----

----

| Delaware                        | 59-3206480          |
|---------------------------------|---------------------|
| (State or Other Jurisdiction of | (I.R.S. Employer    |
| Incorporation or Organization)  | Identification No.) |

|                              |   |                                                       |         |                                |   |   |
|-----------------------------------|--------|------------------------------------------------------------|--------------|-------------------------------------|--------|--------|
| Large accelerated filer |   | o                                                          |    | Accelerated filer              |   | o      |
|                              |   |                                                       |         |
| Non-accelerated filer             |   | o  (Do not check if a smaller reporting company) |    | Smaller reporting company |   | x      |

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|                                                                                                                  | Page No. |
|-----------------------------------------------------------------------------------------------------------------------|----------|
| Item 1.   Financial Statements (Unaudited).                                                            |     |
|                                                                                                                  |     |
| Condensed Consolidated Balance Sheets – June 30, 2010 and December 31, 2009                                     | 3        |
|                                                                                                                  |     |
| Condensed Consolidated Statements of Operations – For the Three and Six Months Ended June 30, 2010 and 2009     | 4        |
|                                                                                                                  |     |
| Condensed Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2010 and 2009               | 5        |
|                                                                                                                  |     |
| Consolidated Statement of Stockholders’ Deficit – For the Six Months Ended June 30, 2010                  | 6        |
|                                                                                                                  |     |
| Notes to Interim Condensed Consolidated Financial Statements                                                          | 7        |
|                                                                                                                  |     |
| Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 29       |
|                                                                                                                  |     |
| Item 3.   Quantitative and Qualitative Disclosures about Market Risk.                                  | 40       |
|                                                                                                                  |     |
| Item 4.   Controls and Procedures.                                                                     | 40       |

|                                                                                  | Page No. |
|---------------------------------------------------------------------------------------|----------|
|                                                                                  |     |
|                                                                                  |     |
| Item 1.   Legal Proceedings.                                           | 41       |
|                                                                                  |     |
| Item 1a. Risk Factors.                                                                | 41       |
|                                                                                  |     |
| Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds. | 41       |
|                                                                                  |     |
| Item 3.   Defaults Upon Senior Securities.                             | 41       |
|                                                                                  |     |
| Item 4.   Reserved.                                                    | 41       |
|                                                                                  |     |
| Item 5.   Other Information.                                           | 41       |
|                                                                                  |     |
| Item 6.   Exhibits.                                                    | 42       |
|                                                                                  |     |
| Signatures                                                                            | 43       |

----

| THE AMACORE GROUP, INC.                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                      |
|                                                                                                                       |   |   |   |   |   |   |
|                                                                                                                       |   | (Unaudited) |   |   |   |   |
|                                                                                                                       |   | June 30, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                     |   |   |   |   |   |   |
| Current assets                                                                                                             |   |   |   |   |   |   |
| Cash                                                                                                                       |   | $ | 1,495,215 |   |   | $ | 3,322,127 |   |
| Marketable securities (at fair value)                                                                                      |   |   | 640,000 |   |   |   | 240,000 |   |
| Accounts receivable (net of allowance for doubtful accounts of $0 and $100,000 for 2010 and 2009, respectively)            |   |   | 454,167 |   |   |   | 691,681 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Deferred expenses                                                                                                          |   |   | 1,263,008 |   |   |   | 2,756,733 |   |
| Deposits and other current assets                                                                                          |   |   | 238,690 |   |   |   | 172,353 |   |
| Total current assets                                                                                                       |   |   | 4,091,080 |   |   |   | 7,182,894 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Property, plant and equipment (net of accumulated depreciation of $1,092,546 and $892,619 for 2010 and 2009, respectively) |   |   | 840,496 |   |   |   | 1,005,601 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Deferred customer acquisition costs                                                                                        |   |   | 6,571 |   |   |   | 66,072 |   |
| Other intangible assets                                                                                                    |   |   | 2,274,546 |   |   |   | 2,407,939 |   |
| Deposits and other assets                                                                                                  |   |   | 1,383,293 |   |   |   | 1,383,293 |   |
| Total assets                                                                                                               |   | $ | 8,595,986 |   |   | $ | 12,045,799 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                      |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                        |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                           |   | $ | 2,083,831 |   |   | $ | 2,318,537 |   |
| Accounts payable - related party                                                                                           |   |   | 501,179 |   |   |   | 485,013 |   |
| Loans and notes payable - current                                                                                          |   |   | 646,148 |   |   |   | 672,765 |   |
| Notes payable - related party                                                                                              |   |   | 282,265 |   |   |   | 353,265 |   |
| Accrued expenses and other liabilities                                                                                     |   |   | 1,279,560 |   |   |   | 1,038,812 |   |
| Deferred compensation - related party                                                                                      |   |   | 163,715 |   |   |   | 91,546 |   |
| Deferred acquisition payments                                                                                              |   |   | 681,250 |   |   |   | 581,250 |   |
| Deferred revenue                                                                                                           |   |   | 1,992,112 |   |   |   | 2,847,957 |   |
| Total current liabilities                                                                                                  |   |   | 7,630,060 |   |   |   | 8,389,145 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Capital lease obligation                                                                                                   |   |   | 173,725 |   |   |   | 209,695 |   |
| Deferred acquisition payments                                                                                              |   |   | 150,000 |   |   |   | 250,000 |   |
| Deferred compensation - related party                                                                                      |   |   | 174,558 |   |   |   | 223,827 |   |
| Loans and notes payable                                                                                                    |   |   | - |   |   |   | 158,126 |   |
| Loans and notes payable - related party                                                                                    |   |   | 1,592,972 |   |   |   | 1,458,648 |   |
| Accrued dividends                                                                                                          |   |   | 4,508,153 |   |   |   | 3,119,604 |   |
| Fair value of share conversion feature                                                                                     |   |   | 977,790 |   |   |   | 577,949 |   |
| Fair value of warrants                                                                                                     |   |   | 10,778,185 |   |   |   | 8,042,489 |   |
| Total liabilities                                                                                                          |   |   | 25,985,443 |   |   |   | 22,429,483 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Redeemable preferred stock - Zurvita Holdings, Inc.                                                                        |   |   | 4,550,747 |   |   |   | 2,280,162 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Stockholders' Deficit                                                                                                      |   |   |   |   |   |   |   |   |
| The Amacore Group, Inc.                                                                                                    |   |   |   |   |   |   |   |   |
| Preferred Stock, $.001 par value, 20,000,000 shares authorized;                                                            |   |   |   |   |   |   |   |   |
| Series G mandatorily convertible preferred stock; 1,200 shares authorized;                                                 |   |   |   |   |   |   |   |   |
|      1,200 shares issued and outstanding.                                                         |   |   | 1 |   |   |   | 1 |   |
| Series H mandatorily convertible preferred stock; 400 shares authorized;                                                   |   |   |   |   |   |   |   |   |
|      400 shares issued and outstanding.                                                           |   |   | - |   |   |   | - |   |
| Series I mandatorily convertible preferred stock; 10,000 shares authorized;                                                |   |   |   |   |   |   |   |   |
|      1,650 shares issued and outstanding.                                                         |   |   | 1 |   |   |   | 1 |   |
| Series L mandatorily convertible preferred stock; 10,050 shares authorized;                                                |   |   |   |   |   |   |   |   |
|      1,050 shares issued and outstanding.                                                         |   |   | 1 |   |   |   | 1 |   |
| Series A mandatorily convertible preferred stock; 1,500 shares authorized;                                                 |   |   |   |   |   |   |   |   |
|      155 shares issued and outstanding.                                                           |   |   | - |   |   |   | - |   |
| Common Stock A, $.001 par value, 1,360,000,000 shares authorized; 1,047,725,428                                            |   |   |   |   |   |   |   |   |
|     shares issued and outstanding.                                                                     |   |   | 1,047,725 |   |   |   | 1,047,725 |   |
| Common Stock B, $.001 par value, 120,000,000 shares authorized; 200,000                                                    |   |   |   |   |   |   |   |   |
|     shares issued and outstanding.                                                                     |   |   | 200 |   |   |   | 200 |   |
| Additional paid-in capital                                                                                                 |   |   | 130,025,904 |   |   |   | 129,611,376 |   |
| Accumulated deficit                                                                                                        |   |   | (148,221,084 | ) |   |   | (140,777,381 | ) |
| Total Amacore Group, Inc. stockholders' deficit                                                                            |   |   | (17,147,252 | ) |   |   | (10,118,077 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Deficit related to noncontrolling interest in Zurvita Holdings, Inc.                                                       |   |   | (4,792,952 | ) |   |   | (2,545,769 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Total stockholders' deficit                                                                                                |   |   | (21,940,204 | ) |   |   | (12,663,846 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' deficit                                                                                |   | $ | 8,595,986 |   |   | $ | 12,045,799 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                    |   |

