----

| EXPLANATORY NOTE                                                                                               | 2 |
|----------------------------------------------------------------------------------------------------------------|---|
| PART I – FINANCIAL INFORMATION                                                                           | 2 |
| Item 1.  Financial Statements                                                                        | 2 |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 3 |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                  | 6 |
| Item 4.  Controls and Procedures                                                                     | 6 |
| PART II – OTHER INFORMATION                                                                              | 7 |
| Item 1.  Legal Proceedings                                                                                | 7 |
| Item 2.  Unregistered Sales of Equity Securities                                                          | 7 |
| Item 3.  Defaults Upon Senior Securities                                                                  | 7 |
| Item 4.  (Removed and Reserved)                                                                           | 7 |
| Item 5.  Other Information                                                                                | 7 |
| Item 6.  Exhibits                                                                                         | 7 |

----

EXPLANATORY NOTE

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

----

|                                                                                                                   |   | January 31, 2010 $ |        |   | October 31, 2009 $ |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|--------------------|--------|
|                                                                                                                   |   | (Unaudited)        |        |   |               |   |
| ASSETS                                                                                                                 |   |               |        |   |               |   |
|                                                                                                                   |   |               |        |   |               |   |
| Current Assets                                                                                                         |   |               |        |   |               |   |
|                                                                                                                   |   |               |        |   |               |   |
| Cash                                                                                                                   |   |               | 77,503      |   |               |   | 473 |   |
| Accounts receivable                                                                                                    |   |               | –     |   |               |   | 64,737 |   |
| Prepaid expenses and deposits                                                                                          |   |               | 26,235      |   |               |   | 38,738 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Total Current Assets                                                                                                   |   |               | 103,738     |   |               |   | 103,948 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Goodwill (Note 3)                                                                                                      |   |               | 1,163,884   |   |               |   | 1,163,884 |   |
| Intangible assets (Note 4)                                                                                             |   |               | 65,040      |   |               |   | 66,779 |   |
| Property and equipment (Note 5)                                                                                        |   |               | 8,169       |   |               |   | 8,002 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Total Assets                                                                                                           |   |               | 1,340,831   |   |               |   | 1,342,613 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                            |   |               |        |   |               |   |   |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Current Liabilities                                                                                                    |   |               |        |   |               |   |   |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Accounts payable                                                                                                       |   |               | 547,727     |   |               |   | 533,273 |   |
| Accrued liabilities                                                                                                    |   |               | 30,591      |   |               |   | 17,299 |   |
| Accrued interest payable (Note 6(c))                                                                                   |   |               | 229,237     |   |               |   | 141,307 |   |
| Deferred revenue                                                                                                       |   |               | 36,272      |   |               |   | 90,385 |   |
| Due to related parties (Note 6)                                                                                        |   |               | 1,420,963   |   |               |   | 1,303,492 |   |
| Notes payable (Note 7)                                                                                                 |   |               | 959,900     |   |               |   | 881,637 |   |
| Convertible note payable to related party, net of unamortized discount of $Nil (October 31, 2009 - $1,782) (Note 6(e)) |   |               | 120,000     |   |               |   | 118,218 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Total Liabilities                                                                                                      |   |               | 3,335,698   |   |               |   | 3,085,611 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Nature of Operations and Continuance of Business (Note 1)                                                              |   |               |        |   |               |   |   |   |
| Commitments (Note 10)                                                                                                  |   |               |        |   |               |   |   |   |
| Contingent Liability (Note 11)                                                                                         |   |               |        |   |               |   |   |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Stockholders’ Deficit                                                                                            |   |               |        |   |               |   |   |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Preferred stock: 10,000,000 shares authorized, non-voting, no par value;No shares issued and outstanding               |   |               | –     |   |               |   | – |   |
| Common stock:  100,000,000 shares authorized, 0.0001 par value;99,874,977 shares issued and outstanding      |   |               | 9,987       |   |               |   | 9,987 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Additional paid-in capital                                                                                             |   |               | 9,261,980   |   |               |   | 9,261,980 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Common stock issuable                                                                                                  |   |               | 70,000      |   |               |   | 70,000 |   |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Deficit accumulated during the development stage                                                                       |   |               | (11,336,826 | )      |               |   | (11,084,965 | ) |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Total Stockholders’ Deficit                                                                                      |   |               | (1,994,859  | )      |               |   | (1,742,998 | ) |
|                                                                                                                   |   |               |        |   |               |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                      |   |               | 1,340,831   |   |               |   | 1,342,613 |   |

