| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------|

| Delaware                                                       |   | 20-5433090                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |

| 10957 McCormick Road, Hunt Valley, Maryland          | 21031                                     |
|------------------------------------------------------|-------------------------------------------|
| (Address of Principal Executive Offices)   |       (Zip Code) |

| ( 410) 316-9900                                            |
|------------------------------------------------------------|
| (Registrant’s Telephone Number, Including Area Code) |

|   City Language Exchange Incorporated, 6021 Roxton Road, Halifax, Nova Scotia, Canada, B3H 1H4 |
|-----------------------------------------------------------------------------------------------------|
| (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)                  |

| Large accelerated filer |  ̈ | Accelerated filer         |  ̈ |
|-------------------------|--------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | Smaller reporting company | x      |

----

|                      |                                                                                        | Page    |
|---------------------------|---------------------------------------------------------------------------------------------|---------|
|                      | Explanation of Restatements                                                                 | 3  |
|                      |                                                                                        |    |
|                      |                                                                                        |    |
|                      | PART I - FINANCIAL INFORMATION                                                              |    |
|                      |                                                                                        | 4       |
| Item 1.              | Unaudited Financial Statements                                                              |    |
|                      |                                                                                        | 24      |
| Item 2.         | Management’s Discussion and Analysis of Financial Condition and Results of Operations |    |
|                      |                                                                                        | 27      |
| Item 3.         | Quantitative and Qualitative Analysis About Market Risk                                     |    |
|                      |                                                                                        | 27      |
| Item 4T.             | Controls and Procedures                                                                     |    |
|                      |                                                                                        |    |
|                      | PART II - OTHER INFORMATION                                                                 |    |
|                      |                                                                                        |    |
| Item 1.                   | Legal Proceedings                                                                           | 29      |
|                      |                                                                                        |    |
| Item 1A.             | Risk Factors                                                                                | 29      |
|                      |                                                                                        |    |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 29      |
|                      |                                                                                        |    |
| Item 3.         | Defaults Upon Senior Securities                                                             | 30      |
|                      |                                                                                        |    |
| Item 4.         | Removed and Reserved                                                                        | 30      |
|                      |                                                                                        |    |
| Item 5.         | Other Information                                                                           | 30      |
|                      |                                                                                        |    |
| Item 6.         | Exhibits                                                                                    | 30      |
|                      |                                                                                        |    |
| SIGNATURES                | 30                                                                                          |

----

| ·   | Total stock-based compensation expense in connection with options granted to employees recognized in the consolidated statement of operations for the period ended March 31, 2010 incorrectly calculated an accelerated stock option vesting for certain employees which consequently impacted amortization of the Stock Compensation (Accounting Standards Codification ("ASC") 718 "Compensation - Stock Compensation") over the remaining vesting period.  Furthermore, the Company reevaluated the historical volatility methodology utilized in the calculation of the employee stock-based compensation and non-employee stock-based compensation to estimate an expected volatility of similar public companies. Lastly, the Company incorrectly recorded the stock compensation as a warrant liability for the period ended March 31, 2010 and the adjustment has been properly reclassified to Additional Paid in Capital. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined it had certain product financing arrangement with a related party under ASC 470-40 Product Financing Arrangements had not been properly recorded and disclosed. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined  a customer order of approximately $124,000 recognized as revenue in the second quarter 2010 Statement of Operations was incorrectly recorded and subsequent restated to revenue for the three months ended March 31, 2010. The Company will increase revenue and accounts receivable by approximately $124,000 and increase the corresponding cost of sales and decrease inventory by approximately $71,000 for the three months ended March 31, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined it had not properly calculated the costs of sales utilizing the average costs method for three months ended March 31, 2010.  Subsequently, the Statement of operations have been adjusted to reflect an appropriate allocation and the corresponding inventory adjustment has been recorded decreasing the cost of sales and increasing inventory in the amount of approximately $120,000 for the three months ended March 31, 2010. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Game Trading Technologies, Inc. and Subsidiary                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (As Restated) See Note 2 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (Unaudited) |   |   | (Audited) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | March 31, 2010 |   |   | December 31, 2009* |   |
|   ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 300,575 |   |   | $ | 641,088 |   |
| Accounts Receivable - Net of Allowance of $100,000 as of March 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 5,450,491 |   |   |   | 2,383,688 |   |
|      and December 31, 2009,  respectively                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 3,894,609 |   |   |   | 2,897,432 |   |
| Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 239,149 |   |   |   | - |   |
|                                                                   TOTAL CURRENT ASSETS                                                   |   |   |       9,884,824 |   |   |   | 5,922,208 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Property and Equipment, net of accumulated depreciation of $327,109 and $246,549 respectively                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 136,037 |   |   |   | 109,984 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Deferred Financing Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | - |   |   |   | 258,325 |   |
| Other Deferred Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 39,940 |   |   |   | - |   |
|                                                                  TOTAL OTHER ASSETS                                                           |   |   | 39,940 |   |   |   | 258,325 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                      TOTAL ASSETS                                         |   | $ | 10,060,801 |   |   | $ | 6,290,517 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' (DEFICIT)                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 4,110,302 |   |   | $ | 3,967,429 |   |
| Accounts payable - related party                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | - |   |   |   | 285,967 |   |
| Product financing - related party                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 1,091,742 |   |   |   | - |   |
| Accrued expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 6,494 |   |   |   | 60,534 |   |
| Note Payable - Bridge City Language                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | - |   |   |   | 250,000 |   |
| Note Payable - S/B note payable - current portion                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | - |   |   |   | 263,046 |   |
| Note payable - TW development LLC - related party                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 725,286 |   |   |   | 408,424 |   |
| Discontinued Operations-Liablilties                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 63,848 |   |   |   | 88,921 |   |
|                                                                     TOTAL CURRENT LIABILITES                                   |   |   | 5,997,672 |   |   |   | 5,324,321 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Long Term Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Note Payable - Columbia Bank                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,443,344 |   |   |   | 1,800,000 |   |
| Subordinated Note Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | -  |   |   |   | 700,000 |   |
| Warrant Redemption Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | - |   |   |   | 281,935 |   |
| less: Current Maturities of long term debt                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | - |   |   |   | (263,046 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                     TOTAL LONG TERM LIABILITES                                 |   |   | 1,443,344 |   |   |   | 2,518,889 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                      TOTAL LIABILITIES                                    |   |   | 7,441,016 |   |   |   | 7,843,210 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|  Redeemable preferred stock, Series A; $.0001 par value, 1,950,000 shares authorized, 1,950,000 and0 shares issued and outstanding at March 31, 2010 and 2009, respectively, net (Face value $3,900,000 and $0, respectively.                                                                                                                                                                                                                                            |   |   | 83,958  |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Stockholders' deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Preferred stock, $0.0001 par value, 18,050,000 shares authorized,                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|       none issued and outstanding as of March 31, 2010 and December 31, 2010 respectively                                                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   |   | - |   |
| Common stock, $0.0001 par value, 100,000,000 shares authorized, 8,290,000 and 7,090,000 shares                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|  issued and outstanding at March 31, 2010 and December 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 829 |   |   |   | 709 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 5,817,055 |   |   |   | 89,659 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (3,282,057 | ) |   |   | (1,643,061 | ) |
|                                                                      Total stockholders' equity (deficit)                      |   |   | 2,535,827 |   |   |   | (1,552,693 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |   | $ | 10,060,801 |   |   | $ | 6,290,517 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| * Derived from audited financial statements The accompanying notes are integral parts of these financial statements.                                                                                                                                                                                                                                                                                                                                                     |   |   |