----

| THE AMACORE GROUP, INC.                                                                    |   |
|--------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                            |   |
| (UNAUDITED)                                                                                |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|                                                                                       |   | June 30, |   |   | June 30, |   |
|                                                                                       |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| REVENUES                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Administrative websites                                                                    |   | $ | 545,090 |   |   | $ | 202,338 |   |   | $ | 1,059,537 |   |   | $ | 404,312 |   |
| Advertising sales                                                                          |   |   | 365,378 |   |   |   | - |   |   |   | 669,868 |   |   |   | - |   |
| Commissions                                                                                |   |   | 545,849 |   |   |   | 337,576 |   |   |   | 1,201,307 |   |   |   | 751,540 |   |
| Marketing fees and materials                                                               |   |   | 415,692 |   |   |   | 637,920 |   |   |   | 1,054,293 |   |   |   | 1,172,004 |   |
| Membership fees                                                                            |   |   | 2,432,991 |   |   |   | 6,263,555 |   |   |   | 6,641,056 |   |   |   | 12,550,059 |   |
| Total revenues                                                                             |   |   | 4,305,000 |   |   |   | 7,441,389 |   |   |   | 10,626,061 |   |   |   | 14,877,915 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST OF SALES                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit and service cost                                                                   |   |   | 971,060 |   |   |   | 1,089,369 |   |   |   | 2,319,793 |   |   |   | 2,184,622 |   |
| Sales commissions                                                                          |   |   | 1,676,644 |   |   |   | 3,785,956 |   |   |   | 4,322,803 |   |   |   | 7,361,893 |   |
| Total cost of sales                                                                        |   |   | 2,647,704 |   |   |   | 4,875,325 |   |   |   | 6,642,596 |   |   |   | 9,546,515 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                                               |   |   | 1,657,296 |   |   |   | 2,566,064 |   |   |   | 3,983,465 |   |   |   | 5,331,400 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                                                                               |   |   | 66,695 |   |   |   | 257,139 |   |   |   | 133,393 |   |   |   | 598,730 |   |
| Depreciation                                                                               |   |   | 100,282 |   |   |   | 114,853 |   |   |   | 199,929 |   |   |   | 224,225 |   |
| Office related expenses                                                                    |   |   | 686,289 |   |   |   | 579,236 |   |   |   | 1,394,954 |   |   |   | 1,285,983 |   |
| Payroll and employee benefits                                                              |   |   | 1,886,958 |   |   |   | 2,405,069 |   |   |   | 4,122,322 |   |   |   | 4,712,298 |   |
| Professional fees and legal settlements                                                    |   |   | 702,715 |   |   |   | 2,603,449 |   |   |   | 1,479,835 |   |   |   | 4,634,268 |   |
| Selling and marketing                                                                      |   |   | 1,181,590 |   |   |   | 1,518,654 |   |   |   | 2,670,343 |   |   |   | 3,348,581 |   |
| Travel                                                                                     |   |   | 131,187 |   |   |   | 80,421 |   |   |   | 230,874 |   |   |   | 219,357 |   |
| Total operating expenses                                                                   |   |   | 4,755,716 |   |   |   | 7,558,821 |   |   |   | 10,231,650 |   |   |   | 15,023,442 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations before other income (expense)                                         |   |   | (3,098,420 | ) |   |   | (4,992,757 | ) |   |   | (6,248,185 | ) |   |   | (9,692,042 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain on change in fair value of marketable securities                                      |   |   | 400,000 |   |   |   | - |   |   |   | 400,000 |   |   |   | - |   |
| Interest expense                                                                           |   |   | (182,603 | ) |   |   | (74,149 | ) |   |   | (362,481 | ) |   |   | (154,635 | ) |
| Interest income                                                                            |   |   | 6 |   |   |   | 1,263 |   |   |   | 1,585 |   |   |   | 4,260 |   |
| (Loss) gain on change in fair value of warrants                                            |   |   | (3,738,413 | ) |   |   | 4,160,361 |   |   |   | (1,769,668 | ) |   |   | 10,779,156 |   |
| Loss on change in fair value of share conversion feature                                   |   |   | (425,935 | ) |   |   | - |   |   |   | (399,841 | ) |   |   | - |   |
| Other                                                                                      |   |   | 37,192 |   |   |   | 6 |   |   |   | 11,512 |   |   |   | 14,407 |   |
| Total other income (expense), net                                                          |   |   | (3,909,753 | ) |   |   | 4,087,481 |   |   |   | (2,118,893 | ) |   |   | 10,643,188 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income before income taxes                                                      |   |   | (7,008,173 | ) |   |   | (905,276 | ) |   |   | (8,367,078 | ) |   |   | 951,146 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                               |   |   | 23,308 |   |   |   | - |   |   |   | 23,308 |   |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss ) income                                                                         |   |   | (7,031,481 | ) |   |   | (905,276 | ) |   |   | (8,390,386 | ) |   |   | 951,146 |   |
| Less:  Net loss attributed to non-controlling interest in Zurvita Holdings, Inc. |   |   | 1,802,259 |   |   |   | - |   |   |   | 2,236,683 |   |   |   | - |   |
| Net (loss) income attributed to The Amacore Group, Inc.                                    |   |   | (5,229,222 | ) |   |   | (905,276 | ) |   |   | (6,153,703 | ) |   |   | 951,146 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividend                                                                   |   |   | (645,000 | ) |   |   | (522,278 | ) |   |   | (1,290,000 | ) |   |   | (970,445 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributed to The Amacore Group, Inc. available to common stockholders            |   | $ | (5,874,222 | ) |   | $ | (1,427,554 | ) |   | $ | (7,443,703 | ) |   | $ | (19,299 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share                                                           |   | $ | (0.01 | ) |   | $ | (0.00 | ) |   | $ | (0.01 | ) |   | $ | (0.00 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average number of common shares outstanding                     |   |   | 1,047,925,428 |   |   |   | 1,027,731,258 |   |   |   | 1,047,925,428 |   |   |   | 1,020,633,200 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.    |

----

| THE AMACORE GROUP, INC.                                                                 |   |
|-----------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                         |   |
| (UNAUDITED)                                                                             |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   | For the Six Months Ended |   |
|                                                                                    |   | June 30, |   |
|                                                                                    |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                                   |   |   |   |   |   |   |
| Net (loss) income                                                                       |   | $ | (8,390,386 | ) |   | $ | 951,146 |   |
| Adjustments to reconcile net (loss) income to net cash used in operating activities:    |   |   |   |   |   |   |   |   |
| Amortization of deferred marketing agreement                                            |   |   | 328,700 |   |   |   | - |   |
| Amortization of notes payable discount                                                  |   |   | 87,198 |   |   |   | - |   |
| Amortization of intangible assets                                                       |   |   | 133,393 |   |   |   | 598,730 |   |
| Depreciation                                                                            |   |   | 199,929 |   |   |   | 224,225 |   |
| Loss on change in fair value of warrants                                                |   |   | 1,769,668 |   |   |   | (10,779,156 | ) |
| Loss on change in fair value of share conversion liability                              |   |   | 399,841 |   |   |   | - |   |
| Gain on change in fair value of marketable securities                                   |   |   | (400,000 | ) |   |   | - |   |
| Provision for doubtful accounts                                                         |   |   | (100,000 | ) |   |   | - |   |
| Share-based compensation                                                                |   |   | 323,538 |   |   |   | 147,710 |   |
| Changes in operating assets and liabilities                                             |   |   |   |   |   |   |   |   |
| Decrease (increase) in accounts receivable                                              |   |   | 337,514 |   |   |   | (71 | ) |
| (Increase) decrease in nontrade receivables - related party                             |   |   | (6,415 | ) |   |   | 9,218 |   |
| Decrease (increase) in deferred expenses                                                |   |   | 1,165,026 |   |   |   | (24,192 | ) |
| Increase in deposits and other current assets                                           |   |   | (59,922 | ) |   |   | (29,840 | ) |
| Decrease in deferred customer acquisition costs                                         |   |   | 59,501 |   |   |   | 77,414 |   |
| Decrease in deposits and other assets                                                   |   |   | - |   |   |   | 463,355 |   |
| Increase in accounts payable and accrued expenses                                       |   |   | 182,208 |   |   |   | 235,551 |   |
| Increase (decrease) in deferred compensation - related party                            |   |   | 22,901 |   |   |   | (40,447 | ) |
| Decrease in deferred revenue                                                            |   |   | (855,845 | ) |   |   | (176,683 | ) |
| Net cash used in operating activities                                                   |   |   | (4,803,151 | ) |   |   | (8,343,040 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                   |   |   |   |   |   |   |   |   |
| Purchase of property and equipment                                                      |   |   | (34,824 | ) |   |   | (257,402 | ) |
| Net cash used in investing activities                                                   |   |   | (34,824 | ) |   |   | (257,402 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                   |   |   |   |   |   |   |   |   |
| Deferred acquisition payments                                                           |   |   | - |   |   |   | (1,213,048 | ) |
| Net payments on credit card borrowing                                                   |   |   | (11,999 | ) |   |   | (184,374 | ) |
| Principal payments on capital lease obligations                                         |   |   | (45,477 | ) |   |   | (43,950 | ) |
| Principal payments made on notes payable                                                |   |   | (248,238 | ) |   |   | (24,500 | ) |
| Proceeds from exercise of Amacore Group, Inc. common stock warrants                     |   |   | - |   |   |   | 4,000 |   |
| Proceeds from exercise of Zurvita Holdings, Inc. common stock warrants                  |   |   | 16,777 |   |   |   | - |   |
| Proceeds from sale of Amacore Group, Inc. preferred stock and warrants                  |   |   | - |   |   |   | 12,500,000 |   |
| Proceeds from sale of Zurvita Holdings, Inc. preferred stock and warrants               |   |   | 3,300,000 |   |   |   | - |   |
| Net cash provided by financing activities                                               |   |   | 3,011,063 |   |   |   | 11,038,128 |   |
| (Decrease) increase in cash                                                             |   |   | (1,826,912 | ) |   |   | 2,437,686 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Beginning cash                                                                          |   |   | 3,322,127 |   |   |   | 238,437 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Ending cash                                                                             |   | $ | 1,495,215 |   |   | $ | 2,676,123 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL INFORMATION:                                                               |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                  |   | $ | 28,058 |   |   | $ | 21,341 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