----

|                                         |   | For the Three Months EndedJanuary 31, 2010$ |       |   | For the Three Months EndedJanuary 31, 2009$ |   |       | Accumulated FromJune 5, 2006(Date of Inception)to January 31, 2010$ |   |
|----------------------------------------------|--------|---------------------------------------------|------------|--------|---------------------------------------------|--------|------------|---------------------------------------------------------------------|--------|
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |
| Revenue                                      |   |                                        | 57,999     |   |                                        |   | –    |                                                                |   |   | 76,745 |   |
| Cost of sales                                |   |                                        | 27,155     |   |                                        |   | –    |                                                                |   |   | 30,504 |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Gross margin                                 |   |                                        | 30,844     |   |                                        |   | –    |                                                                |   |   | 46,241 |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Expenses                                     |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Advertising and marketing                    |   |                                        | 1,889      |   |                                        |   | 30,882     |                                                                |   |   | 227,469 |   |
| Amortization of intangible assets            |   |                                        | 1,739      |   |                                        |   | 3,802      |                                                                |   |   | 12,923 |   |
| Amortization of property and equipment       |   |                                        | 2,730      |   |                                        |   | 9,288      |                                                                |   |   | 41,308 |   |
| Consulting fees                              |   |                                        | 16,166     |   |                                        |   | 309,821    |                                                                |   |   | 1,682,844 |   |
| Foreign exchange loss                        |   |                                        | 6,718      |   |                                        |   | 192        |                                                                |   |   | 226,452 |   |
| General and administrative                   |   |                                        | 32,683     |   |                                        |   | 83,270     |                                                                |   |   | 1,023,167 |   |
| Impairment of goodwill                       |   |                                        | –    |   |                                        |   | –    |                                                                |   |   | 2,050,401 |   |
| Impairment of intangible assets              |   |                                        | –    |   |                                        |   | –    |                                                                |   |   | 2,871,524 |   |
| Management fees                              |   |                                        | 45,000     |   |                                        |   | 177,000    |                                                                |   |   | 1,033,596 |   |
| Payroll                                      |   |                                        | 16,838     |   |                                        |   | 431        |                                                                |   |   | 46,354 |   |
| Professional fees                            |   |                                        | 80,979     |   |                                        |   | 17,239     |                                                                |   |   | 512,551 |   |
| Research and development                     |   |                                        | 2,847      |   |                                        |   | 305        |                                                                |   |   | 391,829 |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Total Expenses                               |   |                                        | 207,589    |   |                                        |   | 632,230    |                                                                |   |   | 10,120,418 |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Operating Loss                               |   |                                        | (176,745   | )      |                                        |   | (632,230   | )                                                                   |   |   | (10,074,177 | ) |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Other Income (Expense)                       |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Gain on settlement of debt                   |   |                                        | 4,442      |   |                                        |   | –    |                                                                |   |   | 189,587 |   |
| Interest and other income                    |   |                                        | –    |   |                                        |   | 224        |                                                                |   |   | 63,066 |   |
| Interest expense                             |   |                                        | (79,558    | )      |                                        |   | (35,601    | )                                                                   |   |   | (317,648 | ) |
| Write-off of note receivable                 |   |                                        | –    |   |                                        |   | –    |                                                                |   |   | (1,114,182 | ) |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Total Other Income (Expense)                 |   |                                        | (75,116    | )      |                                        |   | (667,607   | )                                                                   |   |   | (1,179,177 | ) |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Net Loss                                     |   |                                        | (251,861   | )      |                                        |   | (667,607   | )                                                                   |   |   | (11,253,354 | ) |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Net Loss Per Share – Basic and Diluted |   |                                        | –    |   |                                        |   | (0.01      | )                                                                   |   |   |   |   |
|                                         |   |                                        |       |   |                                        |   |       |                                                                |   |   |   |   |
| Weighted Average Shares Outstanding          |   |                                        | 99,875,000 |   |                                        |   | 96,214,000 |                                                                |   |   |   |   |

