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<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 5. PROPERTY AND EQUIPMENT</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Property and equipment consisted of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30, 2012</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31, 2011</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 60%; line-height: 115%">Computers and peripherals</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 16%; line-height: 115%; text-align: right">182,382</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 16%; line-height: 115%; text-align: right">181,952</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Office equipment</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">59,816</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">59,816</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Computer software</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">28,423</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">28,423</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">270,621</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">270,191</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">(270,501</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">(268,472</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Less: accumulated depreciation</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">120</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,719</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense was $2,028 and
$- for the nine months ended September 30, 2012 and 2011, respectively.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 10. STOCKHOLDER’S DEFICIENCY</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Common Shares – Authorized</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">League Now has 100,000,000 common shares
authorized at a par value of $0.001 per share and 10,000,000 shares of preferred stock, par value $0.001 per share. All common
stock shares have equal voting rights, are non-assessable and have one vote per share. Voting rights are not cumulative and, therefore,
the holders of more than 50% of the common stock could, if they choose to do so, can elect all of League Now’s directors.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Common Stock Issuances</u></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended September
30, 2012, we issued the following shares:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Private placement offering and share
forfeiture</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The transactions contemplated by the
Agreement were closed on January 31, 2012, with the Company issuing 30 million shares to Bianco, Veness and Bischof. Contemporaneously
with the closing, Mr. James Pregiato, a former officer and director of the Company returned 25,803,288 shares of our common stock
which were held by him to the Company’s treasury.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Share based compensation</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 30, 2012, League Now issued
500,000 fully-vested shares of our common stock for professional services performed valued at $35,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 21, 2012, League Now issued
1,500,000 fully-vested shares of our common stock for professional services performed valued at $105,000.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Stock reserved for issuance</i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes all shares
of common stock reserved for issuance at September 30, 2012:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">Number of Shares</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 78%; line-height: 115%">Maximum shares issuable in connection with:</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 18%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Convertible debt instruments (with 5x reserve multiple)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">12,673,139</td>
<td style="line-height: 115%"> </td></tr>
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<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
10000
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105000
1500
103500
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<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 1. BUSINESS AND ORGANIZATION</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Business and organization. </i></b>League
Now Holdings Corporation was incorporated under the laws of the State of Florida on September 21, 2005. The Company was formed
to operate under the domain name, <u>www.leaguenow.com</u> as an application service provider offering web-based services for online
video game users. The Company’s strategy was directed toward the satisfaction of our registered members by offering integrated
internet technology for the online video game industry that quickly and easily allowed individuals to enter and play in peer organized
leagues in the United States and worldwide, twenty-four hours a day, seven days a week. The Company discontinued these operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 20, 2012 the company entered into
a Stock Purchase Agreement and Share Exchange (the “Agreement”) with Infiniti Systems Group, Inc. (“Infiniti”).
Pursuant to the Agreement, the Company agreed to issue 30 million common shares of its common stock to the shareholders of Infiniti
in exchange for 100% of the issued and outstanding capital stock of Infiniti. The shares issued to the shareholders of Infiniti
represent 60% of its issued and outstanding capital stock on a fully diluted basis (the “Stock Consideration”). In
addition, the Chief Executive Officer and Chief Financial Officer, Mario Barton, has resigned from those offices. John Bianco,
the Chief Executive Officer of Infiniti, has agreed to serve as the Company’s new President and Chief Executive Officer.
The new Treasurer and Chief Financial Officer is Lisa Bischof, and the new Secretary and Chief Operating Officer is D. Bruce Veness.