| THE AMACORE GROUP, INC.                                                                 |
|-----------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT                                         |
| For the Six Months Ended June 30, 2010                                                  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   | Preferred Stock |   |   | Common Stock |   |   | Paid-In |   |   | Accumulated  |   |   | Noncontrolling Interest in Zurvita Holdings,  |   |   |   |   |
|                                                                                    |   | Series A |   | Series G |   | Series H |   | Series I |   |   | Series L |   |   | Class A |   |   | Class B |   |   |  Capital |   |   | Deficit |   |   | Inc. |   |   | Total |   |
|   December 31, 2009                                                           |   | $ | 0.16 |   |   | $ | 1.20 |   |   | $ | 0.40 |   |   | $ | 1.65 |   |   | $ | 1.05 |   |   | $ | 1,047,725 |   |   | $ | 200 |   |   | $ | 129,611,376 |   |   | $ | (140,777,381 | ) |   | $ | (2,545,769 | ) |   | $ | (12,663,846 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share based compensation                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 235,685 |   |   |   |   |   |   |   | 87,853 |   |   |   | 323,538 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of Zurvita Holdings, Inc. common stock warrants                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 10,949 |   |   |   |   |   |   |   | 5,828 |   |   |   | 16,777 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of liability warrants to equity                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 41,579 |   |   |   |   |   |   |   | 22,134 |   |   |   | 63,713 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partial disposition of ownership of Zurvita Holdings, Inc.                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 126,315 |   |   |   |   |   |   |   | (126,315 | ) |   |   | - |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   noncontrolling interest                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,236,683 | ) |   |   | (2,236,683 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss available to                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   common stockholders                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,443,703 | ) |   |   |   |   |   |   | (7,443,703 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   June 30, 2010                                                               |   | $ | 0.16 |   |   | $ | 1.20 |   |   | $ | 0.40 |   |   | $ | 1.65 |   |   | $ | 1.05 |   |   | $ | 1,047,725 |   |   | $ | 200 |   |   | $ | 130,025,904 |   |   | $ | (148,221,084 | ) |   | $ | (4,792,952 | ) |   | $ | (21,940,204 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

|   | · | LifeGuard Benefit Services Division – This division historically has generated revenue primarily from the sale of healthcare benefit membership plans and provides product fulfillment, customer support, membership billing, claims administration, provider membership network maintenance and information technology.    With the recent marketing and servicing contract terminations between LifeGuard and Direct Medical Network Solutions, Inc. (“DirectMedical”) and Consumer Assistance Service Association (“CASA”), this division is now mainly providing its supporting services to other divisions. The Company operates this division through LifeGuard Benefit Services, Inc., a wholly owned subsidiary of the Company (“LifeGuard”). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | U.S. Health Benefits Group Division – This division is an inbound lead generation telemarketing operation primarily marketing major and limited medical benefit plans.  The Company has operated this division through US Health Benefits Group, Inc., US Healthcare Plans, Inc. and On the Phone, Inc., each a wholly owned subsidiary of the Company  (collectively, “USHBG”).  Effective July 9, 2010, the Company shut down this division due to continued operating losses and the increased operating cash requirements of the division due to recent contract terminations.                                                                                                                                                           |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | · | Zurvita Holdings Inc. – This is a network marketing company that is a provider of products and benefits through the use of a multi-level marketing distribution channel which consists of independent business operators.  The products marketed include residential gas and electricity energy rate plans, discount healthcare benefits and discount benefits on various retail products and services, and online advertising.  Zurvita Holdings, Inc. (“Zurvita”) also markets numerous low cost ancillary lifestyle membership products such as home warranty, legal assistance and restoration services for identity theft and consumer credit. Zurvita is a variable interest entity, and the Company is the primary beneficiary of Zurvita. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | · | JRM Benefits Consultants Division – This division historically marketed various financial services and healthcare products through its telemarketing center and agent distribution network to individuals, families and employer groups.  Effective March 1, 2010, the Company halted call center operations of JRM.  The Senior Vice Presidents of JRM will focus on recruiting agents and other direct response marketers to sell the products of other reporting units.  The Company operates this division through JRM Benefits Consultants, LLC, a wholly owned subsidiary of the Company (“JRM”).                                                                                                                                      |

|   | · | Corporate and Other Division – This division provides management and financial support to the Company’s various divisions and is responsible for corporate governance and compliance. The division has primarily operated as a cost center and recognized limited revenue from strategic marketing initiatives with respect to sale of healthcare membership benefit plans.  However, with the shutdown of JRM and USHBG operations and the contract termination between DirectMedical, CASA and LifeGuard, this division has added revenue generation as a major aspect of its operations. The Company operates this division through The Amacore Group, Inc. and its wholly owned subsidiary Amacore Direct Marketing, Inc.   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Software   | 3 years   |
|------------|-----------|
| Tradenames | 16 months |

----

| Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. |
|---------|---------------------------------------------------------------------------------|

| Level 2 | Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3 | Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.  Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability.  Level 3 assets and liabilities include those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | June 30, 2010 |      |   | June 30, 2009 |   |
|-----------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                            |   |          |      |   |          |   |
| Beneficial conversion feature accretion                         |   | $             | -         |   |          | $      | 34,778 |   |
|                                                            |   |          |      |   |          |   |   |   |
| Interest converted to principal                                 |   |          | 61,127    |   |          |   | - |   |
|                                                            |   |          |      |   |          |   |   |   |
| Payments of accounts payable with common stock                  |   |          | -         |   |          |   | 592,720 |   |
|                                                            |   |          |      |   |          |   |   |   |
| Preferred stock dividends                                       |   |          | 1,290,000 |   |          |   | 935,667 |   |
|                                                            |   |          |      |   |          |   |   |   |
| Property and equipment acquired under capital lease obligations |   |          | -         |   |          |   | 282,574 |   |
|                                                            |   |          |      |   |          |   |   |   |
| Reclassification of warrants from liability to equity           |   |          | 63,713    |   |          |   | - |   |
|                                                            |   |          |      |   |          |   |   |   |
| USHBG purchase price adjustment                                 |   |          | -         |   |          |   | 742,950 |   |

|                       |   | June 30, 2010 |      |   | December 31, 2009 |   |
|----------------------------|--------|---------------|-----------|--------|-------------------|--------|
| Agent advances             |   | $             | 644,172   |   |              | $      | 1,269,881 |   |
| Commissions                |   |          | 65,384    |   |              |   | 121,462 |   |
| Conference fees            |   |          | -         |   |              |   | 125,000 |   |
| Customer acquisition costs |   |          | 248,873   |   |              |   | 533,481 |   |
| Marketing cost             |   |          | 54,785    |   |              |   | 383,483 |   |
| Prepaid expenses           |   |          | 249,794   |   |              |   | 323,426 |   |
| Total                      |   | $             | 1,263,008 |   |              | $      | 2,756,733 |   |

----

| June 30, 2010                                   |   |
|-------------------------------------------------|--------|
| Fair Value Measurements at Reporting Date Using |   |
|                                            |   |   |   |   |   |   |   |   |   |
|                                            |   | Quoted Prices in |   | Significant |   |   |   |   |
|                                            |   | Active Markets for |   | Unobservable |   |   |   |   |
|                                            |   | Identical Assets |   | Inputs |   |   | Total |   |
|                                            |   | (Level 1) |   |   | (Level 3) |   |   | Fair Value |   |
| Marketable securities                           |   | $ | 640,000 |   |   | $ | - |   |   | $ | 640,000 |   |
| Total assets                                    |   | $ | 640,000 |   |   | $ | - |   |   | $ | 640,000 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Share conversion feature                        |   | $ | - |   |   | $ | 977,790 |   |   | $ | 977,790 |   |
| Warrants                                        |   |   | - |   |   |   | 10,778,185 |   |   |   | 10,778,185 |   |
| Total liabilities                               |   | $ | - |   |   | $ | 11,755,975 |   |   | $ | 11,755,975 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

|                                            |   |               |    |         |      |   |      |       |   |
|-------------------------------------------------|--------|--------------------|---------|--------------|-----------|--------|-----------|------------|--------|
| December 31, 2009                               |   |
| Fair Value Measurements at Reporting Date Using |   |
|                                            |   |               |    |         |      |   |      |       |   |
|                                            |   | Quoted Prices in   |    | Significant  |      |   |      |       |
|                                            |   | Active Markets for |    | Unobservable |      |   |      |       |
|                                            |   | Identical Assets   |    | Inputs       |      |   | Total     |       |
|                                            |   | (Level 1)          |    |         | (Level 3) |   |      | Fair Value |   |
| Marketable securities                           |   | $                  | 240,000 |         |      | $      | -         |       |   | $ | 240,000 |   |
| Total assets                                    |   | $                  | 240,000 |         |      | $      | -         |       |   | $ | 240,000 |   |
|                                            |   |               |    |         |      |   |      |       |   |   |   |   |
|                                            |   |               |    |         |      |   |      |       |   |   |   |   |
| Share conversion feature                        |   | $                  | -       |         |      | $      | 577,949   |       |   | $ | 577,949 |   |
| Warrants                                        |   |               | -       |         |      |   | 8,042,489 |       |   |   | 8,042,489 |   |
| Total liabilities                               |   | $                  | -       |         |      | $      | 8,620,438 |       |   | $ | 8,620,438 |   |

