UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF

THE SECURITIES EXCHANGE ACT OF 1934



For the Quarter ended June 30, 2012



THRIVE WORLD WIDE, INC.



Commission File Number: 333-127597



|Nevada                                                                         | 20-2725030                          
|------------------------------------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of
        incorporation or
        organization) | (I.R.S. Employer Identification No.)
|                                                                               |                                     
|647 Main Street, Suite 500, Lake Geneva, WI                                    | 53147                               
|(Address of principal executive offices)                                       | (Zip Code)                          



(855) 899-2929

(Issuer's telephone number)



Check whether the issuer (1) filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x    No  ̈



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



|Large Accelerated Filer  ̈ | Accelerated Filer  ̈ | Non-Accelerated Filer £
        (Do not check if a
        smaller reporting
        company) | Smaller Reporting
                           Company x
|------------------------- | ------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------------------



Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ̈   No
x



As of August 16, 2012, there were 310,131,068
outstanding shares of the registrant's common stock, $.001 par value per share.











THRIVE WORLD WIDE, INC.

FORM 10-Q

TABLE OF CONTENTS



|                               |                                                                                                                  | PAGE
|------------------------------ | ---------------------------------------------------------------------------------------------------------------- | ----
|PART I - FINANCIAL INFORMATION |                                                                                                                 
|                               |                                                                                                                  |     
|Item 1.                        | Financial Statements                                                                                             |     
|                               |                                                                                                                  |     
|                               | Consolidated Balance Sheets as of June 30, 2012 (Unaudited)  and September 30, 2011                              | 1   
|                               |                                                                                                                  |     
|                               | Consolidated Statements of Operations (Unaudited) For the Three and Nine Months Ended June
    30, 2012 and 2011 | 2   
|                               |                                                                                                                  |     
|                               | Consolidated Statement of Stockholders' Equity (Unaudited) For the Nine Months Ended June
    30, 2012           | 3   
|                               |                                                                                                                  |     
|                               | Consolidated Statements of Cash Flows (Unaudited) For the  Nine Months Ended June 30,
    2012                   | 4   
|                               |                                                                                                                  |     
|                               | Notes to Consolidated Financial Statements (Unaudited)                                                           | 5   
|                               |                                                                                                                  |     
|Item 2.                        | Management's Discussion and Analysis of Financial Condition and Results of Operations                            | 10  
|                               |                                                                                                                  |     
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                                       | 14  
|                               |                                                                                                                  |     
|Item 4.                        | Controls and Procedures                                                                                          | 14  
|                               |                                                                                                                  |     
|Item 4(T).                     | Controls and Procedures                                                                                          | 14  
|                               |                                                                                                                  |     
|PART II - OTHER INFORMATION    |                                                                                                                 
|                               |                                                                                                                  |     
|Item 1.                        | Legal Proceedings                                                                                                | 14  
|                               |                                                                                                                  |     
|Item 1A.                       | Risk Factors                                                                                                     | 14  
|                               |                                                                                                                  |     
|Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                                      | 15  
|                               |                                                                                                                  |     
|Item 3.                        | Defaults Upon Senior Securities                                                                                  | 16  
|                               |                                                                                                                  |     
|Item 4.                        | Mine Safety Disclosures                                                                                          | 16  
|                               |                                                                                                                  |     
|Item 5.                        | Other Information                                                                                                | 16  
|                               |                                                                                                                  |     
|Item 6.                        | Exhibits                                                                                                         | 16  
|                               |                                                                                                                  |     
|Signatures                     |                                                                                                                  | 17  











Item 1. Financial Statements.



|Thrive World Wide, Inc.
|-----------------------
|Balance Sheets         



|                                                                                                                                                                              |  | June 30,    |            |   | September 30, |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | ---------- | - | ------------- | -
|                                                                                                                                                                              |  | 2012        |            |   | 2011          |  
|                                                                                                                                                                              |  | (Unaudited) |            |   | (Audited)     |  
|ASSETS                                                                                                                                                                        |  |             |            |   |               |  
|Current Assets                                                                                                                                                                |  |             |            |   |               |  
|Cash                                                                                                                                                                          |  | $           | 63         |   |               | $
|Prepaid expenses and other current assets (Note B)                                                                                                                            |  |             | -          |   |               |  
|Total Current Assets                                                                                                                                                          |  |             | 63         |   |               |  
|                                                                                                                                                                              |  |             |            |   |               |  
|Equipment, net of $8,464 of accumulated depreciation                                                                                                                          |  |             | 3,787      |   |               |  
|Other assets                                                                                                                                                                  |  |             | -          |   |               |  
|                                                                                                                                                                              |  |             |            |   |               |  
|Total Assets                                                                                                                                                                  |  | $           | 3,850      |   |               | $
|                                                                                                                                                                              |  |             |            |   |               |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                         |  |             |            |   |               |  
|Current Liabilities                                                                                                                                                           |  |             |            |   |               |  
|Accounts payable (Note C)                                                                                                                                                     |  | $           | 355,318    |   |               | $
|Accrued interest (Note C and D)                                                                                                                                               |  |             | 143,594    |   |               |  
|Accrued compensation (Note C)                                                                                                                                                 |  |             | 63,333     |   |               |  
|Shareholder promissory notes (Note D)                                                                                                                                         |  |             | 1,100,137  |   |               |  
|Bank line of credit (Note E)                                                                                                                                                  |  |             | 95,636     |   |               |  
|Total Current Liabilities                                                                                                                                                     |  |             | 1,758,018  |   |               |  
|                                                                                                                                                                              |  |             |            |   |               |  
|Total Liabilities                                                                                                                                                             |  |             | 1,758,018  |   |               |  
|                                                                                                                                                                              |  |             |            |   |               |  
|Stockholders' Deficit (Note F)                                                                                                                                                |  |             |            |   |               |  
|Preferred stock, par value $.001, 10,000,000 shares authorized; 3,666,663
    and none issued and outstanding at June 30, 2012 and September 30, 2011, respectively.          |  |             | 3,667      |   |               |  
|Common stock, par value $.001, 1,000,000,000 shares authorized; 310,131,068
    and 116,753,468 issued and outstanding at June 30, 2012 and September 30, 2011, respectively. |  |             | 310,131    |   |               |  
|Additional paid-in capital                                                                                                                                                    |  |             | 1,856,648  |   |               |  
|Accumulated deficit                                                                                                                                                           |  |             | (3,924,614 | ) |               |  
|Total Stockholders' Deficit                                                                                                                                                   |  |             | (1,754,168 | ) |               |  
|Total Liabilities and Stockholders' Deficit                                                                                                                                   |  | $           | 3,850      |   |               | $



THE ACCOMPANYING NOTES ARE
AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



