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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Washington D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PURSUANT TO SECTION 13 OR 15(d)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">OF THE SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of Earliest Event Reported):
February 29, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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    <TD STYLE="width: 100%; font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">ASCEND ACQUISITION CORP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">(Exact name of registrant as specified in its charter)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1pt solid">Delaware</TD>
    <TD STYLE="width: 2%; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1pt solid">000-51840</TD>
    <TD STYLE="width: 2%; text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1pt solid">20-3881465</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State of Incorporation)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File No.)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(IRS Employer ID No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>360 Ritch Street, Floor 3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>San Francisco, California 94107</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of Principal Executive Offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(786) 245-3786</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s Telephone Number, Including
Area Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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    <TD STYLE="width: 100%; font-weight: bold; text-align: center"><B>970 West Broadway, PMB 402</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Jackson, Wyoming&nbsp; 83002</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Former name or former address, if changed since last report)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT> Written communications
pursuant to Rule 425 under the Securities Act (17 CFR.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT> Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT> Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT> Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This document contains forward-looking statements,
which reflect our views with respect to future events and financial performance. These forward-looking statements are subject to
certain uncertainties and other factors that could cause actual results to differ materially from such statements. These forward-looking
statements are identified by, among other things, the words &ldquo;anticipates&rdquo;, &ldquo;believes&rdquo;, &ldquo;estimates&rdquo;,
&ldquo;expects&rdquo;, &ldquo;plans&rdquo;, &ldquo;projects&rdquo;, &ldquo;targets&rdquo; and similar expressions. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events
or otherwise. Important factors that may cause actual results to differ from those projected include the risk factors set forth
in Item 2.02 of this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>USE
OF DEFINED TERMS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; border-left: white 0.25pt solid">Except as
otherwise indicated by the context, references in this report to &ldquo;Ascend&rdquo; or the &ldquo;Company&rdquo; are references
to Ascend Acquisition Corp., a Delaware corporation, and references to &ldquo;Andover Games&rdquo; are references to Andover Games,
LLC, a Delaware limited liability company that is wholly-owned by Ascend. References to &ldquo;we,&rdquo; &ldquo;us&rdquo; or &ldquo;our&rdquo;
are references to the combined business of Ascend and Andover Games.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>ITEM 1.01&#9;ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>General; Merger Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 30, 2011, Ascend entered into a
Merger Agreement and Plan of Reorganization (the &ldquo;Merger Agreement&rdquo;) by and among Ascend, Ascend Merger Sub, LLC, a
Delaware limited liability company and a wholly-owned subsidiary of Ascend (&ldquo;Merger Sub&rdquo;), Andover Games and the members
of Andover Games (&ldquo;Signing Members&rdquo;). On February 29, 2012, the parties closed the transactions under the Merger Agreement
and, pursuant to the Merger Agreement, the Merger Sub merged with and into Andover Games, with Andover Games surviving the merger
and becoming a wholly-owned subsidiary of Ascend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Andover Games is a company formed to create
and distribute game applications on current smartphone and other mobile platforms, namely iOS and Android, as well as future competing
smartphone platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following summaries of the merger and related
transactions, the Merger Agreement and the other agreements entered into by the parties are qualified in their entirety by reference
to the text of the agreements, certain of which are attached as exhibits hereto and are incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Merger Consideration</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the close of the merger (&ldquo;Closing&rdquo;),
the holders of membership interests of Andover Games received 38,195,025 shares of Ascend common stock, representing 75% of the
fully diluted capitalization of Ascend immediately after the closing of the merger and the Financing (defined below), subject to
further adjustment as provided for in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Merger Agreement, Ascend
was obligated to use its commercial best efforts to raise at least $4 million of equity capital through the sale of
Ascend&rsquo;s capital stock (the &ldquo;Financing&rdquo;), of which at least $2 million was to be raised prior to or
simultaneously with the Closing and such additional proceeds are to be raised, if at all, within the next 30 days so as to
raise up to $4 million in aggregate proceeds. &nbsp;&nbsp;As described under &ldquo;Financing&rdquo; below, simultaneously
with the Closing, Ascend sold 4,000,000 shares of its common stock, at $0.50 per share, for gross proceeds of $2 million.
