----

----

| T | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|---|-----------------------------------------------------------------------------------------|--------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|--------|------------------------------------------------------------------------------------------|--------|

| Nevada                                                         | 85-0206668                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 2490 East Sunset Road, Suite 100                               | 89120                             |
| Las Vegas, Nevada                                              | (Zip Code)                        |
| (Address of principal executive offices)                       |                              |

|   | £ | Yes |   | £ | No |
|--------|--------|-----|--------|--------|----|

| Large Accelerated Filer £          |                                          | Accelerated Filer £               |
|-----------------------------------------|-----------------------------------------------|----------------------------------------|
|                                    |                                          |                                   |
| Non-Accelerated Filer  £ | (do not check if a smaller reporting company) | Smaller reporting company  T |

----

----

----

INDE

| PART I                |
|-----------------------|
| FINANCIAL INFORMATION |
|                  |   |   |
|                  |   | Page |
|                  |   |   |
| Item 1.               | Financial Statements |   |
|                  |   |   |
|                  | Condensed Consolidated Balance Sheets as of March 31, 2009 (unaudited) and September 30, 2008 | 3 |
|                  |   |   |
|                  | Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2009 and 2008 | 4 |
|                  |   |   |
|                  | Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2009 and 2008 | 5 |
|                  |   |   |
|                  | Notes to Unaudited Condensed Consolidated Financial Statements | 6 |
|                  |   |   |
| Item 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 30 |
|                  |   |   |
| Item 3.               | Quantitative and Qualitative Disclosures About Market Risk | 30 |
|                  |   |   |
| Item 4.               | Controls and Procedures | 30 |
|                  |   |   |
| PART II               |
| OTHER INFORMATION     |
|                  |   |   |
| Item 1.               | Legal Proceedings | 31 |
|                  |   |   |
| Item 1A.              | Risk Factors | 31 |
|                  |   |   |
| Item 4.               | Submission of Matters to a Vote of Security Holders | 31 |
|                  |   |   |
| Item 6.               | Exhibits | 33 |
|                  |   |   |
| Signatures            | 34 |

----

Index

LIVEDE

|                                                                                                                                                                |   | March 31, 2009 |       |   | September 30, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|-------------------------|--------|
|                                                                                                                                                                |   | (unaudited)         |       |   |                    |   |
|                                                                                                                                                                |   |                |       |   |                    |   |
| Assets                                                                                                                                                              |   |                |       |   |                    |   |
| Cash and cash equivalents                                                                                                                                           |   | $                   | 10,090,479 |   |                    | $      | 4,639,787 |   |
| Accounts receivable, net                                                                                                                                            |   |                | 3,080,558  |   |                    |   | 6,880,492 |   |
| Prepaid expenses and other current assets                                                                                                                           |   |                | 566,163    |   |                    |   | 792,309 |   |
| Customer acquisition costs, net                                                                                                                                     |   |                | -          |   |                    |   | 642,220 |   |
| Income taxes receivable                                                                                                                                             |   |                | 8,880      |   |                    |   | 487,532 |   |
| Deferred tax asset, net of valuation allowance                                                                                                                      |   |                | 1,189,290  |   |                    |   | 949,121 |   |
| Total current assets                                                                                                                                                |   |                | 14,935,370 |   |                    |   | 14,391,461 |   |
| Accounts receivable, long term portion, net                                                                                                                         |   |                | 2,799,820  |   |                    |   | 2,011,143 |   |
| Property and equipment, net                                                                                                                                         |   |                | 704,203    |   |                    |   | 959,854 |   |
| Deposits and other assets                                                                                                                                           |   |                | 81,712     |   |                    |   | 83,547 |   |
| Intangible assets, net                                                                                                                                              |   |                | 2,211,223  |   |                    |   | 6,736,078 |   |
| Goodwill                                                                                                                                                            |   |                | -          |   |                    |   | 11,706,406 |   |
| Deferred tax asset, long term, net of valuation allowance                                                                                                           |   |                | -          |   |                    |   | 3,863,502 |   |
| Total assets                                                                                                                                                        |   | $                   | 20,732,328 |   |                    | $      | 39,751,991 |   |
|                                                                                                                                                                |   |                |       |   |                    |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                                                |   |                |       |   |                    |   |   |   |
| Liabilities:                                                                                                                                                        |   |                |       |   |                    |   |   |   |
| Accounts payable                                                                                                                                                    |   | $                   | 492,794    |   |                    | $      | 1,078,712 |   |
| Accrued liabilities                                                                                                                                                 |   |                | 2,339,541  |   |                    |   | 1,991,369 |   |
| Current portion of capital lease obligation                                                                                                                         |   |                | 68,040     |   |                    |   | 61,149 |   |
| Total current liabilities                                                                                                                                           |   |                | 2,900,375  |   |                    |   | 3,131,230 |   |
| Long term portion of capital lease obligation                                                                                                                       |   |                | 153,207    |   |                    |   | 170,838 |   |
| Total liabilities                                                                                                                                                   |   |                | 3,053,582  |   |                    |   | 3,302,068 |   |
|                                                                                                                                                                |   |                |       |   |                    |   |   |   |
| Commitments and contingencies                                                                                                                                       |   |                |       |   |                    |   |   |   |
|                                                                                                                                                                |   |                |       |   |                    |   |   |   |
| Stockholders' equity:                                                                                                                                               |   |                |       |   |                    |   |   |   |
| Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized,127,840 issued and outstanding, liquidation preference $38,202                    |   |                | 10,866     |   |                    |   | 10,866 |   |
| Common stock, $0.001 par value, 100,000,000 shares authorized, 6,153,183 and 6,513,687 issued and outstanding at March 31, 2009 and September 30, 2008,respectively |   |                | 6,153      |   |                    |   | 6,514 |   |
| Paid in capital                                                                                                                                                     |   |                | 20,310,508 |   |                    |   | 20,884,112 |   |
| Retained earnings (accumulated deficit)                                                                                                                             |   |                | (2,648,781 | )      |                    |   | 15,548,431 |   |
| Total stockholders' equity                                                                                                                                          |   |                | 17,678,746 |   |                    |   | 36,449,923 |   |
|                                                                                                                                                                |   |                |       |   |                    |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                          |   | $                   | 20,732,328 |   |                    | $      | 39,751,991 |   |