1







|Thrive World Wide, Inc.                                   
|----------------------------------------------------------
|Statements of Operations (Unaudited)                      
|For the Three and Nine Months Ended June 30, 2012 and 2011



|                                                                                                                                                                          |  | Three Months Ended |               |   | Nine Months Ended |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ------------- | - | ----------------- | -
|                                                                                                                                                                          |  | June 30,           |               |   | June 30,          |  
|                                                                                                                                                                          |  | 2012               |               |   | 2011              |  
|                                                                                                                                                                          |  |                    |               |   |                   |  
|Revenue                                                                                                                                                                   |  | $                  | -             |   |                   | $
|Cost of sales                                                                                                                                                             |  |                    | 16,200        |   |                   |  
|Gross profit                                                                                                                                                              |  |                    | (16,200       | ) |                   |  
|                                                                                                                                                                          |  |                    |               |   |                   |  
|Operating expense                                                                                                                                                         |  |                    |               |   |                   |  
|General and administrative                                                                                                                                                |  |                    | 42,825        |   |                   |  
|Sales and marketing                                                                                                                                                       |  |                    | -             |   |                   |  
|Depreciation & amortization                                                                                                                                               |  |                    | 1,020         |   |                   |  
|Total operating expenses                                                                                                                                                  |  |                    | 43,845        |   |                   |  
|Loss from operations                                                                                                                                                      |  |                    | (60,045       | ) |                   |  
|                                                                                                                                                                          |  |                    |               |   |                   |  
|Other income (expense)                                                                                                                                                    |  |                    |               |   |                   |  
|Interest expense                                                                                                                                                          |  |                    | (24,106       | ) |                   |  
|Total other expense                                                                                                                                                       |  |                    | (24,106       | ) |                   |  
|Net loss                                                                                                                                                                  |  | $                  | (84,151       | ) |                   | $
|                                                                                                                                                                          |  |                    |               |   |                   |  
|Net loss per common share - basic and diluted                                                                                                                             |  | $                  | (0.00         | ) |                   | $
|                                                                                                                                                                          |  |                    |               |   |                   |  
|Weighted average number of
    common shares outstanding - basic and diluted                                                                                              |  |                    | 301,645,041   |   |                   |  
|                                                                                                                                                                          |  |                    |               |   |                   |  
|The average shares listed below were not included in the computation of diluted losses per share because to do so would have been antidilutive for the periods presented: |  |                    |               |   |                   |  
|Warrants                                                                                                                                                                  |  |                    | -             |   |                   |  
|Convertible promissory notes                                                                                                                                              |  |                    | 1,282,000,427 |   |                   |  



THE ACCOMPANYING NOTES ARE
AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



2







|Thrive World Wide, Inc.                       
|----------------------------------------------
|Statement of Stockholders' Deficit (Unaudited)
|For the Niine Months Ended June 30, 2012      



|                                                               |  | Preferred Stock |           |  | Common Stock |   |       | Additional |  |  |             |   |  | Total   |        
|-------------------------------------------------------------- |  | --------------- | --------- |  | ------------ | - | ----- | ---------- |  |  | ----------- | - |  | ------- | -------
|                                                               |  | Number of       |           |  |              |   |       | Number of  |  |  |             |   |  | Paid-in |        
|                                                               |  | Shares          |           |  | Amount       |   |       | Shares     |  |  | Amount      |   |  | Capital |        
|BALANCES September 30, 2011                                    |  |                 | -         |  |              | $ | -     |            |  |  | 116,753,468 |   |  | $       | 116,754
|                                                               |  |                 |           |  |              |   |       |            |  |  |             |   |  |         |        
|Preferred stock issued for cash, net of finder's fee of $4,500 |  |                 | 3,666,663 |  |              |   | 3,667 |            |  |  |             |   |  |         |        
|Shares issued for accrued interest                             |  |                 |           |  |              |   |       |            |  |  | 62,235,600  |   |  |         | 62,235 
|Shares issued for debt principle                               |  |                 |           |  |              |   |       |            |  |  | 141,142,000 |   |  |         | 141,142
|Shars issued in settlement of accounts payable                 |  |                 |           |  |              |   |       |            |  |  | 5,000,000   |   |  |         | 5,000  
|Shares issued at par returned                                  |  |                 |           |  |              |   |       |            |  |  | (25,000,000 | ) |  |         | (25,000
|Shares issued for services                                     |  |                 |           |  |              |   |       |            |  |  | 10,000,000  |   |  |         | 10,000 
|Fair value of warrants issued with preferred stock             |  |                 |           |  |              |   |       |            |  |  |             |   |  |         |        
|Net loss                                                       |  |                 |           |  |              |   |       |            |  |  |             |   |  |         |        
|BALANCES March 31, 2012                                        |  |                 | 3,666,663 |  |              | $ | 3,667 |            |  |  | 310,131,068 |   |  | $       | 310,131



THE ACCOMPANYING NOTES ARE
AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



3









|Thrive World Wide, Inc.                         
|------------------------------------------------
|Statements of Cash Flows (Unaudited)            
|For the Nine Months Ended June 30, 2012 and 2011





|                                                                         |  | Nine Months Ended |         
|------------------------------------------------------------------------ |  | ----------------- | --------
|                                                                         |  | June 30,          |         
|                                                                         |  | 2012              |         
|Cash flows from operating activities                                     |  |                   |         
|Net loss                                                                 |  | $                 | (360,465
|Adjustments to reconcile net income/loss                                 |  |                   |         
|to net cash (used in) provided by operating activities:                  |  |                   |         
|Depreciation & amortization                                              |  |                   | 3,060   
|Common stock issued for accrued interest                                 |  |                   | 62,236  
|Common stock issued for accounts payable                                 |  |                   | 19,000  
|Common stock issued for services                                         |  |                   | 37,000  
|Stock compensation expense on warrants issued                            |  |                   | 3,300   
|Changes in operating assets and liabilities:                             |  |                   |         
|Other current assets                                                     |  |                   | 51,750  
|Other assets                                                             |  |                   | 1,200   
|Accounts payable                                                         |  |                   | 4,378   
|Accrued interest                                                         |  |                   | 14,481  
|Accrued compensation                                                     |  |                   | 28,333  
|Net cash used in operating activities                                    |  |                   | (135,727
|                                                                         |  |                   |         
|Cash flows from investing activities                                     |  |                   |         
|Acquisition of furniture and equipment                                   |  |                   | -       
|Net cash used in investing activities                                    |  |                   | -       
|                                                                         |  |                   |         
|Cash flows from financing activities                                     |  |                   |         
|Proceeds from the sale of preferred stock, net of finder's fee of $4,500 |  |                   | 50,500  
|Proceeds from shareholder notes                                          |  |                   | 65,972  
|Net cash provided by financing activities                                |  |                   | 116,472 
|                                                                         |  |                   |         
|Increase (decrease) in cash                                              |  |                   | (19,255 
|Cash at beginning of period                                              |  |                   | 19,318  
|Cash at end of period                                                    |  | $                 | 63      
|                                                                         |  |                   |         
|Supplemental disclosure of cash flow information:                        |  |                   |         
|Taxes paid in cash                                                       |  | $                 | -       
|Interest paid in cash                                                    |  | $                 | -       
|                                                                         |  |                   |         
|Supplemental disclosure of non-cash transactions:                        |  |                   |         
|Common stock issued as compensation                                      |  | $                 | 37,000  
|Common stock issued for shareholder notes accrued interest               |  | $                 | 62,236  
|Common stock issued for shareholder notes principle                      |  | $                 | 141,142 
|Common stock issued for accounts payable                                 |  | $                 | 19,000  



THE ACCOMPANYING NOTES ARE
AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS



4







|THRIVE WORLD WIDE, INC.                           
|--------------------------------------------------
|NOTES TO FINANCIAL STATEMENTS (Unaudited)         
|THREE AND NINE MONTHS ENDED JUNE 30, 2012 AND 2011



NOTE A – ORGNIZATION AND GOING
CONCERN



Basis
of Presentation

The
unaudited financial statements of Thrive World Wide, Inc. as of June 30, 2012and for the three
and nine months ended June 30, 2012and 2011 have been prepared in accordance with accounting
principles generally accepted in the United States for interim financial reporting and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by accounting principles generally
accepted in the United States for annual financial statements and should be read in conjunction with the audited consolidated
financial statements and notes thereto for the year ended September 30, 2011 as filed with the Securities and Exchange Commission
as part of our Form 10-K filed on January 24, 2012. In the opinion of management, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation of the interim financial information have been included. The results
of operations for any interim period are not necessarily indicative of the results of operations for the entire year.