----

|                                                                        |   | For the Three Months EndedJanuary 31, 2010$ |     |   | For the Three Months EndedJanuary 31, 2009$ |   |     | Accumulated From June 5, 2006(Date of Inception)to January 31, 2010$ |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------------|----------|--------|---------------------------------------------|--------|----------|---------------------------------------------------------------------------|--------|
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |
| Operating Activities                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |
| Net loss                                                                    |   |                                        | (251,861 | )      |                                        |   | (667,607 | )                                                                         |   |   | (11,253,354 | ) |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Accretion of discount on convertible debt                                   |   |                                        | 1,782    |   |                                        |   | –  |                                                                      |   |   | 12,000 |   |
| Amortization of property and equipment                                      |   |                                        | 2,730    |   |                                        |   | 9,288    |                                                                      |   |   | 41,308 |   |
| Amortization of intangible assets                                           |   |                                        | 1,739    |   |                                        |   | 3,802    |                                                                      |   |   | 12,923 |   |
| Gain on settlement of debt                                                  |   |                                        | (4,442   | )      |                                        |   | –  |                                                                      |   |   | (189,587 | ) |
| Impairment of goodwill                                                      |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 2,050,401 |   |
| Impairment of intangible assets                                             |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 2,871,524 |   |
| Issuance of notes payable for services and penalties                        |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 90,402 |   |
| Issuance of shares for services                                             |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 120,000 |   |
| Stock-based compensation                                                    |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 833,539 |   |
| Write-off of notes receivable                                               |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 1,114,182 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Accounts receivable                                                         |   |                                        | 64,737   |   |                                        |   | –  |                                                                      |   |   | – |   |
| Prepaid expenses and deposits                                               |   |                                        | 12,502   |   |                                        |   | –  |                                                                      |   |   | (17,872 | ) |
| Accounts payable and accrued liabilities                                    |   |                                        | 32,189   |   |                                        |   | 89,029   |                                                                      |   |   | 625,234 |   |
| Accrued interest payable                                                    |   |                                        | 78,930   |   |                                        |   | 41,905   |                                                                      |   |   | 232,686 |   |
| Deferred revenue                                                            |   |                                        | (54,113  | )      |                                        |   | –  |                                                                      |   |   | 36,272 |   |
| Due to related parties                                                      |   |                                        | 91,349   |   |                                        |   | 176,425  |                                                                      |   |   | 748,475 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Net Cash Used In Operating Activities                                       |   |                                        | (24,458  | )      |                                        |   | (347,158 | )                                                                         |   |   | (2,671,867 | ) |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Investing Activities                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Acquisition of intangible assets                                            |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | (834,487 | ) |
| Cash acquired in reverse merger                                             |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 1,523 |   |
| Acquisition of property and equipment                                       |   |                                        | (2,897   | )      |                                        |   | –  |                                                                      |   |   | (43,271 | ) |
| Advances for note receivable                                                |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | (1,114,182 | ) |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Net Cash Used In Investing Activities                                       |   |                                        | (2,897   | )      |                                        |   | –  |                                                                      |   |   | (1,990,417 | ) |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Financing Activities                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Proceeds from issuance of common stock                                      |   |                                        | –  |   |                                        |   | 272,539  |                                                                      |   |   | 2,521,267 |   |
| Proceeds from issuance of preferred stock                                   |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 1,000,000 |   |
| Proceeds from notes payable                                                 |   |                                        | 75,000   |   |                                        |   | –  |                                                                      |   |   | 727,022 |   |
| Repayment of notes payable                                                  |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | (81,250 | ) |
| Proceeds from related parties                                               |   |                                        | 50,372   |   |                                        |   | –  |                                                                      |   |   | 610,522 |   |
| Repayments to related parties                                               |   |                                        | (24,250  | )      |                                        |   | –  |                                                                      |   |   | (69,250 | ) |
| Share issuance costs                                                        |   |                                        | –  |   |                                        |   | (78,000  | )                                                                         |   |   | (8,000 | ) |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Net Cash Provided By Financing Activities                                   |   |                                        | 101,122  |   |                                        |   | 194,539  |                                                                      |   |   | 4,700,311 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Effects of Exchange Rate Changes on Cash                                    |   |                                        | 3,263    |   |                                        |   | –  |                                                                      |   |   | 39,476 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Increase (Decrease) in Cash                                                 |   |                                        | 77,030   |   |                                        |   | (152,619 | )                                                                         |   |   | 77,503 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Cash - Beginning of Period                                                  |   |                                        | 473      |   |                                        |   | 152,777  |                                                                      |   |   | – |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Cash - End of Period                                                        |   |                                        | 77,503   |   |                                        |   | 158      |                                                                      |   |   | 77,503 |   |
|                                                                        |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Supplemental Disclosures                                                    |   |                                        |     |   |                                        |   |     |                                                                      |   |   |   |   |
| Interest paid                                                               |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | 1,250 |   |
| Income taxes paid                                                           |   |                                        | –  |   |                                        |   | –  |                                                                      |   |   | – |   |

