Delaware
|
11-3820796
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨
(Do not check if a smaller reporting company)
|
Smaller
reporting company x
|
Page
|
||
PART
I – FINANCIAL INFORMATION
|
||
Item
1.
|
Consolidated
Financial Statements
|
1
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and
Results of Operations
|
30
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
39
|
Item
4.
|
Controls
and Procedures
|
39
|
PART
II – OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
40
|
Item
1A.
|
Risk
Factors
|
40
|
Item
2.
|
Unregistered
Sales of Equity Securities
|
40
|
Item
3.
|
Defaults
Upon Senior Securities
|
41
|
Item
4.
|
Submission
of Matters to a Vote of Shareholders
|
41
|
Item
5.
|
Other
Information
|
41
|
Item
6.
|
Exhibits
|
41
|
|
||
SIGNATURES
|
41
|
|
EXHIBIT
INDEX
|
42
|
PAGE
|
||
Consolidated
Financial Statements:
|
||
Consolidated
Balance Sheets
|
3
|
|
Consolidated
Statements of Operations
|
5
|
|
Consolidated
Statements of Cash Flows
|
6
|
|
Notes
to Consolidated Financial Statements
|
8
|
July
31, 2009
(Unaudited)
|
October
31, 2008
(Audited)
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 46,309 | $ | 37,802 | ||||
Commissons
and fees receivable
|
31,612 | 12,467 | ||||||
Prepaid
expenses and deposits
|
14,902 | 14,011 | ||||||
Debt
issuance costs, net
|
480 | - | ||||||
Other
current assets
|
14,080 | 6,125 | ||||||
Total
current assets
|
107,383 | 70,405 | ||||||
Investment
in Marketplace Home Mortgage Webdigs, LLC
|
21,084 | 2,182 | ||||||
Office
equipment and furniture, net
|
36,902 | 30,202 | ||||||
Intangible
assets, net
|
2,153,104 | 351,430 | ||||||
Total
assets
|
$ | 2,318,473 | $ | 454,219 |
July
31, 2009
(Unaudited)
|
October
31, 2008
(Audited)
|
|||||||
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of capital lease obligations
|
$ | 4,102 | $ | 3,828 | ||||
Accounts
payable
|
315,346 | 377,538 | ||||||
Accounts
payable - minority stockholder
|
626,786 | 550,206 | ||||||
Due
to officers
|
38,571 | 27,277 | ||||||
Accrued
expenses:
|
||||||||
Professional
fees
|
27,000 | 50,000 | ||||||
Payroll
and commissions
|
27,500 | 32,269 | ||||||
Lease
expenses for vacated office space
|
- | 55,913 | ||||||
Other
|
20,148 | 15,170 | ||||||
Promissory
note payable, net of discount
|
132,290 | - | ||||||
Total
current liabilities
|
1,191,743 | 1,112,201 | ||||||
Long
term liabilities:
|
||||||||
Capital
lease obligation, less current portion
|
7,319 | 10,431 | ||||||
Total
liabilities
|
1,199,062 | 1,122,632 | ||||||
Stockholders'
deficit:
|
||||||||
Common
stock - $.001 par value; 125,000,000 shares authorized as
common
|
||||||||
stock
and an additional 125,000,000 shares designated as common
or
|
||||||||
preferred
stock; 32,293,184 and 22,308,711 common shares issued
and
|
||||||||
outstanding
at July 31, 2009 and October 31, 2008, respectively
|
32,294 | 22,309 | ||||||
Treasury
stock - $.001 par value; 1,063,628 shares and 0 shares held
in
|
||||||||
treasury
as of July 31, 2009 and October 31, 2008, respectively
|
(265,907 | ) | - | |||||
Additional
paid-in-capital
|
4,901,116 | 2,002,226 | ||||||
Accumulated
deficit
|
(3,548,092 | ) | (2,692,948 | ) | ||||
Total
stockholders' deficit
|
1,119,411 | (668,413 | ) | |||||
Total
liabilities and stockholders' deficit
|
$ | 2,318,473 | $ | 454,219 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
July
31,
|
July
