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Organization and Basis of Presentation
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9 Months Ended |
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Jun. 30, 2011
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| Organization and Basis of Presentation |
Note 1: Organization and Basis of
Presentation
The
accompanying unaudited condensed consolidated financial statements
include the accounts of LiveDeal, Inc. (formerly YP Corp.), a
Nevada corporation, and its wholly owned subsidiaries
(collectively, the “Company”). The Company
delivers internet directory services for small and medium-sized
businesses to deliver an affordable way for businesses to extend
their marketing reach to local, relevant customers via the
Internet.
The
accompanying condensed consolidated balance sheet as of September
30, 2010, which has been derived from the audited consolidated
financial statements, and the accompanying unaudited condensed
consolidated financial statements as of June 30, 2011, and for
the three and nine months ended June 30, 2011 and June 30,
2010, have been prepared in accordance with generally accepted
accounting principles for interim financial
information. Accordingly, they do not include all of the
information and footnotes required by U.S. generally accepted
accounting principles for audited financial statements. In the
opinion of the Company’s management, the interim information
includes all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of the results for
the interim periods. The results of operations for the
three and nine months ended June 30, 2011 are not necessarily
indicative of the results to be expected for the year ending
September 30, 2011. The footnote disclosures related to the interim
financial information included herein are also unaudited. Such
financial information should be read in conjunction with the
consolidated financial statements and related notes thereto as of
September 30, 2010 and for the year then ended included in the
Company’s Annual Report on Form 10-K for the year ended
September 30, 2010.
The
preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities at the date of the financial statements and
the reported amount of revenues and expenses during the reporting
period. Significant estimates and assumptions have been
made by management throughout the preparation of the condensed
consolidated financial statements, including in conjunction with
establishing allowances for customer refunds, non-paying customers,
dilution and fees, analyzing the recoverability of the carrying
amount of intangible assets, estimating forfeitures of stock-based
compensation and evaluating the recoverability of deferred tax
assets. Actual results could differ from these
estimates.
While
the Company believes that its existing cash on hand, together with
the additional cash obtained from the loan facility the Company
entered into on May 13,
2011, as described in more detail in Note 3 together with other
sources of capital, such other sources of cash possibly including:
stock issuances; additional loans;
advances from our existing LEC clearing houses through their
current advance programs; or other forms of financing secured by or
leveraged off our accounts
receivable based on existing programs in place that are being
offered to companies similar to ours; is sufficient to finance our
operations for the next twelve
months, there can be no assurance that we will generate sufficient
revenue to repay the loan facility referenced above when it comes
due or that we will achieve
profitability, positive operating cash flows, or sufficient cash
flows for operations. To the extent that we cannot repay the loan
when it comes due or achieve
profitability or sufficient operating cash flows, our business will
be materially and adversely affected. Further, our business is
likely to experience significant
volatility in its revenues, operating losses, personnel involved,
products or services for sale, and other business parameters, as
management implements
its strategies and responds to operating results. Although the
Company has suspended new sales of the Velocity products, the
Company continues to
maintain the Legacy business and we are simultaneously exploring
other strategic alternatives. We cannot provide any assurance that
additional financing arrangements
will be available in amounts or on terms acceptable to us, if at
all.
Effects of Stock Split: Effective August 10, 2011, the
Company implemented a 20-for-19 stock split with respect to issued
and outstanding shares of its common
stock. The stock split was in the form of a stock dividend, with
one (1) share of the Company’s common stock issued in respect
of every 19 shares of common
stock issued and outstanding as of July 29, 2011, the record date
for the stock split. Any fractional shares otherwise issuable as a
result of the stock split
were rounded up to the nearest whole share. All share and per share
amounts have been retroactively restated for the effects of this
stock split.
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