Organization

The Company was incorporated
in Nevada on April 8, 2005 as Z Yachts, Inc., a full-service boat brokerage company.



On July 26, 2008,
the Company exited the boat brokerage business and changed its name to Boveran Diagnostics, Inc. in order to pursue the development
of cancer detection technologies. The Company’s board of directors then abandoned those operations in order to establish
a business model of creating, marketing and licensing new media technologies.



On May 18, 2009,
the Company entered into a Binding Letter of Intent to acquire 100% of the stock of STB Telemedia to further the business of creating,
marketing and licensing new media technologies. On July 16, 2009, the Company entered into a subsequent binding letter of intent
with STB Telemedia, Inc., to operate a joint venture for a period which would allow each Company's management to become acquainted,
determine the fit and focus of operations and to provide sufficient time to conduct due diligence of the other party. Shortly
thereafter, we elected to terminate the merger with STB Telemedia, Inc. due to poor performance.



On June 21, 2010,
the Company entered into an Asset Acquisition Agreement with Jarish, Inc. pursuant to which the Company agreed to acquire from
Jarish, Inc. all assets exclusive to Mycitypoint.com, Pointcredtis.com and Pointscredits.com. This asset acquisition was intended
to enhance the ability of Thrive World Wide, Inc. to offer additional specialty services through an electronic media venue.  
The Company believed that it would be able to provide a unique end-to-end vertical solution that would accommodate content creation
and distribution to a broad segment of the market via the Internet. However, the Company was compelled to terminate this transaction
due to material misrepresentations made by Jarish, Inc. As a result, the Company elected to pursue our own business.



During our fourth
quarter ended September 30, 2010, the Company developed DailyHotDeal.com, ("DHD") a locally focused group buying site.
DHD went live in San Diego in August 2011 in beta mode. During the quarter ended June 30, 2012, the Company decided to halt the
marketing and operation of the DHD business as a result of limited success primarily resulting from the high level of competition
and the Company's inability to adequately fund expansion.



On April 13, 2012
The Company changed its management team. Bruce T. Dugan was appointed Chief Executive Officer and a member of the Company's Board
of Directors, and James Stearrett was appointed Chief Financial Officer and Treasurer. Mr. Dugan and Mr. Stearrett replaced Wendy
Borow Johnson, who resigned as CEO, President, Treasurer, and Board member.



On May 30, 2012 The
Company entered into a Letter of Intent to acquire Intech Creative LLC, a developer of proprietary software products and subscription-based
online and mobile services. The Company intends to change its strategic plan from that of developing products as a “fast-follower,”
to that of a speculative new products “first-to-market” innovator, as well as a solid provider of technology development
and web-related services to clients worldwide.



5







|THRIVE WORLD WIDE, INC.                           
|--------------------------------------------------
|NOTES TO FINANCIAL STATEMENTS (Unaudited)         
|THREE AND NINE MONTHS ENDED JUNE 30, 2012 AND 2011



NOTE A – ORGNIZATION AND GOING
CONCERN (Continued)



Going
Concern

Recent
operating results give rise to concerns about the Company's ability to generate cash flow from operations sufficient to sustain
ongoing viability. As of June 30, 2012, we had an accumulated deficit of $3,924,614 and negative
working capital of $1,757,955. Net loss for the three and nine months ended June 30, 2012 and year ended September 30, 2011 was
$84,151, $360,465 and $469,964, respectively. As a result, these conditions raise substantial doubt concerning the Company’s
ability to continue as a going concern. Management has plans to raise additional capital through sales of its common stock and
financial loans. The financial statements do not include any adjustments that might be necessary if Thrive World Wide, Inc. is
unable to continue as a going concern.



NOTE B - PREPAID EXPENSES AND OTHER
CURRENT ASSETS



Prepaid expenses
and other current assets consists of amounts paid to a production company for the production of customer commercials that we air
as part of the DailyHotDeals.com business. The Company produced commercials for certain customers to air on DailyHotDeal.com as
part of the promotion of that merchant and resulting deals that are purchased by the public. The Company accounts for these commercials
pursuant to ASC 720-35, Other Expenses: Advertising Costs, and has elected to defer the costs of advertising until the
advertising takes place to more appropriately match our costs of commercial production to the revenue related to each commercial.
These costs are then recorded as cost of sales. As of June 30, 2012, we had no unaired commercials.



NOTE C – ACCOUNTS PAYABLE
AND ACCRUED EXPENSES



Accounts payable
and accrued expenses as of June 30, 2012 and September 30, 2011 consists of the following:



|                                    |  | June 30, |         |  | September 30, |  
|----------------------------------- |  | -------- | ------- |  | ------------- | -
|                                    |  | 2012     |         |  | 2011          |  
|Professional fees                   |  | $        | 258,811 |  |               | $
|Non-trade payables                  |  |          | 96,507  |  |               |  
|Due to former CEO for accrued wages |  |          | 63,333  |  |               |  
|Accrued interest                    |  |          | 143,594 |  |               |  
|                                    |  |          |         |  |               |  
|Total                               |  | $        | 562,245 |  |               | $



NOTE D – SHAREHOLDER PROMISSORY
NOTES



The stockholders have advanced money to
Thrive World Wide, Inc. on an as-needed basis.  At September 30, 2011 and June 30, 2012, stockholder loans consisted of the
following:



| | 1. | ($546,747)
                                                                On January 2, 2009, we revised and re-issued certain promissory
                                                                notes in the face amount of $173,257 and $55,000 to Collette Eck
                                                                Szczesny and Marilyn Eck, respectively.  These notes
                                                                represent amounts due and in default from December 31, 2007 and
                                                                on which no interest or principal has been paid by the Company
                                                                in over three (3) years.  In consideration of the lenders’
                                                                Agreement to extend these notes, the Company agreed to cause the
                                                                notes to be revised and re-issued as convertible debentures which
                                                                would pay 7.5% interest and be convertible by lenders at the conversion
                                                                price equal to the par value of our common stock (at present $0.001
                                                                per share).  The Notes
                                                                contain a provision limiting the conversion thereof by any party
                                                                to not more that 4.99% ownership of the stock of the Company at
                                                                any time after taking into account all of the holdings of the
                                                                converting party.  The lenders have agreed that they
                                                                will enter into such lock-up and/or leak-out agreements as may
                                                                be required by any successor management and/or entity which may
                                                                acquire control of the Company in a change of control transaction.
                                                                On June 1, 2009, the notes were assigned to Horowitz Consulting
                                                                Group, LLC (“Horowitz”) and the principals thereof
                                                                have agreed to limit the conversion right under the notes based
                                                                on the fact that the Company did not at the time have sufficient
                                                                authorized shares to allow for the conversion of the note beyond
                                                                26,000,000 shares and the fact that the Company will need to issue
                                                                shares in order to raise other operating capital as set forth
                                                                herein. Per ASC 470-20-25-12, no portion of the proceeds from
                                                                this note are attributable to the conversion feature as the conversion
                                                                can be made at the option of the holder at a specified price and
                                                                only upon default, the conversion price does not decrease, the
                                                                debt was originally sold at the face amount, the interest rate
                                                                is lower than the Company would pay for non-convertible debt and
                                                                the conversion price was greater than the perceived market value
                                                                of the stock.  In addition, the restrictions on the conversion
                                                                and the limits on the authorized shares prevent the holders from
                                                                fully exercising the conversion.  The perceived market value
                                                                of the stock was less than par value due to the highly illiquid
                                                                nature of the stock and the Company's lack of revenue generating
                                                                activities as of the date of the issuance of these debentures.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6







|THRIVE WORLD WIDE, INC.                           
|--------------------------------------------------
|NOTES TO FINANCIAL STATEMENTS (Unaudited)         
|THREE AND NINE MONTHS ENDED JUNE 30, 2012 AND 2011