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Revenue:
|
||||||||||||||||
Gross
revenues
|
$ | 451,841 | $ | 272,882 | $ | 631,033 | $ | 462,387 | ||||||||
Less:
commissions, rebates and third
|
||||||||||||||||
party
agent commissions
|
(204,515 | ) | (131,849 | ) | (285,839 | ) | (198,452 | ) | ||||||||
Net
revenues
|
247,326 | 141,033 | 345,194 | 263,935 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Selling
|
243,192 | 353,252 | 563,036 | 1,339,366 | ||||||||||||
General
and administrative
|
225,793 | 278,243 | 573,421 | 545,851 | ||||||||||||
Total
operating expenses
|
468,985 | 631,495 | 1,136,457 | 1,885,217 | ||||||||||||
Operating
loss
|
(221,659 | ) | (490,462 | ) | (791,263 | ) | (1,621,282 | ) | ||||||||
Other
income (expense):
|
||||||||||||||||
Equity
in income from Marketplace Home Mortgage
|
||||||||||||||||
Webdigs,
LLC
|
117 | - | 18,902 | - | ||||||||||||
Interest
expense
|
(210,630 | ) | (462 | ) | (303,484 | ) | (504 | ) | ||||||||
Loss
on change in fair value of derivatives and warrants
|
- | - | (63,708 | ) | - | |||||||||||
Total
other income (expense)
|
(210,513 | ) | (462 | ) | (348,290 | ) | (504 | ) | ||||||||
Net
loss from continuing operations before
|
||||||||||||||||
income
taxes
|
(432,172 | ) | (490,924 | ) | (1,139,553 | ) | (1,621,786 | ) | ||||||||
Income
tax provision
|
- | - | - | - | ||||||||||||
Net
loss from continuing operations
|
(432,172 | ) | (490,924 | ) | (1,139,553 | ) | (1,621,786 | ) | ||||||||
Discontinued
operations (Note 7):
|
||||||||||||||||
Income
(loss) from operations of Marquest Financial, Inc.
|
||||||||||||||||
(including
gain on disposal of $297,412 during the three months
ended July 31, 2009)
|
292,686 | (63,499 | ) | 284,409 | (124,708 | ) | ||||||||||
Income
tax effect
|
- | - | - | - | ||||||||||||
Income
(loss) from discontinued operations
|
292,686 | (63,499 | ) | 284,409 | (124,708 | ) | ||||||||||
Net
loss
|
$ | (139,486 | ) | $ | (554,423 | ) | $ | (855,144 | ) | $ | (1,746,494 | ) | ||||
Net
loss per common share - basic and diluted
|
||||||||||||||||
Loss
from continuing operations
|
(0.01 | ) | (0.03 | ) | (0.04 | ) | (0.08 | ) | ||||||||
Income
(loss) from discontinued operations
|
0.01 | - | 0.01 | - | ||||||||||||
Net
income (loss)
|
$ | - | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.08 | ) | |||||
Weighted
average common shares outstanding -
|
||||||||||||||||
basic
and diluted
|
28,417,170 | 21,789,275 | 24,553,883 | 20,689,797 |
Nine
Months Ended
|
||||||||
July
31,
|
||||||||
2009
|
2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$ | (855,144 | ) | $ | (1,746,494 | ) | ||
Adjustments
to reconcile net loss to net cash flows
|
||||||||
used
in operating activities:
|
||||||||
Depreciation
|
10,948 | 23,939 | ||||||
Stock
warrant expense to debt holders for agreement modification
|
138,010 | - | ||||||
Amortization
of intangible assets
|
145,331 | 146,372 | ||||||
Amortization
of convertible/promissory note payable discount
|
129,873 | - | ||||||
Amortization
or debt issuance costs
|
3,520 | - | ||||||
Loss
on change in fair value of derivatives and warrants
|
63,708 | - | ||||||
Loss
on disposal of fixed assets
|
- | 580 | ||||||
Equity
in the income of Marketplace Home Mortgage -
|
||||||||
Webdigs,
LLC
|
(18,902 | ) | - | |||||
Share-based
compensation
|
179,447 | 166,791 | ||||||
Gain
on sale of subsidiary
