----

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| x | ANNUAL REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

|   | LIVE CURRENT MEDIA INC.                        |   |
|--------|------------------------------------------------|--------|
|   | (Name of Small Business Issuer in its charter) |   |

| Nevada                                                         |   | 88-0346310                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
|                                                           |   |                                 |
| 375 Water Street, Suite 645, Vancouver, British Columbia       |   | V6B 5C6                              |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

|  Title of each class |   |  Name of each exchange on which registered                                                                                         |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                    |
| None                      |   | N/A                       |

|   | Common Stock - $0.001 par value |   |
|--------|---------------------------------|--------|
|   | (Title of Class)                |   |

| Large accelerated filer £                                              | Accelerated filer  o   |
|----------------------------------------------------------------------------------|-----------------------------|
|                                                                             |                        |
| Non-accelerated filer  o (Do not check if a smaller reporting company) | Smaller reporting company T |

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|    |   |                                                                                        |   | Page    |
|---------|--------|---------------------------------------------------------------------------------------------|--------|---------|
|    |   |                                                                                        |   |    |
|    |   | Forward-Looking Statements                                                                  |   |  5 |
|    |   |                                                                                        |   |    |
|    |   | Part I                                                                                      |   |    |
|    |   |                                                                                        |   |    |
| Item 1A |   | Risk Factors                                                                                |   | 6       |
|    |   | Part II                                                                                     |   |    |
|    |   |                                                                                        |   |    |
| Item 7  |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 13      |
|    |   |                                                                                        |   |    |
|    |   | Part III                                                                                    |   |    |
|    |   |                                                                                        |   |    |
| Item 9A |   | Controls and Procedures                                                                     |   | 42      |
|    |   | Part IV                                                                                     |   |    |
|    |   |                                                                                        |   |    |
| Item 15 |   | Exhibits, Financial Statement Schedules                                                     |   | 43      |
|    |   |                                                                                        |   |    |
|    |   | Signatures and Certifications                                                               |   | 43      |
|    |   |                                                                                        |   |    |
|    |   | Financial Statements                                                                        |   | F-1     |

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----

----

| ·   | local economic conditions; |
|--------------------|----------------------------|

| ·   | geopolitical events, including war and terrorism; |
|--------------------|---------------------------------------------------|

| ·   | challenges caused by distance, language and cultural differences and by doing business with foreign agencies and governments; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | longer payment cycles in some countries; |
|--------------------|------------------------------------------|

| ·   | uncertainty regarding liability for services and content; |
|--------------------|-----------------------------------------------------------|

| ·   | currency exchange rate fluctuations; |
|--------------------|--------------------------------------|

| ·   | potentially adverse tax consequences; |
|--------------------|---------------------------------------|

| ·   | higher costs associated with doing business internationally; |
|--------------------|--------------------------------------------------------------|

| ·   | different employee/employer relationships and the existence of workers’ councils and labor unions. |
|--------------------|----------------------------------------------------------------------------------------------------------|

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----

WE MAY BE UNABLE TO REALIZE VALUE FROM THE ACQUISITIONS WE HAVE MADE OR OTHERS WHICH WE MAY POSSIBLY UNDERTAKE WHICH COULD INCREASE OUR COSTS OR LIABILITIES OR BE DISRUPTIVE.  SUCH ACQUISITIONS COULD HAVE AN ADVERSE EFFECT ON OUR BUSINESS, RESULTS OF OPERATIONSAND FINANCIAL CONDITION. 

WE MAY BE SUBJECT TO RECENTLY ENACTED PRIVACY LEGISLATION AND REGULATION WHICH COULD REDUCEOUR POTENTIAL REVENUES AND PROFITABILITY.Entities engaged in operations over the internet, particularly relating to the collection of user information, are subject to limitations on their ability to utilize such information under federal and state legislation and regulation.  In 2000, the Gramm-Leach-Bliley Act required that the collection of identifiableinformation regarding users of financial services be subject to stringent disclosure and “opt-out” provisions.  While this law and the regulations enacted by the Federal Trade Commission and others relates primarily to information relating to financial transactions and financial institutions, the broad definitions of those terms may make the businesses entered into by the Company and its strategic partners subject to the provisions of the Act, which may, in turn, increase the cost of doingbusiness and reduce our revenues.  Similarly, the Children On-line Privacy and Protection Act (“COPPA”) imposes strict limitations on the ability of internet ventures to collect information from minors. The impact of COPPA may be to increase the cost of doing business on the internet and reduce potential revenue sources.  We may also be impacted by the USA Patriot Act, which requires certain companies to collect and provide information to United States governmental authorities.A number of state governments have also proposed or enacted privacy legislation that reflects or, in some cases, extends the limitations imposed by the Gramm-Leach-Bliley Act and COPPA.  These laws may further impact the cost of doing business on the internet. 

----

Risks Relating to Ownership of Our Securities 

----

Because trades and quotations on the OTC Bulletin Board involve a manual process,the market information for such securities cannot be guaranteed. In addition, quote information, or even firm quotes, may not be available. The manual execution process may delay order processing and intervening price fluctuations may result in the failure of a limit order to execute or the execution of a market order at a significantly different price. Execution of trades, execution reporting and the delivery of legal trade confirmations may be delayed significantly. Consequently, one may not be able to sellshares of our common stock at the optimum trading prices. 

----

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| December 31, 2008                                                   |   | Reference     |   |   | As previously reported |      |        | Restatement adjustment |   |       | As restated |   |
|---------------------------------------------------------------------|--------|---------------|--------|--------|------------------------|-----------|-------------|------------------------|--------|------------|-------------|--------|
| ASSETS                                                              |   |          |   |   |                   |      |        |                   |   |       |        |   |
| Current                                                             |   |          |   |   |                   |      |        |                   |   |       |        |   |
| Cash and cash equivalents                                           |   |          |   |   | $                      | 1,832,520 |        |                   | $      | -          |        |   | $ | 1,832,520 |   |
| Accounts receivable (net of allowance for doubtful accounts of nil) |   |          |   | 93,582 |                   |      |        | -                      |   |       |        | 93,582 |   |
| Prepaid expenses and deposits                                       |   |          |   |   |                   | 109,543   |        |                   |   | -          |        |   |   | 109,543 |   |
| Inventory                                                           |   |          |   |   |                   | 74,082    |        |                   |   | -          |        |   |   | 74,082 |   |
| Current portion of receivable from sales-type lease                 |   |          |   |   |                   | 23,423    |        |                   |   | -          |        |   |   | 23,423 |   |
| Total current assets                                                |   |          |   |   |                   | 2,133,150 |        |                   |   | -          |        |   |   | 2,133,150 |   |
|                                                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |
| Long-term portion of receivable from sales-type lease               |   |          |   |   |                   | 23,423    |        |                   |   | -          |        |   |   | 23,423 |   |
| Deferred acquisition costs                                          |   |          |   |   |                   | -         |        |                   |   | -          |        |   |   | - |   |
| Property & equipment                                            |   |          |   |   |                   | 1,042,851 |        |                   |   | -          |        |   |   | 1,042,851 |   |
| Website development costs                                           |   | E(ii)         |   |   |                   | 392,799   |        |                   |   | (37,408    | )           |   |   | 355,391 |   |
| Intangible assets                                                   |   |          |   |   |                   | 1,587,463 |        |                   |   | -          |        |   |   | 1,587,463 |   |
| Goodwill                                                            |   |  B, G(i) |   |   |                   | 2,428,602 |        |                   |   | 177,438    |        |   |   | 2,606,040 |   |
| Total Assets                                                        |   |          |   |   |                   | $         | 7,608,288   |                   |   | $          | 140,030     |   |   | $ | 7,748,318 |   |
|                                                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Current                                                             |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Accounts payable and accrued liabilities                            |   |  E(i), H |   |   | $                      | 4,131,264 |        |                   | $      | (1,083,271 | )           |   | $ | 3,047,993 |   |
| Amounts payable to the BCCI and IPL                                 |   |  H       |   |   |                   | -         |        |                   |   | 1,000,000  |        |   |   | 1,000,000 |   |
| Bonuses payable                                                     |   | C(ii)         |   |   |                   | 235,650   |        |                   |   | 119,045    |        |   |   | 354,695 |   |
| Due to shareholders of Auctomatic                                   |   |          |   |   |                   |      | 789,799     |                   |   |       | -           |   |   |   | 789,799 |   |
| Deferred revenue                                                    |   |          |   |   |                   |      | 120,456     |                   |   |       | -           |   |   |   | 120,456 |   |
| Current portion of deferred lease inducements                       |   |          |   |   |                   |      | 20,138      |                   |   |       | -           |   |   |   | 20,138 |   |
| Total current liabilities                                           |   |          |   |   |                   |      | 5,297,307   |                   |   |       | 35,774      |   |   |   | 5,333,081 |   |
|                                                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Non-controlling interest                                            |   |          |   |   |                   |      | -           |                   |   |       | -           |   |   |   | - |   |
| Deferred income tax                                                 |   |          | A      |   |                   |      | -           |                   |   |       | 206,370     |   |   |   | 206,370 |   |
| Warrants                                                            |   |          | F      |   |                   |      | -           |                   |   |       | 157,895     |   |   |   | 157,895 |   |
| Deferred lease inducements                                          |   |          |   |   |                   |      | 55,380      |                   |   |       | -           |   |   |   | 55,380 |   |
| Total Liabilities                                                   |   |          |   |   |                   |      | 5,352,687   |                   |   |       | 400,039     |   |   |   | 5,752,726 |   |
|                                                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                |   |          |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Common Stock                                                        |   |          |   |   |                   |      | 14,855      |                   |   |       | -           |   |   |   | 14,855 |   |
| Additional paid-in capital                                          |   |          |   |   |                   |      | 14,772,880  |                   |   |       | (14,948     | )      |   |   | 14,757,932 |   |
| Accumulated deficit                                                 |   |          |   |   |                   |      | (12,532,134 | )                      |   |       | (245,061    | )      |   |   | (12,777,195 | ) |
| Total Stockholders' Equity                                          |   |          |   |   |                   |      | 2,255,601   |                   |   |       | (260,009    | )      |   |   | 1,995,592 |   |
| Total Liabilities and Stockholders' Equity                          |   |          |   |   |                   | $         | 7,608,288   |                   |   | $          | 140,030     |   |   | $ | 7,748,318 |   |

----

| For the year ended December 31, 2008                                     |   | Reference             |   |        | As previously reported |       |        | Restatement adjustment |   |       | As restated |       |
|--------------------------------------------------------------------------|--------|-----------------------|--------|-------------|------------------------|------------|-------------|------------------------|--------|------------|-------------|------------|
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |
| SALES                                                                    |   |                  |   |        | $                      | 9,364,833  |        |                   | $      | -          |        |       | $ | 9,364,833 |   |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| COSTS OF SALES                                                           |   |                  |   |        |                   | 7,683,812  |        |                   |   | -          |        |       |   | 7,683,812 |   |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| GROSS PROFIT                                                             |   |                  |   |        |                   | 1,681,021  |        |                   |   | -          |        |       |   | 1,681,021 |   |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| EXPENSES                                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| Amortization and depreciation                                            |   |                  |   |        |                   | 253,141    |        |                   |   | -          |        |       |   | 253,141 |   |
| Amortization of website development costs                                |   |                  |   |        |                   | 58,640     |        |                   |   | -          |        |       |   | 58,640 |   |
| Corporate general and administrative                                     |   | E(i)                  |   |        |                   | 2,537,422  |        |                   |   | (19,521    | )           |       |   | 2,517,901 |   |
| ECommerce general and administrative                                     |   |                  |   |        |                   |       | 567,980     |                   |   |       | -           |       |   |   | 567,980 |   |
| Management fees and employee salaries                                    |   | C(i), C(ii), D, G(ii) |   |        | 4,746,255              |       |        |                   | 78,794 |       |        |       | 4,825,049 |   |
| Corporate marketing                                                      |   |                  |   |        |                   |       | 42,399      |                   |   |       | -           |       |   |   | 42,399 |   |
| ECommerce marketing                                                      |   |                  |   |        |                   |       | 766,393     |                   |   |       | -           |       |   |   | 766,393 |   |
| Other expenses                                                           |   |                  |   |        |                   |       | 708,804     |                   |   |       | -           |       |   |   | 708,804 |   |
| Total Expenses                                                           |   |                  |   |        |                   |       | 9,681,034   |                   |   |       | 59,273      |       |   |   | 9,740,307 |   |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                  |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| Global Cricket Venture expenses                                          |   | H                     |   |        |                   | (2,476,255 | )           |                   |   | 1,000,000  |        |       |   | (1,476,255 | ) |
| Global Cricket Venture payments                                          |   | H                     |   |        |                   | -          |        |                   |   | (1,000,000 | )           |       |   | (1,000,000 | ) |
| Gain from sales and sales-type lease of domain names                     |   | E(ii)                 |   |        |                   | 498,829    |        |                   |   | (37,408    | )           |       |   | 461,421 |   |
| Accretion interest expense                                               |   |                  |   |        |                   |       | (96,700     | )                      |   |       | -           |       |   |   | (96,700 | ) |
| Interest and investment income                                           |   |                  |   |        |                   |       | 67,683      |                   |   |       | -           |       |   |   | 67,683 |   |
| Non-controlling interest                                                 |   | B                     |   |        |                   | -          |        |                   |   | 75,478     |        |       |   | 75,478 |   |
| Total Other Income (Expenses)                                            |   |                  |   |        |                   |       | (2,006,443  | )                      |   |       | 38,070      |       |   |   | (1,968,373 | ) |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| NET LOSS BEFORE TAXES                                                    |   |                  |   |        |                   |       | (10,006,456 | )                      |   |       | (21,203     | )          |   |   | (10,027,659 | ) |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| TAX EXPENSE                                                              |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| Deferred tax recovery                                                    |   | A                     |   |        |                   | -          |        |                   |   | (40,389    | )           |       |   | (40,389 | ) |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |   |                  | $      | (10,006,456 | )                      |       | $           | 19,186                 |   |       | $           | (9,987,270 | ) |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |   |                  |   |        |                   | $          | (0.46       | )                      |   |       | 0.00        |       |   | $ | (0.46 | ) |
|                                                                     |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |   |                  |   |        |                   |       | 21,937,179  |                   |   |       |        |       |   |   | 21,937,179 |   |

----

| For the year Ended December 31, 2008                          | Reference   |   | As previously reported |        |   | Restatement adjustment |   |       | As restated |   |
|---------------------------------------------------------------|-------------|--------|------------------------|-------------|--------|------------------------|--------|------------|-------------|--------|
| OPERATING ACTIVITIES                                          |        |   |                   |        |   |                   |   |       |        |   |
| Net loss for the period                                       |        |   | $                      | (10,006,456 | )      |                   | $      | 19,186     |        |   | $ | (9,987,270 | ) |
| Non-cash items included in net loss:                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Deferred tax recovery                                         | A           |   |                   | -           |   |                   |   | (40,389    | )           |   |   | (40,389 | ) |
| Non-controlling interest                                      | B           |   |                   | -           |   |                   |   | (75,478    | )           |   |   | (75,478 | ) |
| Gain from sales and sales-type lease of domain names          | E(ii)       |   |                   | (498,829    | )      |                   |   | 37,408     |        |   |   | (461,421 | ) |
| Accretion interest expense                                    |        |   |                   | 96,700      |   |                   |   | -          |        |   |   | 96,700 |   |
| Stock-based compensation                                      | D, G(ii)    |   |                   | 2,111,354   |   |                   |   | 51,172     |        |   |   | 2,162,526 |   |
| Warrants issued                                               |        |   |                   | 45,500      |   |                   |   | -          |        |   |   | 45,500 |   |
| Issuance of common stock for services                         |        |   |                   | 303,859     |   |                   |   | -          |        |   |   | 303,859 |   |
| Extinguishment of debt by issuance of common stock            |        |   |                   | 16,500      |   |                   |   | -          |        |   |   | 16,500 |   |
| Amortization and depreciation                                 |        |   |                   | 291,643     |   |                   |   | -          |        |   |   | 291,643 |   |
| Change in operating assets and liabilities:                   |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Accounts receivable                                           |        |   |                   | 45,348      |   |                   |   | -          |        |   |   | 45,348 |   |
| Prepaid expenses and deposits                                 |        |   |                   | 136,631     |   |                   |   | -          |        |   |   | 136,631 |   |
| Inventory                                                     |        |   |                   | (74,082     | )      |                   |   | -          |        |   |   | (74,082 | ) |
| Accounts payable and accrued liabilities                      | E(i), H     |   |                   | 2,615,835   |   |                   |   | (1,019,521 | )           |   |   | 1,596,314 |   |
| Amounts payable to the BCCI and IPL                           | H           |   |                   | -           |   |                   |   | 1,000,000  |        |   |   | 1,000,000 |   |
| Bonuses payable                                               | C(i), C(ii) |   |                   | (5,640      | )      |                   |   | 27,622     |        |   |   | 21,982 |   |
| Deferred revenue                                              |        |   |                   | 67,377      |   |                   |   | -          |        |   |   | 67,377 |   |
| Cash flows used in operating activities                       |        |   |                   | (4,854,260  | )      |                   |   | -          |        |   |   | (4,854,260 | ) |
|                                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| INVESTING ACTIVITIES                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Proceeds from disposal of available for sale securities       |        |   |                   | -           |   |                   |   | -          |        |   |   | - |   |
| Net proceeds from sale of domain name                         |        |   |                   | 369,041     |   |                   |   | -          |        |   |   | 369,041 |   |
| Net proceeds from sales-type lease of domain name             |        |   |                   | 140,540     |   |                   |   | -          |        |   |   | 140,540 |   |
| Cash consideration for Auctomatic                             |        |   |                   | (1,530,047  | )      |                   |   | -          |        |   |   | (1,530,047 | ) |
| Purchases of property & equipment                         |        |   |                   | (187,532    | )      |                   |   | -          |        |   |   | (187,532 | ) |
| Website development costs                                     |        |   |                   | (451,439    | )      |                   |   | -          |        |   |   | (451,439 | ) |
| Cash flows used in (from) investing activities                |        |   |                   | (1,659,437  | )      |                   |   | -          |        |   |   | (1,659,437 | ) |
|                                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| FINANCING ACTIVITIES                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Proceeds from sale of common stock (net of share issue costs) |        |   | 970,972                |        |   |                   | -      |       |        |   | 970,972 |   |
| Cash flows from financing activities                          |        |   |                   | 970,972     |   |                   |   | -          |        |   |   | 970,972 |   |
|                                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents          |        |   |                   | (5,542,725  | )      |                   |   | -          |        |   |   | (5,542,725 | ) |
|                                                          |        |   |                   |        |   |                   |   |       |        |   |   |   |   |
| Cash and cash equivalents, beginning of year                  |        |   |                   | 7,375,245   |   |                   |   | -          |        |   |   | 7,375,245 |   |
| Cash and cash equivalents, end of year                        |        |   | $                      | 1,832,520   |   |                   | $      | -          |        |   | $ | 1,832,520 |   |