----

| Fair Value Measurements               |
|---------------------------------------|
| Using Significant Unobservable Inputs |
| (Level 3)                             |
| Warrants                              |

|                                                |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |
|-----------------------------------------------------|--------|----------------------------------|------------|--------|--------------------------------------------------|--------|---------|----------|--------|--------|-----------------------------------------------------------------------------|--------|--------|-----------------------|-------------|
|                                                |   | Balance Beginning of Period |       |   | Reclassification of Liability Warrants to Equity |   |    | Issuance |   |   | (Gain) Loss Recognized in Earnings from Change in Fair Value |   |   | Balance End of Period |        |
| For the Three Months Ended  June 30, 2010 |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |
| Share conversion feature                            |   | $                                | 551,855    |   |                                             | $      | -       |     |   | $      | -                                                                           |   |   | $                     | 425,935     |   |   | $ | 977,790 |   |
| Warrants                                            |   | $                                | 6,441,772  |   |                                             | $      | -       |     |   | $      | 598,000                                                                     |   |   | $                     | 3,738,413   |   |   | $ | 10,778,185 |   |
|                                                |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |   |   |   |   |   |
|                                                |   | Balance Beginning of Period |       |   | Reclassification of Liability Warrants to Equity |   |    | Issuance |   |   | (Gain) Loss Recognized in Earnings from Change in Fair Value |   |   | Balance End of Period |        |
| For the Six Months Ended June 30, 2010         |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |   |   |   |   |   |
| Share conversion feature                            |   | $                                | 577,949    |   |                                             | $      | -       |     |   | $      | -                                                                           |   |   | $                     | 399,841     |   |   | $ | 977,790 |   |
| Warrants                                            |   | $                                | 8,042,489  |   |                                             | $      | (63,713 | )        |   | $      | 1,029,741                                                                   |   |   | $                     | 1,769,668   |   |   | $ | 10,778,185 |   |
|                                                |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |   |   |   |   |   |
|                                                |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |   |   |   |   |   |
|                                                |   | Balance Beginning of Period |       |   | Reclassification of Liability Warrants to Equity |   |    | Issuance |   |   | (Gain) Loss Recognized in Earnings from Change in Fair Value |   |   | Balance End of Period |        |
| For the Year Ended December 31, 2009                |   |                             |       |   |                                             |   |    |     |   |   |                                                                        |   |   |                  |        |   |   |   |   |   |
| Share conversion feature                            |   | $                                | -          |   |                                             | $      | -       |     |   | $      | 593,426                                                                     |   |   | $                     | (15,477     | ) |   | $ | 577,949 |   |
| Warrants                                            |   | $                                | 13,315,364 |   |                                             | $      | -       |     |   | $      | 8,009,483                                                                   |   |   | $                     | (13,282,358 | ) |   | $ | 8,042,489 |   |

----

|            |             |   | Total    |      |   | Value        |   |    | Preferred Stock |   |
|-----------------|------------------|--------|----------|-----------|--------|--------------|--------|---------|-----------------|--------|
| Preferred Stock | Date of          |   | Proceeds |      |   | Allocated to |   |    | Carrying        |   |
| Issuance        | Issuance         |   | Received |      |   | Warrants     |   |    | Amount          |   |
| Series A        | July 30, 2009    |   | $        | 1,750,000 |   |         | $      | 539,000 |            |   | $ | 1,211,000 |   |
| Series B        | October 6, 2009  |   | $        | 2,000,000 |   |         | $      | 930,838 |            |   | $ | 1,069,162 |   |
| Series C        | January 29, 2010 |   | $        | 1,000,000 |   |         | $      | 431,415 |            |   | $ | 568,585 |   |
| Series C        | June 3, 2010     |   | $        | 2,300,000 |   |         | $      | 598,000 |            |   | $ | 1,702,000 |   |

|     |   | June 30, |   |   | December 31, |   |
|----------|--------|----------|--------|--------|--------------|--------|
|     |   | 2010     |   |   | 2009         |   |
| Series A |   |     | 155    |   |         |   | 155 |   |
| Series G |   |     | 1,200  |   |         |   | 1,200 |   |
| Series H |   |     | 400    |   |         |   | 400 |   |
| Series I |   |     | 1,650  |   |         |   | 1,650 |   |
| Series L |   |     | 1,050  |   |         |   | 1,050 |   |
|     |   |     | 4,455  |   |         |   | 4,455 |   |

----

----

----

| Net Loss Attributable to The Amacore Group, Inc. and                                         |   |
|----------------------------------------------------------------------------------------------|--------|
| Transfers to the Noncontrolling Interest                                                     |   |
| For the Six Months Ended June 30, 2010                                                       |   |
|                                                                                         |   |   |   |
|                                                                                         |   |   |   |
| Net loss attributable to The Amacore Group, Inc.                                             |   | $ | (6,153,703 | ) |
| Increase in additional paid in capital from share issuances                                  |   |   | 246,634 |   |
| Increase in additional paid in capital from reclassification of liability warrants to equity |   |   | 41,579 |   |
| Increase in additional paid in capital from disposition of ownership                         |   |   | 126,315 |   |
| Change from net loss attributable to The Amacore Group, Inc.                                 |   |   |   |   |
| and transfers to noncontrolling interest                                                     |   | $ | (5,739,175 | ) |

|                                                                       |   | June 30, 2010 |       |
|----------------------------------------------------------------------------|--------|---------------|------------|
| ASSETS                                                                     |   |          |       |
| Current assets                                                             |   |          |       |
| Cash                                                                       |   | $             | 1,173,606  |   |
| Marketable securities (at fair value)                                      |   |          | 640,000    |   |
| Accounts receivable                                                        |   |          | 103,378    |   |
| Deferred expenses                                                          |   |          | 761,491    |   |
| Deposits and other assets                                                  |   |          | 52,822     |   |
| Total current assets                                                       |   |          | 2,731,297  |   |
|                                                                       |   |          |       |   |
| Property, plant and equipment (net of accumulated depreciation of $54,886) |   |          | 98,175     |   |
|                                                                       |   |          |       |   |
| Deposits and other assets                                                  |   |          | 123,549    |   |
| Other intangible assets - marketing agreement                              |   |          | 2,000,000  |   |
| Total Assets                                                               |   | $             | 4,953,021  |   |
|                                                                       |   |          |       |   |
| LIABILITIES                                                                |   |          |       |   |
| Current liabilities                                                        |   |          |       |   |
| Accounts payable                                                           |   | $             | 221,304    |   |
| Loans and notes payable - current                                          |   |          | 287,458    |   |
| Accrued expenses and other liabilities                                     |   |          | 413,464    |   |
| Deferred revenue                                                           |   |          | 966,040    |   |
| Total current liabilities                                                  |   |          | 1,888,266  |   |
|                                                                       |   |          |       |   |
| Fair value of warrants                                                     |   |          | 10,660,400 |   |
| Fair value of share conversion feature                                     |   |          | 977,790    |   |
| Loans and notes payable - long term                                        |   |          | 1,592,972  |   |
| Total liabilities                                                          |   | $             | 15,119,428 |   |

----

| Class A                  |              |                 |
|--------------------------|-------------------|----------------------|
| Outstanding Warrants     |              | Exercisable Warrants |
| Range of Exercise Prices | Number ofWarrants |                 | Weighted Average Exercise Price |   | Weighted Average Remaining Contractual Life in Years |   | Number of Warrants |   | Weighted Average Exercise Price |
|  $0.01 to $0.49     | 429,343,217       |                 |  $          0.37 |   | 3.44 |   | 428,530,717 |   |  $            0.37 |
|  $0.50 to $0.99     | 7,850,000         |                 |  $          0.51 |   | 2.45 |   |  7,850,000 |   |  $            0.51 |
|  $1.00 to $1.49     | 825,000           |                 |  $          1.10 |   | 1.96 |   | 700,000 |   |  $            1.11 |
|                     | 438,018,217       |                 |  $          0.37 |   | 3.42 |   | 437,080,717 |   |  $            0.37 |

| Class B                              |
|--------------------------------------|
| Outstanding and Exercisable Warrants |
| Range of Exercise Prices             | Number of Warrants |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contractual Term |
|  $0.01 to $0.49                 |                             - |   |  $               - |   | 0.00 |
|  $0.50 to $0.99                 |               6,465,000 |   |  $          0.50 |   | 2.43 |
|                                 |               6,465,000 |   |  $          0.50 |   | 2.43 |