NOTE D – SHAREHOLDER PROMISSORY
NOTES (Continued)



The total principle amount due
this stockholder as of June 30, 2012 and September 30, 2011 was $546,747 and $638,354, respectively. As of June 30, 2012 and September
30, 2011, $10,426 and $28,618, respectively of accrued interest was due under this note. During the nine months ended June 30,
2012, Horowitz advanced the Company $30,973 and converted $177,289 of accrued interest in exchange for 177,288,800 shares at par
value.



Interest expense in the amount
of $10,426 and $8,517 has been recorded for the three months ended June 30, 2012 and 2011, respectively. Interest expense in the
amount of $36,518 and $22,108 has been recorded for the nine months ended June 30, 2012 and 2011, respectively.



| | 2. | ($489,263) The second loan is
                                                                from a former director and officer. At one time three original
                                                                officers had three separate loans. All of these notes were combined
                                                                and signed over to one party in exchange for the complete independent
                                                                absorption of the Company’s 1st Banking Center
                                                                line of credit that was guaranteed by the other two parties. The
                                                                notes assumed by this stockholder totaled $200,947 including accrued
                                                                interest. During the twelve months ended September 30, 2009 this
                                                                stockholder also personally assumed the outstanding debt and interest
                                                                on the 1st Banking Center line of credit held
                                                                by the Company.  The total amount assumed on the line
                                                                of credit was $124,953 with interest of $3,264 also assumed. Additionally,
                                                                this stockholder assumed $11,141 of credit card liability, converted
                                                                payables due him in the amount of $34,939 and personally paid
                                                                bills incurred by the Company in the amount of $47,813. A convertible
                                                                promissory note was executed on August 17, 2009 for $478,451 bearing
                                                                interest at 7.5% (with no interest accruing until October 1, 2009)
                                                                and maturing on February 15, 2011. In addition, this note is convertible
                                                                at any time at the conversion price equal to the par value of
                                                                our common stock (at present $0.001 per share).  The
                                                                note contains a provision limiting the conversion thereof by any
                                                                party to not more that 4.99% ownership of the stock of the Company
                                                                at any time after taking into account all of the holdings of the
                                                                converting party. On December 8, 2010, the Stockholder assigned
                                                                this note and all amounts due thereunder in equal parts to two
                                                                outside parties. The note was not modified. Per ASC 470-20-25-12,
                                                                no portion of the proceeds from this note are attributable to
                                                                the conversion feature as the conversion can be made at the option
                                                                of the holder at a specified price and only upon default, the
                                                                conversion price does not decrease, the debt was originally sold
                                                                at the face amount, the interest rate is lower than the Company
                                                                would pay for non-convertible debt and the conversion price was
                                                                greater than the perceived market value of the stock.  In
                                                                addition, the restrictions on the conversion and the limits on
                                                                the authorized shares prevent the holders from fully exercising
                                                                the conversion.  The perceived market value of the stock
                                                                was less than par value due to the highly illiquid nature of the
                                                                stock and the Company's lack of revenue generating activities
                                                                as of the date of the issuance of these debentures.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The total principle amount due
under this note as of June 30, 2012 and September 30, 2011 was $489,263 and $489,263, respectively. As of June 30, 2012 and September
30, 2011, $97,899 and $71,655, respectively of accrued interest was due under this note. During the nine months ended June 30,
2012, the Company converted $5,589 of accrued interest in exchange for 5,588,800 shares at par value. Interest expense in the
amount of $10,765 and $10,088 has been recorded for the three months ended June 30, 2012 and 2011, respectively. Interest expense
in the amount of $31,833 and $35,928 has been recorded for the nine months ended June 30, 2012 and 2011, respectively.



| | 3. | ($64,128) On February 15, 2010,
                                                                we issued a convertible promissory note in the face amount of
                                                                $949 to Search4.com. The note provides for additional infusions
                                                                of capital, bears interest at 7.5%, is due on demand, is convertible
                                                                into common stock at the par value of our common stock (at present
                                                                $0.001 per share), and matures on February 5, 2013 in the
                                                                event the full balance owing has not been paid. The Note contains
                                                                a provision limiting the conversion thereof to not more that 4.99%
                                                                ownership of the stock of the Company at any time after taking
                                                                into account all of the holdings of the converting party.  The
                                                                lender has agreed that they will enter into such lock-up and/or
                                                                leak-out agreements as may be required by any successor management
                                                                and/or entity which may acquire control of the Company in a change
                                                                of control transaction. There was no beneficial conversion feature
                                                                associated with these securities as per FASB ASC 470-20-25. 
                                                                The conversion can be made at the option of the holder, the conversion
                                                                price was greater than the perceived market value of the stock
                                                                due to the highly illiquid nature of the stock and the Company's
                                                                lack of revenue generating activities as of the date of the issuance,
                                                                the debt was originally sold at the face amount, the interest
                                                                rate is lower than the Company would pay for non-convertible debt
                                                                and the conversion price does not decrease.  As per FASB
                                                                ASC 470-20-25-12, no portion of the proceeds from issuance shall
                                                                be accounted for as attributable to the conversion feature. 
                                                                In addition, the restrictions on the conversion and the limits
                                                                on the authorized shares prevent the holders from fully exercising
                                                                the conversion.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



7







|THRIVE WORLD WIDE, INC.                           
|--------------------------------------------------
|NOTES TO FINANCIAL STATEMENTS (Unaudited)         
|THREE AND NINE MONTHS ENDED JUNE 30, 2012 AND 2011



NOTE D – SHAREHOLDER PROMISSORY
NOTES (Continued)



The total principle amount due
under this note as of June 30, 2012 and September 30, 2011 was $64,128. As of June 30, 2012 and September 30, 2011, $1,067 and
$203, respectively of accrued interest was due under this note. During the nine months ended June 30, 2012, the Company converted
$20,500 of principle and accrued interest in exchange for 20,500,000 shares at par value. Interest expense in the amount of $1,067
and $1,053 has been recorded for the three months ended June 30, 2012 and 2011, respectively. Interest expense in the amount of
$2,802 and $3,087 has been recorded for the nine months ended June 30, 2012 and 2011, respectively.