----

Index

LIVED

|                                                                |   | Three Months ended March 31, |        |   | Six Months ended March 31, |   |
|---------------------------------------------------------------------|--------|-----------------------------------|-------------|--------|---------------------------------|--------|
|                                                                |   | 2009                              |        |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |
| Net revenues                                                        |   | $                                 | 3,548,275   |   |                            | $      | 6,039,356 |   |   | $ | 8,557,789 |   |   | $ | 12,445,597 |   |
| Cost of services                                                    |   |                              | 1,466,882   |   |                            |   | 1,081,461 |   |   |   | 3,067,532 |   |   |   | 2,075,031 |   |
| Gross profit                                                        |   |                              | 2,081,393   |   |                            |   | 4,957,895 |   |   |   | 5,490,257 |   |   |   | 10,370,566 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                 |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                                 |   |                              | 4,054,354   |   |                            |   | 3,845,145 |   |   |   | 8,313,381 |   |   |   | 7,240,036 |   |
| Impairment of goodwill and intangible assets                        |   |                              | 16,111,494  |   |                            |   | - |   |   |   | 16,111,494 |   |   |   | - |   |
| Sales and marketing expenses                                        |   |                              | 713,326     |   |                            |   | 1,080,254 |   |   |   | 2,285,385 |   |   |   | 2,673,895 |   |
| Total operating expenses                                            |   |                              | 20,879,174  |   |                            |   | 4,925,399 |   |   |   | 26,710,260 |   |   |   | 9,913,931 |   |
| Operating income (loss)                                             |   |                              | (18,797,781 | )      |                            |   | 32,496 |   |   |   | (21,220,003 | ) |   |   | 456,635 |   |
| Other income (expense):                                             |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest income, net                                                |   |                              | 6,159       |   |                            |   | 27,719 |   |   |   | 19,919 |   |   |   | 63,752 |   |
| Other income (expense)                                              |   |                              | 3,458,220   |   |                            |   | 4,753 |   |   |   | 7,263,998 |   |   |   | 3,631 |   |
| Total other income (expense)                                        |   |                              | 3,464,379   |   |                            |   | 32,472 |   |   |   | 7,283,917 |   |   |   | 67,383 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                   |   |                              | (15,333,402 | )      |                            |   | 64,968 |   |   |   | (13,936,086 | ) |   |   | 524,018 |   |
| Income tax provision                                                |   |                              | 3,709,936   |   |                            |   | 49,773 |   |   |   | 4,162,812 |   |   |   | 219,277 |   |
| Income (loss) from continuing operations                            |   |                              | (19,043,338 | )      |                            |   | 15,195 |   |   |   | (18,098,898 | ) |   |   | 304,741 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations:                                            |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from discontinued component, including disposal costs |   |                              | (64,301     | )      |                            |   | (18,929 | ) |   |   | (155,422 | ) |   |   | 39,416 |   |
| Income tax provision (benefit)                                      |   |                              | (24,024     | )      |                            |   | (7,072 | ) |   |   | (58,066 | ) |   |   | 14,726 |   |
| Income (loss) from discontinued operations                          |   |                              | (40,277     | )      |                            |   | (11,857 | ) |   |   | (97,356 | ) |   |   | 24,690 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                   |   | $                                 | (19,083,615 | )      |                            | $      | 3,338 |   |   | $ | (18,196,254 | ) |   | $ | 329,431 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - basic1:                                        |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                            |   | $                                 | (3.18       | )      |                            | $      | 0.00 |   |   | $ | (3.01 | ) |   | $ | 0.05 |   |
| Discontinued operations                                             |   |                              | (0.01       | )      |                            |   | (0.00 | ) |   |   | (0.02 | ) |   |   | 0.00 |   |
| Net income (loss)                                                   |   | $                                 | (3.19       | )      |                            | $      | 0.00 |   |   | $ | (3.03 | ) |   | $ | 0.05 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - diluted1:                                      |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                            |   | $                                 | (3.18       | )      |                            | $      | 0.00 |   |   | $ | (3.01 | ) |   | $ | 0.05 |   |
| Discontinued operations                                             |   |                              | (0.01       | )      |                            |   | (0.00 | ) |   |   | (0.02 | ) |   |   | 0.00 |   |
| Net income (loss)                                                   |   | $                                 | (3.19       | )      |                            | $      | 0.00 |   |   | $ | (3.03 | ) |   | $ | 0.05 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                         |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                               |   |                              | 5,983,490   |   |                            |   | 6,189,371 |   |   |   | 6,010,521 |   |   |   | 6,209,995 |   |
| Diluted                                                             |   |                              | 5,983,490   |   |                            |   | 6,358,116 |   |   |   | 6,010,521 |   |   |   | 6,391,245 |   |

----

Index

LIVE

|                                                                                               |   | Six Months Ended March 31, |        |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                                               |   | 2009                            |        |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                              |   |                            |        |   |   |   |
| Net income (loss)                                                                                  |   | $                               | (18,196,254 | ) |   | $ | 329,431 |   |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                            |        |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                            | 1,902,347   |   |   |   | 1,002,336 |   |
| Non-cash stock compensation expense                                                                |   |                            | 45,882      |   |   |   | - |   |
| Amortization of deferred stock compensation                                                        |   |                            | (132,367    | ) |   |   | 457,170 |   |
| Deferred income taxes                                                                              |   |                            | 3,705,525   |   |   |   | (9,802 | ) |
| Provision for uncollectible accounts                                                               |   |                            | 836,873     |   |   |   | 268,730 |   |
| Noncash impairment of goodwill and other intangibles                                               |   |                            | 16,111,494  |   |   |   | - |   |
| Gain on sale of customer list                                                                      |   |                            | (2,815,952  | ) |   |   | - |   |
| Gain on sale of internet domain name                                                               |   |                            | (3,805,778  | ) |   |   | - |   |
| Gain on amendment of directory services contract                                                   |   |                            | (642,268    | ) |   |   |   |   |
| Loss on disposal of property and equipment                                                         |   |                            | 37,943      |   |   |   | - |   |
| Changes in assets and liabilities:                                                                 |   |                            |        |   |   |   |   |   |
| Accounts receivable                                                                                |   |                            | 2,174,384   |   |   |   | (601,130 | ) |
| Customer acquisition costs                                                                         |   |                            | -           |   |   |   | 94,444 |   |
| Prepaid expenses and other current assets                                                          |   |                            | (24,965     | ) |   |   | (24,798 | ) |
| Deposits and other assets                                                                          |   |                            | 1,835       |   |   |   | (323 | ) |
| Accounts payable                                                                                   |   |                            | (585,918    | ) |   |   | (208,301 | ) |
| Accrued liabilities                                                                                |   |                            | 94,561      |   |   |   | 41,312 |   |
| Income taxes receivable and payable                                                                |   |                            | 396,460     |   |   |   | 260,193 |   |
|                                                                                               |   |                            |        |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                                |   |                            | (896,198    | ) |   |   | 1,609,262 |   |
|                                                                                               |   |                            |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                              |   |                            |        |   |   |   |   |   |
| Proceeds from sale of internet domain name                                                         |   |                            | 3,850,000   |   |   |   | - |   |
| Proceeds from sale of customer list                                                                |   |                            | 2,783,097   |   |   |   | - |   |
| Proceeds from amendment of directory services contract                                             |   |                            | 642,268     |   |   |   | - |   |
| Additional closing costs related to acquisition of LiveDeal, Inc.                                  |   |                            | -           |   |   |   | (7,000 | ) |
| Additional closing costs related to acquisition of OnCall                                          |   |                            |        |   |   |   |   |   |
| Subscriber Management, Inc.                                                                        |   |                            | -           |   |   |   | (16,243 | ) |
| Expenditures for intangible assets                                                                 |   |                            | (339,372    | ) |   |   | (391,123 | ) |
| Purchases of equipment                                                                             |   |                            | (65,104     | ) |   |   | (361,779 | ) |
|                                                                                               |   |                            |        |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                |   |                            | 6,870,889   |   |   |   | (776,145 | ) |
|                                                                                               |   |                            |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                              |   |                            |        |   |   |   |   |   |
| Series E preferred stock dividends                                                                 |   |                            | (958        | ) |   |   | (960 | ) |
| Principal repayments on capital lease obligations                                                  |   |                            | (35,561     | ) |   |   | - |   |
| Purchase of treasury stock                                                                         |   |                            | (487,480    | ) |   |   | (394,520 | ) |
|                                                                                               |   |                            |        |   |   |   |   |   |
| Net cash used in financing activities                                                              |   |                            | (523,999    | ) |   |   | (395,480 | ) |
|                                                                                               |   |                            |        |   |   |   |   |   |
|                                                                                               |   |                            |        |   |   |   |   |   |
| INCREASE IN CASH AND CASH EQUIVALENTS                                                              |   |                            | 5,450,692   |   |   |   | 437,637 |   |
|                                                                                               |   |                            |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, beginning of period                                                     |   |                            | 4,639,787   |   |   |   | 5,674,533 |   |
|                                                                                               |   |                            |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, end of period                                                           |   | $                               | 10,090,479  |   |   | $ | 6,112,170 |   |

