----

| PART I – FINANCIAL INFORMATION                                                                |     |
|-----------------------------------------------------------------------------------------------------|----------|
|                                                                                                |     |
| Item 1. Financial Statements                                                                   |  3  |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |  4  |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                             |  10 |
| Item 4. Controls and Procedures                                                                |  10 |
|                                                                                                |     |
| PART II – OTHER INFORMATION                                                                   |     |
|                                                                                                |     |
| Item 1. Legal Proceedings                                                                      |  11 |
| Item 2. Unregistered Sales of Equity Securities                                                |  12 |
| Item 3. Defaults Upon Senior Securities                                                        |  12 |
| Item 4. Submission of Matters to a Vote of Security Holders                                    |  12 |
| Item 5. Other Information                                                                      |  12 |
| Item 6. Exhibits                                                                               |  13 |

----

PART I - FINANCIAL INFORMATION

|                                           | Index     |
|------------------------------------------------|-----------|
| Consolidated Balance Sheets                    |  F-1 |
| Consolidated Statements of Operations          |  F-2 |
| Consolidated Statements of Cash Flows          |  F-3 |
| Notes to the Consolidated Financial Statements |  F-4 |

----

|                                                                                                                                           |   | July 31, 2009 |       |   | October 31, 2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
|                                                                                                                                           |   | $(unaudited)  |       |   | $                |   |
|                                                                                                                                           |   |          |       |   |             |   |   |
| ASSETS                                                                                                                                         |   |          |       |   |             |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |
| Current Assets                                                                                                                                 |   |          |       |   |             |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |
| Cash                                                                                                                                           |   |          | 34,683     |   |             |   | 152,777 |   |
| Prepaid expenses and deposits                                                                                                                  |   |          | 19,848     |   |             |   | 10,833 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Current Assets                                                                                                                           |   |          | 54,531     |   |             |   | 163,610 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Intangible assets (Note 4)                                                                                                                     |   |          | 3,282,802  |   |             |   | 73,838 |   |
| Website development costs (Note 4)                                                                                                             |   |          | 197,141    |   |             |   | 197,141 |   |
| Property and equipment (Note 5)                                                                                                                |   |          | 11,402     |   |             |   | 15,862 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Assets                                                                                                                                   |   |          | 3,545,876  |   |             |   | 450,451 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                    |   |          |       |   |             |   |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Current Liabilities                                                                                                                            |   |          |       |   |             |   |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Accounts payable                                                                                                                               |   |          | 349,647    |   |             |   | 195,838 |   |
| Accrued liabilities                                                                                                                            |   |          | 28,003     |   |             |   | 6,304 |   |
| Accrued interest payable (Notes 6(c) and 7)                                                                                                    |   |          | 135,838    |   |             |   | 49,418 |   |
| Due to related parties (Notes 6(a)(b) and (d))                                                                                                 |   |          | 1,236,740  |   |             |   | 646,691 |   |
| Notes Payable (Note 7)                                                                                                                         |   |          | 742,424    |   |             |   | 742,424 |   |
| Convertible note payable to related party (Note 6(e))                                                                                          |   |          | 112,993    |   |             |   | – |   |
| Preferred stock dividend payable (Note 8)                                                                                                      |   |          | –    |   |             |   | 83,472 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Current Liabilities                                                                                                                      |   |          | 2,605,645  |   |             |   | 1,724,147 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Due to related parties (Note 6(c))                                                                                                             |   |          | 262,565    |   |             |   | 262,565 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Liabilities                                                                                                                              |   |          | 2,868,210  |   |             |   | 1,986,712 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Contingencies and Commitments (Note 1, 11 and 12)                                                                                              |   |          |       |   |             |   |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Stockholders’ Deficit                                                                                                                    |   |          |       |   |             |   |   |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Preferred Stock: 10,000,000 shares authorized, non-voting, no par value;No shares (October 31, 2008 - 2,000,000 shares) issued and outstanding |   |          | –    |   |             |   | 1,000,000 |   |
| Common Stock:  100,000,000 shares authorized, no par value;96,213,567 shares (October 31, 2008 - 23,521,201) issued and outstanding  |   |          | 9,621      |   |             |   | 2,388,985 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Additional Paid-in Capital                                                                                                                     |   |          | 7,000,064  |   |             |   | 739,000 |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Common stock issuable                                                                                                                          |   |          | 182,282    |   |             |   | – |   |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Deficit Accumulated During the Development Stage                                                                                               |   |          | (6,514,301 | )      |             |   | (5,664,246 | ) |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Stockholders’ Deficit                                                                                                              |   |          | 677,666    |   |             |   | (1,536,261 | ) |
|                                                                                                                                           |   |          |       |   |             |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                              |   |          | 3,545,876  |   |             |   | 450,451 |   |

