----

|              | /s/ Meyers Norris Penny LLP |
|-------------------|-----------------------------|
|              |                        |
|              |                        |
| Toronto, Ontario  | Chartered Accountants       |
| November 26, 2010 | Licensed Public Accountants |

|                                                   | CHARTERED ACCOUNTANTS & BUSINESS ADVISORS |
|---------------------------------------------------|-----------------------------------------------|
| 1100 - 2 BLOOR ST. E., TORONTO, ON CANADA M4W 1A8 |
| PH. (416) 596-1711 FAX (416) 596-7894 mnp.ca      |

----

----

----

| As at:                                              |    |   | September 302010 |        |   | September 302009 |   |
|-----------------------------------------------------|---------|--------|------------------|-------------|--------|------------------|--------|
| Assets                                              |    |   |             |        |   |             |   |
| Current                                             |    |   |             |        |   |             |   |
|                                                |    |   |             |        |   |             |   |
| Cash                                                |    |   | $                | 8,710,990   |   |             | $      | 13,931,670 |   |
| Investments held for trading                        | note 3  |   |             | 6,721,128   |   |             |   | 5,154,996 |   |
| Accounts receivable, net                            | note 4  |   |             | 2,085,474   |   |             |   | 2,005,975 |   |
| Prepaid expenses                                    |    |   |             | 331,037     |   |             |   | 383,631 |   |
|                                                |    |   |             | 17,848,629  |   |             |   | 21,476,272 |   |
| Investments                                         | note 3  |   |             | 141,006     |   |             |   | 214,593 |   |
| Real estate                                         | note 5  |   |             | 1,116,000   |   |             |   | 1,250,100 |   |
| Property, plant and equipment                       | note 6  |   |             | 463,918     |   |             |   | 654,239 |   |
|                                                |    |   | $                | 19,569,553  |   |             | $      | 23,595,204 |   |
| Liabilities and Shareholders' Equity                |    |   |             |        |   |             |   |   |   |
|                                                |    |   |             |        |   |             |   |   |   |
| Current                                             |    |   |             |        |   |             |   |   |   |
| Bank indebtedness                                   | note 9  |   | $                | 780,000     |   |             | $      | - |   |
| Accounts payable and accrued liabilities            |    |   |             | 955,149     |   |             |   | 1,120,750 |   |
| Derivatives held for trading                        | note 10 |   |             | 775,318     |   |             |   | 668,477 |   |
| Deferred revenue                                    |    |   |             | 92,956      |   |             |   | 169,535 |   |
| Current portion of obligations under capital leases | note 11 |   |             | 27,326      |   |             |   | - |   |
|                                                |    |   |             | 2,630,749   |   |             |   | 1,958,762 |   |
| Obligations under capital leases                    | note 11 |   |             | 70,178      |   |             |   |   |   |
|                                                |    |   |             | 2,700,927   |   |             |   | 1,958,762 |   |
| Minority interest                                   | note 12 |   |             | 7,242       |   |             |   | 12,408 |   |
|                                                |    |   |             |        |   |             |   |   |   |
| Shareholders' equity                                |    |   |             |        |   |             |   |   |   |
| Share capital                                       | note 13 |   |             | 8,762,524   |   |             |   | 9,340,990 |   |
| Contributed surplus                                 | note 14 |   |             | 29,781,172  |   |             |   | 29,822,864 |   |
| Deficit                                             |    |   |             | (21,682,312 | )      |             |   | (17,539,820 | ) |
|                                                |    |   |             | 16,861,384  |   |             |   | 21,624,034 |   |
|                                                |    |   | $                | 19,569,553  |   |             | $      | 23,595,204 |   |

| On behalf of the Board: |           |
|-------------------------|----------------|
| (signed)                | (signed)       |
| Geoffrey B. Genovese,   | David I. Hull, |
| Director                | Director       |

----

----

----

| For the years ended:                                           |    |   | September 30 |       |   | September 30 |   |        | September 30 |   |
|----------------------------------------------------------------|---------|--------|--------------|------------|--------|--------------|--------|-------------|--------------|--------|
|                                                           |    |   | 2010         |       |   | 2009         |   |        | 2008         |   |
| Net revenue from consumer and retail branding                  | note 4  |   | $            | 8,472,077  |   |         | $      | 11,732,473  |         |   | $ | 15,514,533 |   |
| Net investment gains (losses)                                  | note 3  |   |         | 1,066,919  |   |         |   | 333,372     |         |   |   | (4,930,185 | ) |
| Interest and dividend income                                   | note 3  |   |         | 46,408     |   |         |   | 252,605     |         |   |   | 675,519 |   |
|                                                           |    |   |         | 9,585,404  |   |         |   | 12,318,450  |         |   |   | 11,259,867 |   |
| Operating expenses:                                            |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Salaries and benefits                                          |    |   |         | 8,096,733  |   |         |   | 12,706,335  |         |   |   | 12,815,891 |   |
| General and administrative                                     | note 5  |   |         | 1,934,799  |   |         |   | 3,151,830   |         |   |   | 3,581,721 |   |
| Occupancy costs                                                |    |   |         | 935,926    |   |         |   | 851,112     |         |   |   | 560,757 |   |
|                                                           |    |   |         | 10,967,458 |   |         |   | 16,709,277  |         |   |   | 16,958,369 |   |
| Depreciation                                                   |    |   |         | 292,770    |   |         |   | 618,761     |         |   |   | 737,132 |   |
| Realized loss on available for sale investments                |    |   |         | 24,250     |   |         |   | -           |         |   |   | - |   |
| Interest expense and financing costs                           |    |   |         | 31,956     |   |         |   | 73,840      |         |   |   | 33,347 |   |
| Goodwill impairment                                            | note 8  |   |         | -          |   |         |   | 4,407,434   |         |   |   | - |   |
| Restructuring expense                                          | note 20 |   |         | 2,414,948  |   |         |   | -           |         |   |   | - |   |
|                                                           |    |   |         | 13,731,382 |   |         |   | 21,809,312  |         |   |   | 17,728,848 |   |
| Loss before income taxes and minority interest                 |    |   |         | (4,145,978 | )      |         |   | (9,490,862  | )            |   |   | (6,468,981 | ) |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Income tax expense (recovery) - current                        | note 15 |   |         | -          |   |         |   | 988,226     |         |   |   | (25,780 | ) |
|    - future                                          | note 15 |   |         | -          |   |         |   | -           |         |   |   | 3,714,944 |   |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Loss before minority interest                                  |    |   |         | (4,145,978 | )      |         |   | (10,479,088 | )            |   |   | (10,158,145 | ) |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Minority interest                                              |    |   |         | (3,486     | )      |         |   | (3,278      | )            |   |   | - |   |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Net loss                                                       |    |   | $            | (4,142,492 | )      |         | $      | (10,475,810 | )            |   | $ | (10,158,145 | ) |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Loss per share                                                 |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Basic                                                          |    |   | $            | (0.50      | )      |         | $      | (1.22       | )            |   | $ | (1.11 | ) |
| Diluted                                                        |    |   | $            | (0.50      | )      |         | $      | (1.22       | )            |   | $ | (1.11 | ) |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
|                                                           |    |   |         |       |   |         |   |        |         |   |   |   |   |
| Weighted average number of common shares outstanding - basic   |    |   |         | 8,233,519  |   |         |   | 8,558,466   |         |   |   | 9,122,688 |   |
| Weighted average number of common shares outstanding - diluted |    |   |         | 8,233,519  |   |         |   | 8,558,466   |         |   |   | 9,122,688 |   |