----

| As at December 31, 2007                                             |   | Reference |   |    | As previously reported |      |       | Restatement adjustment |   |    | As restated |    |
|---------------------------------------------------------------------|--------|-----------|--------|---------|------------------------|-----------|------------|------------------------|--------|---------|-------------|---------|
| ASSETS                                                              |   |      |   |    |                   |      |       |                   |   |    |        |    |
| Current                                                             |   |      |   |    |                   |      |       |                   |   |    |        |    |
| Cash and cash equivalents                                           |   |      |   |    | $                      | 7,375,245 |       |                   | $      | -       |        |    | $ | 7,375,245 |   |
| Accounts receivable (net of allowance for doubtful accounts of nil) |   |      |   | 138,930 |                   |      |       | -                      |   |    |        | 138,930 |   |
| Prepaid expenses and deposits                                       |   |      |   |    |                   | 246,174   |       |                   |   | -       |        |    |   | 246,174 |   |
| Total current assets                                                |   |      |   |    |                   | 7,760,349 |       |                   |   | -       |        |    |   | 7,760,349 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |
| Property & equipment                                            |   |      |   |    |                   | 175,797   |       |                   |   | -       |        |    |   | 175,797 |   |
| Intangible assets                                                   |   |      |   |    |                   | 1,645,061 |       |                   |   | -       |        |    |   | 1,645,061 |   |
| Total Assets                                                        |   |      |   |    | $                      | 9,581,207 |       |                   | $      | -       |        |    | $ | 9,581,207 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |
| Current                                                             |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |
| Accounts payable and accrued liabilities                            |   | E(i)      |   |    | $                      | 1,515,429 |       |                   | $      | (63,750 | )           |    | $ | 1,451,679 |   |
| Bonuses payable                                                     |   | C(i)      |   |    |                   | 241,290   |       |                   |   | 91,423  |        |    |   | 332,713 |   |
| Deferred revenue                                                    |   |      |   |    |                   |      | 53,079     |                   |   |    | -           |    |   |   | 53,079 |   |
| Current portion of deferred lease inducements                       |   |      |   |    |                   |      | 20,138     |                   |   |    | -           |    |   |   | 20,138 |   |
| Total current liabilities                                           |   |      |   |    |                   |      | 1,829,936  |                   |   |    | 27,673      |    |   |   | 2,113,154 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   | - |   |
| Non-controlling interest                                            |   | B         |   |    |                   | -         |       |                   |   | 8,786   |        |    |   | 8,786 |   |
| Deferred income tax                                                 |   | A         |   |    |                   |      |       |                   |   | 246,759 |        |    |   | 246,759 |   |
| Deferred lease inducements                                          |   |      |   |    |                   |      | 75,518     |                   |   |    | -           |    |   |   | 75,518 |   |
| Total Liabilities                                                   |   |      |   |    |                   |      | 1,905,454  |                   |   |    | 283,218     |    |   |   | 2,188,672 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                |   |      |   |    |                   |      |       |                   |   |    |        |    |   |   |   |   |
| Common Stock                                                        |   |      |   |    |                   |      | 12,456     |                   |   |    | -           |    |   |   | 12,456 |   |
| Additional paid-in capital                                          |   |      |   |    |                   |      | 10,188,975 |                   |   |    | (18,971     | )       |   |   | 10,170,004 |   |
| Accumulated deficit                                                 |   |      |   |    |                   |      | (2,525,678 | )                      |   |    | (264,247    | )       |   |   | (2,789,925 | ) |
| Total Stockholders' Equity                                          |   |      |   |    |                   |      | 7,675,753  |                   |   |    | (283,218    | )       |   |   | 7,392,535 |   |
| Total Liabilities and Stockholders' Equity                          |   |      |   |    |                   | $         | 9,581,207  |                   |   | $       | -           |    |   | $ | 9,581,207 |   |

----

| Year Ended December 31, 2007                                             | Reference    |    |   | As previously reported |   |      | Restatement adjustment |   |    | As restated |   |
|--------------------------------------------------------------------------|--------------|---------|--------|------------------------|--------|-----------|------------------------|--------|---------|-------------|--------|
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |
| SALES                                                                    |         |    |   |                   |   |      |                   |   |    |        |   |   |
| Health and beauty eCommerce                                              |         |    |   |                   | $      | 8,092,707 |                   |   | $       | -           |   |   | $ | 8,092,707 |   |
| Other eCommerce                                                          |         |    |   |                   |   | 485,199   |                   |   |    | -           |   |   |   | 485,199 |   |
| Domain name advertising                                                  |         |    |   |                   |   | 449,613   |                   |   |    | -           |   |   |   | 449,613 |   |
| Miscellaneous income                                                     |  E(iii) |    |   |                   | 35,810 |      |                   |   | (35,810 | )           |   |   | - |   |
| Total Sales                                                              |         |    |   |                   |   | 9,063,329 |                   |   |    | (35,810     | )      |   |   | 9,027,519 |   |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |
| COSTS OF SALES                                                           |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |
| Health and Beauty eCommerce                                              |         |    |   |                   |   | 6,512,292 |                   |   |    | -           |   |   |   | 6,512,292 |   |
| Other eCommerce                                                          |         |    |   |                   |   | 509,181   |                   |   |    | -           |   |   |   | 509,181 |   |
| Total Costs of Sales                                                     |         |    |   |                   |   | 7,021,473 |                   |   |    | -           |   |   |   | 7,021,473 |   |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |
| GROSS PROFIT                                                             |         |    |   |                   |   | 2,041,856 |                   |   |    | (35,810     | )      |   |   | 2,006,046 |   |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |
| EXPENSES                                                                 |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |
| Amortization and depreciation                                            |         |    |   |                   |   | 29,169    |                   |   |    | -           |   |   |   | 29,169 |   |
| Corporate general and administrative                                     |         | E(i)    |   |                   |   | 686,921   |                   |   |    | (63,750     | )      |   |   | 623,171 |   |
| ECommerce general and administrative                                     |         |    |   |                   |   | 304,212   |                   |   |    | -           |   |   |   | 304,212 |   |
| Management fees and employee salaries                                    |         | C(i), D |   |                   |   | 1,981,051 |                   |   |    | 72,452      |   |   |   | 2,053,503 |   |
| ECommerce marketing                                                      |         |    |   |                   |   |      | 817,101                |   |    |        | -      |   |   |   | 817,101 |   |
| Other expenses                                                           |         |    |   |                   |   |      | 637,730                |   |    |        | -      |   |   |   | 637,730 |   |
| Total Expenses                                                           |         |    |   |                   |   |      | 4,456,184              |   |    |        | 8,702  |   |   |   | 4,464,886 |   |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                  |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| Interest and investment income                                           |         |    |   |                   |   |      | 119,574                |   |    |        | -      |   |   |   | 119,574 |   |
| Gain on disposal of subsidiary of Frequenttraveler.com Inc.              |         |    |   |                   |   |      | 276,805                |   |    |        | -      |   |   |   | 276,805 |   |
| Non-controlling interest                                                 |         | B       |   |                   |   | -         |                   |   |    | 91,890      |   |   |   | 91,890 |   |
| Total Other Income (Expenses)                                            |         |    |   |                   |   |      | 396,379                |   |    |        | 91,890 |   |   |   | 488,269 |   |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS BEFORE TAXES                             |         |    |   |                   |   |      | (2,017,949             | )      |    |        | 47,378 |   |   |   | (1,970,571 | ) |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| TAX EXPENSE                                                              |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| Deferred tax recovery                                                    |         | A       |   |                   |   | -         |                   |   |    | (8,225      | )      |   |   | (8,225 | ) |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |         |    |   |                   |   | $         | (2,017,949             | )      |    | $           | 55,603 |   |   | $ | (1,962,346 | ) |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |         |    |   |                   |   | $         | (0.11                  | )      |    | $           | 0.00   |   |   | $ | (0.10 | ) |
|                                                                     |         |    |   |                   |   |      |                   |   |    |        |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |         |    |   |                   |   |      | 19,070,236             |   |    |        |   |   |   |   | 19,070,236 |   |

----

| For the year ended December 31, 2007                          | Reference |   | As previously reported |       |   | Restatement adjustment |   |    | As restated |   |
|---------------------------------------------------------------|-----------|--------|------------------------|------------|--------|------------------------|--------|---------|-------------|--------|
| OPERATING ACTIVITIES                                          |      |   |                   |       |   |                   |   |    |        |   |
| Net loss for the period                                       |      |   | $                      | (2,017,949 | )      |                   | $      | 55,603  |        |   | $ | (1,962,346 | ) |
| Non-cash items included in net loss:                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Deferred tax recovery                                         | A         |   |                   | -          |   |                   |   | (8,225  | )           |   |   | (8,225 | ) |
| Non-controlling interest                                      | B         |   |                   | -          |   |                   |   | (91,890 | )           |   |   | (91,890 | ) |
| Stock-based compensation                                      |  D   |   |                   | 428,028    |   |                   |   | (18,971 | )           |   |   | 409,057 |   |
| Amortization and depreciation                                 |      |   |                   | 24,135     |   |                   |   | -       |        |   |   | 24,135 |   |
| Issuance of common stock for bonuses                          |      |   |                   | 59,078     |   |                   |   | -       |        |   |   | 59,078 |   |
| Change in operating assets and liabilities:                   |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Accounts receivable                                           | E(iii)    |   |                   | (117,724   | )      |                   |   | 35,810  |        |   |   | (81,914 | ) |
| Prepaid expenses and deposits                                 |      |   |                   | (246,174   | )      |                   |   | -       |        |   |   | (246,174 | ) |
| Accounts payable and accrued liabilities                      | E(i)      |   |                   | 523,574    |   |                   |   | (63,750 | )           |   |   | 459,824 |   |
| Bonuses payable                                               | C(i)      |   |                   | 241,290    |   |                   |   | 91,423  |        |   |   | 332,713 |   |
| Deferred revenue                                              |      |   |                   | 53,079     |   |                   |   | -       |        |   |   | 53,079 |   |
| Deferred lease inducements                                    |      |   |                   | 100,690    |   |                   |   | -       |        |   |   | 100,690 |   |
| Cash flows used in operating activities                       |      |   |                   | (951,973   | )      |                   |   | -       |        |   |   | (951,973 | ) |
|                                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| INVESTING ACTIVITIES                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Proceeds from disposal of available for sale securities       |      |   |                   | 261,912    |   |                   |   | -       |        |   |   | 261,912 |   |
| Purchases of property & equipment                         |      |   |                   | (159,934   | )      |                   |   | -       |        |   |   | (159,934 | ) |
| Cash flows used in (from) investing activities                |      |   |                   | 101,978    |   |                   |   | -       |        |   |   | 101,978 |   |
|                                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| FINANCING ACTIVITIES                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Proceeds from restricted cash                                 |      |   |                   | 20,000     |   |                   |   | -       |        |   |   | 20,000 |   |
| Proceeds from sale of common stock (net of share issue costs) |      |   |                   | 6,099,900  |   |                   |   | -       |        |   |   | 6,099,900 |   |
| Cash flows from financing activities                          |      |   |                   | 6,119,900  |   |                   |   | -       |        |   |   | 6,119,900 |   |
|                                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents          |      |   |                   | 5,269,905  |   |                   |   | -       |        |   |   | 5,269,905 |   |
|                                                          |      |   |                   |       |   |                   |   |    |        |   |   |   |   |
| Cash and cash equivalents, beginning of year                  |      |   |                   | 2,105,340  |   |                   |   | -       |        |   |   | 2,105,340 |   |
| Cash and cash equivalents, end of year                        |      |   | $                      | 7,375,245  |   |                   | $      | -       |        |   | $ | 7,375,245 |   |

----

|                                                                                       |   |                                           |   |   | As previously reported |       |       |                       |   |   |                |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|------------------------|------------|------------|----------------------------|--------|--------|---------------------|--------|
|                                                                                       |   |                                           |   |   | Common stock           |       |       | Additional Paid-in Capital |   |   | Accumulated Deficit |   |   | Total |   |   | Restatement Adjustment |   |   | As Restated Total |   |
|                                                                                       |   | Reference                                      |   |   | Number of Shares       |       |       | Amount                     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                                                 |   |                                           |   |   |                   | 17,836,339 |       |                       | $      | 8,846  |                |   | $ | 3,605,579 |   |   | $ | (507,729 | ) |   | $ | 3,106,696 |   |   | $ | - |   |   | $ | 3,106,696 |   |
| Adjustment to opening accumulated deficit                                                  |   | A, B, E(iii)                                   |   |   |                   | -          |       |                       |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (319,850 | ) |   |   | (319,850 | ) |
| Balance, December 31, 2006                                                                 |   |                                           |   |   |                   | 17,836,339 |       |                       |   | 8,846  |                |   |   | 3,605,579 |   |   |   | (507,729 | ) |   |   | 3,106,696 |   |   |   | (319,850 | ) |   |   | 2,786,846 |   |
| Issuance of 60,284 common shares at $0.98 per share in lieu of accrued bonuses to officers |   |                                           |   |   | 60,284                 |       |       |                       | 60     |   |                |   | 59,018 |   |   |   |   |   |   |   | 59,078 |   |   |   | - |   |   |   | 59,078 |   |
| Issuance of 1,000,000 common shares at $1.00 per share to CEO                              |   |                                           |   |   |                   | 1,000,000  |       |                       |   | 1,000  |                |   |   | 999,000 |   |   |   |   |   |   |   | 1,000,000 |   |   |   | - |   |   |   | 1,000,000 |   |
| Private Placement of 2,550,000 common shares at $2.00 per share                            |   |                                           |   |   |                   | 2,550,000  |       |                       |   | 2,550  |                |   |   | 5,097,450 |   |   |   |   |   |   |   | 5,100,000 |   |   |   | - |   |   |   | 5,100,000 |   |
| Share issue costs                                                                          |   |                                           |   |   |                   | -          |       |                       |   |   |                |   |   | (100 | ) |   |   |   |   |   |   | (100 | ) |   |   | - |   |   |   | (100 | ) |
| Stock-based compensation                                                                   |   | D                                              |   |   |                   | -          |       |                       |   |   |                |   |   | 428,028 |   |   |   |   |   |   |   | 428,028 |   |   |   | (18,971 | ) |   |   | 409,057 |   |
| Net loss and comprehensive loss                                                            |   | A, B, C(i), D, E(i), E(iii)                    |   |   |                   | -          |       |                       |   |   |                |   |   |   |   |   |   | (2,017,949 | ) |   |   | (2,017,949 | ) |   |   | 55,603 |   |   |   | (1,962,346 | ) |
| Balance, December 31, 2007                                                                 |   |                                           |   |   |                   |       | 21,446,623 |                       |   |   | 12,456              |   |   |   | 10,188,975 |   |   |   | (2,525,678 | ) |   |   | 7,675,753 |   |   |   | (283,218 | ) |   |   | 7,392,535 |   |
| Stock-based compensation                                                                   |   | D, G(ii)                                       |   |   |                   | -          |       |                       |   | -      |                |   |   | 2,111,354 |   |   |   |   |   |   |   | 2,111,354 |   |   |   | 51,172 |   |   |   | 2,162,526 |   |
| Issuance of 586,403 common shares per the merger agreement with Automatic                  |   | G(i)                                           |   |   |                   | 586,403    |       |                       |   | 586    |                |   |   | 1,137,533 |   |   |   |   |   |   |   | 1,138,119 |   |   |   | 110,746 |   |   |   | 1,248,865 |   |
| Issuance of 33,000 common shares to investor relations firm                                |   |                                           |   |   |                   |       | 33,000     |                       |   |   | 33                  |   |   |   | 85,649 |   |   |   |   |   |   |   | 85,682 |   |   |   | - |   |   |   | 85,682 |   |
| Issuance of 120,000 common shares to investor relations firm                               |   |                                           |   |   |                   |       | 120,000    |                       |   |   | 120                 |   |   |   | 218,057 |   |   |   |   |   |   |   | 218,177 |   |   |   | - |   |   |   | 218,177 |   |
| Issuance of 50,000 warrants to investor relations firm                                     |   |                                           |   |   |                   |       | -          |                       |   |   | -                   |   |   |   | 45,500 |   |   |   |   |   |   |   | 45,500 |   |   |   | - |   |   |   | 45,500 |   |
| Cancellation of 300,000 common shares not distributed                                      |   |                                           |   |   |                   |       | (300,000   | )                          |   |   | -                   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Private Placement of 1,627,344 units at $0.65 per share                                    |   | F                                              |   |   |                   | 1,627,344  |       |                       |   | 1,627  |                |   |   | 1,056,148 |   |   |   |   |   |   |   | 1,057,775 |   |   |   | (157,895 | ) |   |   | 899,880 |   |
| Share issue costs                                                                          |   |                                           |   |   |                   |       | -          |                       |   |   | -                   |   |   |   | (86,803 | ) |   |   |   |   |   |   | (86,803 | ) |   |   | - |   |   |   | (86,803 | ) |
| Extinguishment of accounts payable                                                         |   |                                           |   |   |                   |       | 33,000     |                       |   |   | 33                  |   |   |   | 16,467 |   |   |   |   |   |   |   | 16,500 |   |   |   | - |   |   |   | 16,500 |   |
| Net loss and comprehensive loss                                                            |   |  A, B, C(i), C(ii), D, E(i), E(ii), G(ii) |   |   |                   |       |       |                       |   |   |                |   |   |   |   |   |   | (10,006,456 | )  |   |   | (10,006,456 | )  |   |   | 19,186 |   |   |   | (9,987,270 | )  |
| Balance, December 31, 2008                                                                 |   |                                           |   |   |                   |       | 23,546,370 |                       |   | $      | 14,855              |   |   | $ | 14,772,880 |   |   | $ | (12,532,134 | ) |   | $ | 2,255,601 |   |   | $ | (260,009 | ) |   | $ | 1,995,592 |   |