----

|                                            |   | For theThree MonthsEnded |       |   | For theThree MonthsEnded |   |       | For theNine MonthsEnded |   |   | For theNine MonthsEnded |   |   | Accumulated FromJune 5, 2006(Date of Inception) |       |
|-------------------------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|------------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------------------------------|------------|
|                                            |   | July 31, 2009            |       |   | July 31, 2008            |   |       | July 31, 2009           |   |   | July 31, 2008           |   |   | to July 31, 2009                                |       |
|                                            |   | $                        |       |   | $                        |   |       | $                       |   |   | $                       |   |   | $                                               |       |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Revenue                                         |   |                     |       |   |                     |   | –    |                    |   |   | –                 |   |   |                                            | –    |   |   |   | – |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Expenses                                        |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Advertising and marketing                       |   |                     | 5,507      |   |                     |   | 19,998     |                    |   |   | 36,389                  |   |   |                                            | 99,646     |   |   |   | 207,282 |   |
| Amortization of intangible assets (Note 4)      |   |                     | 1,740      |   |                     |   | (383       | )                       |   |   | 5,321                   |   |   |                                            | 3,094      |   |   |   | 9,446 |   |
| Amortization of property and equipment (Note 5) |   |                     | 3,934      |   |                     |   | 1,305      |                    |   |   | 10,666                  |   |   |                                            | 8,118      |   |   |   | 35,178 |   |
| Consulting fees                                 |   |                     | –    |   |                     |   | 165,919    |                    |   |   | 297,364                 |   |   |                                            | 388,502    |   |   |   | 1,485,043 |   |
| Foreign exchange loss                           |   |                     | 559        |   |                     |   | 51,244     |                    |   |   | 751                     |   |   |                                            | 51,274     |   |   |   | 179,059 |   |
| General and administrative                      |   |                     | 30,027     |   |                     |   | (29,718    | )                       |   |   | 113,298                 |   |   |                                            | 162,317    |   |   |   | 944,835 |   |
| Impairment of intangible assets                 |   |                     | –    |   |                     |   | –    |                    |   |   | –                 |   |   |                                            | –    |   |   |   | 559,383 |   |
| Management fees                                 |   |                     | 58,500     |   |                     |   | 98,000     |                    |   |   | 235,500                 |   |   |                                            | 230,500    |   |   |   | 940,000 |   |
| Payroll                                         |   |                     | –    |   |                     |   | 193        |                    |   |   | 432                     |   |   |                                            | 30,271     |   |   |   | 29,516 |   |
| Professional fees                               |   |                     | 41,602     |   |                     |   | 31,650     |                    |   |   | 58,841                  |   |   |                                            | 158,359    |   |   |   | 385,711 |   |
| Research and development                        |   |                     | –    |   |                     |   | 49,321     |                    |   |   | 304                     |   |   |                                            | 158,644    |   |   |   | 388,982 |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Total Expenses                                  |   |                     | 141,869    |   |                     |   | 387,529    |                    |   |   | 758,866                 |   |   |                                            | 1,290,725  |   |   |   | 5,164,435 |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Operating Loss                                  |   |                     | (141,869   | )      |                     |   | (387,529   | )                       |   |   | (758,866                | )      |   |                                            | (1,290,725 | ) |   |   | (5,164,435 | ) |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Other Income (Expense)                          |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Interest and other income                       |   |                     | –    |   |                     |   | 21,125     |                    |   |   | 224                     |   |   |                                            | 34,966     |   |   |   | 63,066 |   |
| Interest expense                                |   |                     | (33,857    | )      |                     |   | (77,337    | )                       |   |   | (91,413                 | )      |   |                                            | (95,480    | ) |   |   | (215,278 | ) |
| Write-off of receivables                        |   |                     | –    |   |                     |   | –    |                    |   |   | –                 |   |   |                                            | –    |   |   |   | (1,114,182 | ) |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
|                                            |   |                     | (33,857    | )      |                     |   | (56,212    | )                       |   |   | (91,189                 | )      |   |                                            | (60,514    | ) |   |   | (1,266,394 | ) |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Net Loss                                        |   |                     | (175,726   | )      |                     |   | (443,741   | )                       |   |   | (850,055                | )      |   |                                            | (1,351,239 | ) |   |   | (6,430,829 | ) |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Net Loss Per Share – Basic and Diluted    |   |                     | –    |   |                     |   | (0.02      | )                       |   |   | (0.02                   | )      |   |                                            | (0.06      | ) |   |   |   |   |
|                                            |   |                     |       |   |                     |   |       |                    |   |   |                    |   |   |                                            |       |   |   |   |   |   |
| Weighted Average Shares Outstanding             |   |                     | 55,520,000 |   |                     |   | 21,766,000 |                    |   |   | 34,312,000              |   |   |                                            | 21,292,000 |   |   |   |   |   |