|
(297,412 | ) | - | |||||
Common
stock issued for services
|
7,000 | - | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Commissions
and fees receivable
|
(19,145 | ) | (28,735 | ) | ||||
Prepaid
expenses and deposits
|
119,109 | 14,005 | ||||||
Other
current assets
|
(7,955 | ) | (8,744 | ) | ||||
Accounts
payable
|
(25,893 | ) | 309,162 | |||||
Accounts
payable - minority stockholder
|
76,580 | 216,052 | ||||||
Accrued
expenses and other liabilities
|
52,209 | 18,158 | ||||||
Net
cash flows used in operating activities
|
(298,716 | ) | (888,914 | ) | ||||
Cash
flows from investing activities:
|
||||||||
Purchase
of equipment and fixtures
|
- | (18,216 | ) | |||||
Purchase
of equipment and intangible assets
|
(157,733 | ) | - | |||||
Cash
paid for business acquistion
|
(5,000 | ) | - | |||||
Net
cash flows used in investing activities
|
(162,733 | ) | (18,216 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from issuance of common stock
|
335,500 | 841,500 | ||||||
Proceeds
from issuance of convertible debentures, net of debt
issuance
|
||||||||
costs
of $4,000 and unrelated accrued legal fees of $20,000
|
226,000 | - | ||||||
Principal
payment on convertible/promissory note
|
(100,000 | ) | - | |||||
Increase
(decrease) in due to officers
|
11,294 | (17,601 | ) | |||||
Principal
payments on capital lease obligations
|
(2,838 | ) | (5,861 | ) | ||||
Net
cash flows provided by financing activities
|
469,956 | 818,038 | ||||||
Net
change in cash and cash equivalents
|
8,507 | (89,092 | ) | |||||
Cash
and cash equivalents, beginning of period
|
37,802 | 113,280 | ||||||
Cash
and cash equivalents, end of period
|
$ | 46,309 | $ | 24,188 |
Nine
Months Ended
|
||||||||
July
31,
|
||||||||
2009
|
2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Supplemental cash flow
information
|
||||||||
Cash
paid for interest
|
$ | 16,958 | $ | 6,987 | ||||
Supplemental disclosure of non-cash investing
and
|
||||||||
financing activities
|
||||||||
Issuance
of common stock to convertible debt holder as a discount
on
|
||||||||
the
debt
|
$ | 20,000 | $ | - | ||||
Discount
on convertible debt due to detachable warrant and embedded
|
||||||||
conversion
options
|
$ | 127,583 | $ | - | ||||
Accrued
legal fees paid by withholding from debt proceeds
|
$ | 20,000 | $ | - | ||||
Related
party contribution to consultant for prepaid consulting
fees
|
$ | 40,000 | $ | - | ||||
Common
stock issued for prepaid consulting fees
|
$ | 80,000 | $ | - | ||||
Sell
Marquest Financial, Inc subsidiary to its founder for a return
of
|
||||||||
Webdigs
common stock
|
$ | 265,907 | $ | - | ||||
Issuance
of common stock to acquire Iggy's assets
|
$ | 1,815,625 | $ | - | ||||
Issuance
of common stock to acquire theMLSDirect.com
|
$ | 47,000 | $ | - | ||||
Convert
accrued officer salary to common stock
|
$ | 55,000 | $ | - | ||||
Void
forfeted balance of unearned compensation
|
$ | 41,098 | $ | - |
1
|
BASIS
OF PRESENTATION
|
2
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
3
|
GOING
CONCERN
|
4
|
RELATED
PARTY TRANSACTIONS
|
5
|
FIXED
ASSETS AND INTANGIBLE ASSETS
|
Asset Allocation |
Fair
Value
|
|||
Computer hardware | $ | 17,648 | ||
Intangible Assets: | ||||
Website
Software
|
1,333,769 | |||
Customer
lists
|
355,922 | |||
Non-compete
agreements
|
266,019 | |||
Subtotal
intangible assets
|
1,955,710 | |||
|
||||
Total
asset purchase allocation