----

Index

LIVE

|   | 1. | The current effects of the recession and general economic downturn; |
|--------|----|---------------------------------------------------------------------|

|   | 2. | Management’s perception that the general economic downturn could lead the Company’s business customers to seek lower-cost customer acquisition methods, primarily through the Internet; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The sale of the Company’s “www.yp.com” domain name in the first quarter of 2009, which domain name was associated with the Company’s traditional business; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The reconstitution of the Company’s management team with additional capability in Internet-based technologies; |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 5. | The termination of certain significant directory business contracts related to the traditional business; |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | 6. | The sale of certain of the Company’s traditional business assets, including certain of its customer lists; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 7. | Continuing losses in the Company’s classifieds business. |
|--------|----|----------------------------------------------------------------|

----

Index

|   | 1. | Impairment charges of $16,111,494 were recorded related to the write-down of the Company’s goodwill and other intangible assets as discussed in Note 5; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The Company entered into a plan to discontinue its classifieds business and initiated shutdown activities, as discussed in Note 6, and has reflected the operating results of this line of business as discontinued operations in the accompanying unaudited condensed consolidated statements of operations; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The Company sold a portion of its customer list associated with its directory services business and recorded a gain of $2,815,952, as discussed in Note 7; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The Company established a valuation allowance of $9,392,488 related to its deferred tax assets, as described in Note 10. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------|

|                                  |   | March 31, 2009 |       |   | September 30, 2008 |   |
|---------------------------------------|--------|---------------------|------------|--------|-------------------------|--------|
| Receivables, current, net:            |   |                |       |   |                    |   |
| Accounts receivable, current          |   | $                   | 4,579,074  |   |                    | $      | 8,923,315 |   |
| Less: Allowance for doubtful accounts |   |                | (1,498,516 | )      |                    |   | (2,042,823 | ) |
|                                  |   | $                   | 3,080,558  |   |                    | $      | 6,880,492 |   |
| Receivables, long term, net:          |   |                |       |   |                    |   |   |   |
| Accounts receivable, long term        |   | $                   | 3,339,258  |   |                    | $      | 2,171,865 |   |
| Less: Allowance for doubtful accounts |   |                | (539,438   | )      |                    |   | (160,722 | ) |
|                                  |   | $                   | 2,799,820  |   |                    | $      | 2,011,143 |   |
| Total receivables, net:               |   |                |       |   |                    |   |   |   |
| Gross receivables                     |   | $                   | 7,918,332  |   |                    | $      | 11,095,180 |   |
| Allowance for doubtful accounts       |   |                | (2,037,954 | )      |                    |   | (2,203,545 | ) |
|                                  |   | $                   | 5,880,378  |   |                    | $      | 8,891,635 |   |

----

Index

|                                                                    |   | March 31, 2009 |      |   | September 30, 2008 |   |
|-------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------------|--------|
| Components of allowance for doubtful accounts are as follows:           |   |                |      |   |                    |   |
| Allowance for dilution and fees on amounts due from billing aggregators |   | $                   | 1,872,627 |   |                    | $      | 1,775,276 |   |
| Allowance for customer refunds                                          |   |                | 165,327   |   |                    |   | 428,269 |   |
|                                                                    |   | $                   | 2,037,954 |   |                    | $      | 2,203,545 |   |

|                                      |   | March 31, 2009 |       |   | September 30, 2008 |   |
|-------------------------------------------|--------|---------------------|------------|--------|-------------------------|--------|
| Customer acquisition costs, net:          |   |                |       |   |                    |   |
| Customer acquisition costs                |   | $                   | 1,700,000  |   |                    | $      | 1,700,000 |   |
| Less:  Accumulated amortization |   |                | (1,700,000 | )      |                    |   | (1,057,780 | ) |
|                                      |   | $                   | -          |   |                    | $      | 642,220 |   |

|                                 |   | March 31, 2009 |      |   | September 30, 2008 |   |
|--------------------------------------|--------|---------------------|-----------|--------|-------------------------|--------|
| Property and equipment, net:         |   |                |      |   |                    |   |
| Leasehold improvements               |   | $                   | 234,293   |   |                    | $      | 233,970 |   |
| Furnishings and fixtures             |   |                | 334,848   |   |                    |   | 311,319 |   |
| Office, computer equipment and other |   |                | 655,199   |   |                    |   | 961,931 |   |
|                                 |   |                | 1,224,340 |   |                    |   | 1,507,220 |   |
| Less: Accumulated depreciation       |   |                | (520,137  | )      |                    |   | (547,366 | ) |
|                                 |   | $                   | 704,203   |   |                    | $      | 959,854 |   |

|                                          |   | March 31, 2009 |        |   | September 30, 2008 |   |
|-----------------------------------------------|--------|---------------------|-------------|--------|-------------------------|--------|
| Intangible assets, net:                       |   |                |        |   |                    |   |
| Domain name and marketing related intangibles |   | $                   | 6,699,600   |   |                    | $      | 7,208,600 |   |
| Non-compete agreements                        |   |                | 3,465,000   |   |                    |   | 3,465,000 |   |
| Website and technology related intangibles    |   |                | 4,389,913   |   |                    |   | 4,147,459 |   |
|                                          |   |                | 14,554,513  |   |                    |   | 14,821,059 |   |
| Less:  Accumulated amortization     |   |                | (12,343,290 | )      |                    |   | (8,084,981 | ) |
|                                          |   | $                   | 2,211,223   |   |                    | $      | 6,736,078 |   |