----

| Game Trading Technologies, Inc. and Subsidiary                                   |   |
|----------------------------------------------------------------------------------|--------|
| Consolidated Statements of Operations                                            |   |
| (Unaudited)                                                                      |   |
|                                                                             |   |   |   |   |   |   |
|                                                                             |   | For the Three Months Ended March 31 |   |
|                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                             |   | (As Restated) See Note 2 |   |   |   |   |
| Net Sales                                                                        |   | $ | 11,525,287 |   |   | $ | 8,341,060 |   |
| Cost of Sales                                                                    |   |   | 9,921,353 |   |   |   | 6,899,492 |   |
| Gross Profit                                                                     |   |   | 1,603,934 |   |   |   | 1,441,568 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Operating Expense :                                                              |   |   |   |   |   |   |   |   |
| Selling, general and administrative                                              |   |   | 1,334,705 |   |   |   | 620,135 |   |
| Employee stock based compensation                                                |   |   | 286,032 |   |   |   | - |   |
| Non-employee stock based compensation                                            |   |   | 1,579,689 |   |   |   | - |   |
| Depreciation                                                                     |   |   | 24,064 |   |   |   | 16,270 |   |
| Total Operating Expense:                                                         |   |   | 3,224,490 |   |   |   | 636,405 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Income (Loss) From Operations                                                    |   |   | (1,620,556 | ) |   |   | 805,163 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Other Income (Expense):                                                          |   |   |   |   |   |   |   |   |
| Interest Expense                                                                 |   |   | (64,934 | ) |   |   | (143,873 | ) |
| Other income                                                                     |   |   | 46,493 |   |   |   | - |   |
| Total Other Expense                                                              |   |   | (18,441 | ) |   |   | (143,873 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
| Income (Loss) From Continuing Operations Before Income Taxes                     |   |   | (1,638,997 | ) |   |   | 661,290 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                       |   |   | - |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Income (Loss) From Continuing Operations                                         |   |   | (1,638,997 | ) |   |   | 661,290 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Discontinued Operations :                                                        |   |   |   |   |   |   |   |   |
| Loss From Discontinued Operations                                                |   |   | - |   |   |   | 33,156 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Net Income / (Loss)                                                              |   | $ | (1,638,997 | ) |   | $ | 628,134 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Preferred Dividend Payable                                                       |   |   | 18,958 |   |   |   | - |   |
|  Beneficial Conversion and Warrant                                          |   |   | 65,000 |   |   |   | - |   |
| Net Income / (Loss) Attributable to Common Stockholders                          |   | $ | (1,722,955 | ) |   | $ | 628,134 |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Income (loss) per share from continuing operations – basic & diluted   |   | $ | (0.23 | ) |   | $ | 0.08 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Income (loss) per share from discontinued operations – basic & diluted |   | $ | - |   |   | $ | 0.01 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Net income (loss) per share – basic & diluted                          |   | $ | (0.23 | ) |   | $ | 0.09 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding of common stock                              |   |   |   |   |   |   |   |   |
| Basic & Diluted                                                              |   |   | 7,543,333 |   |   |   | 7,090,000 |   |
|                                                                             |   |
| The accompanying notes are integral parts of these financial statements.         |   |