The transactions contemplated by the Agreement were closed on January 31, 2012, with the Company issuing 30 million shares to Bianco,
Veness and Bischof. Contemporaneously with the closing, Mr. James Pregiato, a former officer and director of the Company returned
25,803,288 shares of our common stock which were held by him to the Company’s treasury.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">J.L. Consulting, Inc. was organized under the
laws of the State of Ohio on January 2, 1995. On December 11, 1998, the Company changed its corporate name from J.L. Consulting,
Inc. to Infiniti Systems Group, Inc. The Company provides technology integration services to businesses. These services include
management consulting, e-business services, application development, facilities development and network development. The Company’s
principal office is in Brecksville, Ohio, with an additional office in Raleigh, North Carolina.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Unless the context indicates otherwise, all
references herein to “League Now,” “Company,” “we,” “us,” and “our”
refer to League Now Holdings Corporation and its consolidated subsidiary.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 4. NOTE RECEIVABLE</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June, 2011, the Company advanced $10,000
to an unrelated party. The note bears interest at 8% per annum and matured on July 30, 2011. The note is secured by the party’s
40% ownership interest in the stock of Bayview Acquisition Corp. (a public company). The aggregate receivable balance has been
classified as a current asset because it is expected to be collected within one year from the Balance Sheet dates. The Company
is currently negotiating new terms with the debtor to satisfy the past due balance.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 6. LOAN FEES</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred loan fees of $6,677 represent
fees paid to third parties that provided services in relation to securing financing. The loan fees are shown net of accumulated
amortization of $2,730 and $2,015 at September 30, 2012 and December 31, 2011, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected future amortization expense
for deferred loan fees is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center">Year ending</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31,</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 70%; background-color: #CCFFCC; line-height: 115%; text-align: center">2012</td>
<td style="width: 2%; background-color: #CCFFCC; line-height: 115%"> </td>
<td style="width: 1%; background-color: #CCFFCC; line-height: 115%">$</td>
<td style="width: 16%; background-color: #CCFFCC; line-height: 115%; text-align: right">239</td>
<td style="width: 1%; background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2013</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">954</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2014</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">954</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2015</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">954</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2016</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; background-color: #CCFFCC; line-height: 115%; text-align: right">846</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">3,947</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 8. LONG-TERM LOANS</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: -0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March, 2009, the Company converted rent
arrearages in the amount of $116,213 into a term loan with its landlord. The loan requires 42 monthly payments of $3,066 and bears
interest at a fixed rate of 6%. The loan is secured by an officer/stockholder of the Company. $41,399 and $47,087 was outstanding
as of September 30, 2012 and December 31, 2011, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2009, the Company obtained two $25,000
SBA-backed term loans from commercial banks. Each loan requires 84 monthly payments of $390 and includes interest at 4.75% above
the bank’s prime rate, 8.00% at September 30, 2012. The term loan is secured by the personal guaranty of a Company officer/stockholder.
$33,059 and $37,939 was outstanding as of September 30, 2012 and December 31, 2011, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">Convertible Debenture
– On March 1, 2010, the Company renewed a convertible debenture in the amount of $25,000. The debenture paid quarterly interest
of 14% and matured on February 28, 2012. Upon maturity, principal and unpaid interest are payable in four equal, interest-free
quarterly installments, the first of which is due on month after maturity. Prepayments of principal and interest are prohibited
unless agreed to by the debenture holder. The debentures may be converted after November 1, 2011 and prior to maturity. The debentures
are convertible into a number of common shares equal to one share of common stock for each $25,000 of principal owing on the conversion
date. Any accrued but unpaid principal owed at the time of conversion is to be paid in cash. The debenture requires that any distribution
to stockholders made while the debenture is outstanding be accompanied by a payment to the debenture holder in the amount that
would have been received by the debenture holder had the debenture been converted to common stock immediately prior to the stockholder
distribution. </font>On March 31, 2012 the convertible debenture for $25,000 was forgiven to the company. Services will be provided
for application development to his company going forward for $12,500 as total repayment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June, 2010, the Company obtained a $209,905
term loan from Independence Bank. The proceeds of the term loan were used to reduce the outstanding balances of the Company’s
line of credit with the bank. The loan requires 69 monthly principal payments of $3000, plus monthly interest of 1.25% over the
bank’s prime rate, 4.50% at September 30, 2012. The term loan is secured by the personal guaranty of a Company officer/stockholder.