----

----

----

| For the years ended:                 |   | September 30 |       |   | September 30 |   |        | September 30 |   |
|--------------------------------------|--------|--------------|------------|--------|--------------|--------|-------------|--------------|--------|
|                                 |   | 2010         |       |   | 2009         |   |        | 2008         |   |
| Net loss                             |   | $            | (4,142,492 | ) $    |         |   | (10,475,810 | )            |   | $ | (10,158,145 | ) |
| Other comprehensive income           |   |         |       |   |         |   |        |         |   |   |   |   |
| Gain on foreign currency translation |   |         | -          |   |         |   | -           |         |   |   | 76,519 |   |
| Comprehensive loss                   |   | $            | (4,142,492 | ) $    |         |   | (10,475,810 | )            |   | $ | (10,081,626 | ) |

----

----

----

| For the years ended:                                 |   | September 30 |       |   | September 30 |   |        | September 30 |   |
|------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|-------------|--------------|--------|
|                                                 |   | 2010         |       |   | 2009         |   |        | 2008         |   |
| Cash flows from operating activities:                |   |         |       |   |         |   |        |         |   |
|                                                 |   |         |       |   |         |   |        |         |   |
| Net loss                                             |   | $            | (4,142,492 | )      |         | $      | (10,475,810 | )            |   | $ | (10,158,145 | ) |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Items not involving cash:                            |   |         |       |   |         |   |        |         |   |   |   |   |
| Depreciation                                         |   |         | 292,770    |   |         |   | 618,761     |         |   |   | 737,132 |   |
| Minority interest                                    |   |         | (3,486     | )      |         |   | (3,278      | )            |   |   | - |   |
| Impairment of real estate                            |   |         | 134,100    |   |         |   | 297,933     |         |   |   | - |   |
| Gain on foreign exchange                             |   |         | -          |   |         |   | -           |         |   |   | (76,519 | ) |
| Future income taxes                                  |   |         | -          |   |         |   | 988,226     |         |   |   | 3,714,944 |   |
| Realized loss on available for sale investments      |   |         | 24,250     |   |         |   | -           |         |   |   | - |   |
| Change in fair value of held for trading investments |   |         | (1,128,924 | )      |         |   | (337,297    | )            |   |   | 4,917,237 |   |
| Goodwill impairment                                  |   |         | -          |   |         |   | 4,407,434   |         |   |   | - |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Net change in non-cash working capital balances:     |   |         |       |   |         |   |        |         |   |   |   |   |
| Accounts receivable                                  |   |         | (79,499    | )      |         |   | 6,381,502   |         |   |   | (3,081,525 | ) |
| Prepaid expenses                                     |   |         | 52,594     |   |         |   | 5,105       |         |   |   | 321,423 |   |
| Investments held for trading                         |   |         | (499,213   | )      |         |   | 9,631,844   |         |   |   | 8,218,162 |   |
| Accounts payable and accrued liabilities             |   |         | (165,601   | )      |         |   | (2,400,514  | )            |   |   | 527,802 |   |
| Derivatives held for trading                         |   |         | 106,841    |   |         |   | 668,477     |         |   |   | - |   |
| Deferred revenue                                     |   |         | (76,579    | )      |         |   | (562,325    | )            |   |   | 222,486 |   |
| Net cash provided by (used in) operating activities  |   |         | (5,485,239 | )      |         |   | 9,220,058   |         |   |   | 5,342,997 |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Cash flows from financing activities:                |   |         |       |   |         |   |        |         |   |   |   |   |
| Operating line of credit                             |   |         | 780,000    |   |         |   | -           |         |   |   | (1,975,000 | ) |
| Long-term debt                                       |   |         | -          |   |         |   | (69,599     | )            |   |   | (87,878 | ) |
| Obligations under capital leases                     |   |         | 97,504     |   |         |   | -           |         |   |   | - |   |
| Minority interest                                    |   |         | (1,680     | )      |         |   | 15,686      |         |   |   | - |   |
| Issuance of common shares                            |   |         | -          |   |         |   | -           |         |   |   | 16,666 |   |
| Share buy back under normal course issuer bid        |   |         | (620,158   | )      |         |   | (59,477     | )            |   |   | (2,932,720 | ) |
| Net cash provided by (used in) financing activities  |   |         | 255,666    |   |         |   | (113,390    | )            |   |   | (4,978,932 | ) |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Cash flows from investing activities:                |   |         |       |   |         |   |        |         |   |   |   |   |
| Loans receivable                                     |   |         | -          |   |         |   | 365,625     |         |   |   | 992,177 |   |
| Purchase of property, plant and equipment            |   |         | (102,449   | )      |         |   | (122,535    | )            |   |   | (442,994 | ) |
| Proceeds on sale of subsidiary                       |   |         | -          |   |         |   | -           |         |   |   | 2,803,549 |   |
| Investment in real estate                            |   |         | -          |   |         |   | (8,441      | )            |   |   | (65,487 | ) |
| Investments                                          |   |         | 49,337     |   |         |   | 9,657       |         |   |   | - |   |
| Net cash provided by (used in) investing activities  |   |         | (53,112    | )      |         |   | 244,306     |         |   |   | 3,287,245 |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Change in cash balance due to foreign exchange       |   |         | 62,005     |   |         |   | 3,925       |         |   |   | 165,986 |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Net change in cash                                   |   |         | (5,220,680 | )      |         |   | 9,354,899   |         |   |   | 3,817,296 |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Cash, beginning of year                              |   |         | 13,931,670 |   |         |   | 4,576,771   |         |   |   | 759,475 |   |
|                                                 |   |         |       |   |         |   |        |         |   |   |   |   |
| Cash, end of year                                    |   | $            | 8,710,990  |   |         | $      | 13,931,670  |         |   | $ | 4,576,771 |   |
| Supplemental cash flow information:                  |   |         |       |   |         |   |        |         |   |   |   |   |
| Interest paid                                        |   | $            | 31,956     |   |         | $      | 50,660      |         |   | $ | 44,165 |   |
| Income taxes paid                                    |   |         | -          |   |         |   | -           |         |   |   | (25,780 | ) |