----

| Game Trading Technologies, Inc. and Subsidiary                                                   |   |
|--------------------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows                                                            |   |
| (Unaudited)                                                                                      |   |
|                                                                                             |   |   |   |   |   |   |
|                                                                                             |   | For the Period Ended March 31, |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities                                                             |   | (As Restated) See Note 2  |   |   |   |   |
|  Net Income (Loss)                                                                          |   | $ | (1,638,997 | ) |   | $ | 628,134 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Adjustments to reconcile net loss to net cash (used in) provided by operating activities:  |   |   |   |   |   |   |   |   |
|  Depreciation & Amortization  - Property and Equipment                        |   |   | 24,064 |   |   |   | 16,270 |   |
|  Issuance of Stock Warrants for Services                                                    |   |   | 1,579,689 |   |   |   | - |   |
|  Stock Options for employee services                                                        |   |   | 286,032 |   |   |   | - |   |
| Changes in assets and liabilities                                                                |   |   |   |   |   |   |   |   |
|  Account receivable                                                                         |   |   | (3,066,803 | ) |   |   | (1,805,570 | ) |
| Inventory                                                                                        |   |   | (997,177 | ) |   |   | 584,302 |   |
|  Accounts payable                                                                           |   |   | (143,094 | )  |   |   | 1,171,013 |   |
|  Accrued liabilities                                                                        |   |   | (54,040 | ) |   |   | (4,609 | )  |
|  Deferred Expenses                                                                          |   |   | (17,960 | )  |   |   | - |   |
|  Prepaid expenses and deposits                                                              |   |   | (239,149 | ) |   |   | (5,597 | ) |
|  Liabilities of discontinued operation                                                      |   |   | (25,073 | ) |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Operating Activities                                           |   |   | (4,292,508 | ) |   |   | 583,943 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Cash flows from investing activities                                                       |   |   |   |   |   |   |   |   |
|  Purchases of fixed assets                                                                  |   |   | (49,953 | ) |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Investing Activities                                           |   |   | (49,953 | ) |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Cash flows from financing activities                                                       |   |   |   |   |   |   |   |   |
| Proceeds from the sale of convertible preferred stock                                            |   |   | 3,900,000 |   |   |   | - |   |
| Net borrowings (repayment) in connection with Product financing facilities                       |   |   | 1,091,742 |   |   |   | - |   |
| Payments on subordinated note payable                                                            |   |   | (700,000 | ) |   |   | (56,250 | ) |
| Advance (Repayment) of due to stockholder                                                        |   |   | - |   |   |   | (35,000 | ) |
| Issuance (Repayment) of note payable-TW development-related party                                |   |   | 316,862 |   |   |   | (156,107 | ) |
| Issuance (Repayment) of note payable                                                             |   |   | (606,656 | ) |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Financing Activities                                           |   |   | 4,001,948 |   |   |   | (247,357 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                                                            |   |   | (340,513 | ) |   |   | 396,586 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents at the beginning of the period                                   |   |   | 641,088 |   |   |   | 301,397 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents at the end of the period                                         |   | $ | 300,575 |   |   | $ | 637,983 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information :                                               |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                                           |   | $ | 64,934 |   |   | $ | 143,873 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Cash paid for taxes                                                                              |   |   | - |   |   |   | - |   |
|     The accompanying notes are integral parts of these financial statements. |

----

----

----

| a)   | the option to settle by issuing equity instruments lacks commercial substance or |
|----------------|----------------------------------------------------------------------------------|

| b)   | the present obligation is implied because of an entity's past practices or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should be recognized as equity. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a)   | the goods or services receive or |
|----------------|----------------------------------|

| b)   | the equity instruments issued. |
|----------------|--------------------------------|

| ·   | Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Total stock-based compensation expense in connection with options granted to employees recognized in the consolidated statement of operations for the period ended March 31, 2010 incorrectly calculated an accelerated stock option vesting for certain employees which consequently impacted amortization of the Stock Compensation (Accounting Standards Codification ("ASC") 718 "Compensation - Stock Compensation") over the remaining vesting period.  Furthermore, the Company reevaluated the historical volatility methodology utilized in the calculation of the employee stock-based compensation and non-employee stock-based compensation to estimate an expected volatility of similar public companies 1. Lastly, the Company incorrectly recorded the stock compensation as a warrant liability for the period ended March 31, 2010 and the adjustment has been properly reclassified to Additional Paid in Capital. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined it had certain product financing arrangement with a related party under ASC 470-40 Product Financing Arrangements had not been properly recorded and disclosed. In January 2010, the Company entered into a reseller agreement with DK Trading to procure, purchase and sell up to $1.0 million of pre-owned video games through April 2010. The previous filed 10Q omitted the disclosures relating to the transaction and the corresponding balance due of $1,091,742,to DK Trading at March 31, 2010 was reclassified from Accounts Payable to Product Financing -Related Party on the Condensed Consolidated Balance Sheet. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined  a customer order of approximately $124,000 recognized as revenue in the second quarter 2010 Statement of Operations was incorrectly recorded and subsequent restated to revenue for the three months ended March 31, 2010. The Company will increase revenue and accounts receivable by approximately $124,000 and increase the corresponding cost of sales and decrease inventory by approximately $71,000 for the three months ended March 31, 2010.  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company determined it had not properly calculated the costs of sales utilizing the average costs method for three months ended March 31, 2010.  Subsequently, the Statement of operations have been adjusted to reflect an appropriate allocation and the corresponding inventory adjustment increased the cost of sales and decreased inventory in the amount of approximately $422,000 for the three months ended March 31, 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We previously classified  the February 25, 2010, the $3.9 million sale of 1,950,000 shares of Series A Preferred Stock with attached warrants to the equity section of the Condensed Consolidated Balance Sheet. Since the Series A Preferred Stock may ultimately be redeemable at the option of the holder, the carrying value of the preferred stock, net of discount and accumulated dividends, has been reclassified as temporary equity on the balance sheet at March 31, 2010. Furthermore, the Company reevaluated the historical volatility methodology utilized in the calculation of the debt proceeds in accordance with ASC 470 Topic “ Debt" to estimate an expected volatility of similar public companies1. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