----

|                                                                       |   | For theNine MonthsEnded |     |   | For theNine MonthsEnded |   |       | Accumulated FromJune 5, 2006(Date of Inception) |   |
|----------------------------------------------------------------------------|--------|-------------------------|----------|--------|-------------------------|--------|------------|-------------------------------------------------|--------|
|                                                                       |   | July 31, 2009           |     |   | July 31, 2008           |   |       | to July 31, 2009                                |   |
|                                                                       |   | $                       |     |   | $                       |   |       | $                                               |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Operating Activities                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Net loss for the period                                                    |   |                    | (850,055 | )      |                    |   | (1,351,239 | )                                               |   |   | (6,430,829 | ) |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Accretion of discount on convertible debt                                  |   |                    | 4,993    |   |                    |   | –    |                                            |   |   | 4,993 |   |
| Amortization of property and equipment                                     |   |                    | 10,666   |   |                    |   | 8,118      |                                            |   |   | 35,178 |   |
| Amortization of intangible assets                                          |   |                    | 5,321    |   |                    |   | 3,094      |                                            |   |   | 9,446 |   |
| Impairment of intangible assets                                            |   |                    | –  |   |                    |   | –    |                                            |   |   | 559,383 |   |
| Issuance of shares for management fees                                     |   |                    | 100,000  |   |                    |   | –    |                                            |   |   | 100,000 |   |
| Issuance of notes payable for services and penalties                       |   |                    | –  |   |                    |   | –    |                                            |   |   | 90,402 |   |
| Stock-based compensation                                                   |   |                    | 94,539   |   |                    |   | 46,000     |                                            |   |   | 833,539 |   |
| Write-off of receivables                                                   |   |                    | –  |   |                    |   | –    |                                            |   |   | 1,114,182 |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Changes in operating assets and liabilities                                |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Prepaid expenses and deposits                                              |   |                    | (651     | )      |                    |   | (26,195    | )                                               |   |   | (11,484 | ) |
| Accounts payable and accrued liabilities                                   |   |                    | 106,286  |   |                    |   | 171,585    |                                            |   |   | 308,428 |   |
| Accrued interest payable                                                   |   |                    | 86,420   |   |                    |   | 29,332     |                                            |   |   | 135,838 |   |
| Due to related parties                                                     |   |                    | 243,582  |   |                    |   | 267,522    |                                            |   |   | 673,938 |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Net Cash Used In Operating Activities                                      |   |                    | (198,899 | )      |                    |   | (851,783   | )                                               |   |   | (2,576,986 | ) |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Investing Activities                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Cash acquired upon merger                                                  |   |                    | 1,523    |   |                    |   | –    |                                            |   |   | 1,523 |   |
| Acquisition of intangible assets                                           |   |                    | –  |   |                    |   | (40,260    | )                                               |   |   | (834,487 | ) |
| Acquisition of property and equipment                                      |   |                    | –  |   |                    |   | (6,630     | )                                               |   |   | (40,374 | ) |
| Advances for note receivable                                               |   |                    | –  |   |                    |   | (825,624   | )                                               |   |   | (1,114,182 | ) |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Net Cash Used In Investing Activities                                      |   |                    | 1,523    |   |                    |   | (872,514   | )                                               |   |   | (1,987,520 | ) |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Financing Activities                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Proceeds from issuance of common stock                                     |   |                    | 132,282  |   |                    |   | 1,516,000  |                                            |   |   | 2,521,267 |   |
| Proceeds from issuance of preferred stock                                  |   |                    | –  |   |                    |   | –    |                                            |   |   | 1,000,000 |   |
| Proceeds from notes payable                                                |   |                    | –  |   |                    |   | 376,405    |                                            |   |   | 652,022 |   |
| Proceeds from (Repayments to) related parties                              |   |                    | (45,000  | )      |                    |   | (198,388   | )                                               |   |   | 515,150 |   |
| Repayment of notes payable                                                 |   |                    | –  |   |                    |   | –    |                                            |   |   | (81,250 | ) |
| Share issuance costs                                                       |   |                    | (8,000   | )      |                    |   | –    |                                            |   |   | (8,000 | ) |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Net Cash Provided By Financing Activities                                  |   |                    | 79,282   |   |                    |   | 1,694,017  |                                            |   |   | 4,599,189 |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
|  Increase ( Decrease) in Cash                                         |   |                    | (118,094 | )      |                    |   | (30,280    | )                                               |   |   | 34,683 |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Cash - Beginning of Period                                                 |   |                    | 152,777  |   |                    |   | 31,271     |                                            |   |   | – |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Cash - End of Period                                                       |   |                    | 34,683   |   |                    |   | 991        |                                            |   |   | 34,683 |   |
|                                                                       |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Supplemental Disclosures                                                   |   |                    |     |   |                    |   |       |                                            |   |   |   |   |
| Interest paid                                                              |   |                    | –  |   |                    |   | –    |                                            |   |   | 1,250 |   |
| Income taxes paid                                                          |   |                    | –  |   |                    |   | –    |                                            |   |   | – |   |