----

----

----

|                                                             |   | Share capital |      |   | Contributed surplus |   |       | Warrants |   |   | Stock based compensation |   |   | Deficit |     |   | Total shareholders' equity |   |
|------------------------------------------------------------------|--------|---------------|-----------|--------|---------------------|--------|------------|----------|--------|--------|--------------------------|--------|--------|---------|----------|--------|----------------------------|--------|
| Balance, September 30, 2008                                      |   | $             | 9,370,741 |   |                | $      | 22,445,601 |     |   | $      | 6,542,456                |   |   | $       | 864,533  |   |                       | $      | (7,064,010 | ) |   | $ | 32,159,321 |   |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Share repurchases pursuant to normal course issuer bid (note 13) |   |          | (29,751   | )      |                |   | (29,726    | )        |   |   | -                        |   |   |    | -        |   |                       |   | - |   |   |   | (59,477 | ) |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Expiration of stock options and warrants                         |   |          | -         |   |                |   | 7,406,989  |     |   |   | (6,542,456               | )      |   |    | (864,533 | )      |                       |   | - |   |   |   | - |   |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Net loss for the year                                            |   |          | -         |   |                |   | -          |     |   |   | -                        |   |   |    | -        |   |                       |   | (10,475,810 | ) |   |   | (10,475,810 | ) |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Balance, September 30, 2009                                      |   | $             | 9,340,990 |   |                | $      | 29,822,864 |     |   | $      | -                        |   |   | $       | -        |   |                       | $      | (17,539,820 | ) |   | $ | 21,624,034 |   |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Share repurchases pursuant to normal course issuer bid (note 13) |   |          | (578,466  | )      |                |   | (41,692    | )        |   |   |                     |   |   |    |     |   |                       |   | - |   |   |   | (620,158 | ) |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Net loss for the year                                            |   |          | -         |   |                |   | -          |     |   |   |                     |   |   |    |     |   |                       |   | (4,142,492 | ) |   |   | (4,142,492 | ) |
|                                                             |   |          |      |   |                |   |       |     |   |   |                     |   |   |    |     |   |                       |   |   |   |   |   |   |   |
| Balance, September 30, 2010                                      |   | $             | 8,762,524 |   |                | $      | 29,781,172 |     |   | $      | -                        |   |   | $       | -        |   |                       | $      | (21,682,312 | ) |   | $ | 16,861,384 |   |

----

----

----

| 1. | Nature of Business |
|----|--------------------|

----

| 2. | Significant Accounting Policies |
|----|---------------------------------|

|   | (a) | Principles of Consolidation |
|--------|-----|-----------------------------|

|                          |   | 2010        |   |   | 2009        |   |   | 2008        |   | Jurisdiction of |
|-------------------------------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|----------------------|
| Company                       |   | % ownership |   |   | % ownership |   |   | % ownership |   | incorporation        |
|                          |   |        |   |   |        |   |   |        |   |                 |
| Envoy Capital Group           |   |        |   |   |        |   |   |        |   |                 |
| Monaco S.A.M.                 |   |        | 99.8   |   |        |   | 99.8   |        |   |                 | - |   | Monaco |
| Watt International Inc.       |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | Ontario |
| Watt International (USA) Inc. |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | California |
| 1632159 Ontario Ltd.          |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | Ontario |
| ECG Properties Inc.           |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | Ontario |
| Envoy Securities Corp.        |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | Ontario |
| ECG Holdings (US) Inc.        |   |        | 100.0  |   |        |   | 100.0  |        |   |                 | 100.0 |   | Delaware |

|   | (b) | Use of Estimates |
|--------|-----|------------------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

|   | (c) | Property, Plant and Equipment |
|--------|-----|-------------------------------|

| Asset                           | Basis                               | Rate                                    |
|---------------------------------|-------------------------------------|-----------------------------------------|
|                            |                                |                                    |
| Computer equipment and software | Declining balance and straight line | 30-50% or 3-4 years                     |
| Furniture and equipment         | Declining balance and straight line | 20% or 5 years                          |
| Leasehold improvements          | Straight line                       | initial term of lease + 1 option period |

|   | (d) | Revenue Recognition |
|--------|-----|---------------------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

|   | (i) | deferred revenue representing fees billed and collected in advance of such fees being earned; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (ii) | unbilled revenue (included in accounts receivable) representing fees earned but not yet billed as well as reimbursable pass-through costs; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | work in process (included in accounts receivable) representing costs incurred on projects for which revenue has not yet been recognized for accounting purposes. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Goodwill |
|--------|-----|----------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

|   | (f) | Foreign currency translation |
|--------|-----|------------------------------|

|   | (g) | Future income taxes |
|--------|-----|---------------------|

|   | (h) | Earnings per share |
|--------|-----|--------------------|

|   | (i) | Financial instruments |
|--------|-----|-----------------------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

| Cash                                     | Held-for-trading          |
|------------------------------------------|---------------------------|
| Investments held for trading             | Held-for-trading          |
| Accounts receivable                      | Loans and receivables     |
| Investments                              | Available for sale        |
| Foreign currency contracts               | Held-for-trading          |
| Bank indebtedness                        | Other financial liability |
| Accounts payable and accrued liabilities | Other financial liability |
| Obligations under capital lease          | Other financial liability |

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

|   | (j) | Comprehensive income |
|--------|-----|----------------------|

|   | (k) | Recent accounting pronouncements |
|--------|-----|----------------------------------|

----

----

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

----

----

----

| 3. | Investments |
|----|-------------|

|                                             |   | 2010   |      |   | 2009   |   |
|--------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                             |   |   |      |   |   |   |
| Investments held for trading                     |   |   |      |   |   |   |
|                                             |   |   |      |   |   |   |
| Publicly-traded investments                      |   |   |      |   |   |   |
| Equities                                         |   |   | 6,510,492 |   |   |   | 4,719,259 |   |
| Derivatives                                      |   |   | 210,636   |   |   |   | 435,737 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total investments held for trading               |   | $      | 6,721,128 |   |   | $      | 5,154,996 |   |
|                                             |   |   |      |   |   |   |   |   |
| Investments                                      |   |   |      |   |   |   |   |   |
|                                             |   |   |      |   |   |   |   |   |
| Investment in capital pool company               |   | $      | 141,006   |   |   | $      | 190,343 |   |
| Available for sale investments in private equity |   |   | -         |   |   |   | 24,250 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total investments                                |   | $      | 141,006   |   |   | $      | 214,593 |   |
|                                             |   |   |      |   |   |   |   |   |

----

| 4. | Accounts receivable |
|----|---------------------|

|                      |   | 2010   |      |   | 2009   |   |
|---------------------------|--------|--------|-----------|--------|--------|--------|
|                      |   |   |      |   |   |   |
| Trade receivables         |   | $      | 1,145,979 |   |   | $      | 1,232,042 |   |
| Unbilled revenue          |   |   | 480,817   |   |   |   | 225,168 |   |
| Work in process (at cost) |   |   | 458,678   |   |   |   | 548,765 |   |
|                      |   |   |      |   |   |   |   |   |
|                      |   | $      | 2,085,474 |   |   | $      | 2,005,975 |   |

----

----

----

| 5. | Real estate |
|----|-------------|

----

| 6. | Property, plant and equipment |
|----|-------------------------------|

|                            |   |   |      |   | Accumulated  |   |      | Net book |   |
|---------------------------------|--------|--------|-----------|--------|--------------|--------|-----------|----------|--------|
| 2010                            |   | Cost   |      |   | depreciation |   |      | value    |   |
|                            |   |   |      |   |         |   |      |     |   |
| Leasehold improvements          |   | $      | 831,641   |   |         | $      | 596,617   |     |   | $ | 235,024 |   |
| Computer equipment and software |   |   | 3,156,228 |   |         |   | 3,080,060 |     |   |   | 76,168 |   |
| Furniture and equipment         |   |   | 574,077   |   |         |   | 519,754   |     |   |   | 54,323 |   |
| Equipment under capital leases  |   |   | 1,063,770 |   |         |   | 965,367   |     |   |   | 98,403 |   |
|                            |   | $      | 5,625,716 |   |         | $      | 5,161,798 |     |   | $ | 463,918 |   |

|                            |   |   |      |   | Accumulated  |   |      | Net book |   |
|---------------------------------|--------|--------|-----------|--------|--------------|--------|-----------|----------|--------|
| 2009                            |   | Cost   |      |   | depreciation |   |      | value    |   |
|                            |   |   |      |   |         |   |      |     |   |
| Leasehold improvements          |   | $      | 837,102   |   |         | $      | 483,416   |     |   | $ | 353,686 |   |
| Computer equipment and software |   |   | 3,387,796 |   |         |   | 3,179,051 |     |   |   | 208,745 |   |
| Furniture and equipment         |   |   | 571,454   |   |         |   | 479,646   |     |   |   | 91,808 |   |
| Equipment under capital leases  |   |   | 963,519   |   |         |   | 963,519   |     |   |   | - |   |
|                            |   | $      | 5,759,871 |   |         | $      | 5,105,632 |     |   | $ | 654,239 |   |