  

----

| Game Trading Technologies, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | As Originally Reported |   |   |   |   |   | As Restated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | March 31, 2010 |   |   | Adjustment |   |   | March 31, 2010 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 300,575 |   |   | $ | - |   |   | $ | 300,575 |   |
| Accounts Receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 5,326,491 |   |   |   | 124,000 |   |   |   | 5,450,491 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 4,387,311 |   |   |   | (492,702 | ) |   |   | 3,894,609 |   |
| Prepaid Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 239,149 |   |   |   | - |   |   |   | 239,149 |   |
|                                                                   TOTAL CURRENT ASSETS                                  |   |   | 10,253,526 |   |   |   | (368,702 | ) |   |   | 9,884,824 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and Equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 136,037 |   |   |   | - |   |   |   | 136,037 |   |
| Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 39,940 |   |   |   | - |   |   |   | 39,940 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      TOTAL ASSETS                        |   | $ | 10,429,503 |   |   | $ | (368,702 | ) |   | $ | 10,060,801 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' (DEFICIT)                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 5,202,044 |   |   | $ | (1,091,742 | ) |   | $ | 4,110,302 |   |
| Product financing - related party                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | - |   |   |   | 1,091,742 |   |   |   | 1,091,742 |   |
| Accrued expenses and other                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 6,494 |   |   |   | - |   |   |   | 6,494 |   |
| Note payable - TW development LLC - related party                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 725,286 |   |   |   | - |   |   |   | 725,286 |   |
| Discontinued Operations-Liablilties                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 63,848 |   |   |   | - |   |   |   | 63,848 |   |
|                                                                     TOTAL CURRENT LIABILITES                  |   |   | 5,997,672 |   |   |   | - |   |   |   | 5,997,672 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Long Term Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Note Payable - Columbia Bank                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,443,344 |   |   |   | - |   |   |   | 1,443,344 |   |
| Warrant Redemption Liability                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 3,346,998 |   |   |   | (3,346,998 | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     TOTAL LONG TERM LIABILITES                |   |   | 4,790,342 |   |   |   | (3,346,998 | ) |   |   | 1,443,344 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      TOTAL LIABILITIES                   |   |   | 10,788,014 |   |   |   | (3,346,998 | ) |   |   | 7,441,016 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Redeemable preferred stock, Series A                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 195 |   |   |   | 83,763 |   |   |   | 83,958 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|  Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | - |   |   |   | - |   |   |   | - |   |
|  Common stock                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 829 |   |   |   | - |   |   |   | 829 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 3,110,369 |   |   |   | 2,706,686 |   |   |   | 5,817,055 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (3,469,904 | ) |   |   | 187,847 |   |   |   | (3,282,057 | ) |
|                                                                      Total stockholders' equity               |   |   | (358,706 | ) |   |   | 2,894,533 |   |   |   | 2,535,827 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      TOTAL LIABILITIES AND STOCKHOLDERS' |   | $ | 10,429,503 |   |   | $ | (368,702 | ) |   | $ | 10,060,801 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Game Trading Technologies, Inc.       |
|---------------------------------------|
| Consolidated Statements of Operations |
| (Unaudited)                           |