----

|                                         |   | Class A Warrants               |
|----------------------------------------------|--------|--------------------------------|
|                                         |   | Six Months Ended June 30, 2010 |
|                                         |   | Warrants                       |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term |   |   | Aggregate Intrinsic Value |
| Outstanding at December 31, 2009             |   |                           | 13,125,000 |   |   | $ | 0.46 |   |   |   | 2.76 |   |   | $ | - |
| Granted                                      |   |                           | - |   |   |   | - |   |   |   | - |   |   |   | - |
| Exercised                                    |   |                           | - |   |   |   | - |   |   |   | - |   |   |   | - |
| Cancelled or Expired                         |   |                           | (300,000 | ) |   |   | - |   |   |   | - |   |   |   | - |
| Outstanding at June 30, 2010                 |   |                           | 12,825,000 |   |   | $ | 0.46 |   |   |   | 2.32 |   |   | $ | - |
| Exercisable at June 30, 2010                 |   |                           | 12,200,000 |   |   | $ | 0.46 |   |   |   | 2.29 |   |   | $ | - |
|                                         |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   | Class B Warrants               |
|                                         |   | Six Months Ended June 30, 2010 |
|                                         |   | Warrants                       |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term |   |   | Aggregate Intrinsic Value |
| Outstanding at December 31, 2009             |   |                           | 7,965,000 |   |   | $ | 0.44 |   |   |   | 2.46 |   |   | $ | - |
| Granted                                      |   |                           | - |   |   |   | - |   |   |   | - |   |   |   | - |
| Exercised                                    |   |                           | - |   |   |   | - |   |   |   | - |   |   |   | - |
| Cancelled or Expired                         |   |                           | (1,500,000 | ) |   |   | - |   |   |   | - |   |   |   | - |
| Outstanding and exercisable at June 30, 2010 |   |                           | 6,465,000 |   |   | $ | 0.50 |   |   |   | 2.43 |   |   | $ | - |

|                            |   | Class A Equity Warrants |     |
|---------------------------------|--------|-------------------------|----------|
|                            |   | Six Months Ended        |     |
|                            |   | June 30, 2010           |     |
|                            |   | Warrants                |     |   | Weighted Average Grant-Date Fair Value |   |
| Non-vested at December 31, 2009 |   |                    | 750,000  |   |   | $ | 0.59 |   |
| Granted                         |   |                    | -        |   |   |   | - |   |
| Vested                          |   |                    | (125,000 | ) |   |   | 0.16 |   |
| Canceled or expired             |   |                    | -        |   |   |   | - |   |
| Non-vested at June 30, 2010     |   |                    | 625,000  |   |   | $ | 0.50 |   |

----

|                    | June 30, 2010     |   | December 31, 2009 |
|-------------------------|-------------------|--------|-------------------|
|                    |              |   |              |
| Expected dividends      | 0%                |   | 0%                |
| Expected volatility     | 145.5%            |   | 123.3%            |
| Risk free interest rate | 0.09% - 1.54%     |   | 0.53% - 2.62%     |
| Expected life           |  3 - 5 years |   | 3 - 5 years       |

|                            |   | Class A Liability Warrants |     |
|---------------------------------|--------|----------------------------|----------|
|                            |   | Six Months Ended,          |     |
|                            |   | June 30, 2010              |     |
|                            |   | Warrants                   |     |   | Weighted Average Grant-Date Fair Value |   |
| Non-vested at December 31, 2009 |   |                       | 625,000  |   |   | $ | 0.45 |   |
| Granted                         |   |                       | -        |   |   |   | - |   |
| Vested                          |   |                       | (312,500 | ) |   |   | 0.45 |   |
| Exercised                       |   |                       | -        |   |   |   | - |   |
| Non-vested at June 30, 2010     |   |                       | 312,500  |   |   | $ | 0.45 |   |

|                          |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | June 30,                   |   |   | June 30,                 |   |
|                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Stock-based compensation:     |   |                       |   |   |                     |   |   |   |   |   |
| Payroll and employee benefits |   | $                          | 28,436 |   |                     | $      | 67,483 |   |   | $ | 63,902 |   |   | $ | 147,710 |   |
| Total                         |   | $                          | 28,436 |   |                     | $      | 67,483 |   |   | $ | 63,902 |   |   | $ | 147,710 |   |

----

| Outstanding Warrants     |
|--------------------------|
| Range of Exercise Prices |   | Number of Warrants |   |   Weighted Average Exercise Price |   |   Weighted Average Remaining Contractual Life in Years |
|  $0.01 to $0.49     |   |         50,460,000 |   |  $            0.14 |   | 6.26 |
|  $0.50 to $0.99     |   | 1,502,638 |   |  $            0.52 |   | 1.30 |
|                     |   | 51,962,638 |   |  $            0.15 |   | 6.12 |
|                     |   |   |   |   |   |   |
|                     |   |   |   |   |   |   |
| Exercisable Warrants     |
| Range of Exercise Prices |   | Number of Warrants |   |   Weighted Average Exercise Price |   |   Weighted Average Remaining Contractual Life in Years |
|  $0.01 to $0.49     |   |         50,460,000 |   |  $            0.14 |   | 6.26 |
|  $0.50 to $0.99     |   | 1,402,638 |   |  $            0.52 |   | 1.07 |
|                     |   |         51,862,638 |   |  $            0.15 |   | 6.12 |

|                    |     | June 30, 2010      |
|-------------------------|---------------|--------------------|
|                    |          |               |
| Expected dividends      | 0%            |
| Expected volatility     | 65%           |
| Risk free interest rate | 0.21% - 1.63% |
| Expected life           |     | 6 months - 5 years |

|                             |   | Compensatory Equity Warrants |      |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term |   |   | Aggregate Intrinsic Value |   |
|----------------------------------|--------|------------------------------|-----------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|--------|---------------------------|--------|
| Outstanding at December 31, 2009 |   |                         | -         |   |                                 | $      | -      |                                             |   |   | -                         |   |   | $ | - |   |
| Reclass from liability to equity |   |                         | 700,000   |   |                                 | $      | 0.25   |                                             |   |   | 4.37                      |   |   |   |   |   |
| Issued                           |   |                         | 1,536,191 |   |                                 |   | 0.52   |                                             |   |   | -                         |   |   |   | - |   |
| Exercised                        |   |                         | (33,553   | )      |                                 |   | 0.50   |                                             |   |   | -                         |   |   |   | - |   |
| Cancelled or expired             |   |                         | -         |   |                                 |   | -      |                                             |   |   | -                         |   |   |   | - |   |
| Outstanding at June 30, 2010     |   |                         | 2,202,638 |   |                                 | $      | 0.43   |                                             |   |   | 2.28                      |   |   | $ | - |   |
| Exercisable at June 30, 2010     |   |                         | 2,102,638 |   |                                 | $      | 0.43   |                                             |   |   | 2.17                      |   |   | $ | - |   |

----

|                            |   | Compensatory Warrants |       |   | Weighted Average Grant-Date Fair Value |   |
|---------------------------------|--------|-----------------------|------------|--------|----------------------------------------|--------|
| Non-vested at December 31, 2009 |   |                  | -          |   |                                   | $      | - |   |
| Issued                          |   |                  | 1,536,191  |   |                                   |   | 0.02 |   |
| Exercised                       |   |                  | (33,553    | )      |                                   |   | 0.00 |   |
| Vested                          |   |                  | (1,402,638 | )      |                                   |   | 0.02 |   |
| Non-vested at June 30, 2010     |   |                  | 100,000    |   |                                   | $      | 0.07 |   |

|                    |         | June 30, 2010 |   | December 31, 2009 |
|-------------------------|--------------|---------------|--------|-------------------|
|                    |         |          |   |              |
| Expected dividends      | 0%           |          | 0%     |
| Expected volatility     | 65%          |          | 65%    |
| Risk free interest rate |         | 1.45% - 2.49% |   | 1.56% - 3.36%     |
| Expected life           |    | 7 years       |   | 7 years           |

|                                         |   | Non-Compensatory Warrants |       |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term |   |
|----------------------------------------------|--------|--------------------------------|------------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|
| Outstanding at December 31, 2009             |   |                           | 36,560,000 |   |                                 | $      | 0.10   |                                             |   |   | 6.59 |   |
| Issued                                       |   |                           | 13,200,000 |   |                                 |   | 0.25   |                                             |   |   | 6.82 |   |
| Exercised                                    |   |                           | -          |   |                                 |   | -      |                                             |   |   | - |   |
| Cancelled or expired                         |   |                           | -          |   |                                 |   | -      |                                             |   |   | - |   |
| Outstanding and exercisable at June 30, 2010 |   |                           | 49,760,000 |   |                                 | $      | 0.14   |                                             |   |   | 6.29 |   |
|                                         |   |                           |       |   |                                 |   |   |                                             |   |   |   |   |