----

Index

|                                      |   | March 31, 2009 |      |   | September 30, 2008 |   |
|-------------------------------------------|--------|---------------------|-----------|--------|-------------------------|--------|
| Accrued liabilities:                      |   |                |      |   |                    |   |
| Deferred revenue                          |   | $                   | 843,953   |   |                    | $      | 917,068 |   |
| Accrued payroll and bonuses               |   |                | 349,490   |   |                    |   | 306,984 |   |
| Accruals under revenue sharing agreements |   |                | 271,508   |   |                    |   | - |   |
| Accrued expenses - other                  |   |                | 874,590   |   |                    |   | 767,317 |   |
|                                      |   | $                   | 2,339,541 |   |                    | $      | 1,991,369 |   |

|   | 1. | The current effects of the recession and general economic downturn; |
|--------|----|---------------------------------------------------------------------|

|   | 2. | The sale of the Company’s “www.yp.com” domain name in the first quarter of 2009; |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | 3. | The termination of certain significant directory business contracts; |
|--------|----|----------------------------------------------------------------------|

|   | 4. | The change in business strategy to move away from the integration of the Yellow Pages and classifieds businesses to one which addresses each of the Company’s business segments as separate entities; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The sale of certain directory services assets that impacted the future use of its Philippines call-center; |
|--------|----|------------------------------------------------------------------------------------------------------------|

|   | 6. | The existence of certain regulatory actions that impacted the future use of its Philippines call-center; and |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | 7. | Continuing losses in the Company’s classifieds business. |
|--------|----|----------------------------------------------------------------|

|   | 1. | The goodwill acquired by the Company in its acquisition of LiveDeal, Inc., the business focus of which was online classified advertising which was originally intended to be merged with the Company’s existing directory services business; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The goodwill acquired by the Company in its acquisition of a Philippines call-center, 247 Marketing, Inc., the business focus of which is providing telemarketing services to acquire customers for its directory services business; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Assets related to the Company’s call-center operations and non-compete agreements that were made obsolete due to the sale of a portion of the Company’s customer list associated with its directory services business, as described in Note 7. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 4. | Intangible assets related to the Company’s directory services business, including URLs, internally developed software, and other miscellaneous intangible assets. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Goodwill                                       |   | $      | 11,706,406 |   |
|------------------------------------------------|--------|--------|------------|--------|
| Domain name and marketing related intangibles  |   |   | 1,879,054  |   |
| Assets obsoleted through sale of customer list |   |   | 1,259,680  |   |
| Website and technology related intangibles     |   |   | 1,266,354  |   |
|                                           |   | $      | 16,111,494 |   |

----

Index

|                    |   | Quarter Ended March 31, 2009 |   |   | Six Months Ended March 31, 2009 |   |   | Quarter Ended March 31, 2008 |   |   | Six Months Ended March 31, 2008 |   |
|-------------------------|--------|-----------------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------------|--------|
| Volatility              |   |                              | 97     | %      |                                 |   | 97     | %                                 |   |   | N/A                                  |   |   |   | N/A |   |
| Risk-free interest rate |   |                              | 2.6    | %      |                                 |   | 2.6    | %                                 |   |   | N/A                                  |   |   |   | N/A |   |
| Expected term           |   | 6.0 years                         |   |   | 6.0 years                            |   |   |                              | N/A    |   |                                 |   | N/A |   |
| Forfeiture rate         |   |                              | 40     | %      |                                 |   | 40     | %                                 |   |   | N/A                                  |   |   |   | N/A |   |
| Dividend yield rate     |   |                              | 0      | %      |                                 |   | 0      | %                                 |   |   | N/A                                  |   |   |   | N/A |   |

----

Index

|                              |   | Number of Shares |    |   | Weighted Average Exercise Price |   |   | Weighted Average Fair Value |   |   | Weighted Average Remaining Contractual Life |   |   | Aggregate Intrinsic Value |   |
|-----------------------------------|--------|------------------|---------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------|--------|
| Outstanding at September 30, 2008 |   |             | 5,000   |   |                            |   |   |                        |   |   |                                        |   |   |                      |   |   |
| Granted at market price           |   |             | 550,000 |   |                            | $      | 1.45   |                        |   | $      | 1.13                                        |   |   |                      |   |   |   |   |
| Exercised                         |   |             | -       |   |                            | $      | -      |                        |   |   |                                        |   |   |                      |   |   |   |   |
| Cancelled                         |   |             | -       |   |                            | $      | -      |                        |   |   |                                        |   |   |                      |   |   |   |   |
| Outstanding at March 31, 2009     |   |             | 555,000 |   |                            |   |   |                        |   |   |                                        |   |   |                      | 9.6    |   |   | $ | - |   |
| Exercisable                       |   |             | 23,750  |   |                            | $      | 1.73   |                        |   |   |                                        |   |   |                      | 9.2    |   |   | $ | - |   |

----

Index

|                      |   | Exercisable        |   |   | Unexercisable                   |   |   | Total              |   |
|---------------------------|--------|--------------------|--------|--------|---------------------------------|--------|--------|--------------------|--------|
|                      |   |               |   |   |                            |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Range of Exercise Prices  |   | Number Outstanding |   |   | Weighted Average Exercise Price |   |   | Number Outstanding |   |   | Weighted Average Exercise Price |   |   | Number Outstanding |   |   | Weighted Average Exercise Price |   |
|                      |   |               |   |   |                            |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Less than $3.00 per share |   |               | 23,750 |   |                            | $      | 1.73   |               |   |   | 531,250 |   |   |   | 1.45 |   |   |   | 555,000 |   |   | $ | 1.46 |   |

| Outstanding (unvested) at September 30, 2008 |   |   | 227,425 |   |
|----------------------------------------------|--------|--------|---------|--------|
| Granted                                      |   |   | 10,000  |   |
| Forfeited                                    |   |   | (53,500 | )      |
| Vested                                       |   |   | (25,500 | )      |
| Outstanding (unvested) at March 31, 2009     |   |   | 158,425 |   |