|                                                                              |   |                                |       |   |       |   |     |        |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|------------|--------|----------|-------------|--------|
|                                                                              |   | For the Three Months Ended March 31 |       |
|                                                                              |   | 2010                                |       |   |       |   |     | 2010        |   |
|                                                                              |   | As Originally Reported              |       |   | Adjustment |   |     | As Restated |   |
|                                                                              |   |                                |       |   |       |   |     |        |   |
| Net Sales                                                                         |   | $                                   | 11,401,287 |   |       |   | 124,000  |        |   | $ | 11,525,287 |   |
| Cost of Sales                                                                     |   |                                | 9,428,651  |   |       |   | 492,702  |        |   |   | 9,921,353 |   |
| Gross Profit                                                                      |   |                                | 1,972,636  |   |       |   | (368,702 | )           |   |   | 1,603,934 |   |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Operating Expense :                                                               |   |                                |       |   |       |   |     |        |   |   |   |   |
| Selling, general and administrative                                               |   |                                | 1,399,639  |   |       |   | (64,934  | )           |   |   | 1,334,705 |   |
| Employee stock based compensation                                                 |   |                                | 945,204    |   |       |   | (659,172 | )           |   |   | 286,032 |   |
| Non-employee stock based compensation                                             |   |                                | 1,496,024  |   |       |   | 83,665   |        |   |   | 1,579,689 |   |
| Depreciation                                                                      |   |                                | 24,064     |   |       |   | -        |        |   |   | 24,064 |   |
| Total Operating Expense:                                                          |   |                                | 3,864,931  |   |       |   | (640,441 | )           |   |   | 3,224,490 |   |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Income (Loss) From Operations                                                     |   |                                | (1,892,295 | )      |       |   | 271,739  |        |   |   | (1,620,556 | ) |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Other Income (Expense):                                                           |   |                                |       |   |       |   |     |        |   |   |   |   |
| Interest Expense                                                                  |   |                                | -          |   |       |   | (64,934  | )           |   |   | (64,934 | ) |
| Other income                                                                      |   |                                | 46,493     |   |       |   | -        |        |   |   | 46,493 |   |
| Total Other Expense                                                               |   |                                | 46,493     |   |       |   | (64,934  | )           |   |   | (18,441 | ) |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Net Income (Loss) From Continuing Operations Before Income Taxes                  |   |                                | (1,845,802 | )      |       |   | 206,805  |        |   |   | (1,638,997 | ) |
| Accretion of preferred dividends and discount                                     |   |                                | 18,958     |   |       |   | -        |        |   |   | 18,958 |   |
| Accretion of preferred amortization of beneficial conversion and warrant features |   |                                | -          |   |       |   | 65,000   |        |   |   | 65,000 |   |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Net Income / (Loss) Attributable to Common Stockholders                           |   | $                                   | (1,864,760 | )      |       | $      | 141,805  |        |   | $ | (1,722,955 | ) |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Net income (loss) per share – basic & diluted                           |   | $                                   | (0.36      | )      |       |   |     |        |   | $ | (0.23 | ) |
|                                                                              |   |                                |       |   |       |   |     |        |   |   |   |   |
| Weighted average shares outstanding of common stock                               |   |                                |       |   |       |   |     |        |   |   |   |   |
| Basic & Diluted                                                               |   |                                | 5,145,833  |   |       |   |     |        |   |   | 7,543,333 |   |

----

| Game Trading Technologies, Inc.                                                                 |   |
|-------------------------------------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows                                                           |   |
| (Unaudited)                                                                                     |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                            |   | For the Period Ended March 31, |   |
|                                                                                            |   | 2010 |   |   |   |   |   | 2010 |   |
|  Cash flows from operating activities                                                      |   | As Originally Reported |   |   | Adjustment |   |   | As Restated |   |
|  Net Income (Loss)                                                                         |   | $ | (1,845,802 | ) |   | $ | 206,805 |   |   | $ | (1,638,997 | ) |
|      Accretion of Peferred Dividends                                   |   |   | (18,958 | )  |   |   | 18,958 |   |   |   | - |   |
|  Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
|  Depreciation & Amortization  - Property and Equipment                       |   |   | 24,064 |   |   |   | - |   |   |   | 24,064 |   |
|  Issuance of Stock Warrants for Services                                                   |   |   | 1,496,023 |   |   |   | 83,665 |   |   |   | 1,579,689 |   |
|  Stock Options for employee services                                                       |   |   | 929,874 |   |   |   | (643,842 | )  |   |   | 286,032 |   |
| Changes in assets and liabilities                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|  Account receivable                                                                        |   |   | (2,942,803 | ) |   |   | (124,000 | )  |   |   | (3,066,803 | ) |
| Inventory                                                                                       |   |   | (1,489,879 | ) |   |   | 492,702 |   |   |   | (997,177 | ) |
|  Accounts payable                                                                          |   |   | 948,648 |   |   |   | (1,091,742 | )  |   |   | (143,094 | ) |
|  Accrued liabilities                                                                       |   |   | (54,040 | ) |   |   | - |   |   |   | (54,040 | ) |
|  Deferred Expenses                                                                         |   |   | 39,940 |   |   |   | (57,900 | )  |   |   | (17,960 | ) |
|  Prepaid expenses and deposits                                                             |   |   | (239,149 | ) |   |   | - |   |   |   | (239,149 | ) |
|  Liabilities of discontinued operation                                                     |   |   | (25,073 | ) |   |   | - |   |   |   | (25,073 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Operating Activities                                          |   |   | (3,177,155 | ) |   |   | (1,115,353 | )  |   |   | (4,292,508 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash flows from investing activities                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases of fixed assets                                                                 |   |   | (49,953 | ) |   |   | - |   |   |   | (49,953 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Investing Activities                                          |   |   | (49,953 | ) |   |   | - |   |   |   | (49,953 | ) |
|  Cash flows from financing activities                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from the sale of convertible preferred stock                                           |   |   | 3,900,000 |   |   |   | - |   |   |   | 3,900,000 |   |
| Net borrowings (repayment) in connection with Product financing facilities                      |   |   | - |   |   |   | 1,091,742 |   |   |   | 1,091,742 |   |
| Deferred financing, net                                                                         |   |   | (23,611 | )  |   |   | 23,611 |   |   |   | - |   |
| Payments on subordinated note payable                                                           |   |   | (700,000 | ) |   |   | - |   |   |   | (700,000 | ) |
| Issuance (Repayment) of note payable-TW development-related party                               |   |   | 316,862 |   |   |   | - |   |   |   | 316,862 |   |
| Issuance (Repayment) of note payable                                                            |   |   | (606,656 | ) |   |   | - |   |   |   | (606,656 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Cash Provided (Used) In Financing Activities                                          |   |   | 2,886,595 |   |   |   | 1,115,353 |   |   |   | 4,001,948 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                                                           |   |   | (340,513 | ) |   |   | - |   |   |   | (340,513 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents at the beginning of the period                                  |   |   | 641,088 |   |   |   | - |   |   |   | 641,088 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents at the end of the period                                        |   | $ | 300,575 |   |   | $ | - |   |   | $ | 300,575 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                           |   | 3/31/10 |    |   | 12/31/09 |   |
|------------------------------------------------|--------|---------|---------|--------|----------|--------|
| Machinery and equipment                        |   | $       | 305,183 |   |     | $      | 251,347 |   |
| Leasehold improvements                         |   |    | 16,653  |   |     |   | 19,483 |   |
| Computer equipment and software                |   |    | 142,641 |   |     |   | 142,223 |   |
|                                           |   | $       | 464,477 |   |     | $      | 413,053 |   |
| Less accumulated depreciation and amortization |   |    | 328,440 |   |     |   | 303,069 |   |
| Property and Equipment, net                    |   | $       | 136,067 |   |     | $      | 109,984 |   |