----

----

|                                                                     |   | 2008   |        |   | 2007   |   |
|--------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                     |   |   |        |   |   |   |
| SALES                                                                    |   |   |        |   |   |   |
| Health and beauty eCommerce                                              |   | $      | 9,271,237   |   |   | $      | 8,092,707 |   |
| Other eCommerce                                                          |   |   | 455         |   |   |   | 485,199 |   |
| Domain name advertising                                                  |   |   | 93,141      |   |   |   | 449,613 |   |
| Miscellaneous income                                                     |   |   | -           |   |   |   | - |   |
| Total Sales                                                              |   |   | 9,364,833   |   |   |   | 9,027,519 |   |
|                                                                     |   |   |        |   |   |   |   |   |
| COSTS OF SALES                                                           |   |   |        |   |   |   |   |   |
| Health and Beauty eCommerce                                              |   |   | 7,683,432   |   |   |   | 6,512,292 |   |
| Other eCommerce                                                          |   |   | 380         |   |   |   | 509,181 |   |
| Total Costs of Sales                                                     |   |   | 7,683,812   |   |   |   | 7,021,473 |   |
|                                                                     |   |   |        |   |   |   |   |   |
| GROSS PROFIT                                                             |   |   | 1,681,021   |   |   |   | 2,006.046 |   |
|                                                                     |   |   |        |   |   |   |   |   |
| EXPENSES                                                                 |   |   |        |   |   |   |   |   |
| Amortization and depreciation                                            |   |   | 253,141     |   |   |   | 29,169 |   |
| Amortization of website development costs                                |   |   | 58,640      |   |   |   | - |   |
| Corporate general and administrative                                     |   |   | 2,517,901   |   |   |   | 623,171 |   |
| ECommerce general and administrative                                     |   |   | 567,980     |   |   |   | 304,212 |   |
| Management fees and employee salaries                                    |   |   | 4,825,049   |   |   |   | 2,053,503 |   |
| Corporate marketing                                                      |   |   | 42,399      |   |   |   | - |   |
| ECommerce marketing                                                      |   |   | 766,393     |   |   |   | 817,101 |   |
| Other expenses                                                           |   |   | 708,804     |   |   |   | 637,730 |   |
| Total Expenses                                                           |   |   | 9,740,307   |   |   |   | 4,464,886 |   |
|                                                                     |   |   |        |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                                  |   |   |        |   |   |   |   |   |
| Global Cricket Venture expenses                                          |   |   | (1,476,255  | )      |   |   | - |   |
| Global Cricket Venture payments                                          |   |   | (1,000,000  | )      |   |   |   |   |
| Gain from sales and sales-type lease of domain names                     |   |   | 461,421     |   |   |   | - |   |
| Accretion interest expense                                               |   |   | (96,700     | )      |   |   | - |   |
| Interest and investment income                                           |   |   | 67,683      |   |   |   | 119,574 |   |
| Gain on disposal of subsidiary of Frequenttraveler.com Inc.              |   |   | -           |   |   |   | 276,805 |   |
| Non-controlling interest                                                 |   |   | 75,478      |   |   |   | 91,890 |   |
|                                                                     |   |   |        |   |   |   |   |   |
| NET LOSS BEFORE TAXES                                                    |   |   | (10,027,659 | )      |   |   | (1,970,571 | ) |
|                                                                     |   |   |        |   |   |   |   |   |
| TAXES                                                                    |   |   |        |   |   |   |   |   |
| Deferred tax recovery                                                    |   |   | (40,389     | )      |   |   | (8,225 | ) |
|                                                                     |   |   |        |   |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |   | $      | (9,987,270  | )      |   | $      | (1,962,346 | ) |
|                                                                     |   |   |        |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |   | $      | (0.46       | )      |   | $      | (0.10 | ) |
|                                                                     |   |   |        |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |   |   | 21,937,179  |   |   |   | 19,070,236 |   |

----

----

----

----

----

----

|   | · | Global Cricket Venture, a 50.05% owned subsidiary, rather than Live Current, is the party to the IPL Memorandum; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | the term of the IPL Memorandum was modified, so that it began on April 1, 2008 and will end on December 31, 2017; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | the minimum payment due on October 1, 2008 to the BCCI of $125,000, reduced from $625,000, and any other payments owed to the BCCI through March 31, 2009 were assumed by Global Cricket Venture and are to be paid on July 1, 2009.  We will be fully released from these liabilities once Global Cricket Venture makes these payments; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the minimum payment due on October 1, 2008 to the IPL of $375,000, and any other payments owed to the IPL through March 31, 2009 were assumed by Global Cricket Venture and are to be paid on July 1, 2009.  We have been fully released from these liabilities; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a right to terminate the IPL Memorandum due to a material breach or on the insolvency of either party was added; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | the “Minimum Annual Fee Payment Schedule” (Schedule 2 to the IPL Memorandum) was revised.  The first payment of $2,250,000 is due on July 1, 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| As at March 31, 2008                                                     | Reference               |   | As previously reported |       |   | Restatement adjustment |    |     | As restated |   |
|--------------------------------------------------------------------------|-------------------------|--------|------------------------|------------|--------|------------------------|---------|----------|-------------|--------|
| ASSETS                                                                   |                    |   |                   |       |   |                   |    |     |        |   |
| Current assets                                                           |                    |   | $                      | 5,353,567  |   |                   | $       | -        |        |   | $ | 5,353,567 |   |
| Other assets                                                             | (i)                     |   |                   | 2,232,194  |   |                   |    | 66,692   |        |   |   | 2,298,886 |   |
| Total Assets                                                             |                    |   | $                      | 7,585,761  |   |                   | $       | 66,692   |        |   | $ | 7,652,453 |   |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |
| Current Liabilities                                                      | (ii), (iii)             |   |                   | 1,351,599  |   |                   |    | 215,025  |        |   |   | 1,566,624 |   |
| Other Liabilities                                                        | (i), (v)                |   |                   | 70,483     |   |                   |    | 270,731  |        |   |   | 341,214 |   |
| Total Liabilities                                                        |                    |   |                   | 1,422,082  |   |                   |    | 485,756  |        |   |   | 1,907,838 |   |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| Common Stock                                                             |                    |   |                   | 12,456     |   |                   |    | -        |        |   |   | 12,456 |   |
| Additional paid-in capital                                               | (iv)                    |   |                   | 10,671,119 |   |                   |    | (57,394  | )           |   |   | 10,613,725 |   |
| Accumulated deficit                                                      | (i) to (vi)             |   |                   | (4,519,896 | )      |                   |    | (361,670 | )           |   |   | (4,881,566 | ) |
| Total Stockholders' Equity                                               |                    |   |                   | 6,163,679  |   |                   |    | (419,064 | )           |   |   | 5,744,615 |   |
| Total Liabilities and Stockholders' Equity                               |                    |   | $                      | 7,585,761  |   |                   | $       | 66,692   |        |   | $ | 7,652,453 |   |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| For the three months ended March 31, 2008                                |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| Gross Profit                                                             |                    |   | $                      | 362,417    |   |                   | $       | -        |        |   | $ | 362,417 |   |
| Total Expenses                                                           | (ii), (iii), (iv), (vi) |   |                   | 2,512,022  |   |                   |    | 148,929  |        |   |   | 2,660,951 |   |
| Total Other Income (Expenses)                                            | (i)                     |   |                   | 155,387    |   |                   |    | 51,506   |        |   |   | 206,893 |   |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |                    | $      | (1,994,218             | )          |   | $                      | (97,423 | )        |        | $      | (2,091,641 | ) |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |                    |   | $                      | (0.10      | )      |                   |    | (0.00    | )           |   | $ | (0.10 | ) |
|                                                                     |                    |   |                   |       |   |                   |    |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |                    |   |                   | 19,970,334 |   |                   |    | -        |        |   |   | 19,970,334 |   |

----

| As at June 30, 2008                                                      |                    |   | As previously reported |       |   | Restatement adjustment |     |     | As restated |   |
|--------------------------------------------------------------------------|-------------------------|--------|------------------------|------------|--------|------------------------|----------|----------|-------------|--------|
| ASSETS                                                                   |                    |   |                   |       |   |                   |     |     |        |   |
| Current assets                                                           |                    |   | $                      | 3,172,481  |   |                   | $        | -        |        |   | $ | 3,172,481 |   |
| Other assets                                                             | (i), (ii), (iii)        |   |                   | 5,568,070  |   |                   |     | 177,438  |        |   |   | 5,745,508 |   |
| Total Assets                                                             |                    |   | $                      | 8,740,551  |   |                   | $        | 177,438  |        |   | $ | 8,917,989 |   |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |
| Current Liabilities                                                      | (i), (ii), (v), (vi)    |   |                   | 2,668,706  |   |                   |     | 340,276  |        |   |   | 3,008,982 |   |
| Other Liabilities                                                        | (i)                     |   |                   | 65,449     |   |                   |     | 246,759  |        |   |   | 312,208 |   |
| Total Liabilities                                                        |                    |   |                   | 2,734,155  |   |                   |     | 587,035  |        |   |   | 3,321,190 |   |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Common Stock                                                             |                    |   |                   | 13,087     |   |                   |     | -        |        |   |   | 13,087 |   |
| Additional paid-in capital                                               | (i), (iii), (iv), (vii) |   |                   | 12,483,794 |   |                   |     | 52,765   |        |   |   | 12,536,559 |   |
| Accumulated deficit                                                      | (i) to (vii)            |   |                   | (6,490,485 | )      |                   |     | (462,362 | )           |   |   | (6,952,847 | ) |
| Total Stockholders' Equity                                               |                    |   |                   | 6,006,396  |   |                   |     | (409,597 | )           |   |   | 5,596,799 |   |
| Total Liabilities and Stockholders' Equity                               |                    |   | $                      | 8,740,551  |   |                   | $        | 177,438  |        |   | $ | 8,917,989 |   |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| For the three months ended June 30, 2008                                 |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Gross Profit                                                             |                    |   | $                      | 356,568    |   |                   | $        | -        |        |   | $ | 356,568 |   |
| Total Expenses                                                           | (iv), (v), (vi), (vii)  |   |                   | 2,399,153  |   |                   |     | 124,664  |        |   |   | 2,523,817 |   |
| Total Other Income (Expenses)                                            | (i), (ii)               |   |                   | 16,680     |   |                   |     | 23,972   |        |   |   | 40,652 |   |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |                    | $      | (2,025,905             | )          |   | $                      | (100,692 | )        |        | $      | (2,126,597 | ) |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |                    |   | $                      | (0.10      | )      |                   |     | (0.00    | )           |   | $ | (0.10 | ) |
|                                                                     |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |                    |   |                   | 20,832,026 |   |                   |     | -        |        |   |   | 20,832,026 |   |

----

| For the six months ended June 30, 2008                                   |                   |   |       |       |   |   |     |    |   |   |       |       |   |
|--------------------------------------------------------------------------|------------------------|--------|------------|------------|--------|--------|----------|---------|--------|--------|------------|------------|--------|
|                                                                     |                   |   |       |       |   |   |     |    |   |   |       |       |   |
| Gross Profit                                                             |                   |   | $          | 718,985    |   |   | $        | -       |   |   | $          | 718,985    |   |
| Total Expenses                                                           | (iv), (v), (vi), (vii) |   |       | 4,911,176  |   |   |     | 273,593 |   |   |       | 5,184,769  |   |
| Total Other Income (Expenses)                                            |  (i), (ii)        |   |       | 227,384    |   |   |     | 75,478  |   |   |       | 302,862    |   |
|                                                                     |                   |   |       |       |   |   |     |    |   |   |       |       |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |                   | $      | (3,964,807 | )          |   | $      | (198,115 | )       |   | $      | (4,162,922 | )          |
|                                                                     |                   |   |       |       |   |   |     |    |   |   |       |       |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |                   |   | $          | (0.19      | )      |   |     | (0.01   | )      |   | $          | (0.20      | )      |
|                                                                     |                   |   |       |       |   |   |     |    |   |   |       |       |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |                   |   |       | 20,832,026 |   |   |     | -       |   |   |       | 20,832,026 |   |

----

| As at September 30, 2008                                                 |                         |   | As previously reported |       |   | Restatement adjustment |     |     | As restated |   |
|--------------------------------------------------------------------------|------------------------------|--------|------------------------|------------|--------|------------------------|----------|----------|-------------|--------|
| ASSETS                                                                   |                         |   |                   |       |   |                   |     |     |        |   |
| Current assets                                                           |                         |   | $                      | 994,786    |   |                   | $        | -        |        |   | $ | 994,786 |   |
| Other assets                                                             | (i)                          |   |                   | 5,990,554  |   |                   |     | 177,438  |        |   |   | 6,167,992 |   |
| Total Assets                                                             |                         |   | $                      | 6,985,340  |   |                   | $        | 177,438  |        |   | $ | 7,162,778 |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |
| Current Liabilities                                                      | (i), (iii), (iv)             |   |                   | 3,276,584  |   |                   |     | 449,096  |        |   |   | 3,725,680 |   |
| Other Liabilities                                                        | (i)                          |   |                   | 60,414     |   |                   |     | 246,759  |        |   |   | 307,173 |   |
| Total Liabilities                                                        |                         |   |                   | 3,336,998  |   |                   |     | 695,855  |        |   |   | 4,032,853 |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Common Stock                                                             |                         |   |                   | 13,150     |   |                   |     | -        |        |   |   | 13,150 |   |
| Additional paid-in capital                                               | (i), (ii), (v)               |   |                   | 13,175,885 |   |                   |     | 150,502  |        |   |   | 13,326,387 |   |
| Accumulated deficit                                                      | (i) to (v)                   |   |                   | (9,540,693 | )      |                   |     | (668,919 | )           |   |   | (10,209,612 | ) |
| Total Stockholders' Equity                                               |                         |   |                   | 3,648,342  |   |                   |     | (518,417 | )           |   |   | 3,129,925 |   |
| Total Liabilities and Stockholders' Equity                               |                         |   | $                      | 6,985,340  |   |                   | $        | 177,438  |        |   | $ | 7,162,778 |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| For the three months ended September 30, 2008                            |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Gross Profit                                                             |                         |   | $                      | 352,435    |   |                   | $        | -        |        |   | $ | 352,435 |   |
| Total Expenses                                                           | (ii), (iii), (iv), (v)       |   |                   | 2,343,285  |   |                   |     | 206,557  |        |   |   | 2,549,842 |   |
| Total Other Income (Expenses)                                            |                         |   |                   | (1,059,357 | )      |                   |     | -        |        |   |   | (1,059,357 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |                         | $      | (3,050,207             | )          |   | $                      | (206,557 | )        |        | $      | (3,256,764 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |                         |   | $                      | (0.14      | )      |                   |     | (0.01    | )           |   | $ | (0.15 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |                         |   |                   | 21,625,005 |   |                   |     | -        |        |   |   | 21,625,005 |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| For the nine months ended September 30, 2008                             |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Gross Profit                                                             |                         |   | $                      | 1,071,419  |   |                   | $        | -        |        |   | $ | 1,071,419 |   |
| Total Expenses                                                           |  (ii), (iii), (iv), (v) |   |                   | 7,254,461  |   |                   |     | 480,150  |        |   |   | 7,734,611 |   |
| Total Other Income (Expenses)                                            | (i)                          |   |                   | (831,973   | )      |                   |     | 75,478   |        |   |   | (756,495 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                           |                         | $      | (7,015,015             | )          |   | $                      | (404,672 | )        |        | $      | (7,419,687 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                                         |                         |   | $                      | (0.32      | )      |                   |     | (0.02    | )           |   | $ | (0.34 | ) |
|                                                                     |                         |   |                   |       |   |                   |     |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED |                         |   |                   | 21,625,005 |   |                   |     | -        |        |   |   | 21,625,005 |   |

----

----

----

----

----

----

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.  Our internal control over financial reporting has been designed to provide reasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally accepted accounting principles generally accepted in the United States. 