$122,235 and $149,235 was outstanding as of September 30, 2012 and December 31, 2011, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">In March, 2012,
the Company issued a $1,000 promissory note payable to an unrelated party in satisfaction of professional services rendered by
the individual. The note is unsecured, non-interest bearing and due on demand. </font>The outstanding principal balance has been
classified as a non-current liability on the September 30, 2012 Balance Sheet because it is not expected to paid within one year
from the Balance Sheet date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 11, 2012 and August 24, 2012,
League Now sold and issued Convertible Promissory Notes (the “Notes”) to Asher Enterprises, Inc. (“Asher”)
in the principal amount of $53,000 and $27,500, respectively, pursuant to the terms of Securities Purchase Agreements (the “
Purchase Agreements”) of even dates therewith. Asher is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D under the Securities Act of 1933, as amended.<font style="color: black"> The Notes, together with accrued
interest at the annual rate of eight percent (8%), are due on April 10, 2013 and May 28, 2013, respectively (the “Maturity
Date”). The Notes are convertible into the Company’s common stock commencing one hundred eighty (180) days from the
date of issuance at a conversion price equal to 60% of the Market Price of the Company’s common stock on the date of conversion.
“Market Price” is defined in the Note as the average of the lowest three (3) trading prices for the Company’s
common stock during the ten (10) trading days prior to the conversion date. The Company has the right to prepay the Notes at any
time from the date of issuance until the 180<sup>th</sup> day the Note was issued at an amount equal to 135% of (i) the then outstanding
principal amount of the Note, including accrued and unpaid interest due on the prepayment date. </font>In connection with the sale
of the Note, the Company relied upon the exemption from registration provided by Regulation D under the Securities Act of 1933,
as amended. The Company is also required to have authorized and reserved five times the number of shares that is actually issuable
upon full conversion of the Notes (see Note 9).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 11, 2012 and August 24, 2012,
the Company calculated the fair value of the Asher Notes in accordance with GAAP. The excess premium over the face value of the
Notes was credited to additional paid-in capital with a direct charge to interest expense. The effective rates of the Notes are
82.8% and 83.1%, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Principal payments of long-term debt
at September 30, 2012 are scheduled as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center">Years ending</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31,</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2012</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%">$</td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">28,056</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 67%; line-height: 115%; text-align: center">2013</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 18%; line-height: 115%; text-align: right">148,665</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2014</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">43,719</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2015</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">44,360</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2016</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">12,989</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Thereafter</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">404</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #CCFFCC; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; background-color: #CCFFCC; line-height: 115%; text-align: right">278,193</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 9. STOCKHOLDER’ NOTES AND
DEBENTURES</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July, 2010, the Company obtained a $50,000
loan from an officer/stockholder. The loan requires interest payments at a fixed rate of 7%, but specifies neither interest payment
frequency nor a due date for the obligation. The outstanding principal balance has been classified as a non-current liability on
the September 30, 2012 Balance Sheet because it is not expected to paid within one year from the Balance Sheet date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July, 2012, the Company obtained a $10,000
loan from an officer/stockholder. The loan requires interest payments at a fixed rate of 7%, but specifies neither interest payment
frequency nor a due date for the obligation. The outstanding principal balance has been classified as a non-current liability on
the September 30, 2012 Balance Sheet because it is not expected to paid within one year from the Balance Sheet date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In September, 2012, the Company obtained a
$15,730 loan from an officer/stockholder. The loan requires interest payments at a fixed rate of 7%, but specifies neither interest
payment frequency nor a due date for the obligation. The outstanding principal balance has been classified as a non-current liability
on the September 30, 2012 Balance Sheet because it is not expected to paid within one year from the Balance Sheet date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has obtained unsecured advances
and loans from an officer/stockholder and from a major stockholder aggregating $78,234 and $96,191 as of September 30, 2012 and
December 31, 2011, respectively. The notes bear interest between 5% and 7% per annum without a specified due date. The outstanding
principal balance has been classified as a non-current liability on the September 30, 2012 Balance Sheet because it is not expected
to paid within one year from the Balance Sheet date.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>NOTE 11 – EARNINGS-PER-SHARE CALCULATION</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings per common share for the three
and nine months ended September 30, 2012 and 2011 are calculated by dividing net income by weighted-average common shares outstanding
during the period. Diluted earnings per common share for the three and nine months ended September 30, 2012 and 2011 are calculated
by dividing net income by weighted-average common shares outstanding during the period plus dilutive potential common shares, which