|
$ | 1,973,358 |
July
31, 2009 (unuaudited)
|
October
31, 2008 (audited)
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Depreciation
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Depreciation
|
Net
Carrying
Amount
|
|||||||||||||||||||
Fixed
Assets
|
||||||||||||||||||||||||
Furniture
and Fixtures
|
$ | 9,981 | $ | (2,851 | ) | $ | 7,130 | $ | 9,981 | $ | (475 | ) | $ | 9,506 | ||||||||||
Computer
hardware
|
50,972 | (21,200 | ) | 29,772 | 33,324 | (12,628 | ) | 20,696 | ||||||||||||||||
Total
Fixed Assets
|
$ | 60,953 | $ | (24,051 | ) | $ | 36,902 | $ | 43,305 | $ | (13,103 | ) | $ | 30,202 |
July
31, 2009 (unaudited)
|
October
31, 2008 (audited)
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|||||||||||||||||||
Identifiable
assets with determinable lives
|
||||||||||||||||||||||||
Website
Software
|
$ | 1,747,285 | $ | (252,704 | ) | $ | 1,494,581 | $ | 413,516 | $ | (149,325 | ) | $ | 264,191 | ||||||||||
Customer
lists
|
355,922 | - | 355,922 | 130,859 | (43,620 | ) | 87,239 | |||||||||||||||||
Non-compete
agreements
|
266,019 | (11,084 | ) | 254,935 | - | - | - | |||||||||||||||||
Other
|
52,000 | (4,334 | ) | 47,666 | - | - | - | |||||||||||||||||
Total
Intangible Assets
|
$ | 2,421,226 | $ | (268,122 | ) | $ | 2,153,104 | $ | 544,375 | $ | (192,945 | ) | $ | 351,430 |
6
|
ACQUISITIONS
AND DIVESTITURES
|
Allocation of Consideration
|
Value
|
|||
Established
real estate broker network in 17 states
|
$ | 27,000 | ||
Website
domain names
|
25,000 | |||
Total
consideration
|
$ | 52,000 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Marquest Financial, Inc.
|
July 31,
|
July 31,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Net
Revenue
|
$ | - | $ | 94,889 | $ | - | $ | 471,348 | ||||||||
Operating
expenses
|
(4,726 | ) | (156,417 | ) | (13,003 | ) | (589,573 | ) | ||||||||
Other
income (expense)
|
297,412 | (1,971 | ) | 297,412 | (6,483 | ) | ||||||||||
Pre
- tax income
|
292,686 | (63,499 | ) | 284,409 | (124,708 | ) | ||||||||||
Income
taxes
|
- | - | - | - | ||||||||||||
Net
income
|
$ | 292,686 | $ | (63,499 | ) | $ | 284,409 | $ | (124,708 | ) | ||||||
- | - |
June 4, 2009
|
||||
Marquest Financial, Inc.
|
(Unaudited)
|
|||
Assets
|
||||
Intangible
assets, customer list, net
|
$ | 60,704 | ||
Total
assets
|
$ | 60,704 | ||
Liabilities
|
||||
Accounts
payable
|
$ | 30,996 | ||
Accrued
expnses
|
55,913 | |||
Taxes
payable
|
5,300 | |||
Total
liabilities
|
$ | 92,209 | ||
Net
carrying value
|
$ | (31,505 | ) |
7
|
INVESTMENT
IN MARKETPLACE HOME MORTGAGE - WEBDIGS,
LLC
|
July
31, 2009
|
||||
Current
assets
|
$ | 42,233 | ||
Other
assets
|
18,195 | |||
Liabilities
|
(1,380 | ) | ||
Net
equity
|
$ | 59,048 | ||
The
Company's share in the equity in Marketplace Home Mortgage
-
|
||||
Webdigs,
LLC (49%)
|
$ | 28,934 | ||
Less:
Deferred gain on excess of fair value received over net
book
|
||||
value
of assets contributed to Marketplace Home Mortgage -
|
||||
Webdigs,
LLC (1)
|
(7,850 | ) | ||
Investment
in Marketplace Home Mortgage - Webdigs, LLC at
|
||||
July
31, 2009
|
$ | 21,084 |
|
(1)
|
At
July 31, 2009, the Company’s share of the underlying assets of Marketplace
Home Mortgage – Webdigs, LLC exceeded its investment by
$7,850. The excess, which relates to office equipment, is being
amortized into income over the estimated remaining life of the respective
assets (31 months).