----

Item 15.                                Exhibits 

| Number | Description |
|--------|-------------|

| 31.1   | Amended Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 — Chief Executive Officer and Principal Financial Officer                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                           |
| 31.2   | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002 — Chief Executive Officer and Principal Financial Officer                                                        |
|   |                                                                                                                                                                                           |
| 32.1   | Amended Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002 — Chief Executive Officer and Principal Financial 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 — Chief Executive Officer and Principal Financial Officer         |

|                                       | LIVE CURRENT MEDIA INC. |                                                              |
|--------------------------------------------|-------------------------|-------------------------------------------------------------------|
|                                       |                    |                                                              |   |
| Dated:   September 11, 2009 | By:                     | /s/ C. Geoffrey Hampson                                      |   |
|                                       |                    | C. Geoffrey Hampson                                               |   |
|                                       |                    | Chief Executive Officer, Principal Financial Officer and Chairman |   |
|                                       |                    |                                                              |

----

----

| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                    | F-2    |
|----------------------------------------------------------------------------|--------|
|                                                                       |   |
| AMENDED AND RESTATED CONSOLIDATED BALANCE SHEETS                           | F-3    |
|                                                                       |   |
| AMENDED AND RESTATED CONSOLIDATED STATEMENTS OF OPERATIONS                 | F-4    |
|                                                                       |   |
| AMENDED AND RESTATED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | F-5    |
|                                                                       |   |
| AMENDED AND RESTATED CONSOLIDATED STATEMENTS OF CASH FLOWS                 | F-6    |
|                                                                       |   |
| NOTES TO THE AMENDED AND RESTATED CONSOLIDATED FINANCIAL STATEMENTS   | F-7    |

----

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.We were not engaged to perform an audit of the Company's internal control over financial reporting.  Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion. 

| Vancouver, CanadaSeptember 10, 2009 | /s/ Ernst & Young LLPChartered Accountants |
|-------------------------------------|------------------------------------------------|

----

| As at December 31                                                   |   | 2008   |        |   | 2007   |   |
|---------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| ASSETS                                                              |   |   |        |   |   |   |
| Current                                                             |   |   |        |   |   |   |
| Cash and cash equivalents                                           |   | $      | 1,832,520   |   |   | $      | 7,375,245 |   |
| Accounts receivable (net of allowance for doubtful accounts of nil) |   |   | 93,582      |   |   |   | 138,930 |   |
| Prepaid expenses and deposits                                       |   |   | 109,543     |   |   |   | 246,174 |   |
| Inventory                                                           |   |   | 74,082      |   |   |   | - |   |
| Current portion of receivable from sales-type lease (Note 12)       |   |   | 23,423      |   |   |   | - |   |
| Total current assets                                                |   |   | 2,133,150   |   |   |   | 7,760,349 |   |
|                                                                |   |   |        |   |   |   |   |   |
| Long-term portion of receivable from sales-type lease (Note 12)     |   |   | 23,423      |   |   |   | - |   |
| Property & equipment (Note 8)                                   |   |   | 1,042,851   |   |   |   | 175,797 |   |
| Website development costs (Note 9)                                  |   |   | 355,391     |   |   |   | - |   |
| Intangible assets                                                   |   |   | 1,587,463   |   |   |   | 1,645,061 |   |
| Goodwill (Note 7)                                                   |   |   | 2,606,040   |   |   |   | - |   |
| Total Assets                                                        |   | $      | 7,748,318   |   |   | $      | 9,581,207 |   |
|                                                                |   |   |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |   |        |   |   |   |   |   |
| Current                                                             |   |   |        |   |   |   |   |   |
| Accounts payable and accrued liabilities                            |   | $      | 3,047,993   |   |   | $      | 1,451,679 |   |
| Amounts payable to the BCCI and IPL (Note 6)                        |   |   | 1,000,000   |   |   |   | - |   |
| Bonuses payable                                                     |   |   | 354,695     |   |   |   | 332,713 |   |
| Due to shareholders of Auctomatic (Note 7)                          |   |   | 789,799     |   |   |   | - |   |
| Deferred revenue                                                    |   |   | 120,456     |   |   |   | 53,079 |   |
| Current portion of deferred lease inducements (Note 10)             |   |   | 20,138      |   |   |   | 20,138 |   |
| Total current liabilities                                           |   |   | 5,333,081   |   |   |   | 1,857,609 |   |
|                                                                |   |   |        |   |   |   |   |   |
| Non-controlling interest (Note 5)                                   |   |   | -           |   |   |   | 8,786 |   |
| Deferred income tax (Note 14)                                       |   |   | 206,370     |   |   |   | 246,759 |   |
| Warrants (Note 11e)                                                 |   |   | 157,895     |   |   |   | - |   |
| Deferred lease inducements (Note 10)                                |   |   | 55,380      |   |   |   | 75,518 |   |
| Total Liabilities                                                   |   |   | 5,752,726   |   |   |   | 2,188,672 |   |
|                                                                |   |   |        |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                |   |   |        |   |   |   |   |   |
| Common Stock (Note 11)                                              |   |   |        |   |   |   |   |   |
| Authorized: 50,000,000 common shares, $0.001 par value              |   |   |        |   |   |   |   |   |
| Issued and outstanding:                                             |   |   |        |   |   |   |   |   |
| 23,546,370 common shares (December 31, 2007 - 21,446,623)           |   |   | 14,855      |   |   |   | 12,456 |   |
| Additional paid-in capital                                          |   |   | 14,757,932  |   |   |   | 10,170,004 |   |
| Accumulated deficit                                                 |   |   | (12,777,195 | )      |   |   | (2,789,925 | ) |
| Total Stockholders' Equity                                          |   |   | 1,995,592   |   |   |   | 7,392,535 |   |
| Total Liabilities and Stockholders' Equity                          |   | $      | 7,748,318   |   |   | $      | 9,581,207 |   |

| /s/ James P. Taylor       |   | /s/ Mark Benham       |
|---------------------------|--------|-----------------------|
| James P. Taylor, Director |   | Mark Benham, Director |

----

| Years Ended December 31                                        |   | 2008   |        |   | 2007   |   |
|----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                           |   |   |        |   |   |   |
| SALES                                                          |   |   |        |   |   |   |
| Health and beauty eCommerce                                    |   | $      | 9,271,237   |   |   | $      | 8,092,707 |   |
| Other eCommerce                                                |   |   | 455         |   |   |   | 485,199 |   |
| Domain name advertising                                        |   |   | 93,141      |   |   |   | 449,613 |   |
| Total Sales                                                    |   |   | 9,364,833   |   |   |   | 9,027,519 |   |
|                                                           |   |   |        |   |   |   |   |   |
| COSTS OF SALES                                                 |   |   |        |   |   |   |   |   |
| Health and Beauty eCommerce                                    |   |   | 7,683,432   |   |   |   | 6,512,292 |   |
| Other eCommerce                                                |   |   | 380         |   |   |   | 509,181 |   |
| Total Costs of Sales                                           |   |   | 7,683,812   |   |   |   | 7,021,473 |   |
|                                                           |   |   |        |   |   |   |   |   |
| GROSS PROFIT                                                   |   |   | 1,681,021   |   |   |   | 2,006,046 |   |
|                                                           |   |   |        |   |   |   |   |   |
| EXPENSES                                                       |   |   |        |   |   |   |   |   |
| Amortization and depreciation                                  |   |   | 253,141     |   |   |   | 29,169 |   |
| Amortization of website development costs (Note 9)             |   |   | 58,640      |   |   |   | - |   |
| Corporate general and administrative                           |   |   | 2,517,901   |   |   |   | 623,171 |   |
| ECommerce general and administrative                           |   |   | 567,980     |   |   |   | 304,212 |   |
| Management fees and employee salaries                          |   |   | 4,825,049   |   |   |   | 2,053,503 |   |
| Corporate marketing                                            |   |   | 42,399      |   |   |   | - |   |
| ECommerce marketing                                            |   |   | 766,393     |   |   |   | 817,101 |   |
| Other expenses (Note 13)                                       |   |   | 708,804     |   |   |   | 637,730 |   |
| Total Expenses                                                 |   |   | 9,740,307   |   |   |   | 4,464,886 |   |
|                                                           |   |   |        |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                        |   |   |        |   |   |   |   |   |
| Global Cricket Venture expenses (Note 6)                       |   |   | (1,476,255  | )      |   |   | - |   |
| Global Cricket Venture payments (Note 6)                       |   |   | (1,000,000  | )      |   |   | - |   |
| Gain from sales and sales-type lease of domain names (Note 12) |   |   | 461,421     |   |   |   | - |   |
| Accretion interest expense (Note 7)                            |   |   | (96,700     | )      |   |   | - |   |
| Interest and investment income                                 |   |   | 67,683      |   |   |   | 119,574 |   |
| Gain on disposal of Frequenttraveler.com Inc. (Note 5)         |   |   | -           |   |   |   | 276,805 |   |
| Non-controlling interest (Note 5)                              |   |   | 75,478      |   |   |   | 91,890 |   |
| Total Other Income (Expenses)                                  |   |   | (1,968,373  | )      |   |   | 488,269 |   |
|                                                           |   |   |        |   |   |   |   |   |
| NET LOSS BEFORE TAXES                                          |   |   | (10,027,659 | )      |   |   | (1,970,571 | ) |
|                                                           |   |   |        |   |   |   |   |   |
| TAXES                                                          |   |   |        |   |   |   |   |   |
| Deferred tax recovery (Note 14)                                |   |   | (40,389     | )      |   |   | (8,225 | ) |
|                                                           |   |   |        |   |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD                 |   | $      | (9,987,270  | )      |   | $      | (1,962,346 | ) |
|                                                           |   |   |        |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                               |   | $      | (0.46       | )      |   | $      | (0.10 | ) |
|                                                           |   |   |        |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON                              |   |   |        |   |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED                         |   |   | 21,937,179  |   |   |   | 19,070,236 |   |

----

|                                                                    |   | Common stock     |       |   | Additional Paid-in Capital |   |   | Accumulated Deficit |   |   | Total      |   |
|-------------------------------------------------------------------------|--------|------------------|------------|--------|----------------------------|--------|--------|---------------------|--------|--------|------------|--------|
|                                                                    |   | Number of Shares |       |   | Amount                     |   |   |                |   |   |       |   |   |   |   |
| Balance, December 31, 2006, as originally stated                        |   |             | 17,836,339 |   |                       | $      | 8,846  |                |   | $      | 3,605,579  |   |   | $ | (507,729 | ) |   | $ | 3,106,696 |   |
| Adjustment to opening accumulated deficit (Note 2)                      |   |             | -          |   |                       |   | -      |                |   |   | -          |   |   |   | (319,850 | ) |   |   | (319,850 | ) |
| Balance, December 31, 2006 as restated                                  |   |             | 17,836,339 |   |                       |   | 8,846  |                |   |   | 3,605,579  |   |   |   | (827,579 | ) |   |   | 2,786,846 |   |
| Issuance of 60,284 common shares at $0.98 per share                     |   |             | -          |   |                       |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |
| in lieu of accrued bonuses to officers                                  |   |             | 60,284     |   |                       |   | 60     |                |   |   | 59,018     |   |   |   |   |   |   |   | 59,078 |   |
| Issuance of 1,000,000 common shares at $1.00 per share to CEO           |   |             | 1,000,000  |   |                       |   | 1,000  |                |   |   | 999,000    |   |   |   |   |   |   |   | 1,000,000 |   |
| Private Placement of 2,550,000 common shares at $2.00 per share         |   |             | 2,550,000  |   |                       |   | 2,550  |                |   |   | 5,097,450  |   |   |   |   |   |   |   | 5,100,000 |   |
| Share issue costs                                                       |   |             | -          |   |                       |   |   |                |   |   | (100       | )      |   |   |   |   |   |   | (100 | ) |
| Stock-based compensation (Note 11d)                                     |   |             | -          |   |                       |   |   |                |   |   | 409,057    |   |   |   |   |   |   |   | 409,057 |   |
| Net loss and comprehensive loss                                         |   |             | -          |   |                       |   |   |                |   |   |       |   |   |   | (1,962,346 | ) |   |   | (1,962,346 | ) |
| Balance, December 31, 2007                                              |   |             | 21,446,623 |   |                       |   | 12,456 |                |   |   | 10,170,004 |   |   |   | (2,789,925 | ) |   |   | 7,392,535 |   |
| Stock-based compensation (Note 11d)                                     |   |             | -          |   |                       |   | -      |                |   |   | 2,162,526  |   |   |   |   |   |   |   | 2,162,526 |   |
| Issuance of 586,403 common shares per the merger                        |   |             |       |   |                       |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |
| agreement with Auctomatic (Note 7)                                      |   |             | 586,403    |   |                       |   | 586    |                |   |   | 1,248,279  |   |   |   |   |   |   |   | 1,248,865 |   |
| Issuance of 33,000 common shares to investor relations firm (Note 11b)  |   |             | 33,000     |   |                       |   | 33     |                |   |   | 85,649     |   |   |   |   |   |   |   | 85,682 |   |
| Issuance of 120,000 common shares to investor relations firm (Note 11b) |   |             | 120,000    |   |                       |   | 120    |                |   |   | 218,057    |   |   |   |   |   |   |   | 218,177 |   |
| Issuance of 50,000 warrants to investor relations firm (Note 11e)       |   |             | -          |   |                       |   | -      |                |   |   | 45,500     |   |   |   |   |   |   |   | 45,500 |   |
| Cancellation of 300,000 common shares not distributed (Note 11b)        |   |             | (300,000   | )      |                       |   | -      |                |   |   | -          |   |   |   |   |   |   |   | - |   |
| Private Placement of 1,627,344 units at $0.65 per share (Note 11b)      |   |             | 1,627,344  |   |                       |   | 1,627  |                |   |   | 898,253    |   |   |   |   |   |   |   | 899,880 |   |
| Share issue costs (Note 11b)                                            |   |             | -          |   |                       |   | -      |                |   |   | (86,803    | )      |   |   |   |   |   |   | (86,803 | ) |
| Extinguishment of accounts payable (Note 11b)                           |   |             | 33,000     |   |                       |   | 33     |                |   |   | 16,467     |   |   |   |   |   |   |   | 16,500 |   |
| Net loss and comprehensive loss                                         |   |             |       |   |                       |   |   |                |   |   |       |   |   |   | (9,987,270 | ) |   |   | (9,987,270 | ) |
| Balance, December 31, 2008                                              |   |             | 23,546,370 |   |                       | $      | 14,855 |                |   | $      | 14,757,932 |   |   | $ | (12,777,195 | ) |   | $ | 1,995,592 |   |

----

| Years Ended December 31                                       |   | 2008   |       |   | 2007   |   |
|---------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| OPERATING ACTIVITIES                                          |   |   |       |   |   |   |
| Net loss for the period                                       |   | $      | (9,987,270 | )      |   | $      | (1,962,346 | ) |
| Non-cash items included in net loss:                          |   |   |       |   |   |   |   |   |
| Deferred tax recovery                                         |   |   | (40,389    | )      |   |   | (8,225 | ) |
| Non-controlling interest                                      |   |   | (75,478    | )      |   |   | (91,890 | ) |
| Gain from sales and sales-type lease of domain names          |   |   | (461,421   | )      |   |   | - |   |
| Accretion interest expense                                    |   |   | 96,700     |   |   |   | - |   |
| Stock-based compensation                                      |   |   | 2,162,526  |   |   |   | 409,057 |   |
| Warrants issued                                               |   |   | 45,500     |   |   |   | - |   |
| Issuance of common stock for services (Note 11b)              |   |   | 303,859    |   |   |   | - |   |
| Extinguishment of debt by issuance of common stock (Note 11b) |   |   | 16,500     |   |   |   | - |   |
| Amortization and depreciation                                 |   |   | 291,643    |   |   |   | 24,135 |   |
| Issuance of common stock for bonuses (Note 11b)               |   |   | -          |   |   |   | 59,078 |   |
| Change in operating assets and liabilities:                   |   |   |       |   |   |   |   |   |
| Accounts receivable                                           |   |   | 45,348     |   |   |   | (81,914 | ) |
| Prepaid expenses and deposits                                 |   |   | 136,631    |   |   |   | (246,174 | ) |
| Inventory                                                     |   |   | (74,082    | )      |   |   | - |   |
| Accounts payable and accrued liabilities                      |   |   | 1,596,314  |   |   |   | 459,824 |   |
| Amounts payable to the BCCI and IPL                           |   |   | 1,000,000  |   |   |   | - |   |
| Bonuses payable                                               |   |   | 21,982     |   |   |   | 332,713 |   |
| Deferred revenue                                              |   |   | 67,377     |   |   |   | 53,079 |   |
| Deferred lease inducements                                    |   |   | -          |   |   |   | 100,690 |   |
| Cash flows used in operating activities                       |   |   | (4,854,260 | )      |   |   | (951,973 | ) |
|                                                          |   |   |       |   |   |   |   |   |
| INVESTING ACTIVITIES                                          |   |   |       |   |   |   |   |   |
| Proceeds from disposal of available for sale securities       |   |   | -          |   |   |   | 261,912 |   |
| Net proceeds from sale of domain name                         |   |   | 369,041    |   |   |   | - |   |
| Net proceeds from sales-type lease of domain name             |   |   | 140,540    |   |   |   | - |   |
| Cash consideration for Auctomatic (Note 7)                    |   |   | (1,530,047 | )      |   |   | - |   |
| Purchases of property & equipment                         |   |   | (187,532   | )      |   |   | (159,934 | ) |
| Website development costs (Note 9)                            |   |   | (451,439   | )      |   |   | - |   |
| Cash flows used in (from) investing activities                |   |   | (1,659,437 | )      |   |   | 101,978 |   |
|                                                          |   |   |       |   |   |   |   |   |
| FINANCING ACTIVITIES                                          |   |   |       |   |   |   |   |   |
| Proceeds from restricted cash                                 |   |   | -          |   |   |   | 20,000 |   |
| Proceeds from sale of common stock (net of share issue costs) |   |   | 970,972    |   |   |   | 6,099,900 |   |
| Cash flows from financing activities                          |   |   | 970,972    |   |   |   | 6,119,900 |   |
|                                                          |   |   |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents          |   |   | (5,542,725 | )      |   |   | 5,269,905 |   |
|                                                          |   |   |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of year                  |   |   | 7,375,245  |   |   |   | 2,105,340 |   |
| Cash and cash equivalents, end of year                        |   | $      | 1,832,520  |   |   | $      | 7,375,245 |   |

