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&lt;p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;During
the six months ended June 30, 2013 the Company established a subsidiary in China, Horizon Network Technology Co. Ltd. (&amp;#145;HNT&amp;#146;).&amp;#160;
The establishment of HNT is part of the Company&amp;#146;s strategic plan to expand the application of mobile software and related
marketing efforts into emerging markets.&amp;#160; The Company contributed $1.5 million for a 75% ownership interest in HNT.&amp;#160;
The funds contributed will be used to pay initial start-up costs for HNT.&amp;#160; The remaining 25% ownership interest in HNT was
acquired by non-related parties through the transfer of noncash assets with a fair value of $500,000.&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;&amp;#160;&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;The
results of operations, assets, liabilities, and cash flows of HNT have been consolidated in the accompanying condensed consolidated
financial statements as the Company owns a controlling financial interest.&amp;#160; The ownership interests in HNT held by parties
other than the Company are presented separately from the Company&amp;#146;s equity on the Consolidated Balance Sheet.&amp;#160; The amount
of consolidated net loss attributable to the Company and the noncontrolling interest are both presented on the face of the Consolidated
Statement of Operations.&amp;#160;&lt;/font&gt;&lt;/p&gt;



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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 210

 -SubTopic 10

 -Section S99

 -Paragraph 1

 -Subparagraph (SX 210.5-02.31)

 -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 810

 -SubTopic 10

 -Section 50

 -Paragraph 1A

 -URI http://asc.fasb.org/extlink&amp;oid=18733093&amp;loc=SL4573702-111684



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