----

Index

|                                                                |   | Three Months Ended March 31, |        |   | Six Months Ended March 31, |   |
|---------------------------------------------------------------------|--------|-----------------------------------|-------------|--------|---------------------------------|--------|
|                                                                |   | 2009                              |        |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |
| Net income (loss) from continuing operations                        |   | $                                 | (19,043,338 | )      |                            | $      | 15,195 |   |   | $ | (18,098,898 | ) |   | $ | 304,741 |   |
| Less: preferred stock dividends                                     |   |                              | (479        | )      |                            |   | (480 | ) |   |   | (958 | ) |   |   | (960 | ) |
| Income (loss) from continuing operations applicable to common stock |   |                              | (19,043,817 | )      |                            |   | 14,715 |   |   |   | (18,099,856 | ) |   |   | 303,781 |   |
| Income (loss) from discontinued operations                          |   |                              | (40,277     | )      |                            |   | (11,857 | ) |   |   | (97,356 | ) |   |   | 24,690 |   |
| Income (loss) applicable to common stock                            |   | $                                 | (19,084,094 | )      |                            | $      | 2,858 |   |   | $ | (18,197,212 | ) |   | $ | 328,471 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average common shares outstanding                    |   |                              | 5,983,490   |   |                            |   | 6,189,371 |   |   |   | 6,010,521 |   |   |   | 6,209,995 |   |
| Add incremental shares for:                                         |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Unvested restricted stock                                           |   |                              | -           |   |                            |   | 167,774 |   |   |   | - |   |   |   | 180,764 |   |
| Stock options                                                       |   |                              | -           |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Series E convertible preferred stock                                |   |                              | -           |   |                            |   | 971 |   |   |   | - |   |   |   | 486 |   |
| Diluted weighted average common shares outstanding                  |   |                              | 5,983,490   |   |                            |   | 6,358,116 |   |   |   | 6,010,521 |   |   |   | 6,391,245 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - basic1:                                        |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                            |   | $                                 | (3.18       | )      |                            | $      | 0.00 |   |   | $ | (3.01 | ) |   | $ | 0.05 |   |
| Discontinued operations                                             |   | $                                 | (0.01       | )      |                            | $      | (0.00 | ) |   | $ | (0.02 | ) |   | $ | 0.00 |   |
| Net income (loss)                                                   |   | $                                 | (3.19       | )      |                            | $      | 0.00 |   |   | $ | (3.03 | ) |   | $ | 0.05 |   |
|                                                                |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - diluted1:                                      |   |                              |        |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                            |   | $                                 | (3.18       | )      |                            | $      | 0.00 |   |   | $ | (3.01 | ) |   | $ | 0.05 |   |
| Discontinued operations                                             |   | $                                 | (0.01       | )      |                            | $      | (0.00 | ) |   | $ | (0.02 | ) |   | $ | 0.00 |   |
| Net income (loss)                                                   |   | $                                 | (3.19       | )      |                            | $      | 0.00 |   |   | $ | (3.03 | ) |   | $ | 0.05 |   |

|                                           |   | Three Months Ended March 31, |    |   | Six Months Ended March 31, |   |
|------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|
|                                           |   | 2009                              |    |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                           |   |                              |    |   |                            |   |   |   |   |   |   |   |
| Shares of non-vested restricted stock          |   |                              | 158,425 |   |                            |   | 53,075 |   |   |   | 188,755 |   |   |   | 53,788 |   |
| Stock options                                  |   |                              | 540,217 |   |                            |   | - |   |   |   | 475,712 |   |   |   | - |   |
| Shares of Series E convertible preferred stock |   |                              | 127,840 |   |                            |   | - |   |   |   | 127,840 |   |   |   | - |   |

----

Index

|                                                         |   | March 31, 2009 |       |
|--------------------------------------------------------------|--------|---------------------|------------|
| Deferred income tax asset, current:                          |   |                |       |
| Book to tax differences in accounts receivable               |   | $                   | 822,514    |   |
| Book to tax differences in prepaid expenses                  |   |                | (49,510    | ) |
| Net operating loss carryforwards, current                    |   |                | 1,189,290  |   |
| Total deferred income tax asset, current                     |   |                | 1,962,294  |   |
| Less:  valuation allowance                         |   |                | (773,004   | ) |
| Deferred income tax asset, current, net                      |   |                | 1,189,290  |   |
|                                                         |   |                |       |   |
| Deferred incom tax asset, long-term:                         |   |                |       |   |
| Net operating loss carryforwards, long-term                  |   |                | 2,292,496  |   |
| Book to tax differences for stock based compensation         |   |                | 238,662    |   |
| Book to tax differences in intangible assets                 |   |                | 7,305,807  |   |
| Book to tax differences in depreciation                      |   |                | (1,217,481 | ) |
| Total deferred income tax asset, long-term                   |   |                | 8,619,484  |   |
| Less:  valuation allowance                         |   |                | (8,619,484 | ) |
| Deferred income tax asset, long-term, net                    |   |                | -          |   |
|                                                         |   |                |       |   |
| Total deferred income tax assets, net of valuation allowance |   | $                   | 1,189,290  |   |

|                                                               |   | Six Months Ended March 31, |       |
|--------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                               |   | 2009                            |       |   | 2008 |   |
|                                                               |   | Amount                          |       |   | Percent |   |   | Amount |   |   | Percent |   |
|                                                               |   |                            |       |   |   |   |   |   |   |   |   |   |
| Federal statutory rates                                            |   | $                               | (4,738,269 | ) |   |   | 34 | % |   | $ | 178,166 |   |   |   | 34 | % |
| State income taxes                                                 |   |                            | (468,420   | ) |   |   | 3 | % |   |   | 17,613 |   |   |   | 3 | % |
| Write off of deferred tax asset related to vested restricted stock |   |                            | 48,570     |   |   |   | 0 | % |   |   | 23,365 |   |   |   | 14 | % |
| Valuation allowance                                                |   |                            | 9,392,488  |   |   |   | (67 | )% |   |   |   |   |   |   |   |   |
| Permanent differences and other                                    |   |                            | (71,557    | ) |   |   | 1 | % |   |   | 133 |   |   |   | 0 | % |
| Effective rate                                                     |   | $                               | 4,162,812  |   |   |   | (30 | )% |   | $ | 219,277 |   |   |   | 51 | % |

|                             |   | Payments Due by Fiscal Year |      |
|----------------------------------|--------|-----------------------------|-----------|
|                             |   | Total                       |      |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |
| Operating lease commitments      |   | $                           | 1,699,702 |   |   | $ | 324,560 |   |   | $ | 551,922 |   |   | $ | 427,621 |   |   | $ | 316,879 |   |   | $ | 78,720 |   |   | $ | - |   |
| Capital lease commitments        |   |                        | 237,034   |   |   |   | 38,438 |   |   |   | 76,876 |   |   |   | 76,876 |   |   |   | 44,844 |   |   |   | - |   |   |   | - |   |
| Noncanceleable service contracts |   |                        | 1,047,917 |   |   |   | 440,917 |   |   |   | 367,000 |   |   |   | 240,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                             |   | $                           | 2,984,653 |   |   | $ | 803,915 |   |   | $ | 995,798 |   |   | $ | 744,497 |   |   | $ | 361,723 |   |   | $ | 78,720 |   |   | $ | - |   |