NOTE E – BANK LINE OF CREDIT



Our Bank line of
credit consists of a $100,000 revolving line of credit with Bank of America with a balance of $95,636 and an interest rate of
7.75% secured by the personal guarantees of former officers. This line of credit is in default and in collection as of June 30,
2012. As of June 30, 2012, the total due is $129,838, including $95,636 of principle and $34,202 of accrued interest. During the
three months ended June 30, 2012 and 2011, the Company recognized $1,848 and $1,848, respectively in interest expense. During
the nine months ended June 30, 2012 and 2011, the Company recognized approximately $5,545 and $5,545, respectively in interest
expense.



NOTE F – CAPITAL STOCK



Common Stock

The Company has authorized
1,000,000,000 shares of $.001 par value common stock with 310,131,068 shares outstanding as of June 30, 2012.



During the year ended
September 30, 2011, the Company issued common stock as follows:

| | 1. | 5,200,000 shares in exchange for
                                                               vendor liabilities of $52,000.
| | -- | ------------------------------------------------------------------------------------------------------------------------------

| | 2. | 54,800,000 shares for services
                                                               valued at $48,000.
| | -- | ----------------------------------------------------------------------------------------------------------------

| | 3. | 25,400,000 shares upon the conversion
                                                               of notes payable resulting in a $25,400 reduction of accrued interest
                                                               related to the shareholder notes above.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4. | (7,591,657) shares returned to
                                                               treasury and canceled valued at par, $.001 per share.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | 5. | On
                                                                                                 September 27, 2011, the Company
                                                                                                 issued 50,000,000 shares, including
                                                                                                 25,000,000 to Jason Eck and 25,000,000
                                                                                                 to Wendy Borow-Johnson.The
                                                                                                 restricted shares contain various
                                                                                                 performance clauses. The restriction
                                                                                                 can be lifted at the Boards discretion.
                                                                                                 The stock is "earned"
                                                                                                 in and "all or nothing"
                                                                                                 manner meaning only the full
                                                                                                 25,000,000 shares can have their
                                                                                                 restriction lifted or none at
                                                                                                 all for each individual. The
                                                                                                 Board also has the option of
                                                                                                 repurchasing the shares for a
                                                                                                 total of $1.00. Based on the
                                                                                                 foregoing the Company assigned
                                                                                                 no value to this issuance by
                                                                                                 increasing Common Stock by $50,000
                                                                                                 and reducing Additional Paid-In
                                                                                                 Capital by $50,000.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



During the nine months ended June 30,
2012, the Company issued (received) common stock as follows:

| | 1. | 203,377,600 shares upon the conversion
                                                               of notes payable resulting in a $203,378 reduction of shareholder's
                                                               notes payable and related accrued interest of $141,142 and $62,236,
                                                               respectively.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | 5,000,000 shares were issued in
                                                               settlement of $19,000 of outstanding accounts payable due to a
                                                               vendor.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3. | 10,000,000 shares for services
                                                               valued at $37,000.
| | -- | ----------------------------------------------------------------------------------------------------------------

| | 4. | (25,000,000) originally issued
                                                               to Jason Eck were purchased by the Company for $0.50 (See Item
                                                               #5 above).
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



8







|THRIVE WORLD WIDE, INC.                           
|--------------------------------------------------
|NOTES TO FINANCIAL STATEMENTS (Unaudited)         
|THREE AND NINE MONTHS ENDED JUNE 30, 2012 AND 2011



NOTE F – CAPITAL STOCK (Continued)



Preferred Stock

The Company has authorized
10,000,000 shares of $.001 par value preferred stock with 3,666,663 shares outstanding as of June 30, 2012.



During the nine months
ended June 30, 2012, a Horowitz purchased 3,666,663 shares of preferred stock at a purchase price of $0.015 per share resulting
in gross proceeds of $55,000. From the gross proceeds, Mr. Horowitz was paid a $4,500 finder's fee resulting in net proceeds to
the Company of $50,500. As part of the purchase of preferred stock, Mr. Horowitz received 550,000 Warrants to purchase 550,000
shares of restricted common stock at a strike price of $0.015 and expiring on November 21, 2015 or five years from the date of
purchase.



Warrants

At June
30, 2012, the Company had 550,000 Warrants outstanding entitling the holder thereof the right to purchase one share of
common stock for each warrant held. As described above on November 21, 2011, the Company issued warrants
to purchase 550,000 shares of restricted common stock pursuant to the purchase of preferred stock.The warrants are classified
as equity on our balance sheet as they require physical settlement, contain no performance contingencies, have a fixed exercise
price and are exercisable by the holder at any time through the expiration date of the warrant. Each warrants fair value was calculated
on the date of grant using the Black-Scholes Option Pricing Model using the following inputs: volatility, 570%; risk free interest
rate, 0.92%; spot price, $0.006, and exercise price, $0.006. The fair value of the warrants issued and recognized in the financial
statements above was $3,300.



NOTE G – SUBSEQUENT EVENTS



Pursuant to FASB
Accounting Standards Codification 855, Subsequent Events, including ASC 855-10-S99-2, the Company evaluated subsequent events
through the date these financial statements were issued.



9







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



This quarterly
report contains forward-looking statements including statements regarding our expectations, beliefs, intentions or future strategies
that are signified by the words “expects,” “anticipates,” “intends,” “believes”
or similar language. These forward-looking statements involve risks, uncertainties and other factors. All forward-looking statements
included in this quarterly report are based on information available to us on the date hereof and speak only as of the date hereof.
We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information,
future events, or otherwise. The factors discussed elsewhere in this quarterly report are among those factors that in some cases
have affected our results and could cause the actual results to differ materially from those projected in the forward-looking
statements.



Overview



The Company was incorporated in Nevada
on April 8, 2005 as Z Yachts, Inc., a full-service boat brokerage company.



On July 26, 2008,
the Company exited the boat brokerage business and changed its name to Boveran Diagnostics, Inc. in order to pursue the development
of cancer detection technologies. The Company’s board of directors then abandoned those operations in order to establish
a business model of creating, marketing and licensing new media technologies.



On May 18, 2009,
the Company entered into a Binding Letter of Intent to acquire 100% of the stock of STB Telemedia to further the business of creating,
marketing and licensing new media technologies. On July 16, 2009, the Company entered into a subsequent binding letter of intent
with STB Telemedia, Inc., to operate a joint venture for a period which would allow each Company's management to become acquainted,
determine the fit and focus of operations and to provide sufficient time to conduct due diligence of the other party. Shortly
thereafter, we elected to terminate the merger with STB Telemedia, Inc. due to poor performance.



On June 21, 2010,
the Company entered into an Asset Acquisition Agreement with Jarish, Inc. pursuant to which the Company agreed to acquire from
Jarish, Inc. all assets exclusive to Mycitypoint.com, Pointcredtis.com and Pointscredits.com. This asset acquisition was intended
to enhance the ability of Thrive World Wide, Inc. to offer additional specialty services through an electronic media venue.  
The Company believed that it would be able to provide a unique end-to-end vertical solution that would accommodate content creation
and distribution to a broad segment of the market via the Internet. However, the Company was compelled to terminate this transaction
due to material misrepresentations made by Jarish, Inc. As a result, the Company elected to pursue our own business.



During our fourth
quarter ended September 30, 2010, the Company developed DailyHotDeal.com, ("DHD") a locally focused group buying site.
DHD went live in San Diego in August 2011 in beta mode. During the quarter ended June 30, 2012, the Company decided to halt the
marketing and operation of the DHD business as a result of limited success primarily resulting from the high level of competition
and the Company's inability to adequately fund expansion.