|                           |   | 2008   |   |   | 2007   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| Cash paid during the year for: |   |   |   |   |   |   |
| Interest                       |   | $      | -      |   |   | $      | - |   |
| Income taxes                   |   | $      | 6,944  |   |   | $      | - |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| 1.     | Auctomatic payment deferrals: Under the terms of the acquisition agreement to purchase Entity Inc. (also referred to as Auctomatic), the Company was obligated to make $800,000 in cash payments in May 2009.  Refer to Note 7.  The Company has negotiated an agreement withthe majority of the Entity shareholders to convert more than half of this payable into a convertible interest bearing note with a nine month term. The payment due date is May 2010.                                                                                                                                                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 2.     | Payment of Obligations with Common Stock:  The Company intends to continue to ask certain vendors if they will agree to accept the Company’s common stock in lieu of cash as payment for outstanding obligations.  During the first nine months of 2009, the Company has succeeded in reaching four such agreements as payment ofapproximately $396,000.                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.     | Global Cricket Venture: In August 2009, the Company reached an agreement with an unrelated third party (“CricketCo”), whereby CricketCo agreed to assume and be liable for all past and future obligations and liabilities of GCV arising from the original MOU, as it was amended by the Novation.  The Company has also agreed to sellthe domain name cricket.com to CricketCo, along with the website, content, copyrights, trademarks, etc., for consideration of four equal payments of $250,000.  The cricket.com domain name shall remain the property of the Company until all payments have been made.  Refer to Note 19. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.     | Reduction in employees and 100% deferral of CEO salary: Since December 31, 2008, the Company has reduced the number of its employees by 50%.  This included termination of the Company’s former President. All severance payments will be paid by June 2010.                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | In addition, members of senior management agreed to forgo 2008 bonuses, staff bonuses were not granted for 2008, and effective January 30th 2009, the Company’s CEO has agreed to defer 100% of his salary and bonus for an indefinite period of time and to convert such deferred salary into shares of the Company’s commonstock at the end of 2009.                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 5.     | Management Focus: Management has decided to focus on the business that is currently producing divisional profits: Perfume.com. This business continues to have the potential to grow dramatically and to produce profits in the short term with minimal investment.                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 6.     | Supply Chain Management: In spring 2010, the Company plans to begin a process of transitioning from the legacy supply chain process which involved using multiple third party drop shippers where gross margins were 19-21% to a Third Party Logistics (“3PL”) process whereby the Company purchases the inventory and has a3PL provider store, pick and pack the perfume that has been ordered by Perfume.com customers. This change in supply chain management will require a minimal investment in inventory but should result in a much healthier margin for those SKU’s shipped directly.                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 7.     | Domain Name sales: Management entered into arrangements to sell or lease eight of the Company’s non-core domain name assets, including Cricket.com, as a non-dilutive way to raise working capital.  These transactions have raised nearly $4 million since the fourth quarter of 2008.  See Note 19.                                                                                                                                                                                                                                                                                                                                              |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| (i)   | Expense accruals |
|-----------------|------------------|

| (ii)   | Gain on sale of domain name |
|------------------|-----------------------------|

| (iii)   | Miscellaneous Income |
|-------------------|----------------------|

| (i)   | Valuation of shares issued as purchase consideration |
|-----------------|------------------------------------------------------|

| (ii)   | Shares issued to Auctomatic founders |
|------------------|--------------------------------------|