----

| 7. | Related party transactions |
|----|----------------------------|

----

----

----

| 7. | Related party transactions (continued) |
|----|----------------------------------------|

----

| 8. | Goodwill |
|----|----------|

----

| 9. | Bank indebtedness |
|----|-------------------|

----

| 10. | Derivatives held for trading |
|-----|------------------------------|

----

----

----

| 10. | Derivatives held for trading (continued) |
|-----|------------------------------------------|

----

| 11. | Obligations under capital leases |
|-----|----------------------------------|

|                                                          |   |   |    |   |
|---------------------------------------------------------------|--------|--------|---------|--------|
| 2011                                                          |   | $      | 35,864  |   |
| 2012                                                          |   |   | 35,864  |   |
| 2013                                                          |   |   | 42,099  |   |
|                                                          |   |   |    |   |
|                                                          |   |   | 113,827 |   |
|                                                          |   |   |    |   |
| Less: interest at rates ranging from 10.2% to 10.9% per annum |   |   | (16,323 | )      |
|                                                          |   |   | 97,504  |   |
|                                                          |   |   |    |   |
| Less: current portion of principal repayments                 |   |   | (27,326 | )      |
|                                                          |   |   |    |   |
|                                                          |   |   |    |   |
| Obligations under capital leases, long-term                   |   | $      | 70,178  |   |

----

| 12. | Minority interest |
|-----|-------------------|

----

----

----

| 13. | Share capital |
|-----|---------------|

|   | (a) | Authorized: |
|--------|-----|-------------|

|                                                          |   | 2010      |      |   | 2009   |   |
|---------------------------------------------------------------|--------|-----------|-----------|--------|--------|--------|
|                                                          |   | Number    |      |   |   |   |   | Number |   |   |   |   |
|                                                          |   | of shares |      |   | Amount |   |   | of shares |   |   | Amount |   |
|                                                          |   |      |      |   |   |   |   |   |   |   |   |   |
| Balance, beginning of year                                    |   |      | 8,558,377 |   |   | $      | 9,340,990 |   |   |   | 8,585,636 |   |   | $ | 9,370,741 |   |
|                                                          |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares issued (cancelled) pursuant to:                 |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase of shares pursuant to normal course issuer bid (b) |   |      | (530,000  | )      |   |   | (578,466 | ) |   |   | (27,259 | ) |   |   | (29,751 | ) |
|                                                          |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, end of year                                          |   |      | 8,028,377 |   |   | $      | 8,762,524 |   |   |   | 8,558,377 |   |   | $ | 9,340,990 |   |

|   | (b) | Repurchase of shares |
|--------|-----|----------------------|

----

----

----

| 13. | Share capital (continued) |
|-----|---------------------------|

|   | (c) | Stock option plan |
|--------|-----|-------------------|

----

| 14. | Contributed Surplus |
|-----|---------------------|

----

----

----

| 15. | Income taxes |
|-----|--------------|

|    |   | 2010   |   |   | 2009   |   |    | 2008   |   |
|---------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|    |   |   |   |   |   |   |    |   |   |
| Current |   | $      | -      |   |   | $      | -       |   |   | $ | (25,780 | ) |
| Future  |   |   | -      |   |   |   | 988,226 |   |   |   | 3,714,944 |   |
|    |   | $      | -      |   |   | $      | 988,226 |   |   | $ | 3,689,164 |   |

|                                                                                                                     |   | 2010   |       |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax recovery at statutory rates                                                                                   |   | $      | (1,284,173 | )      |   |   | (31.0  | %)     |   | $ | (3,131,984 | ) |   |   | (33.0 | %) |   | $ | (2,209,157 | ) |   |   | (34.2 | %) |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in income taxes resulting from:                                                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses (revenue) deducted (included) in the accounts that have no corresponding deduction (inclusion) for income taxes |   |   | 11,866     |   |   |   | 0.3    | %      |   |   | 111,541 |   |   |   | 1.2 | % |   |   | (92,814 | ) |   |   | (1.4 | %) |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in valuation allowance                                                                                            |   |   | (224,023   | )      |   |   | (5.4   | %)     |   |   | 346,036 |   |   |   | 3.6 | % |   |   | 5,618,446 |   |   |   | 86.8 | % |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment to future tax for substantively enacted changes in tax laws and rates                                         |   |   | 13,318     |   |   |   | 0.3    | %      |   |   | 94,909 |   |   |   | 1.0 | % |   |   | 74,393 |   |   |   | 1.2 | % |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expired non-capital losses                                                                                               |   |   | 1,037,561  |   |   |   | 25.1   | %      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Write-off of goodwill                                                                                                    |   |   | -          |   |   |   | -      |   |   |   | 1,454,453 |   |   |   | 15.3 | % |   |   | - |   |   |   | - |   |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax rate differential between Canada and foreign jurisdiction                                                            |   |   | 540,282    |   |   |   | 13.0   | %      |   |   | 540,800 |   |   |   | 5.7 | % |   |   | - |   |   |   | - |   |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                                                                                                    |   |   | (94,832    | )      |   |   | (2.3   | %)     |   |   | 1,572,471 |   |   |   | 16.6 | % |   |   | 298,296 |   |   |   | 4.6 | % |
|                                                                                                                     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   | $      | -          |   |   |   | 0.0    | %      |   | $ | 988,226 |   |   |   | 10.4 | % |   | $ | 3,689,164 |   |   |   | 57.0 | % |

----

----

----

| 15. | Income taxes (continued) |
|-----|--------------------------|

|                           |   | 2010   |      |   | 2009   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|
|                           |   |   |      |   |   |   |
| Future tax assets:             |   |   |      |   |   |   |
| Cumulative eligible capital    |   | $      | 177,000   |   |   |   | 190,000 |   |
| Capital and non-capital losses |   |   | 8,296,000 |   |   |   | 8,538,000 |   |
| Other                          |   |   | 31,000    |   |   |   | - |   |
|                           |   |   | 8,504,000 |   |   |   | 8,728,000 |   |
|                           |   |   |      |   |   |   |   |   |
| Less valuation allowance       |   |   | 8,504,000 |   |   |   | 8,728,000 |   |
|                           |   |   |      |   |   |   |   |   |
| Total net future tax assets    |   |   | -         |   |   |   | - |   |
|                           |   |   |      |   |   |   |   |   |
| Less current portion           |   |   | -         |   |   |   | - |   |
|                           |   | $      | -         |   |   | $      | - |   |

|   |   |   |       |   |
|--------|--------|--------|------------|--------|
| 2011   |   | $      | 4,184,000  |   |
| 2014   |   |   | 2,379,000  |   |
| 2015   |   |   | 1,641,000  |   |
| 2026   |   |   | 1,921,000  |   |
| 2027   |   |   | 1,411,000  |   |
| 2028   |   |   | 9,157,000  |   |
| 2029   |   |   | 7,485,000  |   |
| 2030   |   |   | 2,156,000  |   |
|   |   | $      | 30,334,000 |   |