----

Index

| 2009                                                  |   | $      | 38,438  |   |
|-------------------------------------------------------|--------|--------|---------|--------|
| 2010                                                  |   |   | 76,876  |   |
| 2011                                                  |   |   | 76,876  |   |
| 2012                                                  |   |   | 44,844  |   |
| 2013                                                  |   |   | -       |   |
| Thereafter                                            |   |   | -       |   |
| Total minimum lease payments                          |   |   | 237,034 |   |
| Less imputed interest                                 |   |   | (15,787 | )      |
| Present value of minimum lease payments               |   |   | 221,247 |   |
| Less: current maturities of capital lease obligations |   |   | 68,040  |   |
| Noncurrent maturities of capital lease obligations    |   | $      | 153,207 |   |

----

Index

|                                                          |   | Six Months Ended March 31, 2009 |      |
|---------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                          |   | Directory Services                   |      |   | Direct Sales - Customer Acquisition Services |   |   | Unallocated |   |   | Consolidated |   |
|                                                          |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                 |      |   |   |   |   |   |   |   |   |   |
| Net revenues                                                  |   | $                                    | 6,863,243 |   |   | $ | 1,694,546 |   |   | $ | - |   |   | $ | 8,557,789 |   |
| Cost of services                                              |   |                                 | 2,127,690 |   |   |   | 939,842 |   |   |   | - |   |   |   | 3,067,532 |   |
| Gross profit                                                  |   |                                 | 4,735,553 |   |   |   | 754,704 |   |   |   | - |   |   |   | 5,490,257 |   |
| Operating expenses                                            |   |                                 | -         |   |   |   | - |   |   |   | 26,710,260 |   |   |   | 26,710,260 |   |
| Operating income (loss)                                       |   |                                 | 4,735,553 |   |   |   | 754,704 |   |   |   | (26,710,260 | ) |   |   | (21,220,003 | ) |
| Other income (expense)                                        |   |                                 | -         |   |   |   | - |   |   |   | 7,283,917 |   |   |   | 7,283,917 |   |
| Income (loss) before income taxes and discontinued operations |   | $                                    | 4,735,553 |   |   | $ | 754,704 |   |   | $ | (19,426,343 | ) |   | $ | (13,936,086 | ) |

|                                                   |   | Six Months Ended March 31, 2008 |       |
|--------------------------------------------------------|--------|--------------------------------------|------------|
|                                                   |   | Directory Services                   |       |   | Direct Sales - Customer Acquisition Services |   |   | Unallocated |   |   | Consolidated |   |
|                                                   |   |                                 |       |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                 |       |   |   |   |   |   |   |   |   |   |
| Net revenues                                           |   | $                                    | 12,225,755 |   |   | $ | 219,842 |   |   | $ | - |   |   | $ | 12,445,597 |   |
| Cost of services                                       |   |                                 | 1,900,736  |   |   |   | 174,295 |   |   |   | - |   |   |   | 2,075,031 |   |
| Gross profit                                           |   |                                 | 10,325,019 |   |   |   | 45,547 |   |   |   | - |   |   |   | 10,370,566 |   |
| Operating expenses                                     |   |                                 | -          |   |   |   | - |   |   |   | 9,913,931 |   |   |   | 9,913,931 |   |
| Operating income                                       |   |                                 | 10,325,019 |   |   |   | 45,547 |   |   |   | (9,913,931 | ) |   |   | 456,635 |   |
| Other income (expense)                                 |   |                                 | -          |   |   |   | - |   |   |   | 67,383 |   |   |   | 67,383 |   |
| Income before income taxes and discontinued operations |   | $                                    | 10,325,019 |   |   | $ | 45,547 |   |   | $ | (9,846,548 | ) |   | $ | 524,018 |   |

----

Index

|                                  |   | March 31, 2009 |      |
|---------------------------------------|--------|---------------------|-----------|
|                                  |   | Directory Services  |      |   | Direct Sales - Customer Acquisition Services |   |   | Total |   |
| Accounts receivable, net - short term |   | $                   | 2,455,132 |   |   | $ | 625,426 |   |   | $ | 3,080,558 |   |
| Accounts receivable, net - long term  |   |                | 2,799,820 |   |   |   | - |   |   |   | 2,799,820 |   |
| Total accounts receivable, net        |   | $                   | 5,254,952 |   |   | $ | 625,426 |   |   | $ | 5,880,378 |   |

|                                  |   | September 30, 2008 |      |
|---------------------------------------|--------|-------------------------|-----------|
|                                  |   | Directory Services      |      |   | Direct Sales - Customer Acquisition Services |   |   | Total |   |
| Accounts receivable, net - short term |   | $                       | 6,326,272 |   |   | $ | 554,220 |   |   | $ | 6,880,492 |   |
| Accounts receivable, net - long term  |   |                    | 2,011,143 |   |   |   | - |   |   |   | 2,011,143 |   |
| Total accounts receivable, net        |   | $                       | 8,337,415 |   |   | $ | 554,220 |   |   | $ | 8,891,635 |   |
|                                  |   |                    |      |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

ITEM 2.

----

Index

|   | · | Website acquisition whereby we obtain website address names on behalf of our small business clients. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | Website development and deployment services where we create, house and manage websites on behalf of our small business clients. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | Website traffic and audience development whereby we provide sophisticated search engine marketing techniques, access to our own websites, partnerships with other websites and other techniques to generate traffic to our customers’ websites, whether created and housed by us or not. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Website analytics and performance reports which generate information for our customers about activities on their websites and lead activities for their businesses based on Internet activities. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Directory services that provide both basic and enhanced directory listings for our customers on our own directory and on partner directories. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The current effects of the recession and general economic downturn; |
|--------|----|---------------------------------------------------------------------|

|   | 2. | Our perception that the general economic downturn could lead our business customers to seek lower-cost customer acquisition methods, primarily through the Internet; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The sale of our “www.yp.com” domain name in the first quarter of 2009, which domain name was associated with our traditional business; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The reconstitution of our management team with additional capability in Internet-based technologies; |
|--------|----|------------------------------------------------------------------------------------------------------|

----

Index

|   | 5. | The termination of certain significant directory business contracts related to the traditional business; |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | 6. | The sale of certain of our traditional business assets including certain of our customer lists; and |
|--------|----|-----------------------------------------------------------------------------------------------------|

|   | 7. | Continuing losses in our classifieds business. |
|--------|----|------------------------------------------------|

|   | 1. | Impairment charges of $16,111,494 were recorded related to the write-down of our goodwill and other intangible assets; |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We entered into a plan to discontinue our classifieds business and initiated shutdown activities; |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | 3. | We sold our customer list associated with its directory services business and recorded a gain of  $2,815,952; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We established a valuation allowance of $9,392,488 related to our deferred tax assets. |
|--------|----|----------------------------------------------------------------------------------------|

|   | · | Gary Perschbacher was replaced by Rajeev Seshadri as Chief Financial Officer effective January 20, 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | President and Chief Operating Officer, John Raven submitted his resignation effective February 15, 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Yishay Yovel was named Vice President of Product Management in October of 2008; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Pamela Sziebert was appointed Vice President of Marketing in November of 2008; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | Dean Heistad is the Company’s new Vice President of Technology Strategy as of January 5, 2009; and, |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Ruben Atchison joined the Company as Director of Search Engine Marketing in December 2008. |
|--------|--------|--------------------------------------------------------------------------------------------|