----

----

----

----

----

| ●   | The Company entered into a convertible note (the “Note”) in the amount of $120,000 with Penny Green, a director and officer of the Company, which is convertible into common stock at $0.10 per share at the option of the holder, and which was 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 January 31, 2010, the transfer to Charity Tunes had not occurred. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The Company shall raise a minimum of $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 share purchase warrant to purchase one common share at a price of $1.00 for a period of one year. At January 31, 2010, the Company had not yet raised $150,000. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | All notes payable by On4 in excess of $100,000 shall be converted to common shares 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%. As at January 31, 2010, 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). |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   |   |      |   |           |   |    |         |   |   | January 31, 2010 |   |   | October 31, 2009 |    |
|---------------------|--------|--------|-----------|--------|----------------|--------|---------|--------------|--------|--------|------------------|--------|--------|------------------|---------|
|                |   |   |      |   | Accumulated    |   |    |         |   |   | Net Carrying     |   |   | Net Carrying     |    |
|                |   | Cost $ |      |   | Amortization $ |   |    | Impairment $ |   |   | Value $          |   |   | Value $          |    |
|                |   |   |      |   |           |   |    |         |   |   |             |   |   |             |    |
| Patents             |   |   | 58,262    |   |           |   | 12,923  |         |   |   | –          |   |   |             | 45,339  |   |   |   | 47,078 |   |
| Trademarks          |   |   | 19,701    |   |           |   | – |         |   |   | –          |   |   |             | 19,701  |   |   |   | 19,701 |   |
| Pets911.com         |   |   | 2,115,000 |   |           |   | – |         |   |   | 2,115,000        |   |   |             | – |   |   |   | – |   |
|                |   |   | 2,192,963 |   |           |   | 12,923  |         |   |   | 2,115,000        |   |   |             | 65,040  |   |   |   | 66,779 |   |
| Website Development |   |   | 197,141   |   |           |   | – |         |   |   | 197,141          |   |   |             | – |   |   |   | – |   |
|                |   |   |      |   |           |   |    |         |   |   |             |   |   |             |    |   |   |   |   |   |
|                |   |   | 2,390,104 |   |           |   | 12,923  |         |   |   | 2,312,141        |   |   |             | 65,040  |   |   |   | 66,779 |   |

| 2010   |   | $      | 5,215  |   |
|--------|--------|--------|--------|--------|
| 2011   |   |   | 6,954  |   |
| 2012   |   |   | 6,954  |   |
| 2013   |   |   | 6,954  |   |
| 2014   |   |   | 6,954  |   |
|   |   |   |   |   |
|   |   | $      | 33,031 |   |