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| December 31, 2008                                                   |   | Reference |   |   | As previously reported |      |        | Restatement adjustment |   |       | As restated |   |
|---------------------------------------------------------------------|--------|-----------|--------|--------|------------------------|-----------|-------------|------------------------|--------|------------|-------------|--------|
| ASSETS                                                              |   |      |   |   |                   |      |        |                   |   |       |        |   |
| Current                                                             |   |      |   |   |                   |      |        |                   |   |       |        |   |
| Cash and cash equivalents                                           |   |      |   |   | $                      | 1,832,520 |        |                   | $      | -          |        |   | $ | 1,832,520 |   |
| Accounts receivable (net of allowance for doubtful accounts of nil) |   |      |   | 93,582 |                   |      |        | -                      |   |       |        | 93,582 |   |
| Prepaid expenses and deposits                                       |   |      |   |   |                   | 109,543   |        |                   |   | -          |        |   |   | 109,543 |   |
| Inventory                                                           |   |      |   |   |                   | 74,082    |        |                   |   | -          |        |   |   | 74,082 |   |
| Current portion of receivable from sales-type lease                 |   |      |   |   |                   | 23,423    |        |                   |   | -          |        |   |   | 23,423 |   |
| Total current assets                                                |   |      |   |   |                   | 2,133,150 |        |                   |   | -          |        |   |   | 2,133,150 |   |
|                                                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |
| Long-term portion of receivable from sales-type lease               |   |      |   |   |                   | 23,423    |        |                   |   | -          |        |   |   | 23,423 |   |
| Deferred acquisition costs                                          |   |      |   |   |                   | -         |        |                   |   | -          |        |   |   | - |   |
| Property & equipment                                            |   |      |   |   |                   | 1,042,851 |        |                   |   | -          |        |   |   | 1,042,851 |   |
| Website development costs                                           |   | E(ii)     |   |   |                   | 392,799   |        |                   |   | (37,408    | )           |   |   | 355,391 |   |
| Intangible assets                                                   |   |      |   |   |                   | 1,587,463 |        |                   |   | -          |        |   |   | 1,587,463 |   |
| Goodwill                                                            |   | B, G(i)   |   |   |                   | 2,428,602 |        |                   |   | 177,438    |        |   |   | 2,606,040 |   |
| Total Assets                                                        |   |      |   |   |                   | $         | 7,608,288   |                   |   | $          | 140,030     |   |   | $ | 7,748,318 |   |
|                                                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Current                                                             |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Accounts payable and accrued liabilities                            |   | E(i), H   |   |   | $                      | 4,131,264 |        |                   | $      | (1,083,271 | )           |   | $ | 3,047,993 |   |
| Amounts payable to the BCCI and IPL                                 |   | H         |   |   |                   | -         |        |                   |   | 1,000,000  |        |   |   | 1,000,000 |   |
| Bonuses payable                                                     |   | C(ii)     |   |   |                   | 235,650   |        |                   |   | 119,045    |        |   |   | 354,695 |   |
| Due to shareholders of Auctomatic                                   |   |      |   |   |                   |      | 789,799     |                   |   |       | -           |   |   |   | 789,799 |   |
| Deferred revenue                                                    |   |      |   |   |                   |      | 120,456     |                   |   |       | -           |   |   |   | 120,456 |   |
| Current portion of deferred lease inducements                       |   |      |   |   |                   |      | 20,138      |                   |   |       | -           |   |   |   | 20,138 |   |
| Total current liabilities                                           |   |      |   |   |                   |      | 5,297,307   |                   |   |       | 35,774      |   |   |   | 5,333,081 |   |
|                                                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Non-controlling interest                                            |   |      |   |   |                   |      | -           |                   |   |       | -           |   |   |   | - |   |
| Deferred income tax                                                 |   | A         |   |   |                   | -         |        |                   |   | 206,370    |        |   |   | 206,370 |   |
| Warrants                                                            |   | F         |   |   |                   | -         |        |                   |   | 157,895    |        |   |   | 157,895 |   |
| Deferred lease inducements                                          |   |      |   |   |                   |      | 55,380      |                   |   |       | -           |   |   |   | 55,380 |   |
| Total Liabilities                                                   |   |      |   |   |                   |      | 5,352,687   |                   |   |       | 400,039     |   |   |   | 5,752,726 |   |
|                                                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                |   |      |   |   |                   |      |        |                   |   |       |        |   |   |   |   |   |
| Common Stock                                                        |   |      |   |   |                   |      | 14,855      |                   |   |       | -           |   |   |   | 14,855 |   |
| Additional paid-in capital                                          |   |      |   |   |                   |      | 14,772,880  |                   |   |       | (14,948     | )      |   |   | 14,757,932 |   |
| Accumulated deficit                                                 |   |      |   |   |                   |      | (12,532,134 | )                      |   |       | (245,061    | )      |   |   | (12,777,195 | ) |
| Total Stockholders' Equity                                          |   |      |   |   |                   |      | 2,255,601   |                   |   |       | (260,009    | )      |   |   | 1,995,592 |   |
| Total Liabilities and Stockholders' Equity                          |   |      |   |   |                   | $         | 7,608,288   |                   |   | $          | 140,030     |   |   | $ | 7,748,318 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| For the year ended December 31, 2008                 |   | Reference             |   |        | As previously reported |       |        | Restatement adjustment |   |       | As restated |       |
|------------------------------------------------------|--------|-----------------------|--------|-------------|------------------------|------------|-------------|------------------------|--------|------------|-------------|------------|
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |
| SALES                                                |   |                  |   |        | $                      | 9,364,833  |        |                   | $      | -          |        |       | $ | 9,364,833 |   |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| COSTS OF SALES                                       |   |                  |   |        |                   | 7,683,812  |        |                   |   | -          |        |       |   | 7,683,812 |   |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| GROSS PROFIT                                         |   |                  |   |        |                   | 1,681,021  |        |                   |   | -          |        |       |   | 1,681,021 |   |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| EXPENSES                                             |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |
| Amortization and depreciation                        |   |                  |   |        |                   | 253,141    |        |                   |   | -          |        |       |   | 253,141 |   |
| Amortization of website development costs            |   |                  |   |        |                   | 58,640     |        |                   |   | -          |        |       |   | 58,640 |   |
| Corporate general and administrative                 |   | E(i)                  |   |        |                   | 2,537,422  |        |                   |   | (19,521    | )           |       |   | 2,517,901 |   |
| ECommerce general and administrative                 |   |                  |   |        |                   |       | 567,980     |                   |   |       | -           |       |   |   | 567,980 |   |
| Management fees and employee salaries                |   | C(i), C(ii), D, G(ii) |   |        | 4,746,255              |       |        |                   | 78,794 |       |        |       | 4,825,049 |   |
| Corporate marketing                                  |   |                  |   |        |                   |       | 42,399      |                   |   |       | -           |       |   |   | 42,399 |   |
| ECommerce marketing                                  |   |                  |   |        |                   |       | 766,393     |                   |   |       | -           |       |   |   | 766,393 |   |
| Other expenses                                       |   |                  |   |        |                   |       | 708,804     |                   |   |       | -           |       |   |   | 708,804 |   |
| Total Expenses                                       |   |                  |   |        |                   |       | 9,681,034   |                   |   |       | 59,273      |       |   |   | 9,740,307 |   |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| OTHER INCOME (EXPENSES)                              |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| Global Cricket Venture expenses                      |   | H                     |   |        |                   | (2,476,255 | )           |                   |   | 1,000,000  |        |       |   | (1,476,255 | ) |
| Global Cricket Venture payments                      |   | H                     |   |        |                   | -          |        |                   |   | (1,000,000 | )           |       |   | (1,000,000 | ) |
| Gain from sales and sales-type lease of domain names |   | E(ii)                 |   |        |                   | 498,829    |        |                   |   | (37,408    | )           |       |   | 461,421 |   |
| Accretion interest expense                           |   |                  |   |        |                   |       | (96,700     | )                      |   |       | -           |       |   |   | (96,700 | ) |
| Interest and investment income                       |   |                  |   |        |                   |       | 67,683      |                   |   |       | -           |       |   |   | 67,683 |   |
| Non-controlling interest                             |   | B                     |   |        |                   | -          |        |                   |   | 75,478     |        |       |   | 75,478 |   |
| Total Other Income (Expenses)                        |   |                  |   |        |                   |       | (2,006,443  | )                      |   |       | 38,070      |       |   |   | (1,968,373 | ) |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| NET LOSS BEFORE TAXES                                |   |                  |   |        |                   |       | (10,006,456 | )                      |   |       | (21,203     | )          |   |   | (10,027,659 | ) |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| TAX EXPENSE                                          |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| Deferred tax recovery                                |   | A                     |   |        |                   | -          |        |                   |   | (40,389    | )           |       |   | (40,389 | ) |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD       |   |                  | $      | (10,006,456 | )                      |       | $           | 19,186                 |   |       | $           | (9,987,270 | ) |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                     |   |                  |   |        |                   | $          | (0.46       | )                      |   |       | 0.00        |       |   | $ | (0.46 | ) |
|                                                 |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON                    |   |                  |   |        |                   |       |        |                   |   |       |        |       |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED               |   |                  |   |        |                   |       | 21,937,179  |                   |   |       | -           |       |   |   | 21,937,179 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| For the year Ended December 31, 2008                          |   | Reference   |   |    | As previously reported |        |       | Restatement adjustment |   |       | As restated |    |
|---------------------------------------------------------------|--------|-------------|--------|---------|------------------------|-------------|------------|------------------------|--------|------------|-------------|---------|
| OPERATING ACTIVITIES                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |
| Net loss for the period1                                      |   |        |   |    | $                      | (10,006,456 | )          |                   | $      | 19,186     |        |    | $ | (9,987,270 | ) |
| Non-cash items included in net loss:                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |
| Deferred tax recovery                                         |   | A           |   |    |                   | -           |       |                   |   | (40,389    | )           |    |   | (40,389 | ) |
| Non-controlling interest                                      |   | B           |   |    |                   | -           |       |                   |   | (75,478    | )           |    |   | (75,478 | ) |
| Gain from sales and sales-type lease of domain names          |   | E(ii)       |   |    |                   | (498,829    | )          |                   |   | 37,408     |        |    |   | (461,421 | ) |
| Accretion interest expense                                    |   |        |   |    |                   |        | 96,700     |                   |   |       | -           |    |   |   | 96,700 |   |
| Stock-based compensation                                      |   | D, G(ii)    |   |    |                   | 2,111,354   |       |                   |   | 51,172     |        |    |   | 2,162,526 |   |
| Warrants issued                                               |   |        |   |    |                   |        | 45,500     |                   |   |       | -           |    |   |   | 45,500 |   |
| Issuance of common stock for services                         |   |        |   |    |                   |        | 303,859    |                   |   |       | -           |    |   |   | 303,859 |   |
| Extinguishment of debt by issuance of common stock            |   |        |   |    |                   |        | 16,500     |                   |   |       | -           |    |   |   | 16,500 |   |
| Amortization and depreciation                                 |   |        |   |    |                   |        | 291,643    |                   |   |       | -           |    |   |   | 291,643 |   |
| Change in operating assets and liabilities:                   |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| Accounts receivable                                           |   |        |   |    |                   |        | 45,348     |                   |   |       | -           |    |   |   | 45,348 |   |
| Prepaid expenses and deposits                                 |   |        |   |    |                   |        | 136,631    |                   |   |       | -           |    |   |   | 136,631 |   |
| Inventory                                                     |   |        |   |    |                   |        | (74,082    | )                      |   |       | -           |    |   |   | (74,082 | ) |
| Accounts payable and accrued liabilities                      |   | E(i), H     |   |    |                   | 2,615,835   |       |                   |   | (1,019,521 | )           |    |   | 1,596,314 |   |
| Amounts payable to the BCCI and IPL                           |   | H           |   |    |                   | -           |       |                   |   | 1,000,000  |        |    |   | 1,000,000 |   |
| Bonuses payable                                               |   | C(i), C(ii) |   |    |                   | (5,640      | )          |                   |   | 27,622     |        |    |   | 21,982 |   |
| Deferred revenue                                              |   |        |   |    |                   |        | 67,377     |                   |   |       | -           |    |   |   | 67,377 |   |
| Cash flows used in operating activities                       |   |        |   |    |                   |        | (4,854,260 | )                      |   |       | -           |    |   |   | (4,854,260 | ) |
|                                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| INVESTING ACTIVITIES                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| Proceeds from disposal of available for sale securities       |   |        |   |    |                   |        | -          |                   |   |       | -           |    |   |   | - |   |
| Net proceeds from sale of domain name                         |   |        |   |    |                   |        | 369,041    |                   |   |       | -           |    |   |   | 369,041 |   |
| Net proceeds from sales-type lease of domain name             |   |        |   |    |                   |        | 140,540    |                   |   |       | -           |    |   |   | 140,540 |   |
| Cash consideration for Auctomatic                             |   |        |   |    |                   |        | (1,530,047 | )                      |   |       | -           |    |   |   | (1,530,047 | ) |
| Purchases of property & equipment                         |   |        |   |    |                   |        | (187,532   | )                      |   |       | -           |    |   |   | (187,532 | ) |
| Website development costs                                     |   |        |   |    |                   |        | (451,439   | )                      |   |       | -           |    |   |   | (451,439 | ) |
| Cash flows used in (from) investing activities                |   |        |   |    |                   |        | (1,659,437 | )                      |   |       | -           |    |   |   | (1,659,437 | ) |
|                                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| FINANCING ACTIVITIES                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| Proceeds from sale of common stock (net of share issue costs) |   |        |   | 970,972 |                   |        |       | -                      |   |       |        | 970,972 |   |
| Cash flows from financing activities                          |   |        |   |    |                   |        | 970,972    |                   |   |       | -           |    |   |   | 970,972 |   |
|                                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents          |   |        |   |    |                   |        | (5,542,725 | )                      |   |       | -           |    |   |   | (5,542,725 | ) |
|                                                          |   |        |   |    |                   |        |       |                   |   |       |        |    |   |   |   |   |
| Cash and cash equivalents, beginning of year                  |   |        |   |    |                   |        | 7,375,245  |                   |   |       | -           |    |   |   | 7,375,245 |   |
| Cash and cash equivalents, end of year                        |   |        |   |    |                   | $           | 1,832,520  |                   |   | $          | -           |    |   | $ | 1,832,520 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| As at December 31, 2007                                             |   | Reference |   |    | As previously reported |      |       | Restatement adjustment |   |   | As restated |    |
|---------------------------------------------------------------------|--------|-----------|--------|---------|------------------------|-----------|------------|------------------------|--------|--------|-------------|---------|
| ASSETS                                                              |   |      |   |    |                   |      |       |                   |   |   |        |    |
| Current                                                             |   |      |   |    |                   |      |       |                   |   |   |        |    |
| Cash and cash equivalents                                           |   |      |   |    | $                      | 7,375,245 |       |                   | $      | -      |        |    | $ | 7,375,245 |   |
| Accounts receivable (net of allowance for doubtful accounts of nil) |   |      |   | 138,930 |                   |      |       | -                      |   |   |        | 138,930 |   |
| Prepaid expenses and deposits                                       |   |      |   |    |                   | 246,174   |       |                   |   | -      |        |    |   | 246,174 |   |
| Total current assets                                                |   |      |   |    |                   | 7,760,349 |       |                   |   | -      |        |    |   | 7,760,349 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |
| Property & equipment                                            |   |      |   |    |                   | 175,797   |       |                   |   | -      |        |    |   | 175,797 |   |
| Intangible assets                                                   |   |      |   |    |                   | 1,645,061 |       |                   |   | -      |        |    |   | 1,645,061 |   |
| Total Assets                                                        |   |      |   |    | $                      | 9,581,207 |       |                   | $      | -      |        |    | $ | 9,581,207 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |
| Current                                                             |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |
| Accounts payable and accrued liabilities                            |   |      | E(i)   |    |                   | $         | 1,515,429  |                   |   | $      | (63,750     | )       |   | $ | 1,451,679 |   |
| Bonuses payable                                                     |   |      | C(i)   |    |                   |      | 241,290    |                   |   |   | 91,423      |    |   |   | 332,713 |   |
| Deferred revenue                                                    |   |      |   |    |                   |      | 53,079     |                   |   |   | -           |    |   |   | 53,079 |   |
| Current portion of deferred lease inducements                       |   |      |   |    |                   |      | 20,138     |                   |   |   | -           |    |   |   | 20,138 |   |
| Total current liabilities                                           |   |      |   |    |                   |      | 1,829,936  |                   |   |   | 27,673      |    |   |   | 2,113,154 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   | - |   |
| Non-controlling interest                                            |   |      | B      |    |                   |      | -          |                   |   |   | 8,786       |    |   |   | 8,786 |   |
| Deferred income tax                                                 |   |      | A      |    |                   |      |       |                   |   |   | 246,759     |    |   |   | 246,759 |   |
| Deferred lease inducements                                          |   |      |   |    |                   |      | 75,518     |                   |   |   | -           |    |   |   | 75,518 |   |
| Total Liabilities                                                   |   |      |   |    |                   |      | 1,905,454  |                   |   |   | 283,218     |    |   |   | 2,188,672 |   |
|                                                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                |   |      |   |    |                   |      |       |                   |   |   |        |    |   |   |   |   |
| Common Stock                                                        |   |      |   |    |                   |      | 12,456     |                   |   |   | -           |    |   |   | 12,456 |   |
| Additional paid-in capital                                          |   |      |   |    |                   |      | 10,188,975 |                   |   |   | (18,971     | )       |   |   | 10,170,004 |   |
| Accumulated deficit                                                 |   |      |   |    |                   |      | (2,525,678 | )                      |   |   | (264,247    | )       |   |   | (2,789,925 | ) |
| Total Stockholders' Equity                                          |   |      |   |    |                   |      | 7,675,753  |                   |   |   | (283,218    | )       |   |   | 7,392,535 |   |
| Total Liabilities and Stockholders' Equity                          |   |      |   |    |                   | $         | 9,581,207  |                   |   | $      | -           |    |   | $ | 9,581,207 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| Year Ended December 31, 2007                                |   | Reference |   |       | As previously reported |      |      | Restatement adjustment |   |    | As restated |       |
|-------------------------------------------------------------|--------|-----------|--------|------------|------------------------|-----------|-----------|------------------------|--------|---------|-------------|------------|
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |
| SALES                                                       |   |      |   |       |                   |      |      |                   |   |    |        |       |
| Health and beauty eCommerce                                 |   |      |   |       | $                      | 8,092,707 |      |                   | $      | -       |        |       | $ | 8,092,707 |   |
| Other eCommerce                                             |   |      |   |       |                   | 485,199   |      |                   |   | -       |        |       |   | 485,199 |   |
| Domain name advertising                                     |   |      |   |       |                   | 449,613   |      |                   |   | -       |        |       |   | 449,613 |   |
| Miscellaneous income                                        |   | E(iii)    |   |       |                   | 35,810    |      |                   |   | (35,810 | )           |       |   | - |   |
| Total Sales                                                 |   |      |   |       |                   | 9,063,329 |      |                   |   | (35,810 | )           |       |   | 9,027,519 |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |
| COSTS OF SALES                                              |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |
| Health and Beauty eCommerce                                 |   |      |   |       |                   | 6,512,292 |      |                   |   | -       |        |       |   | 6,512,292 |   |
| Other eCommerce                                             |   |      |   |       |                   | 509,181   |      |                   |   | -       |        |       |   | 509,181 |   |
| Total Costs of Sales                                        |   |      |   |       |                   | 7,021,473 |      |                   |   | -       |        |       |   | 7,021,473 |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |
| GROSS PROFIT                                                |   |      |   |       |                   | 2,041,856 |      |                   |   | (35,810 | )           |       |   | 2,006,046 |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |
| EXPENSES                                                    |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |
| Amortization and depreciation                               |   |      |   |       |                   | 29,169    |      |                   |   | -       |        |       |   | 29,169 |   |
| Corporate general and administrative                        |   | E(i)      |   |       |                   | 686,921   |      |                   |   | (63,750 | )           |       |   | 623,171 |   |
| ECommerce general and administrative                        |   |      |   |       |                   |      | 304,212   |                   |   |    | -           |       |   |   | 304,212 |   |
| Management fees and employee salaries                       |   | C(i), D   |   |       |                   | 1,981,051 |      |                   |   | 72,452  |        |       |   | 2,053,503 |   |
| ECommerce marketing                                         |   |      |   |       |                   |      | 817,101   |                   |   |    | -           |       |   |   | 817,101 |   |
| Other expenses                                              |   |      |   |       |                   |      | 637,730   |                   |   |    | -           |       |   |   | 637,730 |   |
| Total Expenses                                              |   |      |   |       |                   |      | 4,456,184 |                   |   |    | 8,702       |       |   |   | 4,464,886 |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| OTHER INCOME (EXPENSES)                                     |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| Interest and investment income                              |   |      |   |       |                   |      | 119,574   |                   |   |    | -           |       |   |   | 119,574 |   |
| Gain on disposal of subsidiary of Frequenttraveler.com Inc. |   |      |   | 276,805    |                   |      |      | -                      |   |    |        | 276,805    |   |
| Non-controlling interest                                    |   | B         |   |       |                   | -         |      |                   |   | 91,890  |        |       |   | 91,890 |   |
| Total Other Income (Expenses)                               |   |      |   |       |                   |      | 396,379   |                   |   |    | 91,890      |       |   |   | 488,269 |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS BEFORE TAXES                |   |      |   | (2,017,949 | )                      |      |      | 47,378                 |   |    |        | (1,970,571 | ) |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| TAX EXPENSE                                                 |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| Deferred tax recovery                                       |   | A         |   |       |                   | -         |      |                   |   | (8,225  | )           |       |   | (8,225 | ) |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD              |   |      | $      | (2,017,949 | )                      |      | $         | 55,603                 |   |    | $           | (1,962,346 | ) |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                            |   |      |   |       |                   | $         | (0.11     | )                      |   | $       | 0.00        |       |   | $ | (0.10 | ) |
|                                                        |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON                           |   |      |   |       |                   |      |      |                   |   |    |        |       |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED                      |   |      |   | 19,070,236 |                   |      |      | -                      |   |    |        | 19,070,236 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| For the year ended December 31, 2007                          |   | Reference     |   |   | As previously reported |       |      | Restatement adjustment |   |   | As restated |   |
|---------------------------------------------------------------|--------|---------------|--------|--------|------------------------|------------|-----------|------------------------|--------|--------|-------------|--------|
| OPERATING ACTIVITIES                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |
| Net loss for the period                                       |   |          |   |   | $                      | (2,017,949 | )         |                   | $      | 55,603 |        |   | $ | (1,962,346 | ) |
| Non-cash items included in net loss:                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |
| Deferred tax recovery                                         |   |          | A      |   |                   |       | -         |                   |   |   | (8,225      | )      |   |   | (8,225 | ) |
| Non-controlling interest                                      |   |          | B      |   |                   |       | -         |                   |   |   | (91,890     | )      |   |   | (91,890 | ) |
| Stock-based compensation                                      |   |          | D      |   |                   |       | 428,028   |                   |   |   | (18,971     | )      |   |   | 409,057 |   |
| Amortization and depreciation                                 |   |          |   |   |                   |       | 24,135    |                   |   |   | -           |   |   |   | 24,135 |   |
| Issuance of common stock for bonuses                          |   |          |   |   |                   |       | 59,078    |                   |   |   | -           |   |   |   | 59,078 |   |
| Change in operating assets and liabilities:                   |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| Accounts receivable                                           |   |   E(iii) |   |   |                   | (117,724   | )         |                   |   | 35,810 |        |   |   | (81,914 | ) |
| Prepaid expenses and deposits                                 |   |          |   |   |                   |       | (246,174  | )                      |   |   | -           |   |   |   | (246,174 | ) |
| Accounts payable and accrued liabilities                      |   |          | E(i)   |   |                   |       | 523,574   |                   |   |   | (63,750     | )      |   |   | 459,824 |   |
| Bonuses payable                                               |   |          | C(i)   |   |                   |       | 241,290   |                   |   |   | 91,423      |   |   |   | 332,713 |   |
| Deferred revenue                                              |   |          |   |   |                   |       | 53,079    |                   |   |   | -           |   |   |   | 53,079 |   |
| Deferred lease inducements                                    |   |          |   |   |                   |       | 100,690   |                   |   |   | -           |   |   |   | 100,690 |   |
| Cash flows used in operating activities                       |   |          |   |   |                   |       | (951,973  | )                      |   |   | -           |   |   |   | (951,973 | ) |
|                                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| INVESTING ACTIVITIES                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| Proceeds from disposal of available for sale securities       |   |          |   |   |                   |       | 261,912   |                   |   |   | -           |   |   |   | 261,912 |   |
| Purchases of property & equipment                         |   |          |   |   |                   |       | (159,934  | )                      |   |   | -           |   |   |   | (159,934 | ) |
| Cash flows used in (from) investing activities                |   |          |   |   |                   |       | 101,978   |                   |   |   | -           |   |   |   | 101,978 |   |
|                                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| FINANCING ACTIVITIES                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| Proceeds from restricted cash                                 |   |          |   |   |                   |       | 20,000    |                   |   |   | -           |   |   |   | 20,000 |   |
| Proceeds from sale of common stock (net of share issue costs) |   |          |   |   |                   |       | 6,099,900 |                   |   |   | -           |   |   |   | 6,099,900 |   |
| Cash flows from financing activities                          |   |          |   |   |                   |       | 6,119,900 |                   |   |   | -           |   |   |   | 6,119,900 |   |
|                                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents          |   |          |   |   |                   |       | 5,269,905 |                   |   |   | -           |   |   |   | 5,269,905 |   |
|                                                          |   |          |   |   |                   |       |      |                   |   |   |        |   |   |   |   |   |
| Cash and cash equivalents, beginning of year                  |   |          |   |   |                   |       | 2,105,340 |                   |   |   | -           |   |   |   | 2,105,340 |   |
| Cash and cash equivalents, end of year                        |   |          |   |   |                   | $          | 7,375,245 |                   |   | $      | -           |   |   | $ | 7,375,245 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|                                                                                       |   |                                           |   |   | As previously reported |       |       |                       |   |   |                |   |
|--------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|------------------------|------------|------------|----------------------------|--------|--------|---------------------|--------|
|                                                                                       |   |                                           |   |   | Common stock           |       |       | Additional Paid-in Capital |   |   | Accumulated Deficit |   |   | Total |   |   | Restatement Adjustment |   |   | As Restated Total |   |
|                                                                                       |   | Reference                                      |   |   | Number of Shares       |       |       | Amount                     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                                                 |   |                                           |   |   |                   | 17,836,339 |       |                       | $      | 8,846  |                |   | $ | 3,605,579 |   |   | $ | (507,729 | ) |   | $ | 3,106,696 |   |   | $ | - |   |   | $ | 3,106,696 |   |
| Adjustment to opening accumulated deficit                                                  |   | A, B, E(iii)                                   |   |   |                   | -          |       |                       |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (319,850 | ) |   |   | (319,850 | ) |
| Balance, December 31, 2006                                                                 |   |                                           |   |   |                   | 17,836,339 |       |                       |   | 8,846  |                |   |   | 3,605,579 |   |   |   | (507,729 | ) |   |   | 3,106,696 |   |   |   | (319,850 | ) |   |   | 2,786,846 |   |
| Issuance of 60,284 common shares at $0.98 per share in lieu of accrued bonuses to officers |   |                                           |   |   | 60,284                 |       |       |                       | 60     |   |                |   | 59,018 |   |   |   |   |   |   |   | 59,078 |   |   |   | - |   |   |   | 59,078 |   |
| Issuance of 1,000,000 common shares at $1.00 per share to CEO                              |   |                                           |   |   |                   | 1,000,000  |       |                       |   | 1,000  |                |   |   | 999,000 |   |   |   |   |   |   |   | 1,000,000 |   |   |   | - |   |   |   | 1,000,000 |   |
| Private Placement of 2,550,000 common shares at $2.00 per share                            |   |                                           |   |   |                   | 2,550,000  |       |                       |   | 2,550  |                |   |   | 5,097,450 |   |   |   |   |   |   |   | 5,100,000 |   |   |   | - |   |   |   | 5,100,000 |   |
| Share issue costs                                                                          |   |                                           |   |   |                   | -          |       |                       |   |   |                |   |   | (100 | ) |   |   |   |   |   |   | (100 | ) |   |   | - |   |   |   | (100 | ) |
| Stock-based compensation                                                                   |   | D                                              |   |   |                   | -          |       |                       |   |   |                |   |   | 428,028 |   |   |   |   |   |   |   | 428,028 |   |   |   | (18,971 | ) |   |   | 409,057 |   |
| Net loss and comprehensive loss                                                            |   | A, B, C(i), D, E(i), E(iii)                    |   |   |                   | -          |       |                       |   |   |                |   |   |   |   |   |   | (2,017,949 | ) |   |   | (2,017,949 | ) |   |   | 55,603 |   |   |   | (1,962,346 | ) |
| Balance, December 31, 2007                                                                 |   |                                           |   |   |                   |       | 21,446,623 |                       |   |   | 12,456              |   |   |   | 10,188,975 |   |   |   | (2,525,678 | ) |   |   | 7,675,753 |   |   |   | (283,218 | ) |   |   | 7,392,535 |   |
| Stock-based compensation                                                                   |   | D, G(ii)                                       |   |   |                   | -          |       |                       |   | -      |                |   |   | 2,111,354 |   |   |   |   |   |   |   | 2,111,354 |   |   |   | 51,172 |   |   |   | 2,162,526 |   |
| Issuance of 586,403 common shares per the merger agreement with Automatic                  |   | G(i)                                           |   |   |                   | 586,403    |       |                       |   | 586    |                |   |   | 1,137,533 |   |   |   |   |   |   |   | 1,138,119 |   |   |   | 110,746 |   |   |   | 1,248,865 |   |
| Issuance of 33,000 common shares to investor relations firm                                |   |                                           |   |   |                   |       | 33,000     |                       |   |   | 33                  |   |   |   | 85,649 |   |   |   |   |   |   |   | 85,682 |   |   |   | - |   |   |   | 85,682 |   |
| Issuance of 120,000 common shares to investor relations firm                               |   |                                           |   |   |                   |       | 120,000    |                       |   |   | 120                 |   |   |   | 218,057 |   |   |   |   |   |   |   | 218,177 |   |   |   | - |   |   |   | 218,177 |   |
| Issuance of 50,000 warrants to investor relations firm                                     |   |                                           |   |   |                   |       | -          |                       |   |   | -                   |   |   |   | 45,500 |   |   |   |   |   |   |   | 45,500 |   |   |   | - |   |   |   | 45,500 |   |
| Cancellation of 300,000 common shares not distributed                                      |   |                                           |   |   |                   |       | (300,000   | )                          |   |   | -                   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Private Placement of 1,627,344 units at $0.65 per share                                    |   | F                                              |   |   |                   | 1,627,344  |       |                       |   | 1,627  |                |   |   | 1,056,148 |   |   |   |   |   |   |   | 1,057,775 |   |   |   | (157,895 | ) |   |   | 899,880 |   |
| Share issue costs                                                                          |   |                                           |   |   |                   |       | -          |                       |   |   | -                   |   |   |   | (86,803 | ) |   |   |   |   |   |   | (86,803 | ) |   |   | - |   |   |   | (86,803 | ) |
| Extinguishment of accounts payable                                                         |   |                                           |   |   |                   |       | 33,000     |                       |   |   | 33                  |   |   |   | 16,467 |   |   |   |   |   |   |   | 16,500 |   |   |   | - |   |   |   | 16,500 |   |
| Net loss and comprehensive loss                                                            |   |  A, B, C(i), C(ii), D, E(i), E(ii), G(ii) |   |   |                   |       |       |                       |   |   |                |   |   |   |   |   |   | (10,006,456 | )  |   |   | (10,006,456 | )  |   |   | 19,186 |   |   |   | (9,987,270 | )  |
| Balance, December 31, 2008                                                                 |   |                                           |   |   |                   |       | 23,546,370 |                       |   | $      | 14,855              |   |   | $ | 14,772,880 |   |   | $ | (12,532,134 | ) |   | $ | 2,255,601 |   |   | $ | (260,009 | ) |   | $ | 1,995,592 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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|   | Office Furniture and Equipment | 20%                   |   |
|--------|--------------------------------|-----------------------|--------|
|   | Computer Equipment             | 30%                   |   |
|   | Computer Software              | 100%                  |   |
|   | Auction Software               | 3 years straight-line |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