| 5. | PRODUCT FINANCING - RELATED PARTY |
|----|-----------------------------------|

|   | Obligations and Commitments under Product Financing Arrangement |
|--------|-----------------------------------------------------------------|

|   | In 2010 and 2009, the Company entered into numerous product financing arrangement with a related party under ASC 470-40 Product Financing Arrangements. Accordingly, the remaining inventory and the related short-term debt have been included in the Balance Sheet at March 31, 2010 and the corresponding costs have been included in Statement of Operations as Cost of Sales. The Company is obligated to pay the vendor under this product financing arrangement upon its receipt of payments from financed  products. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 7.  | REDEEMABLE PREFERRED STOCK |
|----------|----------------------------|

|                                                                                                                                                       |   | 3/31/10 |       |    | 12/31/09 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|------------|---------|----------|--------|
| Redeemable preferred stock, Series A                                                                                                                       |   | $       | 3,900,000  |    |     | $      | - |   |
| Beneficial conversion feature, net of accumulated amortization of $24,255and $0 at March 31, 2010 and December 31, 2009, respectively.                     |   |    | (1,431,016 | )  |     |   | - |   |
| Value attributable to warrants attached to notes, net of accumulated amortization of $40,745 and $0 at March 31, 2010 and December 31, 2009, respectively. |   |    | (2,403,984 | )  |     |   | - |   |
| Accumulated Dividends                                                                                                                                      |   |    | 18,958     |    |     |   | - |   |
|                                                                                                                                                       |   | $       | 83,958     |    |     | $      | - |   |

|   | · | liquidation preferences (120% of stated value); |
|--------|--------|-------------------------------------------------|

|   | · | dividend preferences; |
|--------|--------|-----------------------|

| · | The parties agreed to add a provision to the certificate of designation for the Series A Preferred Stock whereby the minimum price in which the conversion price of the Series A Preferred Stock may be reduced shall be equal to $1.00; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The parties agreed to add a provision to the Warrants whereby the minimum price in which the exercise price of the Warrants may be reduced shall be equal to $1.00; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The parties agreed to add a provision to the Purchase Agreement whereby until the 36 month anniversary of the date of the Purchase Agreement, the Company shall not issue any of its equity securities below $1.00 without the prior written consent of any holder who was issued a Warrant for an aggregate of 2% or more of the Warrants initially issued pursuant to the Purchase Agreement. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year Ending December 31: |   |   |    |
|--------------------------|--------|--------|---------|
|                     |   |   |    |
| 2010                     |   |   | 175,322 |   |
| 2011                     |   |   | 178,826 |   |
| 2012 and thereafter      |   |   | 29,902  |   |
|                     |   | $      | 384,050 |   |

----

| Year Ending December 31: |   |   |    |
|--------------------------|--------|--------|---------|
|                     |   |   |    |
| 2010                     |   |   | 82,413  |   |
| 2011                     |   |   | 84,476  |   |
| 2012                     |   |   | 84,476  |   |
| 2013                     |   |   | 84,476  |   |
| 2014 and thereafter      |   |   | 159,012 |   |
|                     |   | $      | 494,853 |   |

| 10.  | CAPITAL STOCK |
|-----------|---------------|

----

| 11.  | STOCK OPTIONS & WARRANTS |
|-----------|------------------------------|

| Range ofExercisePrices |   |   | NumberOutstanding |   |      | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualLife |   |   | NumberExercisable |   |   | WeightedAverageExercisePrice |   |
|-----------------------------|--------|--------|-------------------|--------|-----------|------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------|--------|--------|------------------------------|--------|
|                        |   |   |              |   |      |                         |   |   |                                    |   |   |              |   |   |                         |   |
| $                           | 2.25   |   |              |   | 1,000,000 |                         |   | $      | 2.25                                    |   |   |              | 4.91   |   |                         |   | - |   |   | $ | 2.25 |   |
|                        | 2.50   |   |              |   | 50,000    |                         |   |   | 2.50                                    |   |   |              | 4.94   |   |                         |   | 16,666 |   |   |   | 2.50 |   |
|                        | 4.60   |   |              |   | 100,000   |                         |   |   | 4.60                                    |   |   |              | 4.94   |   |                         |   | 33,334 |   |   |   | 4.60 |   |
|                        |   |   |              |   |      |                         |   |   |                                    |   |   |              |   |   |                         |   |   |   |   |   |   |   |
|                        |   |   |              |   | 1,150,000 |                         |   |   |                                    |   |   |              | 4.91   |   |                         |   | 50,000 |   |   |   |   |   |