----

|                            |   | Non-compensatory Warrants |        |   | Weighted Average Grant-Date Fair Value |   |
|---------------------------------|--------|---------------------------|-------------|--------|----------------------------------------|--------|
|                            |   |                      |        |   |                                   |   |
| Non-vested at December 31, 2009 |   |                      | -           |   |                                   | $      | - |   |
| Issued                          |   |                      | 13,200,000  |   |                                   |   | 0.08 |   |
| Exercised                       |   |                      | -           |   |                                   |   | - |   |
| Vested                          |   |                      | (13,200,000 | )      |                                   |   | - |   |
| Non-vested at June 30, 2009     |   |                      | -           |   |                                   | $      | - |   |

|                          |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | June 30,                   |   |   | June 30,                 |   |
|                          |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Stock-based compensation:     |   |                       |   |   |                     |   |   |   |   |   |
| Professional fees             |   | $                          | -      |   |                     | $      | - |   |   | $ | 28,343 |   |   | $ | - |   |
| Payroll and employee benefits |   |                       | 58,415 |   |                     |   | 23,291 |   |   |   | 116,829 |   |   |   | 53,748 |   |
| Total                         |   | $                          | 58,415 |   |                     | $      | 23,291 |   |   | $ | 145,172 |   |   | $ | 53,748 |   |

----

----

|                                  |   | For the Three Months Ended June 30, 2010 |      |
|---------------------------------------|--------|------------------------------------------|-----------|
|                                  |   | LifeGuard                                |      |   | USHBG |   |   | Zurvita |   |   | JRM |   |   | Corporate and Other |   |   | Total |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                         |   | $                                        | 1,597,300 |   |   | $ | 547,666 |   |   | $ | 1,582,757 |   |   | $ | 37,978 |   |   | $ | 903,900 |   |   | $ | 4,669,601 |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss before in income taxes       |   | $                                        | (489,909  | ) |   | $ | (516,509 | ) |   | $ | (5,116,063 | ) |   | $ | (112,466 | ) |   | $ | (773,226 | ) |   | $ | (7,008,173 | ) |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                          |   |                                     | -         |   |   |   | - |   |   |   | 23,308 |   |   |   | - |   |   |   | - |   |   |   | 23,308 |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                              |   | $                                        | (489,909  | ) |   | $ | (516,509 | ) |   | $ | (5,139,371 | ) |   | $ | (112,466 | ) |   | $ | (773,226 | ) |   | $ | (7,031,481 | ) |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization         |   | $                                        | 100,855   |   |   | $ | 35,173 |   |   | $ | 9,061 |   |   |   | 1,192 |   |   |   | 20,696 |   |   | $ | 166,977 |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | For the Three Months Ended June 30, 2009 |      |
|                                  |   | LifeGuard                                |      |   | USHBG |   |   | Zurvita |   |   | JRM |   |   | Corporate and Other |   |   | Total |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                         |   | $                                        | 5,758,322 |   |   | $ | 1,014,111 |   |   | $ | 1,211,835 |   |   | $ | 37,210 |   |   | $ | 222,418 |   |   | $ | 8,243,896 |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income before income taxes |   | $                                        | (212,726  | ) |   | $ | (280,748 | ) |   | $ | (1,359,420 | ) |   | $ | (126,478 | ) |   | $ | 1,074,096 |   |   | $ | (905,276 | ) |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                          |   |                                     | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                     |   | $                                        | (212,726  | ) |   | $ | (280,748 | ) |   | $ | (1,359,420 | ) |   | $ | (126,478 | ) |   | $ | 1,074,096 |   |   | $ | (905,276 | ) |
|                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization         |   | $                                        | 157,473   |   |   | $ | 181,907 |   |   | $ | 8,452 |   |   | $ | 1,192 |   |   | $ | 22,968 |   |   | $ | 371,992 |   |

|                                   |   | For the Three Months Ended June 30, |       |
|----------------------------------------|--------|-------------------------------------|------------|
|                                   |   | 2010                                |       |   | 2009 |   |
| Revenues                               |   |                                |       |   |   |   |
| Total revenues for reportable segments |   | $                                   | 4,669,601  |   |   | $ | 8,243,896 |   |
| Elimination of intersegment revenues   |   |                                | (364,601   | ) |   |   | (802,507 | ) |
| Total consolidated revenue             |   | $                                   | 4,305,000  |   |   | $ | 7,441,389 |   |
|                                   |   |                                |       |   |   |   |   |   |
| Net loss                               |   |                                |       |   |   |   |   |   |
| Net total loss for reportable segments |   | $                                   | (7,031,481 | ) |   | $ | (905,276 | ) |
| Elimination of intersegment profits    |   |                                | -          |   |   |   | - |   |
| Net loss                               |   | $                                   | (7,031,481 | ) |   | $ | (905,276 | ) |

----

|                                  |   | For the Six Months Ended June 30, 2010 |       |   |   |   |
|---------------------------------------|--------|----------------------------------------|------------|--------|--------|--------|
|                                  |   | LifeGuard                              |       |   | USHBG  |   |   | Zurvita |   |   | JRM |   |   | Corporateand Other |   |   | Total |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                         |   | $                                      | 5,480,074  |   |   | $      | 1,267,091 |   |   | $ | 3,329,762 |   |   | $ | 104,116 |   |   | $ | 1,278,309 |   |   | $ | 11,459,352 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss before in income taxes       |   | $                                      | (505,280   | )      |   | $      | (979,942 | ) |   | $ | (6,323,261 | ) |   | $ | (244,715 | ) |   | $ | (313,880 | ) |   | $ | (8,367,078 | ) |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                          |   |                                   | -          |   |   |   | - |   |   |   | 23,308 |   |   |   | - |   |   |   | - |   |   |   | 23,308 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                              |   | $                                      | (505,280   | )      |   | $      | (979,942 | ) |   | $ | (6,346,569 | ) |   | $ | (244,715 | ) |   | $ | (313,880 | ) |   | $ | (8,390,386 | ) |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets held                     |   | $                                      | 1,760,393  |   |   | $      | 2,929,138 |   |   | $ | 5,996,445 |   |   | $ | 17,792 |   |   | $ | 1,469,849 |   |   | $ | 12,173,617 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization         |   | $                                      | 200,606    |   |   | $      | 70,345 |   |   | $ | 18,072 |   |   | $ | 2,383 |   |   | $ | 41,916 |   |   | $ | 333,322 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | For the Six Months Ended June 30, 2009 |       |   |   |   |   |
|                                  |   | LifeGuard                              |       |   | USHBG  |   |   | Zurvita |   |   | JRM |   |   | Corporate and Other |   |   | Total |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenue                         |   | $                                      | 11,475,111 |   |   | $      | 2,282,022 |   |   | $ | 2,344,974 |   |   | $ | 91,837 |   |   | $ | 369,229 |   |   | $ | 16,563,173 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income before income taxes |   | $                                      | (647,130   | )      |   | $      | (654,296 | ) |   | $ | (2,612,100 | ) |   | $ | (277,991 | ) |   | $ | 5,142,663 |   |   | $ | 951,146 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                          |   |                                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                     |   | $                                      | (647,130   | )      |   | $      | (654,296 | ) |   | $ | (2,612,100 | ) |   | $ | (277,991 | ) |   | $ | 5,142,663 |   |   | $ | 951,146 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets held                     |   | $                                      | 8,604,621  |   |   | $      | 6,155,383 |   |   | $ | 1,556,078 |   |   | $ | 207,454 |   |   | $ | 3,526,743 |   |   | $ | 20,050,279 |   |
|                                  |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization         |   | $                                      | 401,015    |   |   | $      | 363,530 |   |   | $ | 16,904 |   |   | $ | 2,383 |   |   | $ | 39,121 |   |   | $ | 822,954 |   |

|                                            |   | For the Six Months Ended June 30, |       |
|-------------------------------------------------|--------|----------------------------------------|------------|
|                                            |   | 2010                                   |       |   | 2009 |   |
| Revenues                                        |   |                                   |       |   |   |   |
| Total revenues for reportable segments          |   | $                                      | 11,459,352 |   |   | $ | 16,563,173 |   |
| Elimination of intersegment revenues            |   |                                   | (833,291   | ) |   |   | (1,685,258 | ) |
| Total consolidated revenue                      |   | $                                      | 10,626,061 |   |   | $ | 14,877,915 |   |
|                                            |   |                                   |       |   |   |   |   |   |
| Net (loss) income                               |   |                                   |       |   |   |   |   |   |
| Net total (loss) income for reportable segments |   | $                                      | (8,390,386 | ) |   | $ | 951,146 |   |
| Elimination of intersegment profits             |   |                                   | -          |   |   |   | - |   |
| Net (loss) income                               |   | $                                      | (8,390,386 | ) |   | $ | 951,146 |   |
|                                            |   |                                   |       |   |   |   |   |   |
| Assets                                          |   |                                   |       |   |   |   |   |   |
| Total assets for reportable segements           |   | $                                      | 12,173,617 |   |   | $ | 20,050,279 |   |
| Elimination of intersegment receivables         |   |                                   | (2,538,631 | ) |   |   | (1,514,327 | ) |
| Elimination of intersegment note recievable     |   |                                   | (1,039,000 | ) |   |   | - |   |
| Total consolidated assets                       |   | $                                      | 8,595,986  |   |   | $ | 18,535,952 |   |