are determined as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the three months<br /> ended<br /> September 30, 2012</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the three months<br /> ended<br /> September 30, 2011</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 56%; line-height: 115%">Net earnings from operations</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(124,585</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(4,200</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Weighted-average common shares</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">53,445,563</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Effect of dilutive securities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right; text-indent: 0.5in"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Options to purchase common stock</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Dilutive potential common shares</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">53,445,563</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Net earnings per share from operations:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 20pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="padding-left: 20pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the nine months<br /> ended<br /> September 30, 2012</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the nine months<br /> ended<br /> September 30, 2011</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 56%; line-height: 115%">Net earnings from operations</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(334,381</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(16,700</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Weighted-average common shares</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">52,160,025</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Effect of dilutive securities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Options to purchase common stock</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Dilutive potential common shares</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">52,160,025</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Net earnings per share from operations:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 20pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.01</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="padding-left: 20pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.01</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">Dilutive
potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise
of all warrants and options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds
are exhausted represents the potentially dilutive effect of the securities. The increasing number of warrants used in the calculation
is a result of the increasing market value of League Now’s common stock. I</font>n periods where losses are reported the
weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">I</font>n
periods where losses are reported the weighted-average number of common shares outstanding excludes common stock equivalents because
their inclusion would be anti-dilutive. As of September 30, 2012 and 2011, there were no common share equivalents outstanding.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><u>NOTE 12 – SHARE BASED COMPENSATION</u></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following presents the impact of
share based compensation expense on our condensed consolidated statements of operations:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="line-height: 115%; text-align: center">Three months ended</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="line-height: 115%; text-align: center">Nine months ended</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30,</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30,</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2012</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2012</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">General and administrative</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">140,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><br clear="all" /></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>NOTE 13 – RELATED PARTY TRANSACTIONS</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the common control between League Now
and its related parties, League Now is exposed to the potential that ownership risks and rewards could be transferred among the
parties.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.6pt"><b><u>NOTE
14 – COMMITMENTS</u></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.6pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.6pt"><i><u>Leases</u></i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.6pt"><i> </i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt">Infiniti
leases its office space in Brecksville o</font>n a month-to-month basis at a cost of $6,694 a month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.05pt">Total
expense related to the operating leases was $20,082 and $59,736 for the three and nine month period ended September 30, 2012,
respectively</font><font style="letter-spacing: -0.4pt">. </font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 15 – RECENT ACCOUNTING PRONOUNCEMENTS</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have examined all recent accounting pronouncements
and believe that none of them will have a material impact on the financial statements of our company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 16– SUBSEQUENT EVENTS</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management has evaluated subsequent events
after the balance sheet date, through the issuance of the financial statements, for appropriate accounting and disclosure. League
Now has determined that there were no such events, other than those described below, that warrant disclosure or recognition in
the financial statements.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Notes receivable. </i></b>Notes
receivable are stated at face value, plus any accrued interest earned. The Company analyzes each note receivable each period for
probability of collectability. Notes are considered in default when payments have not been received within the agreed upon terms,
and are written off when management determines that collection is not probable. As of September 30, 2012 and December 31, 2011,
management has determined that no occurrence of default exists.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Loan fees. </i></b>Loan fees represent
fees paid to third parties that provided services in relation to securing financing. Amortization is recognized as a component
of interest expense and is computed using the straight-line method over the life of the term loan.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Consolidation policy.</i></b> The accompanying
September 30, 2012 financial statements include League Now’s accounts and the accounts of its subsidiary. All significant
intercompany transactions and balances have been eliminated in consolidation.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of presentation.</i></b>
In the opinion of management, the accompanying unaudited condensed financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions
to Form 10-Q and rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information
and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of
normal occurring accruals) considered necessary for fair presentation of League Now’s financial position as of September
30, 2012, and the results of its operations and cash flows for the three and nine months ended September 30, 2012, have been made.