|                           |   | Options and Warrants |      |   | WeightedAverageExercisePrice |   |
|--------------------------------|--------|--------------------------------|-----------|--------|------------------------------|--------|
| Outstanding, December 31, 2009 |   |                           | —   |   |                         | $      | — |   |
| Granted                        |   |                           | 1,150,000 |   |                         |   | 2.47 |   |
| Exercised                      |   |                           | —   |   |                         |   | — |   |
| Expired/Cancelled              |   |                           | —   |   |                         |   | — |   |
| Outstanding, March 31, 2010    |   |                           | 1,150,000 |   |                         |   | 2.47 |   |
| Exercisable, March 31, 2010    |   |                           | 50,000    |   |                         |   | 3.90 |   |

----

|                                        |   | March 31, 2010 |                      |    | March 31, 2009 |   |
|---------------------------------------------|--------|----------------|---------------------------|---------|----------------|--------|
| Significant assumptions (weighted-average): |   |           |                      |    |           |   |
| Risk-free interest rate at grant date       |   |           | 3.5                       |  % |           |   | -    |   |
| Expected stock price volatility             |   |           | 74                        |  % |           |   | -    |   |
| Expected dividend payout                    |   |           | -     |    |           |   | -     |   |
| Expected option life (in years)             |   |           | 5.0                  |    |           |   | -    |   |
| Expected forfeiture rate                    |   |           | 0                         |  % |           |   | -    |   |
| Fair value per share of options granted     |   | $              | 3.39                      |    |           | $      | -    |   |

| Range ofExercisePrices |   |   | NumberOutstanding |   |      | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualLife |   |   | NumberExercisable |   |   | WeightedAverageExercisePrice |   |
|-----------------------------|--------|--------|-------------------|--------|-----------|------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------|--------|--------|------------------------------|--------|
|                        |   |   |              |   |      |                         |   |   |                                    |   |   |              |   |   |                         |   |
| $                           | 0.65   |   |              |   | 1,120,000 |                         |   | $      | .65                                     |   |   |              | 3.81   |   |                         |   | 1,120,000 |   |   | $ | .65 |   |
|                        | 2.50   |   |              |   | 2,040,000 |                         |   |   | 2.50                                    |   |   |              | 4.91   |   |                         |   | 2,020,000 |   |   |   | 2.50 |   |
|                        |   |   |              |   |      |                         |   |   |                                    |   |   |              |   |   |                         |   |   |   |   |   |   |   |
|                        |   |   |              |   | 3,160,000 |                         |   |   |                                    |   |   |              | 4.52   |   |                         |   | 3,160,000 |   |   |   |   |   |

----

|                           |   | Options and Warrants |      |   | WeightedAverageExercisePrice |   |
|--------------------------------|--------|--------------------------------|-----------|--------|------------------------------|--------|
| Outstanding, December 31, 2009 |   |                           | 1,110,000 |   |                         | $      | 0.65 |   |
| Granted                        |   |                           | 2,350,000 |   |                         |   | 2.50 |   |
| Exercised                      |   |                           | —   |   |                         |   | — |   |
| Expired/Cancelled              |   |                           | (300,000  | )      |                         |   | 0.65 |   |
| Outstanding, March 31, 2010    |   |                           | 3,160,000 |   |                         |   | 1.84 |   |
| Exercisable, March 31, 2010    |   |                           | 3,160,000 |   |                         |   | 1.84 |   |

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|          | Three months ended March 31, |   |
|---------------|---------------------------------------------|--------|
|          | 2010                                        |   | 2009 |   | Variance |   |
|          |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue       |                                        | $      | 11,525,287 |   |   |   | 100 | % |   | $ | 8,341,060 |   |   |   | 100 | % |   | $ | 3,184,227 |   |   |   | 38 | % |
| Cost of Sales |                                        |   | 9,921,353 |   |   |   | 86 | % |   |   | 6,899,492 |   |   |   | 83 | % |   |   | 3,021,861 |   |   |   | 44 | % |
| Gross Profit  |                                        | $      | 1,603,934 |   |   |   | 14 | % |   | $ | 1,441,568 |   |   |   | 17 | % |   | $ | 162,366 |   |   |   | 11 | % |

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|   |   | Cash had a net decrease from working capital by $340,513 for the three months ended June 30, 2010. The most significant uses and proceeds of cash were: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                         |
|   |   | ·   Approximately $4,293,000 of cash consumed directly in operating activities                                                                     |
|   |   | ·   Purchases of equipment of $49,953·   An increase in net Product Financing - related party advances of $1,091,741                     |
|   |   | ·   Proceeds from the Series A Preferred offering of $3,900,000                                                                                    |
|   |   | ·   Net proceeds from a related party note payable of $316,862                                                                                     |
|   |   | ·  Repayments of certain notes payable outstanding of $1,306,656                                                                                   |