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| Assets                                   |   |   |          |
|------------------------------------------|--------|--------|---------------|
| Cash                                     |   | $      | 46,974        |   |
| Accounts Receivable                      |   |   |  7,570   |   |
|                                     |   |   |          |   |
| Liabilities                              |   |   |          |   |
| Accounts payable and accrued liabilities |   |   | (176,312      | ) |
| Deferred Revenue                         |   |   | (111,857      | ) |
| Loan                                     |   |   |  (43,180 | ) |
|                                     |   |   |          |   |
| Net Liabilities                          |   | $      | 276,805       |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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| Purchase Price Paid                                                                    |   |   |      |
|----------------------------------------------------------------------------------------|--------|--------|-----------|
|                                                                                   |   |   |      |
| Cash (net of assumed liabilities)                                                      |   | $      | 1,046,695 |   |
| Transaction Costs                                                                      |   |   | 387,358   |   |
|                                                                                   |   |   |      |   |
| Cash consideration for Auctomatic                                                      |   |   | 1,434,053 |   |
|                                                                                   |   |   |      |   |
| Present value of shares of common stock paid and payable to shareholders of Auctomatic |   |   | 1,248,865 |   |
| Present value of amounts payable to shareholders of Auctomatic                         |   |   | 640,000   |   |
|                                                                                   |   |   |      |   |
| Total                                                                                  |   | $      | 3,322,918 |   |

| Net Assets Acquired                      |   |   |      |
|------------------------------------------|--------|--------|-----------|
|                                     |   |   |      |
| Assets                                   |   |   |      |
| Cash                                     |   | $      | 3,066     |   |
| Share subscriptions receivable           |   |   | 780       |   |
| Computer hardware                        |   |   | 7,663     |   |
| Auction software                         |   |   | 925,000   |   |
| Goodwill                                 |   |   | 2,539,348 |   |
|                                     |   |   |      |   |
| Less Liabilities                         |   |   |      |   |
| Accounts payable and accrued liabilities |   |   | (85,622   | ) |
| Loan payable                             |   |   | (67,317   | ) |
|                                     |   |   |      |   |
| Net Assets Acquired                      |   | $      | 3,322,918 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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| 2008                           |   | Cost   |      |   | Accumulated Amortization |   |    | Net Book Value |   |
|--------------------------------|--------|--------|-----------|--------|--------------------------|--------|---------|----------------|--------|
| Office Furniture and Equipment |   | $      | 165,868   |   |                     | $      | 30,778  |           |   | $ | 135,090 |   |
| Computer Equipment             |   |   | 100,789   |   |                     |   | 51,554  |           |   |   | 49,235 |   |
| Computer Software              |   |   | 27,276    |   |                     |   | 13,638  |           |   |   | 13,638 |   |
| Auction Software               |   |   | 925,000   |   |                     |   | 179,861 |           |   |   | 745,139 |   |
| Leasehold Improvements         |   |   | 142,498   |   |                     |   | 42,749  |           |   |   | 99,749 |   |
|                           |   | $      | 1,361,431 |   |                     | $      | 318,580 |           |   | $ | 1,042,851 |   |

| 2007                           |   | Cost   |    |   | Accumulated Amortization |   |   | Net Book Value |   |
|--------------------------------|--------|--------|---------|--------|--------------------------|--------|--------|----------------|--------|
| Office Furniture and Equipment |   | $      | 28.644  |   |                     | $      | 14,159 |           |   | $ | 14,485 |   |
| Computer Equipment             |   |   | 70,095  |   |                     |   | 37,031 |           |   |   | 33,064 |   |
| Leasehold Improvements         |   |   | 142,498 |   |                     |   | 14,250 |           |   |   | 128,248 |   |
|                           |   | $      | 241,237 |   |                     | $      | 65,440 |           |   | $ | 175,797 |   |

----

|                      |   | 2008   |          |   | 2007   |   |
|---------------------------|--------|--------|---------------|--------|--------|--------|
| Website Development Costs |   | $      | 405,001       |   |   | $      | - |   |
| Less: Amortization        |   |   | ( 49,610 | )      |   |   | - |   |
|                      |   | $      | 355,391       |   |   | $      | - |   |

----

|                       |   | 2008   |    |   | 2007   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|
| Deferred Lease Inducements |   | $      | 75,518  |   |   | $      | 95,656 |   |
| Less: Current Portion      |   |   | (20,138 | )      |   |   | (20,138 | ) |
|                       |   | $      | 55,380  |   |   | $      | 75,518 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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|                    | 2008          | 2007          |
|-------------------------|---------------|---------------|
| Dividend yield          | 0%            | 0%            |
| Expected volatility     | 64.86%-75.68% | 118.02%       |
| Risk free interest rate | 1.62% - 3.07% | 3.97% - 4.05% |
| Expected lives          | 3.375 years   | 3.375 years   |

| (i)   | On September 11, 2007, the Company granted a total of 1,200,000 stock options at an exercise price of $2.50 per share.  1,000,000 options were granted to the Company’s CEO and 100,000 options were granted to each of two directors.  These options have a fair value of $1.50-$1.54 per option granted. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | On September 11, 2007, the Company granted 50,000 stock options at an exercise price of $2.50 per share to a consultant.  These options have a fair value of $0.06 per option granted at December 31, 2008. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | On October 1, 2007, the Company granted to its Chief Operating Officer (“COO”) 1,500,000 options at an exercise price of $2.04 per share.  These options have a fair value of $1.23 per option granted.  All of these options were forfeited subsequent to year end. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | On January 1, 2008, the Company granted to its Chief Corporate Development Officer (“CCDO”) 1,000,000 options at an exercise price of $2.06 per share.  These options have a fair value of $1.19 per option granted. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | On January 7, 2008, the Company granted to its Vice President, Finance (“VP Finance”) 150,000 options at an exercise price of $1.98 per share.  These options have a fair value of $1.14 per option granted. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | On March 14, 2008, the Company granted to a director 100,000 options at an exercise price of $2.49 per share.  These options have a fair value of $1.32 per option granted. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | On May 27, 2008, the Company granted to its Vice President, General Counsel (“VP GC”) 125,000 options at an exercise price of $3.10 per share.  These options have a fair value of $1.63 per option granted. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | Between January 1, 2008 and December 31, 2008, the Company granted to its full-time corporate directors a total of 425,000 options at a range of exercise prices between $2.06 and $3.30 per share.  These options have a fair value of between $1.19 and $1.58 per option granted.  25,000 of these options were forfeited during 2008, and anadditional 100,000 options were forfeited subsequent to year end. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   | Between January 1, 2008 and December 31, 2008, the Company granted to its full-time employees a total of 290,000 options at a range of exercise prices between $0.65 and $3.10 per share.  These options have a fair value of between $0.32 and $1.58 per option granted.  17,500 of these options have been forfeited during 2008, and an additional92,500 options were forfeited subsequent to year end. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x)   | Between January 1, 2008 and December 31, 2008, the Company granted to consultants a total of 70,000 options at exercise prices ranging from $2.06 to $2.49 per share.  All of these options were forfeited during 2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|  Options                          |   | Shares     |      |   | WeightedAverageExercise Price$ |   |   | FairValue$ |   |
|----------------------------------------|--------|------------|-----------|--------|--------------------------------|--------|--------|------------|--------|
| Options outstanding, January 1, 2007   |   |       | -         |   |                           |   | -      |       |   |   | - |   |
| Granted                                |   |       | 2,750,000 |   |                           |   | 2.25   |       |   |   | 0.06 – 1.54 |   |
| Exercised                              |   |       | -         |   |                           |   | -      |       |   |   | - |   |
| Cancelled or expired                   |   |       | -         |   |                           |   | -      |       |   |   | - |   |
| Options outstanding, December 31, 2007 |   |       | 2,750,000 |   |                           |   | 2.25   |       |   |   | 0.06 – 1.54 |   |
| Granted                                |   |       | 2,160,000 |   |                           |   | 2.34   |       |   |   | 0.32 – 1.63 |   |
| Exercised                              |   |       | -         |   |                           |   | -      |       |   |   | - |   |
| Cancelled or expired                   |   |       | 112,500   |   |                           |   | 2.29   |       |   |   | 1.19 |   |
| Options outstanding, December 31, 2008 |   |       | 4,797,500 |   |                           |   | 2.29   |       |   |   | 0.06 – 1.63 |   |
|                                   |   |       |      |   |                           |   |   |       |   |   |   |   |
| Options vested at December 31, 2008    |   |       | 2,750,000 |   |                           |   | 2.25   |       |   |   | 0.06 – 1.63 |   |
| Weighted average remaining life        |   | 3.90 Years |      |   |                           |   |   |       |   |   |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|                                    |   |        |      |   | Weighted         |   |    |
|-----------------------------------------|--------|-------------|-----------|--------|------------------|--------|---------|
|                                    |   | Outstanding |      |   | Average Exercise |   | Date of |
|                                    |   | Warrants    |      |   | Price            |   | Expiry  |
| Warrants outstanding, January 1, 2007   |   |        | -         |   |             | $      | -       |   |   |
| Granted June 11, 2007                   |   |        | 1,000,000 |   |             |   | 1.25    |   |   June 10, 2009 |
| Cancelled or expired                    |   |        | -         |   |             |   | -       |   |   |
| Warrants outstanding, December 31, 2007 |   |        | 1,000,000 |   |             |   | 1.25    |   |   |
| Granted May 1, 2008                     |   |        | 50,000    |   |             |   | 2.33    |   |   May 1, 2010 |
| Granted November 19, 2008               |   |        | 1,627,344 |   |             |   | 0.78    |   |   November 19, 2010 |
| Granted November 19, 2008               |   |        | 1,627,344 |   |             |   | 0.91    |   |   November 19, 2011 |
| Cancelled or expired                    |   |        | -         |   |             |   | -       |   |   |
| Warrants exercisable December 31, 2008  |   |        | 4,304,688 |   |             | $      | 0.96    |   |   |
|                                    |   |        |      |   |             |   |    |   |   |
| Weighted average remaining life         |   | 1.92 Years  |      |   |             |   |    |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|                                                          |   |   |        |    |   |   |
|---------------------------------------------------------------|--------|--------|-------------|---------|--------|--------|
|                                                          |   | 2008   |        |    | 2007   |   |
| Income (Loss) before income taxes                             |   | $      | (10,027,659 | )       |   | $      | (1,970,571 | ) |
| Combined corporate tax rate                                   |   |   | 35.0        | %  |   |   | 34.1 | %  |
|                                                          |   |   |        |    |   |   |   |   |
| Expected corporate tax recovery (expense)                     |   |   | 3,509,681   |    |   |   | 672,359 |   |
|                                                          |   |   |        |    |   |   |   |   |
| Effective foreign tax rate adjustment                         |   |   | (158,651    | )       |   |   | - |   |
|                                                          |   |   |        |    |   |   |   |   |
| Increase (decrease) resulting from:                           |   |   |        |    |   |   |   |   |
| Non-taxable gain on disposal                                  |   |   | -           |    |   |   | 146,937 |   |
| Effect of tax rate changes                                    |   |   | (129,720    | )       |   |   | (195,193 | ) |
| Reduction in future tax benefits related to Auctomatic        |   |   | (219,980    | )       |   |   | - |   |
| Reduction in future tax benefits related to intangible assets |   |   | (91,309     | )       |   |   | - |   |
| Non-taxable portion of domain name sales                      |   |   | 143,041     |    |   |   | - |   |
| Stock based compensation                                      |   |   | (701,983    | )       |   |   | (139,570 | ) |
| Non-deductible items and other                                |   |   | (176,776    | )       |   |   | 7,735 |   |
| Exchange adjustment to foreign denominated future tax assets  |   |   | (71,806     | )       |   |   | 199,870 |   |
| Change in valuation allowance due to disposal of subsidiary   |   |   | -           |    |   |   | (271,460 | ) |
| Change in valuation allowance                                 |   |   | (2,102,497  | )       |   |   | (420,678 | ) |
|                                                          |   |   |        |    |   |   |   |   |
| Provision for income taxes                                    |   | $      | -           |    |   | $      | - |   |

|                                               |   | 2008   |       |   | 2007   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                               |   |   |       |   |   |   |
| Deferred income tax assets:                        |   |   |       |   |   |   |
| Operating losses available for future periods      |   | $      | 3,056,863  |   |   | $      | 752,303 |   |
| Property and equipment in excess of net book value |   |   | -          |   |   |   | 477,792 |   |
| Other differences                                  |   |   | 24,134     |   |   |   | - |   |
|                                               |   |   |       |   |   |   |   |   |
|                                               |   |   | 3,080,997  |   |   |   | 1,230,095 |   |
| Deferred income tax liabilities                    |   |   |       |   |   |   |   |   |
| Property and equipment in excess of net book value |   |   | (28,325    | )      |   |   | - |   |
| Indefinite life intangible assets                  |   |   | (206,370   | )      |   |   | (246,759 | ) |
| Other differences                                  |   |   | -          |   |   |   | (279,920 | ) |
|                                               |   |   |       |   |   |   |   |   |
|                                               |   |   | 2,846,302  |   |   |   | 703,416 |   |
| Valuation allowance                                |   |   | (3,052,672 | )      |   |   | (950,175 | ) |
|                                               |   |   |       |   |   |   |   |   |
| Net deferred income tax liability                  |   | $      | (206,370   | )      |   | $      | (246,759 | ) |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| For the year ended December 31, 2008 |   |        |       |   |      |   |       |      |   |   |   |   |
|--------------------------------------|--------|-------------|------------|--------|-----------|--------|------------|-----------|--------|--------|--------|--------|
|                                 |   |        |       |   |      |   |       |      |   |   |   |   |
|                                 |   |        |       |   | eCommerce |   |       | eCommerce |   |   | Total  |   |
|                                 |   | Advertising |       |   | Products  |   |       | Services  |   |   |   |   |
|                                 |   |        | $          |   |      |   | $          |      |   |   | $      |   |   |   | $ |   |
| Revenue                              |   |        | 93,140     |   |      |   | 9,271,693  |      |   |   | -      |   |   |   | 9,364,833 |   |
| Segment Loss                         |   |        | (2,838,178 | )      |      |   | (5,221,108 | )         |   |   | -      |   |   |   | (8,059,286 | ) |
|                                 |   |        |       |   |      |   |       |      |   |   |   |   |   |   |   |   |
| As at December 31, 2008              |   |        | $          |   |      |   | $          |      |   |   | $      |   |   |   | $ |   |
| Total Assets                         |   |        | 1,665,723  |   |      |   | 6,082,595  |      |   |   | -      |   |   |   | 7,748,318 |   |
| Intangible Assets                    |   |        | 1,398,417  |   |      |   | 189,046    |      |   |   | -      |   |   |   | 1,587,463 |   |

| For the year ended December 31, 2007 |   |        |      |   |      |   |       |      |   |   |     |   |
|--------------------------------------|--------|-------------|-----------|--------|-----------|--------|------------|-----------|--------|--------|----------|--------|
|                                 |   |        |      |   |      |   |       |      |   |   |     |   |
|                                 |   |        |      |   | eCommerce |   |       | eCommerce |   |   | Total    |   |
|                                 |   | Advertising |      |   | Products  |   |       | Services  |   |   |     |   |
|                                 |   |        | $         |   |      |   | $          |      |   |   | $        |   |   |   | $ |   |
| Revenue                              |   |        | 449,613   |   |      |   | 8,097,315  |      |   |   | 480,591  |   |   |   | 9,027,519 |   |
| Segment Loss                         |   |        | (644,647  | )      |      |   | (1,644,685 | )         |   |   | (169,508 | )      |   |   | (2,458,840 | ) |
|                                 |   |        |      |   |      |   |       |      |   |   |     |   |   |   |   |   |
| As at December 31, 2007              |   |        | $         |   |      |   | $          |      |   |   | $        |   |   |   | $ |   |
| Total Assets                         |   |        | 1,384,718 |   |      |   | 8,196,489  |      |   |   | -        |   |   |   | 9,581,207 |   |
| Intangible Assets                    |   |        | 1,384,718 |   |      |   | 260,343    |      |   |   | -        |   |   |   | 1,645,061 |   |

|                                                        |   | 2008   |        |   | 2007   |   |
|-------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                        |   |   |        |   |   |   |
| Segment Loss                                                |   | $      | (8,059,286  | )      |   | $      | (2,458,840 | ) |
| Other (Income) and Expenses                                 |   |   |        |   |   |   |   |   |
| Global Cricket Venture expenses                             |   |   | (1,476,255  | )      |   |   | - |   |
| Global Cricket Venture minimum lease payments               |   |   | (1,000,000  | )      |   |   |   |   |
| Gains from sales and sales-type lease of domain names       |   |   | 461,421     |   |   |   | - |   |
| Accretion expense                                           |   |   | (96,700     | )      |   |   | - |   |
| Interest and investment income                              |   |   | 67,683      |   |   |   | 119,574 |   |
| Minority Interest                                           |   |   | 75,478      |   |   |   | 91,890 |   |
| Gain on Disposal of Investment of FrequentTraveler.com Inc. |   |   |        |   |   |   | 276,805 |   |
| Net loss and comprehensive loss before taxes for the year   |   | $      | (10,027,659 | )      |   | $      | (1,970,571 | ) |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|   | CDN $   |
|--------|---------|
| 2009   | 116,188 |
| 2010   | 121,531 |
| 2011   | 126,873 |
| 2012   | 98,159  |

|   | BCCIUSD$  | IPLUSD$   | TOTALUSD $ |
|--------|-----------|-----------|------------|
| 2009   | 2,625,000 | 1,625,000 | 4,275,000  |
| 2010   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2011   | 3,750,000 | 2,500,000 | 6,250,000  |
| 2012   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2013   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2014   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2015   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2016   | 3,000,000 | 2,000,000 | 5,000,000  |
| 2017   | 3,250,000 | 2,250,000 | 5,500,000  |
| 2018   | 1,750,000 | 1,250,000 | 3,000,000  |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

