 2009, but effective June 8,
         2009 by and between IA Global, Inc. and ArqueMax Ventures , LLC. (5)

10.10    Application Form for (Change to) Loan on Bills dated June 30, 2009 by
         and between IA Partners, Inc. and Mitsui Sumitomo Bank Co Ltd.
         (Translated From Japanese) (2)

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<PAGE>

10.11    Application Form for (Change to) Loan on Bills dated June 30, 2009 by
         and between Global Hotline, Inc. and Mitsui Sumitomo Bank Co Ltd.
         (Translated From Japanese) (2)

10.12    Loan Rate/ Discharge Method/ Interest Payment Method Agreement dated
         June 22, 2009 by and between IA Partners, Inc. and Mitsui Sumitomo Bank
         Co Ltd. (Translated From Japanese) (2)

10.13    Monetary Loan Agreement dated June 22, 2009 by and between IA Partners,
         Inc. and Mitsui Sumitomo Bank Co Ltd. (Translated From Japanese) (2)

10.14    Agreement on Change to Loan Contract by and between Global Hotline,
         Inc. and Mitsui Sumitomo Bank Co Ltd. (Translated From Japanese)(2)

10.15    Contract on Entrusting Sales Concerning AU Corporate Cell Phone
         Services dated April 3, 2009 by and between Global Hotline, Inc. and
         KDDI, Inc. (1)+

10.16    Business Assignment Contract dated April 3, 2009 by and between Global
         Hotline, Inc. and KDDI, Inc. (1)+

31.1     Section 302 Certifications. (1)

31.2     Section 302 Certifications. (1)

32.1     Section 902 Certifications. (1)

32.2     Section 902 Certifications. (1)
__________________

+   Certain confidential material contained in the document has been omitted and
    filed separately with the Securities and Exchange Commission pursuant to
    Rule 406 of the Securities Act of 1933, as amended or Rule 24b-2 of the
    Securities and Exchange Act of 1934, as amended.
__________________

(1) Filed herewith.

(2) Filed as an exhibit to Registrant's Annual Report on Form 10-K for the
    fiscal year ended March 31, 2009 and filed on September 3, 2009 and
    incorporated herein by reference.

(3) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated April
    1, 2009 and filed on April 6, 2009 and incorporated herein by reference.

(4) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated May
    31, 2009 and filed on June 4, 2009 and incorporated herein by reference

(5) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated July
    14, 2009 and filed on July 15, 2009 and incorporated herein by reference.

(6) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated April
    20, 2009 and filed on April 20, 2009, and incorporated herein by reference.

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<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                    IA Global, Inc.
                                    (Registrant)


Date: October 16, 2009              By: /s/ Brian Hoekstra
                                        ------------------
                                    Brian Hoekstra,
                                    Chief Executive Officer
                                    (Principal Executive Officer)


                                    By: /s/ Mark Scott
                                        --------------
                                    Mark Scott,
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)

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