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| ·   |  The Company did not have sufficient oversight to ensure financial reporting,  proper disclosures around related-party transactions or dissemination of the Company’s policies and procedures. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  The Company did not maintain effective controls over the period-end financial reporting process, including controls and supporting documentation with respect to journal entries, account reconciliations and proper segregation of duties. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company did not implement proper segregation of duties. In certain instances, persons responsible to review transactions for validity, completeness and accuracy were also responsible for preparation. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company’s stock option vesting determination was inaccurately established in February 2010 and warrant and stock option methodology was inconsistent with guidance. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The Company did not maintain effective controls within the inventory function, including purchasing, receiving, returns, physical inventory and obsolescence analysis. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  The Company did not develop and maintain effective general computer controls, including use of a financial application and inventory management system that lack sufficient internal controls, ensuring proper security access within the financial and inventory management applications, ensuring proper change management procedures were followed, and ensuring adequate information technology procedures were followed in accordance with generally accepted best practices. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company failed to maintain effective controls within the revenue function, including monitoring major sales contracts to ensure revenue recognition criteria were identified and properly monitored to ensure revenue was recognized, inventory was relieved, and accounts receivable and cost of goods sold were recorded in the correct period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Prior to filing this Second Amendment, we designed and are implementing robust corporate governance including: (1) direct oversight of our internal controls by the Audit Committee of our Board of Directors; (2) detailed review of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q by the Audit Committee of our Board of Directors; (3) adoption and communication of our Code of Business Conduct and Ethics; (4) adoption and communication of our Policy on Insider Trading; (5) revision of policies within our employee handbook to ensure that appropriate disciplinary actions may be taken in the event an employee fails to properly perform their responsible internal controls or intentionally overrides any internal control and completion of employee training on the policy revisions; (6) adoption of charters for our Audit, Compensation, Governance and Nominating Committees of our Board of Directors; (7) adoption of our Whistleblower Policy, which includes our anonymous reporting system; and (8) adoption of our policy on reporting and investigating complaints regarding accounting, internal accounting controls or auditing matters and concerns regarding questionable accounting or auditing matters. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In September 2010, we hired a Chief Financial Officer with considerable public company reporting experience who is evaluating the depth and breadth of knowledge of US GAAP and external reporting requirements among the current members of the accounting staff. We are committed to establishing procedures and utilizing experienced individuals with professional supervision to properly segregate duties, prepare and approve the consolidated financial statements and footnote disclosures in accordance with US GAAP. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  Prior to filing this Second Amendment, we improved our financial reporting and inventory and revenue procedures in financial reporting and in inventory and in revenue cycles and continue to implement fundamental controls aligned with our business strategy. There is a specific focus on customer contracts, revenue recognition and enhancing 3rd party shipper reporting requirements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Prior to filing this Second Amendment, we enhanced our stock option and warrant valuation procedures to incorporate a comparative analysis of firms similar to ours that have significant stock trading history. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Board of Directors is more actively involved in providing additional oversight of the Company’s internal controls, formal review of our financial statements, and more detailed review of the draft periodic reports we anticipate filing with the SEC. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have initiated efforts to ensure our employees understand the importance of internal controls and compliance with corporate policies and procedures. We will implement a reporting and certification process for management involved in the performance of internal controls and preparation of the Company’s financial statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We will design and implement a formalized financial reporting process that includes balance sheet reconciliations, properly prepared, supported and reviewed journal entries, properly segregated duties, and properly completed and approved close checklist and calendar. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We will initiate a formal feasibility assessment for implementing a compliant ERP system to replace our current financial software application and inventory management system during our current fiscal year. As part of this assessment, we will thoroughly review the roles and responsibilities of our staff involved in the performance of our financial close process and other internal controls to ensure duties are properly segregated, access rights within our new financial software application comply with designated roles and responsibilities and support the proper segregation of duties. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company may retain third party specialists to assist us in the design, implementation and testing of our internal controls as necessary. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | $452,000 to Allegiance Capital Limited Partnership to prepay in full Gamers’ subordinated debenture issued in July 2006 to Allegiance Capital, which bore interest at 12%, would have matured on July 1, 2011, and required monthly principal and interest amortization. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $250,000 to Vision Opportunity Master Fund, Ltd., to prepay in full Gamers’ senior secured promissory note, dated December 23, 2009, which bore interest at 8% per annum and would have matured on June 30, 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Number |   | Description                                                                                                                                        |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                               |
| 31.1   |   | Certification as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer.                                  |
| 31.2   |   |  Certification as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer.                            |
| 32.1   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer  |
| 32.2   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer. |

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|                                        | GAME TRADING TECHNOLOGIES, INC |
|---------------------------------------------|--------------------------------|
|                                        |                           |   |
|                                        |                           |   |
| Date:    April 20, 2011 | By:                            | /s/  Todd Hays                                                                        |
|                                        |                           | Todd Hays |
|                                        |                           | Chief Executive Officer, President and Director(principal executive officer) |
|                                        |                           |   |

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| Number |   | Description                                                                                                                                        |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                               |
| 31.1   |   | Certification as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer.                                  |
| 31.2   |   | Certification as Adopted Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer.                                  |
| 32.1   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer  |
| 32.2   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer. |