----

| 1.   | Nature of Operations and Continuance of Business |
|----------------|--------------------------------------------------|

| 2.   | Summary of Significant Accounting Principles |
|----------------|----------------------------------------------|

----

| 2.  | Summary of Significant Accounting Principles (Continued) |
|----------|----------------------------------------------------------|

----

| 2.  | Summary of Significant Accounting Principles (Continued) |
|----------|----------------------------------------------------------|

----

| 2.  | Summary of Significant Accounting Principles (Continued) |
|----------|----------------------------------------------------------|

Financial Instruments and Fair Value Measures

Recent Accounting Pronouncements

----

| 2.  | Summary of Significant Accounting Principles (Continued) |
|----------|----------------------------------------------------------|

----

| 3.   | Merger Transaction |
|----------------|--------------------|

| ·   | The Company entered into a convertible note (the “Note”) in the amount of US$120,000 with Penny Green, the majority shareholder, CEO, a Director and the sole officer of the Company, which is convertible into common stock at US$0.10 per share at the option of the holder, and which is due in seven months. Refer to Note 6(e). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company converted debt of $35,000 owed to Bacchus Entertainment Ltd., a company owned and controlled by Penny Green, into 35,000,000 shares of common stock at a price of $0.001 per share. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company is to transfer all of its assets and debts, other than the Note and any debt owing to Penny Green or Bacchus Entertainment Ltd., to its wholly owned subsidiary, Charity Tunes. At July 31, 2009, the transfer to Charity Tunes had not occurred. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company shall raise a minimum of US$150,000 through a direct offering of units registered on a Form S-1 at a price to be determined, with each unit comprised of one common share and one half warrant to purchase one common share at a price of US$1.00 for a period of 12 months. At July 31, 2009, the Company had not yet raised $150,000. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All notes payable by On4 in excess of US$100,000 shall be converted to equity at a price to be mutually agreed on by On4 and the specific creditor or receive a repayment extension of no less than six months and with an annual interest rate not to exceed 12%. At July 31, 2009, none of the notes had been converted. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $150,000 shall be repaid to Penny Green towards the outstanding loans owed to her, or companies controlled by her. (Not yet completed). Upon receipt of the $150,000 payment: |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Charity Tunes shall be sold to Bacchus Filings Inc., a company controlled by Penny Green, in consideration for which Bacchus Filings Inc. shall assume the entire amount of loan owing to Penny Green or Bacchus Entertainment Ltd., exclusive of the Note(amended below).; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Penny Green, and all companies controlled by Penny Green, will cancel all but 236,066 of the Company’s shares owned by them (amended below). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.   | Intangible Assets and Website Development |
|----------------|-------------------------------------------|