----

----

|   | · | Overview – This section provides a general description of our business and operating segments. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | Results of operations – This section provides an analysis of our results of operations comparing the three and six months ended June 30, 2010 and 2009.  This analysis is provided on a consolidated and operating segment basis. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Liquidity and capital resources – This section provides an analysis of our cash flows for the six months ended June 30, 2010 and 2009 as well as a discussion of our liquidity and capital resources. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | LifeGuard Benefit Services Division – This division historically has generated revenue primarily from the sale of healthcare benefit membership plans and provides product fulfillment, customer support, membership billing, claims administration, provider membership network maintenance and information technology.    With the recent marketing and servicing contract terminations between LifeGuard and Direct Medical Network Solutions, Inc. (“DirectMedical”) and Consumer Assistance Service Association (“CASA”), this division is now mainly providing its supporting services to other divisions. The Company operates this division through LifeGuard Benefit Services, Inc., a wholly owned subsidiary of the Company (“LifeGuard”). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | U.S. Health Benefits Group Division – This division is an inbound lead generation telemarketing operation primarily marketing major and limited medical benefit plans.  The Company has operated this division through US Health Benefits Group, Inc., US Healthcare Plans, Inc. and On the Phone, Inc., each a wholly owned subsidiary of the Company  (collectively, “USHBG”).  Effective July 9, 2010, the Company shut down this division due to continued operating losses and the increased operating cash requirements of the division due to recent contract terminations.                                                                                                                                                          |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | Zurvita Holdings Inc. – This is a network marketing company that is a provider of products and benefits through the use of a multi-level marketing distribution channel which consist of independent business operators.  The products marketed include residential gas and electricity energy rate plans, discount healthcare benefits and discount benefits on various retail products and services, and online advertising.  Zurvita Holdings, Inc. (“Zurvita”) also markets numerous low cost ancillary lifestyle membership products such as home warranty, legal assistance and restoration services for identity theft and consumer credit. Zurvita is a variable interest entity, and the Company is the primary beneficiary of Zurvita. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | JRM Benefits Consultants Division – This division historically marketed various financial services and healthcare products through its telemarketing center and agent distribution network to individuals, families and employer groups.  Effective March 1, 2010, the Company halted call center operations of JRM.  The Senior Vice Presidents of JRM will focus on recruiting agents and other direct response marketers to sell the products of other reporting units.  The Company operates this division through JRM Benefits Consultants, LLC, a wholly owned subsidiary of the Company (“JRM”).                                                                                                                                     |

|   | · | Corporate and Other Division – This division provides management and financial support to the Company’s various divisions and is responsible for corporate governance and compliance. The division has primarily operated as a cost center and recognized limited revenue from strategic marketing initiatives with respect to sale of healthcare membership benefit plans.  However, with the shutdown of JRM and USHBG operations and the contract termination between DirectMedical, CASA and LifeGuard, this division has added revenue generation as a major aspect of its operations. The Company operates this division through The Amacore Group, Inc. and its wholly owned subsidiary Amacore Direct Marketing, Inc.   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                       |   | For the Three Months Ended |       |   |     |   |       | For the Six Months Ended |   |   |       |   |
|--------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|----------|--------|------------|--------------------------|--------|--------|------------|--------|
|                                                                                       |   | June 30,                   |       |   | Increase |   |       | June 30,                 |   |   | Increase   |   |
|                                                                                       |   | 2010                       |       |   | 2009     |   |       | (Decrease)               |   |   | 2010       |   |   | 2009 |   |   | (Decrease) |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |
| Revenues                                                                                   |   | $                          | 4,305,000  |   |     | $      | 7,441,389  |                     |   | $      | (3,136,389 | )      |   | $ | 10,626,061 |   |   | $ | 14,877,915 |   |   | $ | (4,251,854 | ) |
| Cost of Sales                                                                              |   |                       | 2,647,704  |   |     |   | 4,875,325  |                     |   |   | (2,227,621 | )      |   |   | 6,642,596 |   |   |   | 9,546,515 |   |   |   | (2,903,919 | ) |
| Gross Profit                                                                               |   |                       | 1,657,296  |   |     |   | 2,566,064  |                     |   |   | (908,768   | )      |   |   | 3,983,465 |   |   |   | 5,331,400 |   |   |   | (1,347,935 | ) |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                                                         |   |                       | 4,755,716  |   |     |   | 7,558,821  |                     |   |   | (2,803,105 | )      |   |   | 10,231,650 |   |   |   | 15,023,442 |   |   |   | (4,791,792 | ) |
| Operating Loss                                                                             |   |                       | (3,098,420 | )      |     |   | (4,992,757 | )                        |   |   | (1,894,337 | )      |   |   | (6,248,185 | ) |   |   | (9,692,042 | ) |   |   | (3,443,857 | ) |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other (Expense) Income                                                                     |   |                       | (3,909,753 | )      |     |   | 4,087,481  |                     |   |   | (7,997,234 | )      |   |   | (2,118,893 | ) |   |   | 10,643,188 |   |   |   | (12,762,081 | ) |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (Loss) Income before Income Taxes                                                      |   |                       | (7,008,173 | )      |     |   | (905,276   | )                        |   |   | 6,102,897  |   |   |   | (8,367,078 | ) |   |   | 951,146 |   |   |   | 9,318,224 |   |
| Income Taxes                                                                               |   |                       | 23,308     |   |     |   | -          |                     |   |   | 23,308     |   |   |   | 23,308 |   |   |   | - |   |   |   | 23,308 |   |
| Net (Loss) Income                                                                          |   |                       | (7,031,481 | )      |     |   | (905,276   | )                        |   |   | 6,126,205  |   |   |   | (8,390,386 | ) |   |   | 951,146 |   |   |   | 9,341,532 |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Net Loss Attributed to Non-Controlling Interest in Zurvita Holdings, Inc. |   |                       | 1,802,259  |   |     |   | -          |                     |   |   | 1,802,259  |   |   |   | 2,236,683 |   |   |   | - |   |   |   | 2,236,683 |   |
| Net (Loss) Income Attributed to The Amacore Group, Inc.                                    |   |                       | (5,229,222 | )      |     |   | (905,276   | )                        |   |   | 4,323,946  |   |   |   | (6,153,703 | ) |   |   | 951,146 |   |   |   | 7,104,849 |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Stock Dividend                                                                   |   |                       | (645,000   | )      |     |   | (522,278   | )                        |   |   | 122,722    |   |   |   | (1,290,000 | ) |   |   | (970,445 | ) |   |   | 319,555 |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss Available to Common Stockholders                                                  |   | $                          | (5,874,222 | )      |     | $      | (1,427,554 | )                        |   | $      | 4,446,668  |   |   | $ | (7,443,703 | ) |   | $ | (19,299 | ) |   | $ | 7,424,404 |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Diluted Loss Per Share                                                           |   | $                          | (0.01      | )      |     | $      | (0.00      | )                        |   |   |       |   |   | $ | (0.01 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                                                       |   |                       |       |   |     |   |       |                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                     |   | For Three Months Ending June 30, |      |   | For Six Months Ending June 30, |   |
|--------------------------|--------|----------------------------------|-----------|--------|--------------------------------|--------|
|                     |   | 2010                             |      |   | 2009                           |   |   | Increase (Decrease) |   |   | 2010 |   |   | 2009 |   |   | Increase (Decrease) |   |
|                     |   |                             |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization             |   | $                                | 100,282   |   |                           | $      | 257,139 |   |   | $ | (156,857 | ) |   | $ | 199,929 |   |   | $ | 598,730 |   |   | $ | (398,801 | ) |
| Depreciation             |   |                             | 66,695    |   |                           |   | 114,853 |   |   |   | (48,158 | ) |   |   | 133,393 |   |   |   | 224,225 |   |   |   | (90,832 | ) |
| Office related expenses  |   |                             | 686,289   |   |                           |   | 579,236 |   |   |   | 107,053 |   |   |   | 1,394,954 |   |   |   | 1,285,983 |   |   |   | 108,971 |   |
| Payroll and benefits     |   |                             | 1,886,958 |   |                           |   | 2,405,069 |   |   |   | (518,111 | ) |   |   | 4,122,322 |   |   |   | 4,712,298 |   |   |   | (589,976 | ) |
| Professional fees        |   |                             | 702,715   |   |                           |   | 2,603,449 |   |   |   | (1,900,734 | ) |   |   | 1,479,835 |   |   |   | 4,634,268 |   |   |   | (3,154,433 | ) |
| Selling and marketing    |   |                             | 1,181,590 |   |                           |   | 1,518,654 |   |   |   | (337,064 | ) |   |   | 2,670,343 |   |   |   | 3,348,581 |   |   |   | (678,238 | ) |
| Travel                   |   |                             | 131,187   |   |                           |   | 80,421 |   |   |   | 50,766 |   |   |   | 230,874 |   |   |   | 219,357 |   |   |   | 11,517 |   |
| Total operating expenses |   | $                                | 4,755,716 |   |                           | $      | 7,558,821 |   |   | $ | (2,803,105 | ) |   | $ | 10,231,650 |   |   | $ | 15,023,442 |   |   | $ | (4,791,792 | ) |