Pursuant to the Merger Agreement, Ascend is required to use its commercial best efforts to raise an additional $2 million of
proceeds within 30 days after the Closing. Pursuant to the Merger Agreement, if Ascend sells additional shares of its capital
stock in the Financing during such period, Ascend will issue additional shares of its common stock to the former members of
Andover Games to maintain their collective ownership of Ascend common stock at 75% on a fully diluted basis. Alternatively,
if Ascend sells less than the maximum $4 million in aggregate proceeds in the Financing, then such number of additional
shares of Ascend capital stock shall be issued to the former members of Andover Games at the final closing of the Financing
so as to increase their collective pro-rata percentage ownership in Ascend by one percent (1%) for every $200,000 in proceeds
that Ascend falls short of the $4 million maximum proceeds in the Financing. By way of example, if Ascend raises only an
additional $1,000,000 in a second and final closing of the Financing, then Ascend shall issue to the former members of
Andover Games additional shares of common stock in Ascend such that the former members of Andover Games, as a group, hold 80%
of the outstanding shares of Ascend common stock on a fully diluted basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Financing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">Simultaneously
with the Closing, Ascend sold 4,000,000 shares (&ldquo;Shares&rdquo;) of its common stock, at $0.50 per share, for gross proceeds
of $2 million to 15 accredited investors, including Ironbound Partners Fund, LLC (&ldquo;Ironbound&rdquo;), an affiliate of Jonathan
J. Ledecky, Ascend&rsquo;s former Chief Executive Officer and the holder of approximately 85% of Ascend&rsquo;s outstanding common
stock prior to the consummation of the merger and Financing. Pursuant to the Merger Agreement, Ascend is required to use its commercial
best efforts to raise such additional proceeds within 30 days after the Closing so as to raise $4 million in aggregate proceeds.
The purchase and sale of the Shares was conducted pursuant to a Subscription Agreement entered into between Ascend and each of
the investors. Pursuant to the terms of the Subscription Agreement, Ascend has agreed to file, within ten business days of the
Closing, a registration statement (&ldquo;Registration Statement&rdquo;) with the Securities and Exchange Commission covering the
resale by the investors of the Shares they purchased and use its best efforts to have such Registration Statement declared effective
as promptly as practicable thereafter, and keep the Registration Statement effective until (i) the date on which the Shares may
be resold by the investor without registration under the Securities Act and without regard to any volume limitations by reason
of Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the Shares have been sold pursuant to the
Registration Statement or Rule 144 under the Securities Act or any other rule of similar effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Lock-Up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the terms of lock-up agreements
entered into upon signing of the Merger Agreement, all of the officers, managers and former holders of membership interests of
Andover Games, together with Jonathan J. Ledecky and Ironbound, have agreed not to sell their shares of Ascend common stock until
the 12-month anniversary of the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Tax and Accounting Considerations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The merger constituted a tax-free reorganization
within the meaning of Section 368 of the Internal Revenue Code of 1986, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The merger will be accounted for as a &ldquo;reverse
merger&rdquo; and recapitalization since immediately following the completion of the transaction, the holders of membership interests
of Andover Games immediately prior to the merger have effective control of Ascend through their approximately 75% aggregate stockholder
interest in the combined entity. In addition, all of Andover Games&rsquo; senior executive positions continue on as management
of the combined entity after consummation of the merger. For accounting purposes, Andover Games will be deemed to be the accounting
acquirer in the transaction and, consequently, the transaction will be treated as a recapitalization of Andover Games. Accordingly,
Andover Games&rsquo; assets, liabilities and results of operations will become the historical financial statements of Ascend, and
Ascend&rsquo;s assets, liabilities and results of operations will be consolidated with Andover Games effective as of the merger