Operating results for the nine months ended September 30, 2012 are not necessarily indicative of results that may be expected for
the year ending December 31, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">These condensed consolidated financial
statements should be read in conjunction with the financial statements and notes for the year ended December 31, 2011, thereto
contained in League Now’s Form 10-K.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of estimates.</i></b> The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets, the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
periods. Actual results could differ from those estimates and assumptions.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue recognition.</i></b>
The Company recognizes revenue on service offerings in accordance with FASB Accounting Standards Codification (ASC) No. 605, “Revenue
Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an
arrangement exists, the service is performed and collectability is reasonably assured.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Notes receivable. </i></b>Notes
receivable are stated at face value, plus any accrued interest earned. The Company analyzes each note receivable each period for
probability of collectability. Notes are considered in default when payments have not been received within the agreed upon terms,
and are written off when management determines that collection is not probable. As of September 30, 2012 and December 31, 2011,
management has determined that no occurrence of default exists.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Property and equipment. </i></b>Property
and equipment are stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to operations
as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed
from the accounts, and any resulting gain or loss is reflected in operations in the period realized.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation of property and equipment
is recorded using the straight-line method over the estimated useful lives of the related assets, which range as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; line-height: 115%"> </td>
<td style="width: 74%; line-height: 115%; text-align: justify">Office equipment</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; line-height: 115%; text-align: justify">5-7 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computers and peripherals</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computer software</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Goodwill. </i></b>In accordance with
GAAP, goodwill in the amount of $879,253 related to the business combination with Infiniti will be evaluated for impairment on
an annual basis starting calendar year ending December 31, 2012.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income taxes. </i></b>Income taxes are
provided for using the liability method of accounting. A deferred tax asset or liability is recorded for all temporary differences
between financial and tax reporting. Deferred tax expense (benefit) results from the net change during the year in deferred tax
assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected
to more likely than not be realized in future tax returns. Tax law and rate changes are reflected in income in the period such
changes are enacted.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Advertising expenses. </i></b>Advertising
costs are expensed as incurred. Advertising expenses are included in general and administrative expense in the accompanying statement
of operations. Total advertising expenses were $8,587 and $- for the nine months ended September 30, 2012 and 2011, respectively.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Share based compensation. </i></b>We
account for share based compensation in accordance with ASC No. 718, <i>Compensation - Stock Compensation</i>, which requires
the measurement of compensation costs at fair value on the date of grant and recognition of compensation expense over the service
period for awards expected to vest.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>General accounting policy for contingencies.