----

----

|                   |   | For the Three Months Ended June 30, |       |   | For the Six Months Ended June 30, |   |
|------------------------|--------|------------------------------------------|------------|--------|----------------------------------------|--------|
|                   |   | 2010                                     |       |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |
| Revenues               |   | $                                        | 1,597,300  |   |                                   | $      | 5,758,323 |   |   | $ | 5,480,074 |   |   | $ | 11,475,111 |   |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales          |   |                                     | (1,263,116 | )      |                                   |   | (4,352,496 | ) |   |   | (4,104,435 | ) |   |   | (8,742,247 | ) |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit           |   |                                     | 334,184    |   |                                   |   | 1,405,827 |   |   |   | 1,375,639 |   |   |   | 2,732,864 |   |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses     |   |                                     | (853,304   | )      |                                   |   | (1,608,785 | ) |   |   | (1,929,477 | ) |   |   | (3,364,107 | ) |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense) |   |                                     | 29,211     |   |                                   |   | (9,768 | ) |   |   | 48,558 |   |   |   | (15,887 | ) |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss before Taxes  |   | $                                        | (489,909   | )      |                                   | $      | (212,726 | ) |   | $ | (505,280 | ) |   | $ | (647,130 | ) |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes           |   |                                     | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|                   |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Loss         |   | $                                        | (489,909   | )      |                                   | $      | (212,726 | ) |   | $ | (505,280 | ) |   | $ | (647,130 | ) |

----

|                  |   | For the Three Months Ended June 30, |     |   | For the Six Months Ended June 30, |   |
|-----------------------|--------|------------------------------------------|----------|--------|----------------------------------------|--------|
|                  |   | 2010                                     |     |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |
| Revenues              |   | $                                        | 547,666  |   |                                   | $      | 1,014,111 |   |   | $ | 1,267,091 |   |   | $ | 2,282,022 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales         |   |                                     | (259,306 | )      |                                   |   | (348,908 | ) |   |   | (596,650 | ) |   |   | (694,712 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit          |   |                                     | 288,360  |   |                                   |   | 665,203 |   |   |   | 670,441 |   |   |   | 1,587,310 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses    |   |                                     | (804,869 | )      |                                   |   | (945,951 | ) |   |   | (1,650,042 | ) |   |   | (2,114,460 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Expense         |   |                                     | -        |   |                                   |   | - |   |   |   | (341 | ) |   |   | (127,146 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss before Taxes |   | $                                        | (516,509 | )      |                                   | $      | (280,748 | ) |   | $ | (979,942 | ) |   | $ | (654,296 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes          |   |                                     | -        |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss              |   | $                                        | (516,509 | )      |                                   | $      | (280,748 | ) |   | $ | (979,942 | ) |   | $ | (654,296 | ) |

----

|                  |   | For the Three Months Ended June 30, |       |   | For the Six Months Ended June 30, |   |
|-----------------------|--------|------------------------------------------|------------|--------|-----------------------------------|--------|
|                  |   | 2010                                     |       |   | 2009                              |   |   | 2010 |   |   | 2009 |   |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |
| Revenues              |   | $                                        | 1,582,757  |   |                              | $      | 1,211,835 |   |   | $ | 3,329,762 |   |   | $ | 2,344,974 |   |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales         |   |                                     | (1,026,494 | )      |                              |   | (923,906 | ) |   |   | (2,169,211 | ) |   |   | (1,672,394 | ) |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit (Loss)   |   |                                     | 556,263    |   |                              |   | 287,929 |   |   |   | 1,160,551 |   |   |   | 672,580 |   |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses    |   |                                     | (1,448,349 | )      |                              |   | (1,647,349 | ) |   |   | (3,158,756 | ) |   |   | (3,284,680 | ) |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Other Income          |   |                                     | (4,223,977 | )      |                              |   | - |   |   |   | (4,325,056 | ) |   |   | - |   |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss before Taxes |   | $                                        | (5,116,063 | )      |                              | $      | (1,359,420 | ) |   | $ | (6,323,261 | ) |   | $ | (2,612,100 | ) |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes          |   |                                     | 23,308     |   |                              |   | - |   |   |   | 23,308 |   |   |   | - |   |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss              |   | $                                        | (5,139,371 | )      |                              | $      | (1,359,420 | ) |   | $ | (6,346,569 | ) |   | $ | (2,612,100 | ) |
|                  |   |                                     |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |

----

|                  |   | For the Three Months Ended June 30, |     |   | For the Six Months Ended June 30, |   |
|-----------------------|--------|------------------------------------------|----------|--------|----------------------------------------|--------|
|                  |   | 2010                                     |     |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |
| Revenues              |   | $                                        | 37,978   |   |                                   | $      | 37,210 |   |   | $ | 104,116 |   |   | $ | 91,837 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales         |   |                                     | -        |   |                                   |   | (1,930 | ) |   |   | (3,449 | ) |   |   | (1,930 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit          |   |                                     | 37,978   |   |                                   |   | 35,280 |   |   |   | 100,667 |   |   |   | 89,907 |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses    |   |                                     | (142,373 | )      |                                   |   | (152,633 | ) |   |   | (329,421 | ) |   |   | (351,625 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Expense         |   |                                     | (8,071   | )      |                                   |   | (9,125 | ) |   |   | (15,961 | ) |   |   | (16,273 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss before Taxes |   | $                                        | (112,466 | )      |                                   | $      | (126,478 | ) |   | $ | (244,715 | ) |   | $ | (277,991 | ) |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes          |   |                                     | -        |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|                  |   |                                     |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Loss        |   | $                                        | (112,466 | )      |                                   | $      | (126,478 | ) |   | $ | (244,715 | ) |   | $ | (277,991 | ) |

|                    |   | For the Three Months Ended June 30, |       |   | For the Six Months Ended June 30, |   |
|-------------------------|--------|-------------------------------------|------------|--------|----------------------------------------|--------|
|                    |   | 2010                                |       |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |
| Revenues                |   | $                                   | 903,900    |   |                                   | $      | 222,418 |   |   | $ | 1,278,309 |   |   | $ | 369,229 |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales           |   |                                | (463,389   | )      |                                   |   | (50,592 | ) |   |   | (602,142 | ) |   |   | (120,490 | ) |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit            |   |                                | 440,511    |   |                                   |   | 171,826 |   |   |   | 676,167 |   |   |   | 248,739 |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses      |   |                                | (1,506,821 | )      |                                   |   | (3,204,103 | ) |   |   | (3,163,954 | ) |   |   | (5,908,570 | ) |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income            |   |                                | 293,084    |   |                                   |   | 4,106,373 |   |   |   | 2,173,907 |   |   |   | 10,802,494 |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income before Taxes |   | $                                   | (773,226   | )      |                                   | $      | 1,074,096 |   |   | $ | (313,880 | ) |   | $ | 5,142,663 |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes            |   |                                | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|                    |   |                                |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income              |   | $                                   | (773,226   | )      |                                   | $      | 1,074,096 |   |   | $ | (313,880 | ) |   | $ | 5,142,663 |   |

----

|                                      |   | June 30, 2010 |       |   | June 30, 2009 |   |
|-------------------------------------------|--------|---------------|------------|--------|---------------|--------|
|                                      |   |          |       |   |          |   |
| Net cash used in operating activities     |   | $             | (4,786,374 | )      |          | $      | (8,343,040 | ) |
| Net cash used in investing activities     |   |          | (34,824    | )      |          |   | (257,402 | ) |
| Net cash provided by financing activities |   |          | 2,994,286  |   |          |   | 11,038,128 |   |
|                                      |   |          |       |   |          |   |   |   |
| Net (decrease) increase in cash           |   | $             | (1,826,912 | )      |          | $      | 2,437,686 |   |

| Current    |   | $      | 543,200   |   |
|------------|--------|--------|-----------|--------|
| 2012       |   |   | 294,487   |   |
| 2013       |   |   | 148,038   |   |
| 2014       |   |   | 143,295   |   |
| 2015       |   |   | 122,385   |   |
| Thereafter |   |   | -         |   |
|       |   | $      | 1,251,405 |   |

----

| Current |   | $      | 90,461  |   |
|---------|--------|--------|---------|--------|
| 2011    |   |   | 87,391  |   |
| 2012    |   |   | 72,038  |   |
| 2013    |   |   | 36,019  |   |
| 2014    |   |   | -       |   |
|    |   | $      | 285,909 |   |

----

----

|   |                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.02   | Termination of a Material Definitive Agreement dated June 14, 2010 (incorporated to the Company’s Form S-8 with the Securities and Exchange Commission on July 2, 2010)           |
|   |                                                                                                                                                                                    |
| 8.01   | Other Events dated July 9, 2010 (incorporated to the Company’s Form S-8 with the Securities and Exchange Commission on July 21, 2010)                                             |
|   |                                                                                                                                                                                    |
| 31.1   | Certification of Chief Executive Officer pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   |                                                                                                                                                                                    |
| 31.2   | Certification of Chief Financial Officer pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   |                                                                                                                                                                                    |
| 32.1   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002                                                          |

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| Dated: August 16, 2010 | /s/ Jay Shafer                                  |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | Jay Shafer                                                                                                                                                                                                      |
|                   | Chief Executive Officer                                                                                                                                                                                         |
|                   |                                                                                                                                                                                                            |
|                   |                                                                                                                                                                                                            |
| Dated: August 16, 2010 | /s/ Scott Smith                                 |
|                   | Scott Smith                                                                                                                                                                                                     |
|                   | Interim Chief Financial Officer                                                                                                                                                                                 |
|                   |                                                                                                                                                                                                            |
|                   |                                                                                                                                                                                                            |
| Dated: August 16, 2010 | /s/ Jason Post                                            |
|                   | Jason Post                                                                                                                                                                                                      |
|                   | Principal Accounting Officer                                                                                                                                                                                    |

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