|                |   |   |      |   |         |   |    | July 31, 2009 |   |   | October 31, 2008 |   |
|---------------------|--------|--------|-----------|--------|--------------|--------|---------|---------------|--------|--------|------------------|--------|
|                |   |   |      |   | Accumulated  |   |    | Net Carrying  |   |   | Net Carrying     |   |
|                |   | Cost   |      |   | Amortization |   |    | Value         |   |   | Value            |   |
|                |   | $      |      |   | $            |   |    | $(unaudited)  |   |   | $                |   |
|                |   |   |      |   |         |   |    |          |   |   |             |   |   |   |   |
| Patents             |   |   | 58,262    |   |         |   | 9,446   |          |   |   | 48,816           |   |   |   | 54,137 |   |
| Trademarks          |   |   | 19,701    |   |         |   | – |          |   |   | 19,701           |   |   |   | 19,701 |   |
| Goodwill            |   |   | 3,199,284 |   |         |   | – |          |   |   | 3,199,284        |   |   |   | – |   |
|                |   |   | 3,277,247 |   |         |   | 9,446   |          |   |   | 3,267,801        |   |   |   | 73,838 |   |
| Website Development |   |   | 197,141   |   |         |   | – |          |   |   | 197,141          |   |   |   | 197,141 |   |
|                |   |   |      |   |         |   |    |          |   |   |             |   |   |   |   |   |
|                |   |   | 3,474,388 |   |         |   | 9,446   |          |   |   | 3,464,942        |   |   |   | 270,979 |   |

| 5.   | Property and Equipment |
|----------------|------------------------|

|               |   |   |   |   |         |   |   | July 31, 2009 |   |   | October 31, 2008 |   |
|--------------------|--------|--------|--------|--------|--------------|--------|--------|---------------|--------|--------|------------------|--------|
|               |   |   |   |   | Accumulated  |   |   | Net Carrying  |   |   | Net Carrying     |   |
|               |   | Cost   |   |   | Amortization |   |   | Value         |   |   | Value            |   |
|               |   | $      |   |   | $            |   |   | $(unaudited)  |   |   | $                |   |
|               |   |   |   |   |         |   |   |          |   |   |             |   |   |   |   |
| Computer Equipment |   |   | 25,067 |   |         |   | 21,766 |          |   |   | 3,301            |   |   |   | 6,894 |   |
| Office Equipment   |   |   | 32,053 |   |         |   | 23,952 |          |   |   | 8,101            |   |   |   | 8,968 |   |
|               |   |   | 57,120 |   |         |   | 45,718 |          |   |   | 11,402           |   |   |   | 15,862 |   |

| 6.   | Related Party Transactions |
|----------------|----------------------------|

| a)   | At July 31, 2009, the Company owed $426,908 (October 31, 2008 - $426,908) to On4 Canada Inc., the parent company, for advances of operating funds and services provided. This amount owing is unsecured, non-interest bearing and due on demand. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | At July 31, 2009, the Company owed $459,349 (October 31, 2008 - $219,783) to management and directors for consulting services. The amounts owing are unsecured, non-interest bearing, and due on demand. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | At July 31, 2009, the Company owed $262,565 (October 31, 2008 - $262,565) to management and directors of the Company for advance of operating funds and services provided on behalf of the Company. The amounts owing are unsecured, bear interest at 10% per annum, and payable on January 31, 2010. As at July 31, 2009, accrued interest of $44,491 (2008 - $25,611) is includedin accrued interest payable. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The Company has notes payable of $350,483 (October 31, 2008 - $Nil) to a related party that was bearing interest at 10% per annum. Interest was charged and was payable quarterly on any outstanding balance beginning on September 1, 2004 to February 29, 2008 (prior to that date the borrowings from the related parties were non-interest bearing). Commencing March 1,2008, the notes are non-interest bearing, unsecured and are payable on demand. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | On July 31, 2009, the Company issued a convertible note to a related party to secure $120,000 of amounts owed.  The note is non-interest bearing until maturity seven months after issuance. If the note is not repaid upon the maturity date, it bears interest at a rate of 20%, with interest accruing monthly. The note may be converted at any time into sharesof the Company’s common stock at a price of $0.10 per share, at the option of the holder. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.   | Notes Payable |
|----------------|---------------|