----

|               |   |   |   |   |           |   |   | January 31, 2010 |   |   | October 31, 2009 |   |
|--------------------|--------|--------|--------|--------|----------------|--------|--------|------------------|--------|--------|------------------|--------|
|               |   |   |   |   | Accumulated    |   |   | Net Carrying     |   |   | Net Carrying     |   |
|               |   | Cost $ |   |   | Amortization $ |   |   | Value $          |   |   | Value $          |   |
|               |   |   |   |   |           |   |   |             |   |   |             |   |
| Computer equipment |   |   | 32,053 |   |           |   | 26,700 |             |   |   | 5,353            |   |   |   | 6,727 |   |
| Office equipment   |   |   | 27,964 |   |           |   | 25,148 |             |   |   | 2,816            |   |   |   | 1,275 |   |
|               |   |   | 60,017 |   |           |   | 51,848 |             |   |   | 8,169            |   |   |   | 8,002 |   |

| a)   | As at January 31, 2010, the Company owed $426,908 (October 31, 2009 - $426,908) to a company with common management for advances of operating funds and services provided. This amount owing is unsecured, non-interest bearing and due on demand. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | As at January 31, 2010, the Company owed $420,878 (October 31, 2009 - $324,307) to management and directors for consulting services. The amounts owing are unsecured, non-interest bearing, and due on demand. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | As at January 31, 2010, the Company owed $187,565 (October 31, 2009 - $187,565) 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 January 31, 2010, accrued interest of $42,160 (October 31, 2009 - $37,446) is included in accrued interest payable.  The note was not repaid on January 31, 2010. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | As at January 31, 2010, the Company has notes payable of $385,612 (October 31, 2009 - $364,712) 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 April 30, 2009, the Company issued a convertible note to an officer and director 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 shares of the Company’s common stock at a price of $0.10 per share, at the option of the holder. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                       |   | January 31, 2010 $ |    |   | October 31, 2009 $ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
| Bling Capital Corp., unsecured, non-interest bearing, and due on demand.                                                                                                                                                                   |   |                    | 23,532  |   |                    |   | 24,985 |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
| McCann Family Holding Corporation, unsecured, due interest at 13% per annum, and due on demand. Original principal of $282,390 (Cdn$300,000) plus $56,478 (Cdn$60,000) of non-payment penalties for failure to repay the debt at due date. |   |                    | 338,868 |   |                    |   | 334,152 |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
| Scottsdale Investment Corporation, unsecured, due interest at 12% per annum, and due on demand.                                                                                                                                            |   |                    | 400,000 |   |                    |   | 400,000 |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
| Ed Aaronson, unsecured, due interest at 10% per annum, and due on demand.                                                                                                                                                                  |   |                    | 115,000 |   |                    |   | 115,000 |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
| Troy Rice, unsecured, due interest at 10% per annum, and due on demand.                                                                                                                                                                    |   |                    | 7,500   |   |                    |   | 7,500 |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
| Unsecured, non-interest bearing, due on demand                                                                                                                                                                                             |   |                    | 75,000  |   |                    |   | – |   |
|                                                                                                                                                                                                                                       |   |                    |    |   |                    |   |   |   |
|                                                                                                                                                                                                                                       |   |                    | 959,900 |   |                    |   | 881,637 |   |

|                                                  |   | Number of Warrants |      |   | Exercise Price$ |   |
|-------------------------------------------------------|--------|--------------------|-----------|--------|-----------------|--------|
| Balance – October 31, 2008                      |   |               | 1,378,000 |   |            |   | 0.50 |   |
|                                                  |   |               |      |   |            |   |   |   |
|  Issued                                          |   |               | 408,705   |   |            |   | 0.82 |   |
|                                                  |   |               |      |   |            |   |   |   |
| Balance – October 31, 2009 and January 31, 2010 |   |               | 1,786,705 |   |            |   | 0.57 |   |

| 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          |           |              |

----

|                                                  |   | Number of Options |     |    | Weighted Average Exercise Price$ |   |       | Weighted Average Remaining Contractual Life (years) |   |   | Aggregate Intrinsic Value$ |   |
|-------------------------------------------------------|--------|-------------------|----------|---------|----------------------------------|--------|------------|-----------------------------------------------------|--------|--------|----------------------------|--------|
| Balance – October 31, 2008                      |   |              | 75,000   |    |                             |   | 0.82       |                                                |   |   |                       |   |   | – |   |
|                                                  |   |              |     |    |                             |   | 1.00  |                                                |   |   |                       |   |   |   |   |
| Forfeited                                             |   |              | (150,000 | )  |                             |   |       |                                                |   |   |                       |   |   |   |   |
|                                                  |   |              |     |    |                             |   |       |                                                |   |   |                       |   |   |   |   |
| Balance – October 31, 2009 and January 31, 2010 |   |              | 625,000  |    |                             |   | 0.78       |                                                |   |   | 7.96                       |   |   |   | – |   |