</i></b>Certain conditions may exist which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities,
and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that
are pending against the Company, or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates
the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought
or expected to be sought therein.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates
that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated,
the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would
be disclosed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
Loss contingencies considered remote are generally not disclosed unless they arise from guarantees, in which case the guarantees
would be disclosed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012 and December 31,
2011, the Company’s management believes that there are no outstanding legal proceedings which would have a material adverse
effect on the financial position of the Company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Loss per share.</i></b> Basic and diluted
net loss per common share is computed based upon the weighted average common shares outstanding as defined by ASC No. 260, “Earnings
Per Share.” As of September 30, 2012, there were no common share equivalents outstanding.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation of property and equipment
is recorded using the straight-line method over the estimated useful lives of the related assets, which range as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; line-height: 115%"> </td>
<td style="width: 74%; line-height: 115%; text-align: justify">Office equipment</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; line-height: 115%; text-align: justify">5-7 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computers and peripherals</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computer software</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
0.60
30000000
1.00
25803288
25803288
8587
701327
270191
270621
181952
59816
28423
182382
59816
28423
268472
270501
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Property and equipment consisted of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30, 2012</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31, 2011</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 60%; line-height: 115%">Computers and peripherals</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 16%; line-height: 115%; text-align: right">182,382</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 16%; line-height: 115%; text-align: right">181,952</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Office equipment</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">59,816</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">59,816</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Computer software</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">28,423</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">28,423</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">270,621</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">270,191</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">(270,501</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">(268,472</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Less: accumulated depreciation</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">120</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,719</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
6677
2015
2730
260700
350000
260700
350000
68892
68867
0.00
0.2224
.0125
0.0450
28056
148665
43719
44360
12989
404
278193
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Principal payments of long-term debt
at September 30, 2012 are scheduled as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center">Years ending</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31,</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2012</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%">$</td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">28,056</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 67%; line-height: 115%; text-align: center">2013</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 18%; line-height: 115%; text-align: right">148,665</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2014</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">43,719</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2015</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">44,360</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2016</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">12,989</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Thereafter</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">404</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #CCFFCC; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; background-color: #CCFFCC; line-height: 115%; text-align: right">278,193</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
116213
47087
37939
149235
41399
33059
122235
390
3000
3066
0.06
0.07
0.05
0.07
0.07
0.08
0.07
25000
209905
2
25000
The debentures are convertible into a number of common shares equal to one share of common stock for each $25,000 of principal owing on the conversion date.
25000
12500
96191
78234
30000000
-0.01
-0.00
0.00
-0.00
-0.01
-0.00
0.00
-0.00
2011-07-30
2013-04-10
2013-05-28
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic earnings per common share for the three
and nine months ended September 30, 2012 and 2011 are calculated by dividing net income by weighted-average common shares outstanding
during the period. Diluted earnings per common share for the three and nine months ended September 30, 2012 and 2011 are calculated
by dividing net income by weighted-average common shares outstanding during the period plus dilutive potential common shares, which
are determined as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the three months<br /> ended<br /> September 30, 2012</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the three months<br /> ended<br /> September 30, 2011</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 56%; line-height: 115%">Net earnings from operations</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(124,585</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(4,200</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Weighted-average common shares</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">53,445,563</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Effect of dilutive securities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right; text-indent: 0.5in"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Options to purchase common stock</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Dilutive potential common shares</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">53,445,563</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Net earnings per share from operations:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 20pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="padding-left: 20pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the nine months<br /> ended<br /> September 30, 2012</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">For the nine months<br /> ended<br /> September 30, 2011</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 56%; line-height: 115%">Net earnings from operations</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(334,381</td>
<td style="width: 1%; line-height: 115%">)</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 18%; line-height: 115%; text-align: right">(16,700</td>
<td style="width: 1%; line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Weighted-average common shares</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">52,160,025</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Effect of dilutive securities:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Warrants</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Options to purchase common stock</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Dilutive potential common shares</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">52,160,025</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">45,748,288</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">Net earnings per share from operations:</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 20pt; line-height: 115%">Basic</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.01</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="padding-left: 20pt; line-height: 115%">Diluted</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.01</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">(0.00</td>
<td style="line-height: 115%">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
59736
20082
<p style="margin: 0pt"></p>
<p style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The note is secured by the party’s 40% ownership
interest in the stock of Bayview Acquisition Corp. (a public company).</p>
0.08
0.828
0.831
52160025
45748288
45748288
53445563
6694
47248851
47248851
53445563
No
No
Yes
52160025
45748288
45748288
53445563
-0.01
-0.00
-0.00
-0.00
-334381
-4200
-16700
-124585
118462
79428
2305076
793802
2905275
1000222
2029
588
839089
4200
16700
250989
841118
4200
16700
251577
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Consolidation policy.</i></b> The accompanying
September 30, 2012 financial statements include League Now’s accounts and the accounts of its subsidiary. All significant
intercompany transactions and balances have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of presentation.</i></b>
In the opinion of management, the accompanying unaudited condensed financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions
to Form 10-Q and rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information
and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of
normal occurring accruals) considered necessary for fair presentation of League Now’s financial position as of September
30, 2012, and the results of its operations and cash flows for the three and nine months ended September 30, 2012, have been made.