|                                                                                                                                                                                                                                       |   | July 31, 2009$(unaudited) |    |   | October 31, 2008$ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |
| Bling Capital Corp., unsecured, non-interest bearing, and due on demand.                                                                                                                                                                   |   |                      | 24,985  |   |              |   | 24,985 |   |
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |   |   |
| McCann Family Holding Corporation, unsecured, due interest at 13% per annum, and due on demand. Original principal of $248,280 (Cdn$300,000) plus $49,659 (Cdn$60,000) of non-payment penalties for failure to repay the debt at due date. |   |                      | 297,939 |   |              |   | 297,939 |   |
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |   |   |
| Scottsdale Investment Corporation, unsecured, due interest at 12% per annum, and due on demand.                                                                                                                                            |   |                      | 388,000 |   |              |   | 388,000 |   |
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |   |   |
| Ed Aaronson, unsecured, due interest at 10% per annum, and due on demand.                                                                                                                                                                  |   |                      | 24,000  |   |              |   | 24,000 |   |
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |   |   |
| Troy Rice, unsecured, due interest at 10% per annum, and due on demand.                                                                                                                                                                    |   |                      | 7,500   |   |              |   | 7,500 |   |
|                                                                                                                                                                                                                                       |   |                      |    |   |              |   |   |   |
|                                                                                                                                                                                                                                       |   |                      | 742,424 |   |              |   | 742,424 |   |

| 8.   | Share Capital |
|----------------|---------------|

| 9.   | Share Purchase Warrants |
|----------------|-------------------------|

|                             |   | Number of Warrants |      |   | Exercise Price |   |
|----------------------------------|--------|--------------------|-----------|--------|----------------|--------|
|                             |   |               |      |   |           |   |
| Balance – October 31, 2008 |   |               | 1,378,000 |   |           | $      | 0.50 |   |
|                             |   |               |      |   |           |   |   |   |
|     Issued   |   |               | 408,705   |   |           | $      | 0.82 |   |
| Balance – July 31, 2009    |   |               | 1,786,705 |   |           | $      | 0.57 |   |

----

| 9. | Share Purchase Warrants (continued) |
|----|-------------------------------------|

|                         |   | 2009    |   |
|------------------------------|--------|---------|--------|
| Expected Dividend Yield      |   |    | 0.00   | % |
| Risk-Free Rate               |   |    | 2.50   | % |
| Stock Price at Grant Date    |   | $       | 0.50   |   |
| Exercise Price               |   | $       | 0.50   |   |
| Expected Life of the Warrant |   | 5 Years |   |
| Volatility                   |   |    | 100    | % |

| Number of Warrants | Exercise Price | Expiry Date       |
|--------------------|----------------|-------------------|
| 1,300,000          | $0.50          | July 23, 2012     |
| 78,000             | $0.50          | February 28, 2013 |
| 78,000             | $0.50          | February 28, 2013 |
| 330,705            | $0.90          | July 24, 2011     |
|               |           |              |
| 1,786,705          |           |              |

| 10.  | Stock Options |
|-----------|---------------|

|                            |   | Number of Options |     |   | Weighted Average Exercise Price$ |   |    | Weighted Average Remaining Contractual Life (years) |   |   | Aggregate Intrinsic Value$ |   |
|---------------------------------|--------|-------------------|----------|--------|----------------------------------|--------|---------|-----------------------------------------------------|--------|--------|----------------------------|--------|
| Balance –October 31, 2008 |   |              | 775,000  |   |                             |   | 0.82    |                                                |   |   |                       |   |   |   |
|                            |   |              |     |   |                             |   |    |                                                |   |   |                       |   |   |   |
| Forfeited                       |   |              | (150,000 | )      |                             | $      | 1.00    |                                                |   |   |                       |   |   |   |
| Granted                         |   |              | –  |   |                             |   | – |                                                |   |   |                       |   |   |   |
| Balance – July 31, 2009   |   |              | 625,000  |   |                             |   | 0.78    |                                                |   |   | 8.20                       |   |   |   | – |   |
|                            |   |              |     |   |                             |   |    |                                                |   |   |                       |   |   |   |   |   |

| Number of Options | Exercise Price$ | Expiry Date       |
|-------------------|-----------------|-------------------|
|              |            |              |
| 275,000           | 0.50            | July 23, 2017     |
| 350,000           | 1.00            | December 18, 2017 |
|              |            |              |
| 625,000           |            |              |