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

| 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 the agreement 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 sale 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 October 10, 2007, the Company entered into an 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 from the Company’s Charity Tunes website in the United States. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On September 10, 2009, the Company entered into a consulting agreement with a consultant who will provide consulting services for $4,622 (Cdn $5,000) and 10,000 shares of common stock per month for a term of two months.  As at October 31, 2009 and January 31, 2010, 20,000 common shares with a fair value of $9,000 was included in common stock issuable. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The Company rents facilities from other entities. Rent expense for these facilities for the three months ended January 31, 2010 and 2009 was $17,937 and $51,386 respectively. The facility leases expire within the next year. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of January 31, 2010, approximate future minimum lease payment required under non-cancelable operating leases is as follows for the fiscal year ended: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a)   | On February 3, 2010, the Company repaid $75,000 towards debt owed to an officer and director of the Company, and a company controlled by the officer and director. The Company made the payment in accordance with a post merger agreement disclosed in Note 3.  Pursuant to the post merger agreement, the officer and director and a company controlled by the officer and director cancelled 52,223,931 shares of common stock of the Company. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On February 23, 2010, the Company entered into a trademark license agreement pursuant to which it was granted an exclusive license for use of a trademark and a trade name in the territory of United States, Canada and Mexico for the period of five years. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On March 3, 2010, the Company granted 2,000,000 options with an exercise price of $0.15 per share, of which 1,500,000 options vested immediately, 250,000 options will vest on June 1, 2010, and the remaining 250,000 option will vest on December 1, 2010. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|               |   | Three Months Ended January 31, 2010($) |    |   | Three Months Ended January 31, 2009($) |   |    | Accumulated FromJune 5, 2006(Date of Inception) toJanuary 31, 2010($) |   |
|--------------------|--------|----------------------------------------|---------|--------|----------------------------------------|--------|---------|-----------------------------------------------------------------------|--------|
| Revenue            |   |                                   | 57,999  |   |                                   |   | -       |                                                                  |   |   | 76,745 |   |
| Cost of Sales      |   |                                   | 27,155  |   |                                   |   | -       |                                                                  |   |   | 30,504 |   |
| Operating Expenses |   |                                   | 207,589 |   |                                   |   | 632,230 |                                                                  |   |   | 10,120,418 |   |
| Net Loss           |   |                                   | 251,861 |   |                                   |   | 667,607 |                                                                  |   |   | 11,253,354 |   |

----

| Description                         | PotentialCompletion Date | Estimated Expenses($) |
|-------------------------------------|--------------------------|-----------------------|
| General and administrative expenses | 12 months                | 250,000               |
| Research and development            | 12 months                | 100,000               |
| Sales and marketing                 | 12 months                | 200,000               |
| Accounting and legal                | 12 months                | 150,000               |
| Unallocated working capital         | 12 months                | 100,000               |
| Debt repayment                      | 12 months                | 900,000               |
| Total                               |                     | 1,700,000             |

----

----

Item 3.  Quantitative and Qualitative Disclosure About Market Risk.

Item 4.  Controls and Procedures.

----

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

| ●   | 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 3.  Defaults Upon Senior Securities

Item 4.  (Removed and Reserved)

Item 5.  Other Information

Item 6.  Exhibits

| Exhibit Number | Exhibit Description                                                                                                                                                                                                                                |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1           | Promotion Agreement between Charity Tunes Inc. and ConAgra Foods Canada Inc. dated November 27, 2009 (1)                                                                                                                                           |
| 31.1           | Certification of the Principal Executive Officer and Principal Financial Officer 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 of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                             |

----

| Date: October 4, 2010 | On4 Communications, Inc. |
|-----------------------|--------------------------|
|                  |                     |   |
|                  | By:                      | /s/ Cameron Robb |
|                  |                     | Cameron Robb  |
|                  |                     | President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Director |