----

----

----

| 16. | Commitments and contingencies |
|-----|-------------------------------|

|   |   |   |    |   |
|--------|--------|--------|---------|--------|
| 2011   |   | $      | 590,054 |   |
| 2012   |   |   | 335,337 |   |
| 2013   |   |   | 2,722   |   |
|   |   | $      | 928,113 |   |

| 17. | Management of capital |
|-----|-----------------------|

|                                    |   | 2010   |        |   | 2009   |   |
|-----------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                    |   |   |        |   |   |   |
| Shareholders’ equity comprised of |   |   |        |   |   |   |
| Share capital                           |   | $      | 8,762,524   |   |   | $      | 9,340,990 |   |
| Contributed surplus                     |   |   | 29,781,172  |   |   |   | 29,822,864 |   |
| Deficit                                 |   |   | (21,682,331 | )      |   |   | (17,539,820 | ) |
|                                    |   | $      | 16,931,543  |   |   | $      | 21,624,034 |   |

|   | (a) | to allow the Company to respond to changes in economic and/or marketplace conditions by maintaining the Company’s ability to purchase new investments; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to give shareholders sustained growth in shareholder value by increasing shareholders’ equity; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (c) | to ensure that the Company maintains the level of capital necessary to meet the requirements of its bank; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (d) | to maintain a flexible capital structure which optimizes the cost of capital at acceptable levels of risk. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

----

----

----

| 17. | Management of capital (continued) |
|-----|-----------------------------------|

|   | (a) | realizing proceeds from the disposition of its investments; |
|--------|-----|-------------------------------------------------------------|

|   | (b) | utilizing leverage in the form of third party debt and the Company’s bank credit line (bank indebtedness); |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (c) | raising capital through equity financings; and |
|--------|-----|------------------------------------------------|

|   | (d) | purchasing the Company’s own shares for cancellation pursuant to its NCIB. |
|--------|-----|----------------------------------------------------------------------------------|

----

| 18. | Financial instruments |
|-----|-----------------------|

|                        |   |                |       |   | 2010       |   |       |                |   |   | 2009       |   |
|-----------------------------|--------|---------------------|------------|--------|------------|--------|------------|---------------------|--------|--------|------------|--------|
| Classification              |   | Carrying value |       |   | Fair value |   |       | Carrying value |   |   | Fair value |   |
|                        |   |                |       |   |       |   |       |                |   |   |       |   |
| Held-for-trading            |   | $                   | 14,669,200 |   |       | $      | 14,669,200 |                |   | $      | 18,376,609 |   |   | $ | 18,376,609 |   |
| Available-for-sale          |   |                | -          |   |       |   | -          |                |   |   | 24,250     |   |   |   | 24,250 |   |
| Loans and receivables       |   |                | 2,085,474  |   |       |   | 2,085,474  |                |   |   | 2,005,975  |   |   |   | 2,005,975 |   |
| Other financial liabilities |   |                | 1,845,053  |   |       |   | 1,845,053  |                |   |   | 1,079,170  |   |   |   | 1,079,170 |   |

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

|                         |   |                     |       |   | Significant |   |       | Significant Other |   |   | Significant  |   |
|------------------------------|--------|--------------------------|------------|--------|-------------|--------|------------|------------------------|--------|--------|--------------|--------|
|                         |   |                     |       |   | Observable  |   |       | Observable             |   |   | Unobservable |   |
|                         |   |                     |       |   | Inputs      |   |       | Inputs                 |   |   | Inputs       |   |
|                         |   | Sept. 30, 2010 |       |   | (Level 1)   |   |       | (Level 2)              |   |   | (Level 3)    |   |
|                         |   |                     |       |   |        |   |       |                   |   |   |         |   |
| Assets:                      |   |                     |       |   |        |   |       |                   |   |   |         |   |
| Cash                         |   | $                        | 8,710,990  |   |        | $      | 8,710,990  |                   |   | $      | -            |   |   | $ | - |   |
| Investments held for trading |   |                     | 6,721,128  |   |        |   | 6,529,457  |                   |   |   | 191,671      |   |   |   | - |   |
| Investments                  |   |                     | 141,006    |   |        |   | 141,006    |                   |   |   | -            |   |   |   | - |   |
|                         |   |                     |       |   |        |   |       |                   |   |   |         |   |   |   |   |   |
|                         |   | $                        | 15,573,124 |   |        | $      | 15,381,453 |                   |   | $      | 191,671      |   |   | $ | - |   |
| Liabilities:                 |   |                     |       |   |        |   |       |                   |   |   |         |   |   |   |   |   |
| Derivatives held for trading |   | $                        | 775,318    |   |        | $      | 775,318    |                   |   |   | -            |   |   |   | - |   |
|                         |   |                     |       |   |        |   |       |                   |   |   |         |   |   |   |   |   |
|                         |   | $                        | 775,318    |   |        | $      | 775,318    |                   |   | $      |  -      |   |   | $ | - |   |

|                         |   |                     |       |   | Significant |   |       | Significant Other |   |   | Significant  |   |
|------------------------------|--------|--------------------------|------------|--------|-------------|--------|------------|------------------------|--------|--------|--------------|--------|
|                         |   |                     |       |   | Observable  |   |       | Observable             |   |   | Unobservable |   |
|                         |   |                     |       |   | Inputs      |   |       | Inputs                 |   |   | Inputs       |   |
|                         |   | Sept. 30, 2009 |       |   | (Level 1)   |   |       | (Level 2)              |   |   | (Level 3)    |   |
|                         |   |                     |       |   |        |   |       |                   |   |   |         |   |
| Assets:                      |   |                     |       |   |        |   |       |                   |   |   |         |   |
| Cash                         |   | $                        | 13,931,670 |   |        | $      | 13,931,670 |                   |   | $      | -            |   |   | $ | - |   |
| Investments held for trading |   |                     | 5,154,996  |   |        |   | 4,960,622  |                   |   |   | 194,374      |   |   |   | - |   |
| Investments                  |   |                     | 214,593    |   |        |   | 214,593    |                   |   |   | -            |   |   |   | - |   |
|                         |   |                     |       |   |        |   |       |                   |   |   |         |   |   |   |   |   |
|                         |   | $                        | 19,301,259 |   |        | $      | 19,106,885 |                   |   | $      | 194,374      |   |   | $ | - |   |