On April 13, 2012
The Company changed its management team. Bruce T. Dugan was appointed Chief Executive Officer and a member of the Company's Board
of Directors, and James Stearrett was appointed Chief Financial Officer and Treasurer. Mr. Dugan and Mr. Stearrett replaced Wendy
Borow Johnson, who resigned as CEO, President, Treasurer, and Board member.



On May 30, 2012 The
Company entered into a Letter of Intent to acquire Intech Creative LLC, a developer of proprietary software products and subscription-based
online and mobile services. The Company intends to change its strategic plan from that of developing products as a “fast-follower,”
to that of a speculative new products “first-to-market” innovator, as well as a solid provider of technology development
and web-related services to clients worldwide.



10







Critical Accounting Policies



The preparation of
financial statements in conformity with generally accepted accounting principles of the United States, or U.S. GAAP, requires
estimates and assumptions that affect the reported amounts and classifications of assets and liabilities, revenues and expenses,
and the related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. The SEC
has defined a company's critical accounting policies as the ones that are most important to the portrayal of the company's financial
condition and results of operations, and which require the company to make its most difficult and subjective judgments, often
as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified
the following critical accounting policies and estimates addressed below. We also have other key accounting policies, which involve
the use of estimates, judgments, and assumptions that are significant to understanding our results. See "Note A - Organization
and Summary of Significant Accounting Policies" to the Notes of our Financial Statements for further information. Although
we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information available at the time.
Actual results may differ significantly from these estimates under different assumptions, judgments, or conditions.



Revenue Recognition



We recognize revenue
from Deals when the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the selling
price is fixed or determinable; and collectability is reasonably assured. These criteria are met when the number of customers
who purchase the daily deal exceeds the predetermined threshold, the Deal has been electronically delivered to the purchaser and
a listing of Deals sold has been made available to the merchant. At that time, our obligations to the merchant, for which we are
serving as an agent, are substantially complete. Our remaining obligations, which are limited to remitting payment to the merchant
and continuing to make available on our website the listing of Deals previously provided to the merchant, are inconsequential
or perfunctory. We record as revenue the net amount we retain from the sale of Deals after paying an agreed upon percentage of
the purchase price to the featured merchant excluding any applicable taxes. Revenue is recorded on a net basis because we are
acting as an agent of the merchant in the transaction.



Income Taxes



We recognize deferred
tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using
the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered.  We provide
a valuation allowance for deferred tax assets for which we do not consider realization of such assets to be more likely than not.
 During fiscal 2011 and 2010, we incurred net losses and, therefore, had no tax liability.  The net deferred tax asset
generated by the loss carry-forward has been fully reserved for.



Stock-Based Compensation



The Company accounts
for all compensation related to stock, options or warrants using a fair value based method whereby compensation cost is measured
at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period.
Stock issued for compensation is valued using the market price of the stock on the date of the related agreement. We use the Black-Scholes
pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. In calculating this
fair value, there are certain assumptions that we use consisting of the expected life of the option, risk-free interest rate,
dividend yield, volatility and forfeiture rate. The use of a different estimate for any one of these components could have a material
impact on the amount of calculated compensation expense.



11







Results of Operations



Three and Nine Months Ended June 30,
2012 Compared With the Three and Nine Months Ended June 30, 2011.



A summary of our operating expense and
other income and expense for the three months ended June 30, 2012 and 2011 follows:



|                            |  | Three months Ended June 30, |        
|--------------------------- |  | --------------------------- | -------
|                            |  | 2012                        |        
|Revenue                     |  | $                           | -      
|Cost of Sales               |  |                             | 16,200 
|Gross profit                |  |                             | (16,200
|                            |  |                             |        
|Operating expense           |  |                             |        
|General and administrative  |  |                             | 42,825 
|Sales and marketing         |  |                             | -      
|Depreciation & amortization |  |                             | 1,020  
|Stock compensation          |  |                             | -      
|Total operating expenses    |  |                             | 43,845 
|Loss from operations        |  |                             | (60,045
|                            |  |                             |        
|Other income (expense)      |  |                             |        
|Interest expense            |  |                             | (24,106
|Total other expense         |  |                             | (24,106
|Net loss                    |  | $                           | (84,151



A summary of our operating expense and
other income and expense for the nine months ended June 30, 2012 and 2011 follows:



|                            |  | Nine months Ended June 30, |         
|--------------------------- |  | -------------------------- | --------
|                            |  | 2012                       |         
|Revenue                     |  | $                          | 97      
|Cost of Sales               |  |                            | 27,200  
|Gross profit                |  |                            | (27,103 
|                            |  |                            |         
|Operating expense           |  |                            |         
|General and administrative  |  |                            | 161,995 
|Sales and marketing         |  |                            | 51,290  
|Depreciation & amortization |  |                            | 3,060   
|Stock compensation          |  |                            | 40,300  
|Total operating expenses    |  |                            | 256,645 
|Loss from operations        |  |                            | (283,748
|                            |  |                            |         
|Other income (expense)      |  |                            |         
|Interest expense            |  |                            | (76,717 
|Total other expense         |  |                            | (76,717 
|Net loss                    |  | $                          | (360,465



12







Gross Profit We had revenue
from the sale of a single deal during the nine months ended June 30, 2012 despite the release of many commercials which cost approximately
$440 each. Due to the start-up nature of the DailyHotDeal business we anticipated that not all deal presentations will reach the
critical mass necessary for the deal to be confirmed and the resulting sale recognized. However, we expected far better results
than what has been achieved.



Operating Expenses. General
and administrative expenses declined during the three and nine months ended June 30, 21012 primarily due to decreases in personnel
and professional costs as a result of reducing activities related to DailyHotDeals.com. Sales and marketing expenses for the nine
months ended June 30, 2012 increased over the prior year due to the 2012 period containing costs related to DailyHotDeals.com
which we began promoting more heavily in the foruth quarter of 2011 and first half of 2012.



Other
Income and Expense.Interest expense for the three and nine months ended June 30, 2012 was higher than the prior year
period due to higher average loan balances maintained on our shareholder promissory notes as these shareholders have continued
to finance the Company's operations.



Financial Condition



The Company has suffered
recurring losses from operations that raises substantial doubt about our ability to continue as a going concern. From inception
to June 30, 2012, we have incurred an accumulated deficit of $3,924,614. This loss has been incurred through a combination of
stock compensation, professional fees and expenses supporting our plans to develop new business as well as continued operating
losses. As of June 30, 2012, we had outstanding current liabilities of $1,758,018 compared to $1,785,995 as of September 30, 2011.
Total cash resources as of June 30, 2012 were $63 compared with $19,318 at September 30, 2011. Thus, our current liquidity is
insufficient to meet our expenses for the next 12 months.



Net cash used by
operating activities was $135,727 and $153,016 for the ninemonths endedJune 30, 2012 and 2011,
respectively.



Net cash used by
investing activities was $0 and $0 for the ninemonths endedJune 30, 2012 and 2011, respectively.



Net cash provided
by financing activities was $116,472 and $155,177 for the ninemonths endedJune 30, 2012 and
2011, respectively.



The Company’s Liquidity Plan



Since inception,
we have financed our operations primarily through equity sales of our common stock and various loans and notes payable. Management
is currently in the process of seeking additional equity financing with potential investors. However, we cannot provide assurance
that management will be successful in acquiring such sources of capital in the future. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.