|
Three
Months
Ended
July 31,
2009
|
Nine
months
ended
July 31,
2009
|
|||||||
Revenue
(1)
|
$ | - | $ | 246,413 | ||||
Operating
expenses
|
(1,314 | ) | (212,491 | ) | ||||
Operating
income
|
(1,314 | ) | 33,922 | |||||
Other
expense
|
- | - | ||||||
Net
income
|
$ | (1,314 | ) | $ | 33,922 | |||
The
Company's share in the income of Marketplace Home
|
||||||||
Mortgage
Webdigs, LLC (49%)
|
$ | (643 | ) | $ | 16,622 | |||
Amortization
of deferred gain on transfer of non-cash assets
|
760 | 2,280 | ||||||
Net
equity in the income of Marketplace Home Mortgage -
|
||||||||
Webdigs,
LLC
|
$ | 117 | $ | 18,902 |
(1)
|
Marketplace
Home Mortgage- Webdigs had no revenue for the quarter ending July 31,
2009. The Company expects to a make decision as to the future
of the joint venture with its joint venture partner sometime in the fourth
quarter of the current fiscal year ending October 31,
2009.
|
8
|
CONVERTIBLE/PROMISSORY
NOTE PAYABLE
|
9
|
SHARE- BASED
COMPENSATION
|
Number
of
options
|
Weighted
average
exercise
price
|
Aggregate
intrinsic
value
|
Weighted
average
remaining
contractual
term (years)
|
|||||||||||||
Outstanding
at October 31, 2008
|
600,000 | $ | 0.25 | $ | - | 3.75 | ||||||||||
Granted
|
200,000 | 0.08 | - | 5.00 | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Cancelled
|
- | - | - | - | ||||||||||||
Outstanding
at July 31, 2009
|
800,000 | $ | 0.21 | $ | 5,000 | 4.10 | ||||||||||
Exercisable
at July 31, 2009
|
500,000 | $ | 0.25 | $ | - | 3.75 |
Restricted
Shares
|
Unearned
Compensation
|
|||||||
Outstanding,
October 31, 2007
|
4,686,904 | $ | 365,398 | |||||
Granted
|
- | - | ||||||
Vested
|
(577,806 | ) | (41,727 | ) | ||||
Forfeited/canceled
|
- | - | ||||||
Outstanding,
January 31, 2008
|
4,109,098 | 323,671 | ||||||
Granted
|
- | - | ||||||
Vested
|
(577,806 | ) | (41,727 | ) | ||||
Forfeited/canceled
|
- | - | ||||||
Outstanding,
April 30, 2008
|
3,531,292 | 281,944 | ||||||
Granted
|
- | - | ||||||
Vested
|
(577,806 | ) | (41,727 | ) | ||||
Forfeited/canceled
|
- | - | ||||||
Outstanding,
July 31, 2008
|
2,953,486 | 240,217 | ||||||
Granted
|
- | - | ||||||
Vested
|
(659,344 | ) | (41,727 | ) | ||||
Forfeited/canceled
|
(353,329 | ) | - | |||||
Outstanding,
October 31, 2008
|
1,940,813 | 198,490 | ||||||
Granted
|
- | - | ||||||
Vested
|
(652,311 | ) | (60,860 | ) | ||||
Forfeited/canceled
|
- | - | ||||||
Outstanding,
January 31, 2009
|
1,288,502 | 137,630 | ||||||
Granted
|
- | - | ||||||
Vested
|
(652,309 | ) | (60,861 | ) | ||||
Forfeited/canceled
|
- | - | ||||||
Outstanding,
April 30, 2009
|
636,193 | 76,769 | ||||||
Granted
|
50,000 | 12,500 | ||||||
Vested
|
(407,999 | ) | (38,865 | ) | ||||
Forfeited/canceled
|
(240,970 | ) | (41,098 | ) | ||||
Outstanding,
July 31, 2009
|
$ | 37,224 | $ | 9,306 |
10
|
STOCKHOLDERS'
EQUITY
|
11
|
BASIC
AND DILUTED EARNINGS PER SHARE
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
July 31,
|
July 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Basic
earnings per share calculation:
|
||||||||||||||||
Net
loss from continuing operations
|
$ | (432,172 | ) | $ | (490,924 | ) | $ | (1,139,553 | ) | $ | (1,621,786 | ) | ||||
Net