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

|                         |   |                     |    |   | Significant |   |    | Significant Other |   |   | Significant  |   |
|------------------------------|--------|--------------------------|---------|--------|-------------|--------|---------|------------------------|--------|--------|--------------|--------|
|                         |   |                     |    |   | Observable  |   |    | Observable             |   |   | Unobservable |   |
|                         |   |                     |    |   | Inputs      |   |    | Inputs                 |   |   | Inputs       |   |
|                         |   | Sept. 30, 2009 |    |   | (Level 1)   |   |    | (Level 2)              |   |   | (Level 3)    |   |
|                         |   |                     |    |   |        |   |    |                   |   |   |         |   |
| Liabilities:                 |   |                     |    |   |        |   |    |                   |   |   |         |   |
| Derivatives held for trading |   | $                        | 668,477 |   |        | $      | 668,477 |                   |   |   | -            |   |   |   | - |   |
|                         |   |                     |    |   |        |   |    |                   |   |   |         |   |   |   |   |   |
|                         |   | $                        | 668,477 |   |        | $      | 668,477 |                   |   | $      |  -      |   |   | $ | - |   |

|   | (i) | Liquidity risk |
|--------|-----|----------------|

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

|   | (ii) | Market risk: |
|--------|------|--------------|

| Percentage change inclosing price |   |   | Change in net after-tax income (loss) from % increase in closing price |    |   | Change in net after-tax income (loss) from % decrease in closing price |   |
|-----------------------------------|--------|--------|------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------|--------|
|                              |   |   |                                                                   |    |   |                                                                   |   |
| 2%                                |   |   | $                                                                      | 118,916 |   |                                                                   | $      | (118,916 | ) |
| 4%                                |   |   |                                                                   | 237,832 |   |                                                                   |   | (237,832 | ) |
| 6%                                |   |   |                                                                   | 356,749 |   |                                                                   |   | (356,749 | ) |
| 8%                                |   |   |                                                                   | 475,665 |   |                                                                   |   | (475,665 | ) |
| 10%                               |   |   |                                                                   | 594,581 |   |                                                                   |   | (594,581 | ) |

|   | (iii) | Currency risk: |
|--------|-------|----------------|

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

|                                     |   | 2010   |      |   | 2009   |   |
|------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                     |   |   |      |   |   |   |
| Denominated in U.S. dollars              |   |   |      |   |   |   |
|                                     |   |   |      |   |   |   |
| Cash                                     |   | $      | 4,238,259 |   |   | $      | 3,928,313 |   |
| Investments held for trading             |   |   | 5,417,345 |   |   |   | 4,905,380 |   |
| Accounts receivable                      |   |   | 350,377   |   |   |   | 498,442 |   |
| Accounts payable                         |   |   | (124,539  | )      |   |   | (134,383 | ) |
| Derivatives held for trading             |   |   | (775,318  | )      |   |   | (668,477 | ) |
| Deferred revenue                         |   |   | (24,968   | )      |   |   | (25,979 | ) |
| Net assets denominated in U.S. dollars   |   | $      | 9,081,157 |   |   | $      | 8,503,296 |   |
|                                     |   |   |      |   |   |   |   |   |
| Denominated in U.A.E dirham              |   |   |      |   |   |   |   |   |
|                                     |   |   |      |   |   |   |   |   |
| Cash                                     |   | $      | -         |   |   | $      | 144,839 |   |
| Accounts receivable                      |   |   | -         |   |   |   | 82,757 |   |
| Accounts payable                         |   |   | -         |   |   |   | (231,819 | ) |
| Net assets denominated in U.A.E dirham   |   | $      | -         |   |   | $      | (4,223 | ) |
|                                     |   |   |      |   |   |   |   |   |
| Denominated in British pounds            |   |   |      |   |   |   |   |   |
|                                     |   |   |      |   |   |   |   |   |
| Accounts receivable                      |   | $      | -         |   |   | $      | 55,320 |   |
| Net assets denominated in British pounds |   | $      | -         |   |   | $      | 55,320 |   |
|                                     |   |   |      |   |   |   |   |   |
| Denominated in Danish kroner             |   |   |      |   |   |   |   |   |
|                                     |   |   |      |   |   |   |   |   |
| Investments held for trading             |   | $      | 61,080    |   |   | $      | - |   |
| Net assets denominated in Danish kroner  |   | $      | 61,080    |   |   | $      | - |   |
|                                     |   |   |      |   |   |   |   |   |
| Denominated in euros                     |   |   |      |   |   |   |   |   |
|                                     |   |   |      |   |   |   |   |   |
| Cash                                     |   | $      | (34,668   | )      |   | $      | 1,251,351 |   |
| Accounts payable                         |   |   | (40,892   | )      |   |   | (63,778 | ) |
| Net assets denominated in euros          |   | $      | (75,560   | )      |   | $      | 1,187,573 |   |
|                                     |   |   |      |   |   |   |   |   |

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

| Percentage change inforeign currencies |   |   | Change in net after-tax income (loss) from %increase in foreign currency |    |   | Change in net after-tax income (loss) from %decrease in foreign currency |   |
|----------------------------------------|--------|--------|--------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------|--------|
|                                   |   |   |                                                                     |    |   |                                                                     |   |
| 2%                                     |   |   | $                                                                        | 26,511  |   |                                                                     | $      | (26,511 | ) |
| 4%                                     |   |   |                                                                     | 53,022  |   |                                                                     |   | (53.022 | ) |
| 6%                                     |   |   |                                                                     | 79,533  |   |                                                                     |   | (79,533 | ) |
| 8%                                     |   |   |                                                                     | 106,044 |   |                                                                     |   | (106.044 | ) |
| 10%                                    |   |   |                                                                     | 132,555 |   |                                                                     |   | (132.555 | ) |

|   | (iv) | Credit risk: |
|--------|------|--------------|

|                       |   | 2010   |      |   | 2009   |   |
|----------------------------|--------|--------|-----------|--------|--------|--------|
|                       |   |   |      |   |   |   |
| Current                    |   | $      | 950,655   |   |   | $      | 619,325 |   |
| Past due 1-30              |   |   | 90,862    |   |   |   | 203,272 |   |
| Past due 31-90             |   |   | 47,127    |   |   |   | 299,978 |   |
| More than 90 days past due |   |   | 57,335    |   |   |   | 109,467 |   |
|                       |   |   |      |   |   |   |   |   |
| Total trade receivables    |   | $      | 1,145,979 |   |   | $      | 1,232,042 |   |
|                       |   |   |      |   |   |   |   |   |

----

----

----

| 18. | Financial instruments (continued) |
|-----|-----------------------------------|

|            |   | 2010   |    |   | 2009   |   |
|-----------------|--------|--------|---------|--------|--------|--------|
|            |   |   |    |   |   |   |
| Opening balance |   | $      | 130,098 |   |   | $      | 136,577 |   |
| Additions       |   |   | 29,373  |   |   |   | 107,852 |   |
| Write-offs      |   |   | (94,333 | )      |   |   | (114,331 | ) |
|            |   |   |    |   |   |   |   |   |
| Ending balance  |   | $      | 65,138  |   |   | $      | 130,098 |   |
|            |   |   |    |   |   |   |   |   |