The Company's need
to raise additional equity or debt financing and the Company's ability to generate cash flow from operations will depend on its
future performance and the Company's ability to successfully implement business and growth strategies. The Company's performance
will also be affected by prevailing economic conditions. Many of these factors are beyond the Company's control. If future cash
flows and capital resources are insufficient to meet the Company's commitments, the Company may be forced to reduce or delay activities
and capital expenditures or obtain additional equity capital. In the event that the Company is unable to do so, the Company may
be left without sufficient liquidity.



13







Plan of Operations of
Operations



The Company intends
to change its strategic plan from that of developing products as a “fast-follower,” to that of a speculative new products
“first-to-market” innovator, as well as a solid provider of technology development and web-related services to clients
worldwide. As a result, the Company intends to cease allocating resources DailyHotDeal.com business.



To achieve the goal
of speculative new products “first-to-market” innovator, the Company has identified — and been in negotiations
with — four strategic acquisition targets, and believe we can close on all four if we are able to successfully renegotiate
our current debt structure.



The two operating
tech-related service companies [providing software and web development services, and online marketing services to third-party
clients] that the Company intends to acquire would provide the Company with immediate operating revenues from an existing client
base — plus a self-sustaining staff, while the second two acquisition targets [that develop proprietary software products
and subscription services] will provide high-growth shareholder value potential.



Item 3. Quantitative and Qualitative
Disclosures About Market Risk.



Inflation



Although our operations
are influenced by general economic conditions, we do not believe inflation had a material effect on the results of operations
during the ninemonths endedJune 30, 2012. However, there can be no assurance our business
will not be affected by inflation in the future.



Item 4. Controls and Procedures.



Disclosure Controls and Procedures



Under the supervision
and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted
an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), as of the end of the period
covered by this quarterly report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that as of the date of this report, our disclosure controls and procedures were effective such that the information required to
be disclosed in our United States Securities and Exchange Commission (the “SEC”) reports is recorded, processed, summarized
and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required
disclosure.



Internal Control over Financial Reporting



During the period
covered by this report, the Company hired an experienced financial reporting professional as CFO thereby increasing the number
of personnel involved in the Company’s preparation and review of the Company’s financial statements and is reasonably
likely to materially affect internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act).



PART II — OTHER INFORMATION



Item 1. Legal Proceedings.



Not applicable.



Item 1a. Risk Factors.



Not applicable.



14







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



Unregistered Sales of Equity Securities
During the Fiscal Year Ended September 30, 2009

On January 1, 2009,
the Company’s board of directors agreed that certain debt holders of the Company were holding debt of the Company for such
a prolonged period of time, with very little, if any prospect for the repayment thereof and therefore, agreed that such debt would
be convertible to equity as of January 2, 2009 and thereafter.  We have claimed an exemption from registration afforded by
Section 4(2) of the Securities Act because of the limited number of persons involved in each transaction, our previous relationship
with the recipients, the access of such person to information about us that would have been available in a public offering and
the absence of any public solicitation or advertising.  Also, the recipients took the securities for investment and not resale
and we took appropriate measures to restrict transfer.



Unregistered Sales of Equity Securities
During the Fiscal Year Ended September 30, 2010:

| | · | On
                                                                                                               February 5, 2010,
                                                                                                               we sold 1,148,625
                                                                                                               shares of common
                                                                                                               stock to accredited
                                                                                                               investors under
                                                                                                               Section 4(2) at
                                                                                                               a per share price
                                                                                                               of $0.20 resulting
                                                                                                               in gross proceeds
                                                                                                               of $229,725 of
                                                                                                               which $70,725 was
                                                                                                               paid as a finder’s
                                                                                                               fee netting $159,000
                                                                                                               to the Company.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               February 5, 2010,
                                                                                                               we issued 200,000
                                                                                                               shares of common
                                                                                                               stock to Andrew
                                                                                                               Schenker, our CEO,
                                                                                                               for services rendered.
                                                                                                               The stock was issued
                                                                                                               free and clear
                                                                                                               of any future performance
                                                                                                               and was valued
                                                                                                               at $5,600 or $0.028
                                                                                                               per share which
                                                                                                               represents a 30%
                                                                                                               discount to the
                                                                                                               market price of
                                                                                                               our common stock
                                                                                                               on the date of
                                                                                                               issuance which
                                                                                                               discount was intended
                                                                                                               to compensate for
                                                                                                               the restriction
                                                                                                               on said shares.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | During
                                                                                                               the year ended
                                                                                                               September 30, 2010,
                                                                                                               two of our shareholders
                                                                                                               converted $11,230
                                                                                                               of debt into 11,230,000
                                                                                                               shares of common
                                                                                                               stock pursuant
                                                                                                               to the terms of
                                                                                                               their note.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Unregistered Sales of Equity Securities
During the Fiscal Year Ended September 30, 2011:

| | · | During
                                                                                                               the year ended
                                                                                                               September 30, 2011,
                                                                                                               three of our shareholders
                                                                                                               converted $25,400
                                                                                                               of accrued interest
                                                                                                               on notes payable
                                                                                                               into 25,400,000
                                                                                                               shares of common
                                                                                                               stock pursuant
                                                                                                               to the terms of
                                                                                                               their note.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               May 28, 2011, we
                                                                                                               issued 2,000,000
                                                                                                               shares of restricted
                                                                                                               common stock to
                                                                                                               Wendy Borow-Johnson,
                                                                                                               our CEO for services
                                                                                                               rendered. The stock
                                                                                                               was issued free
                                                                                                               and clear of any
                                                                                                               future performance
                                                                                                               and was valued
                                                                                                               at $20,000 or $0.010
                                                                                                               per share.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               May 28, 2011, we
                                                                                                               issued 3,000,000
                                                                                                               shares of restricted
                                                                                                               common stock to
                                                                                                               Andrew Schenker,
                                                                                                               our former CEO
                                                                                                               as payment against
                                                                                                               an accrued compensation
                                                                                                               balance of $55,000.
                                                                                                               The stock was issued
                                                                                                               free and clear
                                                                                                               of any future performance
                                                                                                               and was valued
                                                                                                               at $30,000 or $0.010
                                                                                                               per share.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               May 28, 2011, we
                                                                                                               issued 5,000,000
                                                                                                               shares of restricted
                                                                                                               common stock to
                                                                                                               our outside corporate
                                                                                                               attorney as payment
                                                                                                               against an accounts
                                                                                                               payable balance
                                                                                                               of $22,000 and
                                                                                                               additional compensation
                                                                                                               of $28,000. The
                                                                                                               stock was issued
                                                                                                               free and clear
                                                                                                               of any future performance
                                                                                                               and was valued
                                                                                                               at $50,000 or $0.010
                                                                                                               per share.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               September 27, 2011,
                                                                                                               we issued 25,000,000
                                                                                                               shares of restricted
                                                                                                               common stock to
                                                                                                               Wendy Borow-Johnson,
                                                                                                               our CEO. The restricted
                                                                                                               shares contain
                                                                                                               various performance
                                                                                                               clauses. The restriction
                                                                                                               can be lifted at
                                                                                                               the Boards discretion.
                                                                                                               The stock is "earned"
                                                                                                               in and "all
                                                                                                               or nothing"
                                                                                                               manner meaning
                                                                                                               only the full 25,000,000
                                                                                                               shares can have
                                                                                                               their restriction
                                                                                                               lifted or none
                                                                                                               at all. The Board
                                                                                                               also has the option
                                                                                                               of repurchasing
                                                                                                               the shares for
                                                                                                               a total of $0.50.
                                                                                                               Based on the foregoing
                                                                                                               the Company assigned
                                                                                                               no value to this
                                                                                                               issuance by increasing
                                                                                                               Common Stock by
                                                                                                               $25,000 and reducing
                                                                                                               Additional Paid-In
                                                                                                               Capital by $25,000.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                               September 27, 2011,
                                                                                                               we issued 25,000,000
                                                                                                               shares of restricted
                                                                                                               common stock to
                                                                                                               Jason Eck, Consultant.
                                                                                                               The restricted
                                                                                                               shares contain
                                                                                                               various performance
                                                                                                               clauses. The restriction
                                                                                                               can be lifted at
                                                                                                               the Boards discretion.
                                                                                                               The stock is "earned"
                                                                                                               in and "all
                                                                                                               or nothing"
                                                                                                               manner meaning
                                                                                                               only the full 25,000,000
                                                                                                               shares can have
                                                                                                               their restriction
                                                                                                               lifted or none
                                                                                                               at all. The Board
                                                                                                               also has the option
                                                                                                               of repurchasing
                                                                                                               the shares for
                                                                                                               a total of $0.50.
                                                                                                               Based on the foregoing
                                                                                                               the Company assigned
                                                                                                               no value to this
                                                                                                               issuance by increasing
                                                                                                               Common Stock by
                                                                                                               $25,000 and reducing
                                                                                                               Additional Paid-In
                                                                                                               Capital by $25,000.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Unregistered Sales of Equity Securities
During the Six Months Ended March 31, 2012:

| | · | On
                                                                                                               October 14, 2011
                                                                                                               and October 18,
                                                                                                               2011, two of our
                                                                                                               shareholders converted
                                                                                                               $5,589 each or
                                                                                                               a total of $11,178
                                                                                                               of accrued interest
                                                                                                               on notes payable
                                                                                                               into 11,177,600
                                                                                                               shares of common
                                                                                                               stock pursuant
                                                                                                               to the terms of
                                                                                                               their note.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On
                                                                                                                             January
                                                                                                                             12,
                                                                                                                             2012,
                                                                                                                             one
                                                                                                                             of
                                                                                                                             our
                                                                                                                             shareholder's
                                                                                                                             converted
                                                                                                                             $10,000
                                                                                                                             of
                                                                                                                             their
                                                                                                                             promissory
                                                                                                                             note
                                                                                                                             into
                                                                                                                             10,000,000
                                                                                                                             shares
                                                                                                                             of
                                                                                                                             restricted
                                                                                                                             common
                                                                                                                             stockpursuant
                                                                                                                             to
                                                                                                                             the
                                                                                                                             terms
                                                                                                                             of
                                                                                                                             their
                                                                                                                             note.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | On January 24, 2012, 5,000,000 shares were issued for
services valued at $18,000.
| | - | ---------------------------------------------------------------------------------

| | · | On February 21, 2012, 10,000,000 shares were issued for
services valued at $38,000.
| | - | -----------------------------------------------------------------------------------

| | · | On
                                                                                                               April 4, 2012,
                                                                                                               182,200,000 shares
                                                                                                               were issued upon
                                                                                                               the conversion
                                                                                                               of shareholder
                                                                                                               notes payable.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15







All funds received
from the sale of our shares were used for working capital purposes.



The shares were issued
in reliance upon an exemption from registration pursuant to Section 4(2) of the Securities Act or Rule 506 of Regulation D promulgated
under the Securities Act. Each investor took his securities for investment purposes without a view to distribution and had access
to information concerning us and our business prospects, as required by the Securities Act. In addition, there was no general
solicitation or advertising for the purchase of our shares. Our securities were sold only to an accredited investor, as defined
in the Securities Act with whom we had a direct personal preexisting relationship, and after a thorough discussion. Finally, our
stock transfer agent has been instructed not to transfer any of such shares, unless such shares are registered for resale or there
is an exemption with respect to their transfer.



Each purchaser was
provided with access to our filings with the SEC, including the following:



| | · | Our
                                                                                                               annual report to
                                                                                                               stockholders for
                                                                                                               the most recent
                                                                                                               fiscal year, the
                                                                                                               definitive proxy
                                                                                                               statement filed
                                                                                                               in connection with
                                                                                                               that annual report,
                                                                                                               and, if requested
                                                                                                               by the purchaser
                                                                                                               in writing, a copy
                                                                                                               of our most recent
                                                                                                               Form 10-K under
                                                                                                               the Exchange Act.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The information contained in an annual report on Form
10-K under the Exchange Act.
| | - | ----------------------------------------------------------------------------------



| | · | The
                                                                                                               information contained
                                                                                                               in any reports
                                                                                                               or documents required
                                                                                                               to be filed by
                                                                                                               Thrive World Wide,
                                                                                                               Inc. under sections
                                                                                                               13(a), 14(a), 14(c),
                                                                                                               and 15(d) of the
                                                                                                               Exchange Act since
                                                                                                               the distribution
                                                                                                               or filing of the
                                                                                                               reports specified
                                                                                                               above.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

| | · | A
                                                                                                               brief description
                                                                                                               of the securities
                                                                                                               being offered,
                                                                                                               the use of the
                                                                                                               proceeds from the
                                                                                                               offering, and any
                                                                                                               material changes
                                                                                                               in Thrive World
                                                                                                               Wide, Inc.’
                                                                                                               affairs that are
                                                                                                               not disclosed in
                                                                                                               the documents furnished.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Item 3. Defaults Upon Senior Securities.



In December 2008 Bank
of America called the outstanding line of credit for immediate payment.  Per diem interest is being accrued daily in
the amount of $20 for each day payment is late subsequent to December 12, 2008.



Item 4. Mine Safety Disclosures.



Not applicable.



Item 5. Other Information.



Not applicable.



Item 6. Exhibits.



|Exhibit
    No. |  | Identification
    of Exhibit                                                                                                                                                                                                                                         
|--------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1*           |  | Certification of Bruce Dugan, Director and Chief Executive Officer (Principle Executive Officer) of Thrive World Wide,
    Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.                                          
|31.2*           |  | Certification of James Stearrett, Chief Financial Officer and Treasurer (Principle Financial Officer and Principle Accounting
    Officer) of Thrive World Wide, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley
    Act of 2002.
|32.1*           |  | Certification of Bruce Dugan, Director and Chief Executive Officer (Principle Executive Officer) of Thrive World Wide,
    Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.                                          
|32.2*           |  | Certification of James Stearrett, Chief Financial Officer and Treasurer (Principle Financial Officer and Principle Accounting
    Officer) of Thrive World Wide, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley
    Act of 2002.










*	Filed Herewith



16







SIGNATURES



In accordance with Section 13 or 15(d)
of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



|                       | THRIVE WORLD WIDE, INC.                                                                                               
|---------------------- | ----------------------------------------------------------------------------------------------------------------------
|                       |                                                                                                                       
|Date: August 16, 2012. |                                                                                                                       
|                       | By                                                                                                                    
|                       | Bruce Dugan, Director and Chief Executive Officer                                                                     
|                       | (Principal Executive Officer)                                                                                         
|                       |                                                                                                                       
|                       | By                                                                                                                    
|                       | James Stearrett, Chief Financial Officer and Treasurer
(Principal Financial Officer, and Principal Accounting
Officer)





17