----

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| As at March 31, 2008                           | Reference               |   | As previously reported |       |   | Restatement adjustment |   |     | As restated |   |
|------------------------------------------------|-------------------------|--------|------------------------|------------|--------|------------------------|--------|----------|-------------|--------|
| ASSETS                                         |                    |   |                   |       |   |                   |   |     |        |   |
| Current assets                                 |                    |   | $                      | 5,353,567  |   |                   | $      | -        |        |   | $ | 5,353,567 |   |
| Other assets                                   | (i)                     |   |                   | 2,232,194  |   |                   |   | 66,692   |        |   |   | 2,298,886 |   |
| Total Assets                                   |                    |   | $                      | 7,585,761  |   |                   | $      | 66,692   |        |   | $ | 7,652,453 |   |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Current Liabilities                            | (ii), (iii)             |   |                   | 1,351,599  |   |                   |   | 215,025  |        |   |   | 1,566,624 |   |
| Other Liabilities                              | (i), (v)                |   |                   | 70,483     |   |                   |   | 270,731  |        |   |   | 341,214 |   |
| Total Liabilities                              |                    |   |                   | 1,422,082  |   |                   |   | 485,756  |        |   |   | 1,907,838 |   |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Common Stock                                   |                    |   |                   | 12,456     |   |                   |   | -        |        |   |   | 12,456 |   |
| Additional paid-in capital                     | (iv)                    |   |                   | 10,671,119 |   |                   |   | (57,394  | )           |   |   | 10,613,725 |   |
| Accumulated deficit                            | (i) to (vi)             |   |                   | (4,519,896 | )      |                   |   | (361,670 | )           |   |   | (4,881,566 | ) |
| Total Stockholders' Equity                     |                    |   |                   | 6,163,679  |   |                   |   | (419,064 | )           |   |   | 5,744,615 |   |
| Total Liabilities and Stockholders' Equity     |                    |   | $                      | 7,585,761  |   |                   | $      | 66,692   |        |   | $ | 7,652,453 |   |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| For the three months ended March 31, 2008      |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Gross Profit                                   |                    |   | $                      | 362,417    |   |                   | $      | -        |        |   | $ | 362,417 |   |
| Total Expenses                                 | (ii), (iii), (iv), (vi) |   |                   | 2,512,022  |   |                   |   | 148,929  |        |   |   | 2,660,951 |   |
| Total Other Income (Expenses)                  | (i)                     |   |                   | 155,387    |   |                   |   | 51,506   |        |   |   | 206,893 |   |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD |                    |   | $                      | (1,994,218 | )      |                   | $      | (97,423  | )           |   | $ | (2,091,641 | ) |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE               |                    |   | $                      | (0.10      | )      |                   |   | (0.00    | )           |   | $ | (0.10 | ) |
|                                           |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON              |                    |   |                   |       |   |                   |   |     |        |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED         |                    |   |                   | 19,970,334 |   |                   |   |     |        |   |   | 19,970,334 |   |

| (i)   | The Company recorded goodwill of $66,692 in relation to the debt conversion between a subsidiary, Domain Holdings Inc., and the parent company, Live Current Media Inc. as disclosed in Note 5.  There was an increase to the non-controlling interest during the quarter of $15,186 and a credit to the non-controlling interest included in Other Incomeand Expenses of $51,506.  The carry forward effect of the non-controlling interest from December 31, 2007 was an increase of $8,786. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | The Company recorded as an additional liability and compensation expense $35,315 for bonuses of CDN $100,000 each that are to be paid to its President and Chief Corporate Development Officer on January 1, 2009 and on January 1, 2010. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The Company recorded as an additional liability and compensation expense $88,287 for bonuses of CDN $250,000 each that were to be paid to its former President on October 1, 2008 and on October 1, 2009.  The carry forward effect to these bonuses payable (current liabilities) from December 31, 2007 amounted to $91,423. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| (iv)   | The Company revised its estimate relating to the estimated life of its granted stock options.  The revised estimated life of 3.375 years resulted in a decrease to its stock based compensation expense of $38,423 and a corresponding decrease to Additional paid-in capital.  There was also a corresponding carry forward effect to Additionalpaid-in capital from December 31, 2007 resulting in a decrease of $18,971. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | The Company accrued and expensed deferred taxes relating to an estimated potential future tax liability on future gains on sales of its domain name intangible assets.  The carry forward effect from December 31, 2007 to liabilities was an increase of $246,759, with a corresponding increase in Opening Accumulated Deficit. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | The Company recorded additional Corporate General and Administrative expenses of $63,750 during the quarter for the accrual of audit fees that were reversed from the accounts for the year ended December 31, 2007 and recorded in the first quarter of 2008. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| As at June 30, 2008                            |                    |   | As previously reported |       |   | Restatement adjustment |     |     | As restated |   |
|------------------------------------------------|-------------------------|--------|------------------------|------------|--------|------------------------|----------|----------|-------------|--------|
| ASSETS                                         |                    |   |                   |       |   |                   |     |     |        |   |
| Current assets                                 |                    |   | $                      | 3,172,481  |   |                   | $        | -        |        |   | $ | 3,172,481 |   |
| Other assets                                   | (i), (ii), (iii)        |   |                   | 5,568,070  |   |                   |     | 177,438  |        |   |   | 5,745,508 |   |
| Total Assets                                   |                    |   | $                      | 8,740,551  |   |                   | $        | 177,438  |        |   | $ | 8,917,989 |   |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Current Liabilities                            | (i), (ii), (v), (vi)    |   |                   | 2,668,706  |   |                   |     | 340,276  |        |   |   | 3,008,982 |   |
| Other Liabilities                              | (i)                     |   |                   | 65,449     |   |                   |     | 246,759  |        |   |   | 312,208 |   |
| Total Liabilities                              |                    |   |                   | 2,734,155  |   |                   |     | 587,035  |        |   |   | 3,321,190 |   |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Common Stock                                   |                    |   |                   | 13,087     |   |                   |     | -        |        |   |   | 13,087 |   |
| Additional paid-in capital                     | (i), (iii), (iv), (vii) |   |                   | 12,483,794 |   |                   |     | 52,765   |        |   |   | 12,536,559 |   |
| Accumulated deficit                            | (i) to (vii)            |   |                   | (6,490,485 | )      |                   |     | (462,362 | )           |   |   | (6,952,847 | ) |
| Total Stockholders' Equity                     |                    |   |                   | 6,006,396  |   |                   |     | (409,597 | )           |   |   | 5,596,799 |   |
| Total Liabilities and Stockholders' Equity     |                    |   | $                      | 8,740,551  |   |                   | $        | 177,438  |        |   | $ | 8,917,989 |   |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| For the three months ended June 30, 2008       |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| Gross Profit                                   |                    |   | $                      | 356,568    |   |                   | $        | -        |        |   | $ | 356,568 |   |
| Total Expenses                                 | (iv), (v), (vi), (vii)  |   |                   | 2,399,153  |   |                   |     | 124,664  |        |   |   | 2,523,817 |   |
| Total Other Income (Expenses)                  | (i), (ii)               |   |                   | 16,680     |   |                   |     | 23,972   |        |   |   | 40,652 |   |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD |                    | $      | (2,025,905             | )          |   | $                      | (100,692 | )        |        | $      | (2,126,597 | ) |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE               |                    |   | $                      | (0.10      | )      |                   |     | (0.00    | )           |   | $ | (0.10 | ) |
|                                           |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON              |                    |   |                   |       |   |                   |     |     |        |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED         |                    |   | 20,832,026             |       |   |                   | -        |     |        |   | 20,832,026 |   |

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| For the six months ended June 30, 2008         |                   |   |       |      |   |   |     |    |   |   |       |      |   |
|------------------------------------------------|------------------------|--------|------------|-----------|--------|--------|----------|---------|--------|--------|------------|-----------|--------|
|                                           |                   |   |       |      |   |   |     |    |   |   |       |      |   |
| Gross Profit                                   |                   |   | $          | 718,985   |   |   | $        | -       |   |   | $          | 718,985   |   |
| Total Expenses                                 | (iv), (v), (vi), (vii) |   |       | 4,911,176 |   |   |     | 273,593 |   |   |       | 5,184,769 |   |
| Total Other Income (Expenses)                  | (i), (ii)              |   |       | 227,384   |   |   |     | 75,478  |   |   |       | 302,862   |   |
|                                           |                   |   |       |      |   |   |     |    |   |   |       |      |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD |                   | $      | (3,964,807 | )         |   | $      | (198,115 | )       |   | $      | (4,162,922 | )         |
|                                           |                   |   |       |      |   |   |     |    |   |   |       |      |   |
| BASIC AND DILUTED LOSS PER SHARE               |                   |   | $          | (0.19     | )      |   | $        | (0.01   | )      |   | $          | (0.20     | )      |
|                                           |                   |   |       |      |   |   |     |    |   |   |       |      |   |
| WEIGHTED AVERAGE NUMBER OF COMMON              |                   |   |       |      |   |   |     |    |   |   |       |      |   |
| SHARES OUTSTANDING - BASIC AND DILUTED         |                   |   | 20,832,026 |      |   |   | -        |    |   |   | 20,832,026 |      |

| (i)   | Refer to carry forward effects of the prior quarter. |
|-----------------|------------------------------------------------------|

| (ii)   | The Company recorded goodwill of $66,692 in relation to the debt conversion between a subsidiary, Domain Holdings Inc., and the parent company, Live Current Media Inc., as disclosed in Note 5.  There was a decrease to the non-controlling interest during the quarter of $8,786 resulting in a balance at quarter end of the non-controlling interestof NIL.  There was also a credit to the non-controlling interest included in Other Income and Expenses in the quarter of $23,972. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Related to the acquisition of Auctomatic, the Company adjusted its purchase price allocation to reflect an additional $110,746 of goodwill acquired in the acquisition.  The corresponding increase was recorded to Additional paid-in capital. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | Also related to the acquisition of Auctomatic, the Company recorded as an expense the portion of the fair value of 413,604 shares of its common stock which were to be issued to the founders of Entity Inc. (“Auctomatic”) based on the period of service these founders provided to the Company, computed in relation to the period of service requiredfor the founders to become entitled to the shares under FAS 123(R).  The related stock based compensation expense in the June 30, 2008 quarter is $45,326, and the corresponding amount increased Additional paid-in capital during the quarter. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | The Company recorded as an additional liability and compensation expense $35,786 for bonuses of CDN $100,000 each that are to be paid to its President and Chief Corporate Development Officer on January 1, 2009 and on January 1, 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | The Company recorded as an additional liability and compensation expense $89,465 for bonuses of CDN $250,000 each that were to be paid to its former President on October 1, 2008 and on October 1, 2009. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | The Company revised its estimate relating to the estimated life of its granted stock options.  The revised estimated life of 3.375 years resulted in a decrease to its stock based compensation expense of $45,913 and a corresponding decrease to Additional paid-in capital. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

| As at September 30, 2008                       |                   |   | As previously reported |       |   | Restatement adjustment |   |     | As restated |   |
|------------------------------------------------|------------------------|--------|------------------------|------------|--------|------------------------|--------|----------|-------------|--------|
| ASSETS                                         |                   |   |                   |       |   |                   |   |     |        |   |
| Current assets                                 |                   |   | $                      | 994,786    |   |                   | $      | -        |        |   | $ | 994,786 |   |
| Other assets                                   | (i)                    |   |                   | 5,990,554  |   |                   |   | 177,438  |        |   |   | 6,167,992 |   |
| Total Assets                                   |                   |   | $                      | 6,985,340  |   |                   | $      | 177,438  |        |   | $ | 7,162,778 |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Current Liabilities                            | (i), (iii), (iv)       |   |                   | 3,276,584  |   |                   |   | 449,096  |        |   |   | 3,725,680 |   |
| Other Liabilities                              | (i)                    |   |                   | 60,414     |   |                   |   | 246,759  |        |   |   | 307,173 |   |
| Total Liabilities                              |                   |   |                   | 3,336,998  |   |                   |   | 695,855  |        |   |   | 4,032,853 |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| STOCKHOLDERS' EQUITY                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Common Stock                                   |                   |   |                   | 13,150     |   |                   |   | -        |        |   |   | 13,150 |   |
| Additional paid-in capital                     | (i), (ii), (v)         |   |                   | 13,175,885 |   |                   |   | 150,502  |        |   |   | 13,326,387 |   |
| Accumulated deficit                            | (i) to (v)             |   |                   | (9,540,693 | )      |                   |   | (668,919 | )           |   |   | (10,209,612 | ) |
| Total Stockholders' Equity                     |                   |   |                   | 3,648,342  |   |                   |   | (518,417 | )           |   |   | 3,129,925 |   |
| Total Liabilities and Stockholders' Equity     |                   |   | $                      | 6,985,340  |   |                   | $      | 177,438  |        |   | $ | 7,162,778 |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| For the three months ended September 30, 2008  |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Gross Profit                                   |                   |   | $                      | 352,435    |   |                   | $      | -        |        |   | $ | 352,435 |   |
| Total Expenses                                 | (ii), (iii), (iv), (v) |   |                   | 2,343,285  |   |                   |   | 206,557  |        |   |   | 2,549,842 |   |
| Total Other Income (Expenses)                  |                   |   |                   | (1,059,357 | )      |                   |   | -        |        |   |   | (1,059,357 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD |                   |   | $                      | (3,050,207 | )      |                   | $      | (206,557 | )           |   | $ | (3,256,764 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE               |                   |   | $                      | (0.14      | )      |                   | $      | (0.01    | )           |   | $ | (0.15 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON              |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED         |                   |   |                   | 21,625,005 |   |                   |   | -        |        |   |   | 21,625,005 |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| For the nine months ended September 30, 2008   |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| Gross Profit                                   |                   |   | $                      | 1,071,419  |   |                   | $      | -        |        |   | $ | 1,071,419 |   |
| Total Expenses                                 | (ii), (iii), (iv), (v) |   |                   | 7,254,461  |   |                   |   | 480,150  |        |   |   | 7,734,611 |   |
| Total Other Income (Expenses)                  | (i)                    |   |                   | (831,973   | )      |                   |   | 75,478   |        |   |   | (756,495 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD |                   |   | $                      | (7,015,015 | )      |                   | $      | (404,672 | )           |   | $ | (7,419,687 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE               |                   |   | $                      | (0.32      | )      |                   | $      | (0.02    | )           |   | $ | (0.34 | ) |
|                                           |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON              |                   |   |                   |       |   |                   |   |     |        |   |   |   |   |
| SHARES OUTSTANDING - BASIC AND DILUTED         |                   |   |                   | 21,625,005 |   |                   |   | -        |        |   |   | 21,625,005 |   |

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| Live Current Media Inc.(formerly Communicate.com Inc.)Notes to the Amended and Restated Consolidated Financial StatementsFor the year ended December 31, 2008As restated – Note 2 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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| (i)   | Refer to carry forward effects of the prior quarter. |
|-----------------|------------------------------------------------------|

| (ii)   | Also related to the acquisition of Auctomatic, the Company recorded as an expense the portion of the fair value of 413,604 shares of its common stock which were to be issued to the founders of Entity Inc. (“Auctomatic”) based on the period of service these founders provided to the Company, computed in relation to the period of service requiredfor the founders to become entitled to the shares under FAS 123(R).  The related stock based compensation expense in the September 30, 2008 quarter is $104,251, and the corresponding amount increased Additional paid-in capital during the quarter. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The Company recorded as an additional liability and compensation expense $31,091 for bonuses of CDN $100,000 each that are to be paid to its President and Chief Corporate Development Officer on January 1, 2009 and on January 1, 2010. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | The Company recorded as an additional liability and compensation expense $77,729 for bonuses of CDN $250,000 each that were to be paid to its former President on October 1, 2008 and on October 1, 2009. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | The Company revised its estimates relating to the estimated life of its granted stock options.  The revised estimated life of 3.375 years resulted in a decrease to its stock based compensation expense of $6,514 and a corresponding decrease to Additional paid-in capital. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|