|   | (v) | Interest rate risk: |
|--------|-----|---------------------|

----

----

----

| 19. | Segmented information |
|-----|-----------------------|

----

----

|                                                                  |   | Consumer and         |      |   | Merchant |   |      |      |   |   |       |   |
|-----------------------------------------------------------------------|--------|----------------------|-----------|--------|----------|--------|-----------|-----------|--------|--------|------------|--------|
|                                                                  |   | Retail Branding |      |   | Banking  |   |      | Corporate |   |   | Total      |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |
| Net revenue                                                           |   | $                    | 8,472,077 |   |     | $      | 1,113,327 |      |   | $      | -          |   |   | $ | 9,585,404 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Operating expenses:                                                   |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Salaries and benefits                                                 |   |                 | 6,458,840 |   |     |   | 862,127   |      |   |   | 775,766    |   |   |   | 8,096,733 |   |
| General and administrative                                            |   |                 | 1,049,784 |   |     |   | 196,240   |      |   |   | 688,775    |   |   |   | 1,934,799 |   |
| Occupancy costs                                                       |   |                 | 821,429   |   |     |   | 59,055    |      |   |   | 55,442     |   |   |   | 935,926 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Depreciation                                                          |   |                 | 262,400   |   |     |   | 19,193    |      |   |   | 11,177     |   |   |   | 292,770 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Loss on available for sale investments                                |   |                 | 24,250    |   |     |   | -         |      |   |   | -          |   |   |   | 24,250 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Interest expense                                                      |   |                 | -         |   |     |   | 16,124    |      |   |   | 15,832     |   |   |   | 31,956 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Loss before restructuring expense, income taxes and minority interest |   |                 | (144,626  | )      |     |   | (39,412   | )         |   |   | (1,546,992 | )      |   |   | (1,731,030 | ) |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Restructuring expense                                                 |   |                 |      |   |     |   |      |      |   |   |       |   |   |   | 2,414,948 |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Income tax expense                                                    |   |                 |      |   |     |   |      |      |   |   |       |   |   |   | - |   |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Loss before minority interest                                         |   |                 |      |   |     |   |      |      |   |   |       |   |   |   | (4,145,978 | ) |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Minority interest                                                     |   |                 |      |   |     |   |      |      |   |   |       |   |   |   | (3,486 | ) |
|                                                                  |   |                 |      |   |     |   |      |      |   |   |       |   |   |   |   |   |
| Net loss                                                              |   |                 |      |   |     |   |      |      |   |   |       |   |   | $ | (4,142,492 | ) |

----

----

----

| 19. | Segmented information (continued) |
|-----|-----------------------------------|

----

----

|                                           |   | Consumer and         |       |   | Merchant |   |       |      |   |   |       |   |
|------------------------------------------------|--------|----------------------|------------|--------|----------|--------|------------|-----------|--------|--------|------------|--------|
|                                           |   | Retail Branding |       |   | Banking  |   |       | Corporate |   |   | Total      |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |
| Net revenue                                    |   | $                    | 11,732,473 |   |     | $      | 585,977    |      |   | $      | -          |   |   | $ | 12,318,450 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Operating expenses:                            |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Salaries and benefits                          |   |                 | 10,245,881 |   |     |   | 1,745,507  |      |   |   | 714,947    |   |   |   | 12,706,335 |   |
| General and administrative                     |   |                 | 1,847,197  |   |     |   | 278,355    |      |   |   | 1,026,278  |   |   |   | 3,151,830 |   |
| Occupancy costs                                |   |                 | 912,177    |   |     |   | 169,954    |      |   |   | (231,019   | )      |   |   | 851,112 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Depreciation                                   |   |                 | 346,898    |   |     |   | 17,136     |      |   |   | 254,727    |   |   |   | 618,761 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Interest expense                               |   |                 | -          |   |     |   | 68,535     |      |   |   | 5,305      |   |   |   | 73,840 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Goodwill impairment                            |   |                 | 4,407,434  |   |     |   | -          |      |   |   | -          |   |   |   | 4,407,434 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Loss before income taxes and minority interest |   |                 | (6,027,114 | )      |     |   | (1,693,510 | )         |   |   | (1,770,238 | )      |   |   | (9,490,862 | ) |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Income tax expense                             |   |                 |       |   |     |   |       |      |   |   |       |   |   |   | 988,226 |   |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Loss before minority interest                  |   |                 |       |   |     |   |       |      |   |   |       |   |   |   | (10,479,088 | ) |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Minority interest                              |   |                 |       |   |     |   |       |      |   |   |       |   |   |   | (3,278 | ) |
|                                           |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Net loss                                       |   |                 |       |   |     |   |       |      |   |   |       |   |   | $ | (10,475,810 | ) |

----

----

----

| 19. | Segmented information (continued) |
|-----|-----------------------------------|

----

----

|                                |   | Consumer and         |       |   | Merchant |   |       |      |   |   |       |   |
|-------------------------------------|--------|----------------------|------------|--------|----------|--------|------------|-----------|--------|--------|------------|--------|
|                                |   | Retail Branding |       |   | Banking  |   |       | Corporate |   |   | Total      |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |
| Net revenue                         |   | $                    | 15,514,533 |   |     | $      | (4,254,666 | )         |   | $      | -          |   |   | $ | 11,259,867 |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Operating expenses:                 |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Salaries and benefits               |   |                 | 10,975,740 |   |     |   | 848,433    |      |   |   | 991,718    |   |   |   | 12,815,891 |   |
| General and administrative          |   |                 | 1,737,792  |   |     |   | 550,442    |      |   |   | 1,293,487  |   |   |   | 3,581,721 |   |
| Occupancy costs                     |   |                 | 844,763    |   |     |   | 75,380     |      |   |   | (359,386   | )      |   |   | 560,757 |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Depreciation                        |   |                 | 391,717    |   |     |   | 11,572     |      |   |   | 333,843    |   |   |   | 737,132 |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Interest (income) expense           |   |                 | (10,759    | )      |     |   | -          |      |   |   | 44,106     |   |   |   | 33,347 |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Earnings (loss) before income taxes |   |                 | 1,575,280  |   |     |   | (5,740,493 | )         |   |   | (2,303,768 | )      |   |   | (6,468,981 | ) |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Income tax expense                  |   |                 |       |   |     |   |       |      |   |   |       |   |   |   | 3,689,164 |   |
|                                |   |                 |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Net loss                            |   |                 |       |   |     |   |       |      |   |   |       |   |   | $ | (10,158,145 | ) |

|   | (b) | Summary of total assets |
|--------|-----|-------------------------|

|               |   | Consumer and         |      |   | Merchant |   |       |      |   |   |    |   |
|--------------------|--------|----------------------|-----------|--------|----------|--------|------------|-----------|--------|--------|---------|--------|
|               |   | Retail Branding |      |   | Banking  |   |       | Corporate |   |   | Total   |   |
|               |   |                 |      |   |     |   |       |      |   |   |    |   |
| September 30, 2010 |   | $                    | 2,597,979 |   |     | $      | 16,826,189 |      |   | $      | 145,565 |   |   | $ | 19,569,553 |   |
|               |   |                 |      |   |     |   |       |      |   |   |    |   |   |   |   |   |
| September 30, 2009 |   | $                    | 2,690,449 |   |     | $      | 20,755,405 |      |   | $      | 149,350 |   |   | $ | 23,595,204 |   |

----

----

----

| 19. | Segmented information (continued) |
|-----|-----------------------------------|

|   | (c) | Net revenue by type of service |
|--------|-----|--------------------------------|

|                         |   | 2010   |      |   | 2009   |   |       | 2008   |   |
|------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
|                         |   |   |      |   |   |   |       |   |   |
| Net revenue:                 |   |   |      |   |   |   |       |   |   |
| Consumer and retail branding |   | $      | 8,472,077 |   |   | $      | 11,732,473 |   |   | $ | 15,514,533 |   |
| Merchant banking             |   |   | 1,113,327 |   |   |   | 585,977    |   |   |   | (4,254,666 | ) |
|                         |   | $      | 9,585,404 |   |   | $      | 12,318,450 |   |   | $ | 11,259,867 |   |

|   | (d) | Net revenue by customer location |
|--------|-----|----------------------------------|

|              |   | 2010   |      |   | 2009   |   |       | 2008   |   |
|-------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
|              |   |   |      |   |   |   |       |   |   |
| Net revenue:      |   |   |      |   |   |   |       |   |   |
| Canada            |   | $      | 5,395,174 |   |   | $      | 4,712,220  |   |   | $ | 1,074,769 |   |
| USA/South America |   |   | 2,739,056 |   |   |   | 4,891,762  |   |   |   | 6,395,333 |   |
| Europe            |   |   | 1,451,174 |   |   |   | 666,403    |   |   |   | 281,996 |   |
| Middle East/Asia  |   |   | -         |   |   |   | 2,048,065  |   |   |   | 3,507,769 |   |
|              |   | $      | 9,585,404 |   |   | $      | 12,318,450 |   |   | $ | 11,259,867 |   |

|   | (e) | Net revenue from major customers |
|--------|-----|----------------------------------|