----

| 10.  | Stock Options |
|-----------|---------------|

|                         |   | Stock Options# |     |   | Weighted AverageGrant DateFair Value$ |   |
|------------------------------|--------|----------------|----------|--------|---------------------------------------|--------|
|                         |   |           |     |   |                                  |   |
| Non-vested, October 31, 2008 |   |           | 300,000  |   |                                  |   | 1.00 |   |
| Granted                      |   |           | –  |   |                                  |   | – |   |
| Forfeited                    |   |           | (150,000 | )      |                                  |   | 1.00 |   |
| Vested                       |   |           | (150,000 | )      |                                  |   | 1.00 |   |
|                         |   |           |     |   |                                  |   |   |   |
| Non-vested, July 31, 2009    |   |           | –  |   |                                  |   | – |   |

| 11.   | Commitments |
|-----------------|-------------|

| a)   | On January 3, 2008, the Company through its wholly owned subsidiary Charity Tunes Inc., entered into an Agency and Promotion agreement (the “Agreement”) with World Wildlife Fund Canada (“WWF-Canada”) to raise money and awareness of WWF-Canada’s cause through the participation in promotional programs with Charity Tunes. The term of theagreement is one year, extended from year to year with a termination notice of 30 days prior to the end of a term by either party. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company will collect an amount equal to a minimum of 10% of the purchase price of a song or other digital content or products sold in its website for which purchasers select WWF-Canada as the recipient of the donation. Donations collected will be forwarded to WWF-Canada every calendar quarter if donations owed by Charity Tunes are at least $100. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On August 31, 2004, the Company entered into an agreement with its current director and chief financial officer, Penny Green, and Bacchus Entertainment Ltd., a company 100% owned by Penny Green, whereby the net amount of monies borrowed by the Company from Penny Green or Bacchus Entertainment would all convert to a loan payable by the Company to Bacchus Entertainmentand that Bacchus Entertainment would make further loans to the Company from time to time with interest accruing at the annual rate of 10% up to an aggregate of $70,000. On November 30, 2004, pursuant an addendum, the parties agreed that interest on the loan monies would accrue quarterly and would be due within 45 days of the end of each quarter. On January 1, 2007, the loan agreement was again amended so that additional amounts loaned to the Company by Penny Green or Bacchus Entertainment would be subject tothe loan agreement and so monthly payments will not be required until September 1, 2007. On June 30, 2007, this agreement was further amended to extend the payment period to January 1, 2008. On January 1, 2008, this agreement was further amended to waive the January 1, 2008 payment deadline and to make payment due on demand. On May 30, 2008, the amounts due to related parties were consolidated into one and are now due to Penny Green. Starting March 1, 2008, these amounts are non-interest bearing, unsecured anddue on demand. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On July 10, 2007, the Company entered into a consulting agreement (the “Agreement”) with Velocity Communications Ltd. (“Velocity”). Pursuant to the Agreement, Velocity will create and implement a comprehensive investor and public relations strategy for the Company for the North American market. The term of the Agreement was for 12 months.In consideration for Velocity’s services, the Company agreed to compensate Velocity with 10,000 restricted common shares per month during the term of the Agreement, payable in advance. The Company also agreed to pay to Velocity a flat fee of $1,500 per month to cover all expenses. If the Agreement was terminated by either of the parties, any compensation paid to Velocity and not accrued at the time of termination was to be refundable to the Company. At May 6, 2008, Velocity had not provided any servicesto the Company and the agreement was terminated. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | On October 10, 2007, the Company entered into an amendment agreement with Puretracks Inc. (“Puretracks”), whereby the Company agreed to pay to Puretracks, effective as of August 29, 2007, CDN$0.09 per track and CDN$1.08 per album download from the Company’s Charity Tunes website in Canada and $0.08 per track and $0.96 per album downloaded fromthe Company’s Charity Tunes website in the United States. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | On June 29, 2009, the Company’s subsidiary Charity Tunes, entered into a promotional agreement. Pursuant to the agreement the Company shall make is music catalogue available as a promotion from approximately October 1, 2009 to December 31, 2009 in exchange for $117,605. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.  | Commitments (continue) |
|-----------|------------------------|