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Right of First Look Letter</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each former holder of Andover Games&rsquo;
membership interests has entered into a right of first look letter agreement with Ascend pursuant to which each such individual
has agreed to disclose and present to Ascend new potential business opportunities which relate to Andover Games&rsquo; business
prior to pursuing such opportunities themselves, alone or with any other person, subject to certain limited exceptions, so long
as such person either owns at least 1% of the of the outstanding capital stock of Ascend or is an officer, director, employee or
consultant of Ascend.&nbsp;&nbsp;Even if Ascend does not desire to pursue such opportunity, it can prevent the individual from
pursuing it by notice to such individual.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Noncompetition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Merger Agreement, each former
holder of Andover Games&rsquo; membership interests, including Craig dos Santos, Ben Lewis, Lee Linden and Richard Hecker, have
agreed not to compete with Ascend for a period of two years from the Closing and to not solicit any employees of Ascend
during such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Representations and Warranties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Merger Agreement included customary representations
and warranties of each of Ascend, Merger Sub, Andover Games and the Signing Members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Management of Ascend Following Merger</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon the Closing, Craig dos Santos, Andover
Games&rsquo; Chief Executive Officer, Ben Lewis, a founder of Andover Games, Richard Hecker, a board member of Andover Games, and
Jeremy Zimmer were appointed to Ascend&rsquo;s Board to join Jonathan Ledecky as board members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon consummation of the merger, Jonathan Ledecky
resigned from his position of Chief Executive Officer of Ascend and became the non-executive Chairman of the Board and Interim
Chief Financial Officer of Ascend.&nbsp;&nbsp;Mr. Ledecky entered into a two-year consulting agreement with Ascend upon consummation
of the merger providing for him to receive an annual consulting fee of $150,000.&nbsp;&nbsp;Additionally, Craig dos Santos became
the Chief Executive Officer of Ascend and will also be the Chief Executive Officer and a Manager of Andover Games, and entered
into a two-year employment agreement with Ascend upon the Closing providing for him to be paid an annual salary of $225,000.&nbsp;&nbsp;
Traction and Scale LLC, a limited liability company in which Richard Hecker owns 100% of the membership interests, also entered
into a two-year consulting agreement with Ascend pursuant to which it will make the services of Mr. Hecker available to Ascend
during the term and providing for $150,000 in aggregate consulting fees per year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Bridge Loans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Merger Agreement, prior to
the Closing, Ascend provided bridge loans in the aggregate amount of $250,000 to Andover Games (the &ldquo;Bridge Loans&rdquo;).&nbsp;&nbsp;The
Bridge Loans were evidenced by promissory notes bearing interest at the prime annual rate plus 5%.&nbsp;&nbsp;The promissory notes
were due on the closing of the merger and have been repaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To provide the necessary funding for Ascend
to make the above-referenced Bridge Loans, Ascend received a loan from Ironbound in an aggregate principal amount of $250,000 and
in return issued to Ironbound a convertible promissory note to evidence the loan.&nbsp;&nbsp;The note was due on the Closing and
was used as consideration for Ironbound to purchase shares of Ascend&rsquo;s common stock in the first closing of the Financing
on the same terms as the other investors. The interest owed on the note was forgiven.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Indemnification Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon the Closing, Ascend entered into indemnification
agreements with each of its executive officers and directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Copies of the Merger Agreement, Lock Up
Agreements, Right of First Look Agreements, Indemnification Agreements, Employment Agreements and Consulting Agreements with
our officers and directors and the form of Subscription Agreement used in the Financing are filed as exhibits to this report.