----

| 20. | Restructuring costs |
|-----|---------------------|

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles |
|-----|--------------------------------------------------------------------------|

|                                                    |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                    |   |   |       |   |   |   |        |   |   |
| Net loss based on Canadian GAAP                         |   | $      | (4,142,492 | )      |   | $      | (10,475,810 | )      |   | $ | (10,158,145 | ) |
| Cash held in escrow (a)                                 |   |   | -          |   |   |   | -           |   |   |   | 2,803,549 |   |
| Capitalized incorporation costs (e)                     |   |   | -          |   |   |   | -           |   |   |   | 66,339 |   |
| Fair value adjustment on restricted securities (f)      |   |   | (137,465   | )      |   |   | (283,411    | )      |   |   | 1,619,615 |   |
| Net loss based on US GAAP                               |   | $      | (4,279,957 | )      |   | $      | (10,759,221 | )      |   | $ | (5,668,642 | ) |
|                                               |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                    |   |   | 2010       |   |   |   | 2009        |   |   |   | 2008 |   |
| Net loss from continuing operations                     |   | $      | (4,279,957 | )      |   | $      | (10,759,221 | )      |   | $ | (8,472,191 | ) |
| Net earnings from discontinued operations               |   | $      | -          |   |   | $      | -           |   |   | $ | 2,803,549 |   |
|                                               |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                    |   |   | 2010       |   |   |   | 2009        |   |   |   | 2008 |   |
| Net loss attributable to:                               |   |   |       |   |   |   |        |   |   |   |   |   |
| Envoy shareholders                                      |   | $      | (4,276,471 | )      |   | $      | (10,755,943 | )      |   | $ | (5,668,642 | ) |
| Non-controlling interest                                |   | $      | (3,486     | )      |   | $      | (3,278      | )      |   | $ | - |   |
|                                               |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                    |   |   | 2010       |   |   |   | 2009        |   |   |   | 2008 |   |
| Net loss (earnings) attributable to Envoy shareholders: |   |   |       |   |   |   |        |   |   |   |   |   |
| Continuing operations                                   |   | $      | (4,276,471 | )      |   | $      | (10,755,943 | )      |   | $ | (8,472,191 | ) |
| Discontinued operations                                 |   | $      | -          |   |   | $      | -           |   |   | $ | 2,803,549 |   |

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
|-----|--------------------------------------------------------------------------------------|

|                                                 |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                 |   |   |   |   |   |   |   |   |   |
| Net loss per share:                                  |   |   |   |   |   |   |   |   |   |
| Basic                                                |   | $      | (0.52  | )      |   | $      | (1.26  | )      |   | $ | (0.62 | ) |
| Diluted                                              |   |   | (0.52  | )      |   |   | (1.26  | )      |   |   | (0.62 | ) |
| Net loss per share from continuing operations:       |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   | $      | (0.52  | )      |   | $      | (1.26  | )      |   | $ | (0.93 | ) |
| Diluted                                              |   |   | (0.52  | )      |   |   | (1.26  | )      |   |   | (0.93 | ) |
| Net earnings per share from discontinued operations: |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   | $      | -      |   |   | $      | -      |   |   | $ | 0.31 |   |
| Diluted                                              |   |   | -      |   |   |   | -      |   |   |   | 0.31 |   |

|                                               |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                               |   |   |       |   |   |   |
| Total assets based on Canadian GAAP                |   | $      | 19,569,553 |   |   | $      | 23,595,204 |   |
| Fair value adjustment on restricted securities (f) |   |   | 51,239     |   |   |   | 188,704 |   |
|                                               |   |   |       |   |   |   |   |   |
| Total assets based on US GAAP                      |   | $      | 19,620,792 |   |   | $      | 23,783,908 |   |

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
|-----|--------------------------------------------------------------------------------------|

|                                                    |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                    |   |   |       |   |   |   |
| Shareholders’ equity based on Canadian GAAP       |   | $      | 16,861,384 |   |   | $      | 21,624,034 |   |
| Fair value adjustment on restricted securities (f)      |   |   | 51,239     |   |   |   | 188,704 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total Envoy shareholders’ equity based on US GAAP |   |   | 16,912,623 |   |   |   | 21,812,738 |   |
| Non-controlling interest                                |   |   | 7,242      |   |   |   | 12,408 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Total equity based on US GAAP                           |   | $      | 16,919,865 |   |   | $      | 21,825,146 |   |

|   | (a) | Cash held in escrow: |
|--------|-----|----------------------|

|   | Cash held in escrow represents funds which were held in common trust with the purchaser of the UK operations, as per the terms of the purchase and sale agreement. The amount was held in joint trust as security for indemnities provided to the purchaser at closing and was released on the first anniversary date of the transaction, including accrued interest.  Canadian GAAP allowed the recognition of this amount in determining the gain on sale.  Under US GAAP these funds could not be recognized until they were released from escrow.  In January 2008 the Company received the cash previously held in escrow and as a result the amount was recognized in US GAAP income. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Comprehensive income: |
|--------|-----|-----------------------|

|                                                |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
|                                                |   |   |       |   |   |   |        |   |   |
| Net loss for the year in accordance with US GAAP    |   | $      | (4,279,957 | )      |   | $      | (10,759,221 | )      |   | $ | (5,668,642 | ) |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
| Change in cumulative translation adjustment account |   |   | -          |   |   |   | -           |   |   |   | 76,519 |   |
|                                                |   |   |       |   |   |   |        |   |   |   |   |   |
|                                                |   | $      | (4,279,957 | )      |   | $      | (10,759,221 | )      |   | $ | (5,592,123 | ) |

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
|-----|--------------------------------------------------------------------------------------|

|                                |   | 2010   |       |   | 2009   |   |        | 2008   |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|
| Comprehensive loss attributable to: |   |   |       |   |   |   |        |   |   |
| Envoy shareholders                  |   | $      | (4,276,471 | )      |   | $      | (10,755,943 | )      |   | $ | (5,592,123 | ) |
| Non-controlling interest            |   | $      | (3,486     | )      |   | $      | (3,278      | )      |   | $ | - |   |

|   | (c) | Reduction of capital: |
|--------|-----|-----------------------|

|   | (d) | Revenue: |
|--------|-----|----------|

|   | (e) | Capitalized incorporation costs: |
|--------|-----|----------------------------------|

|   | (f) | Investments: |
|--------|-----|--------------|

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
|-----|--------------------------------------------------------------------------------------|

|   | (g) | Consolidated statements of cash flows: |
|--------|-----|----------------------------------------|

|   | (h) | Accounting for Uncertainty in Income Taxes |
|--------|-----|--------------------------------------------|

----

----

----

| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
|-----|--------------------------------------------------------------------------------------|

|   | (i) | Recent accounting pronouncements: |
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| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
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| 21. | Reconciliation to United States generally accepted accounting principles (continued) |
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| 22. | Comparative figures |
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