Operating results for the nine months ended September 30, 2012 are not necessarily indicative of results that may be expected for
the year ending December 31, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">These condensed consolidated financial
statements should be read in conjunction with the financial statements and notes for the year ended December 31, 2011, thereto
contained in League Now’s Form 10-K.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of estimates.</i></b> The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets, the disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
periods. Actual results could differ from those estimates and assumptions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue recognition.</i></b> The
Company recognizes revenue on service offerings in accordance with FASB Accounting Standards Codification (ASC) No. 605, “Revenue
Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an
arrangement exists, the service is performed and collectability is reasonably assured.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Accounts receivable. </i></b>Accounts
receivable are stated at face value, less an allowance for doubtful accounts. League Now provides an allowance for doubtful accounts
based on management’s periodic review of accounts, including the delinquency of account balances. Accounts are considered
delinquent when payments have not been received within the agreed upon terms, and are written off when management determines that
collection is not probable. As of September 30, 2012 management has determined that no allowance for doubtful accounts is required.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Notes receivable. </i></b>Notes
receivable are stated at face value, plus any accrued interest earned. The Company analyzes each note receivable each period for
probability of collectability. Notes are considered in default when payments have not been received within the agreed upon terms,
and are written off when management determines that collection is not probable. As of September 30, 2012 and December 31, 2011,
management has determined that no occurrence of default exists.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.45pt"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Property and equipment. </i></b>Property
and equipment are stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to operations
as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed
from the accounts, and any resulting gain or loss is reflected in operations in the period realized.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation of property and equipment
is recorded using the straight-line method over the estimated useful lives of the related assets, which range as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; line-height: 115%"> </td>
<td style="width: 74%; line-height: 115%; text-align: justify">Office equipment</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 16%; line-height: 115%; text-align: justify">5-7 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computers and peripherals</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">Computer software</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: justify">5 years</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Goodwill. </i></b>In accordance with
GAAP, goodwill in the amount of $879,253 related to the business combination with Infiniti will be evaluated for impairment on
an annual basis starting calendar year ending December 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Loan fees. </i></b>Loan fees represent
fees paid to third parties that provided services in relation to securing financing. Amortization is recognized as a component
of interest expense and is computed using the straight-line method over the life of the term loan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income taxes. </i></b>Income taxes are
provided for using the liability method of accounting. A deferred tax asset or liability is recorded for all temporary differences
between financial and tax reporting. Deferred tax expense (benefit) results from the net change during the year in deferred tax
assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected
to more likely than not be realized in future tax returns. Tax law and rate changes are reflected in income in the period such
changes are enacted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Advertising expenses. </i></b>Advertising
costs are expensed as incurred. Advertising expenses are included in general and administrative expense in the accompanying statement
of operations. Total advertising expenses were $8,587 and $- for the nine months ended September 30, 2012 and 2011, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Share based compensation. </i></b>We
account for share based compensation in accordance with ASC No. 718, <i>Compensation - Stock Compensation</i>, which requires the
measurement of compensation costs at fair value on the date of grant and recognition of compensation expense over the service period
for awards expected to vest.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>General accounting policy for contingencies.