| f)   |  The Company rents facilities from other entities. Rent expense for these facilities for the nine months ended July 31, 2009 and 2008 was $67,257 and $51,617, respectively. The facility leases expire within the next two years. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of July 31, 2009, approximate future minimum lease payments required under non-cancelable operating leases are as follows for the fiscal years ended: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2009 | $15,871 |
|------|---------|

| 2010 | $59,185 |
|------|---------|

| 12.   | Contingent Liability |
|-----------------|----------------------|

| 13.   | Subsequent Event |
|-----------------|------------------|

----

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

----

|     |   | Three Months Ended July 31, 2009($) |    |   | Three Months Ended July 31, 2008($) |   |    | Nine Months EndedJuly 31, 2009($) |   |   | Nine Months EndedJuly 31, 2008($) |   |   | Accumulated fromJune 5, 2006(Date of Inception) toJuly 31, 2009($) |      |
|----------|--------|-------------------------------------|---------|--------|------------------------------------------|--------|---------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------------------------------------------|-----------|
| Revenue  |   |                                | -       |   |                                     |   | -       |                              |   |   | -                                 |   |   |                                                               | -         |   |   |   | - |   |
| Expenses |   |                                | 141,869 |   |                                     |   | 387,529 |                              |   |   | 758,866                           |   |   |                                                               | 1,290,725 |   |   |   | 5,164,435 |   |
| Net Loss |   |                                | 175,726 |   |                                     |   | 443,741 |                              |   |   | 850,055                           |   |   |                                                               | 1,351,239 |   |   |   | 6,430,829 |   |

----

----

| Description                                                                 | PotentialCompletion Date | EstimatedExpenses($) |
|-----------------------------------------------------------------------------|--------------------------|----------------------|
| Repayment of $75,000 debt owed to Penny Green or Bacchus Entertainment Ltd. | November 2009            | 75,000               |
| Research and development                                                    | 12 months                | 150,000              |
| Advertising and marketing                                                   | 12 months                | 100,000              |
| General and administrative expenses                                         | 12 months                | 200,000              |
| Purchases of equipment                                                      | 12 months                | 40,000               |
| Interest on long term debt                                                  | 12 months                | 30,000               |
| Satisfaction of accounts payable                                            | 12 months                | 350,000              |
| Satisfaction of amounts due to related parties                              | 12 months                | 275,000              |
| Total                                                                       |                     | 1,220,000            |

----

----

----

Item 3.  Quantitative and Qualitative Disclosure About Market Risk.

----

PART II – OTHER INFORMATION

| ·   | judgment for debt in the amount of approximately $960,000; |
|--------------------|------------------------------------------------------------|

| ·   | interest on that amount pursuant to the terms of a Loan Agreement between us and DataTrail dated October 3, 2007; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | an order for specific performance directing that DataTrail provide a Security Agreement to us pursuant to the terms of the Loan Agreement, and specifically in respect of certain intellectual property rights owned by DataTrail; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an interim and permanent injunction preventing DataTrail from dealing in any way with such intellectual property rights; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | indemnity in respect of any amount we are ajudged to be liable for in an action instituted by the McCann Family Holding Corporation against us on October 30, 2008; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs. |
|--------------------|--------|

----

Item 2. Unregistered Sales of Equity Securities

----

Item 6. Exhibits

| ExhibitNumber | ExhibitDescription                                                                                                                                                              |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           | Certificate of Amendment filed with the Delaware Secretary of State on July 2, 2009 (1)                                                                                         |
| 10.1          | Promotion Agreement between Charity Tunes Inc. and ConAgra Foods Canada Inc. dated June 29, 2009 (2)                                                                            |
| 10.2          | Post Merger Agreement with Penny Green, Bacchus Entertainment Ltd. and Bacchus Filings Inc. dated September 14, 2009                                                            |
| 31.1          | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1          | Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                        |

----

|  Date: September 18, 2009 | On4 Communications, Inc. |
|--------------------------------|--------------------------|
|                           |                     |   |
|                           | By:                      | /s/ Penny Green |
|                           |                     | Penny Green  |
|                           |                     | President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and Director |