income (loss) from discontinued operations
|
292,686 | (63,499 | ) | 284,409 | (124,708 | ) | ||||||||||
Net
loss
|
$ | (139,486 | ) | $ | (554,423 | ) | $ | (855,144 | ) | $ | (1,746,494 | ) | ||||
Weighted
average of common shares
|
||||||||||||||||
outstanding
|
28,417,170 | 21,789,275 | 24,553,883 | 20,689,797 | ||||||||||||
Net
loss per common share - basic
|
||||||||||||||||
Loss
from continuing operations
|
(0.01 | ) | (0.03 | ) | (0.04 | ) | (0.08 | ) | ||||||||
Income
(loss) from discontinued operations
|
0.01 | - | 0.01 | - | ||||||||||||
Net
income (loss) per basic share
|
$ | - | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.08 | ) | |||||
Diluted
earnings per share calculation:
|
||||||||||||||||
Net
loss from continuing operations
|
$ | (432,172 | ) | $ | (490,924 | ) | $ | (1,139,553 | ) | $ | (1,621,786 | ) | ||||
Net
income (loss) from discontinued operations
|
292,686 | (63,499 | ) | 284,409 | (124,708 | ) | ||||||||||
Net
loss
|
$ | (139,486 | ) | $ | (554,423 | ) | $ | (855,144 | ) | $ | (1,746,494 | ) | ||||
Weighted
average of common shares
|
||||||||||||||||
outstanding
|
28,417,170 | 21,789,275 | 24,553,883 | 20,689,797 | ||||||||||||
Stock
options, and warrants (1)
|
- | - | - | - | ||||||||||||
Diluted
weighted average common shares
|
||||||||||||||||
outstanding
|
28,417,170 | 21,789,275 | 24,553,883 | 20,689,797 | ||||||||||||
Net
loss per common share - diluted
|
||||||||||||||||
Loss
from continuing operations
|
(0.01 | ) | (0.03 | ) | (0.04 | ) | (0.08 | ) | ||||||||
Income
(loss) from discontinued operations
|
0.01 | - | 0.01 | - | ||||||||||||
Net
income (loss) per diluted share
|
$ | - | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.08 | ) |
|
(1)
|
The
computation of diluted net loss per share as of July 31, 2009 does not
differ from the basic computation because potentially dilutive issuable
securities of 800,000 stock options and 300,000 stock warrants would be
anti-dilutive. There were no potentially anti-dilutive shares
as of July 31, 2008.
|
12
|
SUBSEQUENT
EVENTS
|
Item 2.
|
Management’s Discussion and
Analysis of Financial Condition and Results of
Operation
|
|
a)
|
All
information required to be disclosed on a report on Form 8-K during the
period ended July 31, 2009 has previously been
reported.
|
|
b)
|
There
have been no material changes to the procedures by which security holders
may recommend nominees to the registrant’s board of
directors.
|
Exhibit No.
|
Description
|
|
31.1
|
Certification
of Chief Executive Officer
|
|
31.2
|
Certification
of Chief Financial Officer
|
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer
pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002
|
WEBDIGS,
INC.
|
|
/s/ Robert A. Buntz,
Jr.
|
|
Robert
A. Buntz, Jr.
|
|
Chief
Executive Officer
|
|
Dated: September
21, 2009
|
|
/s/ Edward
Wicker
|
|
Edward
Wicker
|
|
Chief
Financial Officer
|
|
Dated: September
21, 2009
|
Exhibit No.
|
Description
|
|
31.1
|
Certification
of Chief Executive Officer
|
|
31.2
|
Certification
of Chief Financial Officer
|
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer
pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002
|