</i></b>Certain conditions may exist which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities,
and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that
are pending against the Company, or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates
the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought
or expected to be sought therein.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates
that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated,
the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would
be disclosed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
Loss contingencies considered remote are generally not disclosed unless they arise from guarantees, in which case the guarantees
would be disclosed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2012 and December 31, 2011,
the Company’s management believes that there are no outstanding legal proceedings which would have a material adverse effect
on the financial position of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Loss per share.</i></b> Basic and diluted
net loss per common share is computed based upon the weighted average common shares outstanding as defined by ASC No. 260, “Earnings
Per Share.” As of September 30, 2012, there were no common share equivalents outstanding.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 3. GOING CONCERN</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements have
been prepared assuming that League Now will continue as a going concern. The Company had a working capital deficiency of $701,327
and a stockholder’s deficiency of $217,959 and as of September 30, 2012. These conditions raise substantial doubt about
League Now’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent
on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that actions
presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to
continue as a going concern.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>NOTE 7. LINES OF CREDIT</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains $260,700 of revolving
lines of credit with various financial institutions, $68,867 and $68,892 of which was unused at September 30, 2012 and December
31, 2011, respectively. Advances on the lines of credit are payable on demand and bear interest between 0% and 22.24% per annum.
Interest is payable monthly. The credit lines are unsecured.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company also has a $350,000 revolving
line of credit with Independence Bank, all of which was used as of September 30, 2012 and December 31, 2011. Advances on the credit
line are payable on demand and carry an interest rate of 1.25% over the bank’s prime rate, 4.50% at September 30, 2012.
Interest is payable monthly. The credit line is secured by all assets of the Company, including accounts receivable, inventory
(if acquired), office equipment, and the personal guaranty of a Company officer/stockholder.</p>
3947
600199
206420
-240919
-4200
-16700
-45157
25000
-25803288
30000000
1500000
61847
61847
430
-430
80500
61847
10000
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Expected future amortization expense
for deferred loan fees is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center">Year ending</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">December 31,</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 70%; background-color: #CCFFCC; line-height: 115%; text-align: center">2012</td>
<td style="width: 2%; background-color: #CCFFCC; line-height: 115%"> </td>
<td style="width: 1%; background-color: #CCFFCC; line-height: 115%">$</td>
<td style="width: 16%; background-color: #CCFFCC; line-height: 115%; text-align: right">239</td>
<td style="width: 1%; background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2013</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">954</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2014</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: right">954</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">2015</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">954</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="background-color: #CCFFCC; line-height: 115%; text-align: center">2016</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; background-color: #CCFFCC; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; background-color: #CCFFCC; line-height: 115%; text-align: right">846</td>
<td style="background-color: #CCFFCC; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">3,947</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
0.08
0.0475
0.0475
0.0125
<p style="margin: 0">The Notes are convertible into the Company’s common stock commencing one hundred eighty (180) days from
the date of issuance at a conversion price equal to 60% of the Market Price of the Company’s common stock on the date of
conversion. “Market Price” is defined in the Note as the average of the lowest three (3) trading prices for the Company’s
common stock during the ten (10) trading days prior to the conversion date. The Company has the right to prepay the Notes at any
time from the date of issuance until the 180<sup>th</sup> day the Note was issued at an amount equal to 135% of (i) the then outstanding
principal amount of the Note, including accrued and unpaid interest due on the prepayment date.</p>
<p style="margin: 0">Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if
they choose to do so, can elect all of League Now’s directors.</p>
-334381
-4200
-16700
-124585
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following presents the impact of
share based compensation expense on our condensed consolidated statements of operations:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="line-height: 115%; text-align: center">Three months ended</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="line-height: 115%; text-align: center">Nine months ended</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30,</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">September 30,</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2012</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2012</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="line-height: 115%">General and administrative</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">140,000</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$</td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></p>
140000
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes all shares
of common stock reserved for issuance at September 30, 2012:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; font-style: italic; text-align: center">Number of Shares</td>
<td style="line-height: 115%; font-style: italic; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCFFCC">
<td style="width: 78%; line-height: 115%">Maximum shares issuable in connection with:</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 18%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Convertible debt instruments (with 5x reserve multiple)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">12,673,139</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
12673139
P5Y
P5Y
P5Y
P7Y
239
954
954
954
846
P84M
P69M
P42M
53000
27500
.14
.001
.001
10000000
10000000
.001
.001
100000000
100000000
47248851
53445563
47248851
53445563