----

Index

|   | 1. | The current effects of the recession and general economic downturn; |
|--------|----|---------------------------------------------------------------------|

|   | 2. | The sale of our “www.yp.com” domain name in the first quarter of 2009; |
|--------|----|------------------------------------------------------------------------------------|

|   | 3. | The termination of certain significant directory business contracts; |
|--------|----|----------------------------------------------------------------------|

|   | 4. | The sale of certain directory services assets that impacted the future use of our Philippines call-center; |
|--------|----|------------------------------------------------------------------------------------------------------------|

|   | 5. | The existence of certain regulatory actions that impacted the future use of our Philippines call-center; and |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | 6. | Continuing losses in our classifieds business. |
|--------|----|------------------------------------------------|

|   | 1. | The goodwill acquired in our acquisition of LiveDeal, Inc., the business focus of which was online classified advertising; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The goodwill acquired in our acquisition of a Philippines call-center, 247 Marketing, Inc., the business focus of which is providing telemarketing services to acquire customers for our directory services business; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Assets related to our call-center operations and non-compete agreements that were made obsolete by the sale of a portion of our customer list associated with our directory services business; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Intangible assets related to our directory services business, including URLs, internally developed software, and other miscellaneous intangible assets. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| Goodwill                                       |   | $      | 11,706,406 |   |
|------------------------------------------------|--------|--------|------------|--------|
| Domain name and marketing related intangibles  |   |   | 1,879,054  |   |
| Assets obsoleted through sale of customer list |   |   | 1,259,680  |   |
| Website and technology related intangibles     |   |   | 1,266,354  |   |
|                                           |   | $      | 16,111,494 |   |

----

Index

|                         |   | Net Revenues |      |
|------------------------------|--------|--------------|-----------|
|                         |   | 2009         |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |         |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $            | 3,548,275 |   |   | $ | 6,039,356 |   |   | $ | (2,491,081 | ) |   |   | (41 | )% |
| Six Months Ended March 31,   |   | $            | 8,557,789 |   |   | $ | 12,445,597 |   |   | $ | (3,887,808 | ) |   |   | (31 | )% |

----

Index

|                         |   | Cost of Services |      |
|------------------------------|--------|------------------|-----------|
|                         |   | 2009             |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |             |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                | 1,466,882 |   |   | $ | 1,081,461 |   |   | $ | 385,421 |   |   |   | 36 | % |
| Six Months Ended March 31,   |   | $                | 3,067,532 |   |   | $ | 2,075,031 |   |   | $ | 992,501 |   |   |   | 48 | % |

|                         |   | Gross Profit |      |
|------------------------------|--------|--------------|-----------|
|                         |   | 2009         |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |         |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $            | 2,081,393 |   |   | $ | 4,957,895 |   |   | $ | (2,876,502 | ) |   |   | (58 | )% |
| Six Months Ended March 31,   |   | $            | 5,490,257 |   |   | $ | 10,370,566 |   |   | $ | (4,880,309 | ) |   |   | (47 | )% |

|                         |   | General and Administrative Expenses |      |
|------------------------------|--------|-------------------------------------|-----------|
|                         |   | 2009                                |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                                |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                                   | 4,054,354 |   |   | $ | 3,845,145 |   |   | $ | 209,209 |   |   |   | 5 | % |
| Six Months Ended March 31,   |   | $                                   | 8,313,381 |   |   | $ | 7,240,036 |   |   | $ | 1,073,345 |   |   |   | 15 | % |

----

Index

|                                                                 |   |   | Q2 2009   |   |   |   | Q1 2009   |   |   |   | Q4 2008   |   |   |   | Q3 2008   |   |   |   | Q2 2008   |   |   |   | Q1 2008   |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|
| Compensation for employees, leased employees, officers and directors |   | $      | 2,311,056 |   |   | $      | 2,508,835 |   |   | $      | 1,810,383 |   |   | $      | 3,181,375 |   |   | $      | 2,377,412 |   |   | $      | 1,928,272 |   |
| Professional fees                                                    |   |   | 411,564   |   |   |   | 455,832   |   |   |   | 456,180   |   |   |   | 275,638   |   |   |   | 191,330   |   |   |   | 281,418   |   |
| Depreciation and amortization                                        |   |   | 560,383   |   |   |   | 559,289   |   |   |   | 588,718   |   |   |   | 505,095   |   |   |   | 487,085   |   |   |   | 478,433   |   |
| Other general and administrative costs                               |   |   | 771,351   |   |   |   | 735,070   |   |   |   | 692,314   |   |   |   | 860,702   |   |   |   | 789,318   |   |   |   | 706,848   |   |
|                                                                 |   | $      | 4,054,354 |   |   | $      | 4,259,026 |   |   | $      | 3,547,595 |   |   | $      | 4,822,810 |   |   | $      | 3,845,145 |   |   | $      | 3,394,971 |   |

|                         |   | Sales and Marketing Expenses |      |
|------------------------------|--------|------------------------------|-----------|
|                         |   | 2009                         |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                         |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                            | 713,326   |   |   | $ | 1,080,254 |   |   | $ | (366,928 | ) |   |   | (34 | )% |
| Six Months Ended March 31,   |   | $                            | 2,285,385 |   |   | $ | 2,673,895 |   |   | $ | (388,510 | ) |   |   | (15 | )% |

----

Index

|   | · | $543,000 of decreased telemarketing and other customer acquisition costs as we began transitioning away from marketing activities geared toward our directory services business; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $45,000 of reduced branding and miscellaneous sales and marketing expenses; partially offset by |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | $221,000 of increased expenditures for click traffic which we believe is more cost effective than online advertising. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | $708,000 of decreased telemarketing and other customer acquisition costs as we began transitioning away from marketing activities geared toward our directory services business; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $71,000 of reduced branding and miscellaneous sales and marketing expenses; partially offset by |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | $390,000 of increased expenditures for click traffic which we believe is more cost effective than online advertising. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|                         |   | Impairment of Goodwill and Other Intangible Assets |       |
|------------------------------|--------|----------------------------------------------------|------------|
|                         |   | 2009                                               |       |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                                               |       |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                                                  | 16,111,494 |   |   | $ | - |   |   | $ | 16,111,494 |   |   |   | n/a |   |
| Six Months Ended March 31,   |   | $                                                  | 16,111,494 |   |   | $ | - |   |   | $ | 16,111,494 |   |   |   | n/a |   |

|                         |   | Operating Income (Loss) |        |
|------------------------------|--------|-------------------------|-------------|
|                         |   | 2009                    |        |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                    |        |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                       | (18,797,781 | ) |   | $ | 32,496 |   |   | $ | (18,830,277 | ) |   |   | (57946 | )% |
| Six Months Ended March 31,   |   | $                       | (21,220,003 | ) |   | $ | 456,635 |   |   | $ | (21,676,638 | ) |   |   | (4747 | )% |

|                         |   | Total Other Income (Expense) |      |
|------------------------------|--------|------------------------------|-----------|
|                         |   | 2009                         |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                         |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                            | 3,464,379 |   |   | $ | 32,472 |   |   | $ | 3,431,907 |   |   |   | 10569 | % |
| Six Months Ended March 31,   |   | $                            | 7,283,917 |   |   | $ | 67,383 |   |   | $ | 7,216,534 |   |   |   | 10710 | % |

----

Index

|                         |   | Income Tax Provision (Benefit) |      |
|------------------------------|--------|--------------------------------|-----------|
|                         |   | 2009                           |      |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                           |      |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                              | 3,709,936 |   |   | $ | 49,773 |   |   | $ | 3,660,163 |   |   |   | 7354 | % |
| Six Months Ended March 31,   |   | $                              | 4,162,812 |   |   | $ | 219,277 |   |   | $ | 3,943,535 |   |   |   | 1798 | % |

|                         |   | Income (Loss) from Discontinued Operations |    |
|------------------------------|--------|--------------------------------------------|---------|
|                         |   | 2009                                       |    |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                                          | (40,277 | ) |   | $ | (11,857 | ) |   | $ | (28,420 | ) |   |   | 240 | % |
| Six Months Ended March 31,   |   | $                                          | (97,356 | ) |   | $ | 24,690 |   |   | $ | (122,046 | ) |   |   | (494 | )% |

|                         |   | Net Income (Loss) |        |
|------------------------------|--------|-------------------|-------------|
|                         |   | 2009              |        |   | 2008 |   |   | Change |   |   | Percent |   |
|                         |   |              |        |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, |   | $                 | (19,083,615 | ) |   | $ | 3,338 |   |   | $ | (19,086,953 | ) |   |   | (571808 | )% |
| Six Months Ended March 31,   |   | $                 | (18,196,254 | ) |   | $ | 329,431 |   |   | $ | (18,525,685 | ) |   |   | (5624 | )% |

----

Index

|                             |   | Payments Due by Fiscal Year |      |
|----------------------------------|--------|-----------------------------|-----------|
|                             |   | Total                       |      |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |
| Operating lease commitments      |   | $                           | 1,699,702 |   |   | $ | 324,560 |   |   | $ | 551,922 |   |   | $ | 427,621 |   |   | $ | 316,879 |   |   | $ | 78,720 |   |   | $ | - |   |
| Capital lease commitments        |   |                        | 237,034   |   |   |   | 38,438 |   |   |   | 76,876 |   |   |   | 76,876 |   |   |   | 44,844 |   |   |   | - |   |   |   | - |   |
| Noncanceleable service contracts |   |                        | 1,047,917 |   |   |   | 440,917 |   |   |   | 367,000 |   |   |   | 240,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                             |   | $                           | 2,984,653 |   |   | $ | 803,915 |   |   | $ | 995,798 |   |   | $ | 744,497 |   |   | $ | 361,723 |   |   | $ | 78,720 |   |   | $ | - |   |

----

Index

ITE

ITEM

----

Index

ITEM 1.  LEGAL 

ITEM 1A

ITEM 4. SUBMISSION 

|   | · | The election of seven directors to the Company’s Board of Directors; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | An amendment to the Company’s Amended and Restated 2003 Stock Plan primarily to (i) provide for the grant of stock options under the plan and (ii) increase the number of shares available for issuance under the plan from 800,000 shares to 1,400,000 shares; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The ratification of the appointment of Mayer Hoffman McCann P.C. as the Company’s independent registered public accounting firm for the fiscal year ended September 30, 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nominee                |   | Votes For |      |   | Votes Withheld |   |    | Abstentions and Broker Non-Votes |   |
|------------------------|--------|-----------|-----------|--------|----------------|--------|---------|----------------------------------|--------|
| Rajesh Navar           |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |
| Sheryle Bolton         |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |
| Richard D. Butler, Jr. |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |
| Thomas J. Clarke, Jr.  |   |      | 5,037,808 |   |           |   | 370,358 |                             |   |   | N/A |   |
| Michael Edelhart       |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |
| Greg A. LeClaire       |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |
| Richard F. Sommer      |   |      | 5,038,389 |   |           |   | 369,777 |                             |   |   | N/A |   |

----

Index

|                                                                                                                                                                                                                                                                  |   | Votes For |      |   | Votes Against |   |    | Abstentions and Broker Non-Votes |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|---------------|--------|---------|----------------------------------|--------|
| Proposal to amend the LiveDeal, Inc. Amended and Restated 2003 Stock Plan primarily to (i) provide for the grant of stock options under the plan and (ii) increase the number of shares available for issuance under the plan from 800,000 shares to 1,400,000 shares |   |      | 1,421,307 |   |          |   | 625,473 |                             |   |   | 5,400 |   |

|                                                                                                                                                                            |   | Votes For |      |   | Votes Against |   |    | Abstentions and Broker Non-Votes |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|---------------|--------|---------|----------------------------------|--------|
| Proposal to ratify the appointment of Mayer Hoffman McCann P.C. as LiveDeal’s independent registered public accounting firm for the fiscal year ending September 30, 2009 |   |      | 4,918,587 |   |          |   | 487,054 |                             |   |   | 2,525 |   |

----

Index

ITEM 6. 

| Exhibit Number | Description                                                                                       |
|----------------|---------------------------------------------------------------------------------------------------|
|           |                                                                                              |
| 10.1           | Asset Purchase Agreement by and among Local.com Corporation, the Company, and Telco Billing, Inc. |
|           |                                                                                              |
| 10.2           | Employment Agreement by and between the Company and Dean Heistad                                  |
|           |                                                                                              |
| 10.3           | Employment Agreement by and between the Company and Gregg Thaler                                  |
|           |                                                                                              |
| 31             | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                          |
|           |                                                                                              |
| 32             | Section 1350 Certifications                                                                       |

----

Index

SIGN

|                           | LiveDeal, Inc.          |   |
|--------------------------------|-------------------------|--------|
|                           |                    |   |
| Dated:  May 15, 2009 | /s/ Rajeev Seshadri     |   |
|                           | Rajeev Seshadri         |   |
|                           | Chief Financial Officer |   |

----