On March 2, 2012, we issued a press release describing the closing of the merger and the Financing. A copy of the press
release is filed as Exhibit 99.1 to this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -1in"><B>ITEM 2.01&#9;COMPLETION OF ACQUISITION
OR DISPOSITION OF ASSETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 29, 2012, we completed an acquisition
of Andover Games pursuant to the Merger Agreement. The acquisition was accounted for as a recapitalization effected by merger,
wherein Andover Games is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of
the acquired entity have been brought forward at their book value and no goodwill has been recognized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 10 DISCLOSURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As disclosed elsewhere in this report, we acquired
Andover Games in a reverse acquisition transaction. Item 2.01(f) of Form 8-K states that if the registrant was a shell company
(as we were immediately before the reverse acquisition transaction disclosed under Item 2.01), then the registrant must disclose
the information that would be required if the registrant were filing a general form for registration of securities on Form 10.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accordingly, we are providing below the information
that would be included in a Form 10 if we were to file a Form&nbsp;10. Please note that the information provided below relates
to the combined enterprises after the acquisition of Andover Games, except that information relating to periods prior to the date
of the reverse acquisition relate to only Ascend Acquisition Corp., unless otherwise specifically indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DESCRIPTION OF BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Vision for Play</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We founded Andover Games in January 2011 with
the belief that mobile entertainment is becoming one of the most ubiquitous forms of entertainment as smartphone devices become
the standard. We believe that online and mobile games are no longer a past time for just male teenagers. All ages are spending
more time on their mobile devices, and the demand for high quality mobile entertainment will continue to increase. We aim to bring
together the best teams of game designers and engineers and pioneer a new standard for mobile entertainment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our goal is to become one of the leading gaming
companies focused purely in the social mobile arena. We intend to use a multi-faceted approach to developing, producing, marketing
and distributing games on iOS and Android devices. We aim for fun, engaging consumer interaction, experienced anywhere, at any
time, on your phone. Our team has acquired its expertise gleaned from not only working at, but starting, top social gaming companies,
and the leading marketing/distribution company in the mobile gaming space. We expect that the majority of our games will be free
to play, and we expect to generate revenue through the in-game sale of virtual goods and advertising. We intend to recruit experienced
public company executives who have a track record of building numerous successful public companies to join forces with our existing
team of top mobile executives and technologists.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe opportunities in mobile gaming are
growing faster than ever because of the dramatic increase in audience size (more and more people have iPhones and Android devices)
as well as the increasing popularity of casual, social games. These factors have opened up the gaming market to a wider audience,
attracting a broad range of users who have never previously considered themselves &ldquo;gamers&rdquo;. We have an opportunity
to grow quickly and use our deep relationships in the mobile gaming space and operational expertise to build technical tools that
we believe will allow us to launch games faster and with a higher quality barrier to entry than the current competition. We intend
to attract the top talent in the industry by narrowing our focus on executing a free to play business model while simultaneously
increasing the quality of aesthetics and interaction in the game.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Industry Background</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0">Social Games</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since the mid-1970s, video game companies have
focused on console games, selling individual games for $30 to $50 in retail stores. A smaller but growing section of the market
concentrated on PC games and online games. In 2008, the online gaming market started growing exponentially with the introduction
of games on the Facebook platform. Facebook allowed for easy, viral distribution of games and a new type of game was introduced
to the US market: Social Games.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Free to Play Gaming Model</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By early 2009, a few leaders in the industry
(Zynga, Playdom, Playfish) had emerged and were generating hundreds of millions of dollars in revenue by offering games that were
Free to Play (F2P). Companies earned revenue by selling virtual currencies and virtual goods within the game. Instead of creating
a game, packaging it and selling it in a store, these games were created quickly and launched and then updated frequently. Games
became a service, instead of a packaged good product. We believe that many of the traditional gaming companies have been slow to
enter into this world, and that game companies of this F2P era continue to be led by technologists coming from the web software
world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mobile Gaming on the iOS platform</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since the introduction of the iOS developer
platform in 2008, game development has been extremely popular. Most developers view the iPhone and iPod Touch as another portable
game console. Games and entertainment quickly comprised 26% of all downloads in the iOS app store. Porting games from other consoles
was an initial strategy by most developers but the problem they encountered was that the price points were very different. Consumers
wanted apps for free, or at best were willing to pay a few dollars for an application. Price points of $5 rarely brought enough
downloads to make the investment worthwhile. Most console game developers were accustomed to spending a year or more developing
each title and charging upwards of $30 per game unit sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Meanwhile, the development costs were considerable
for brand name content as companies started to copy the model for building console games onto mobile devices. In addition, the
usual channels for marketing and distribution didn&rsquo;t work, leading to costly mistakes. Many firms lost money on their heavy
hitting game titles, and even lucrative franchises like Madden and Call of Duty could not dominate the top games charts for a competitive
length of time. The packaged good model of gaming that had dominated the console gaming did not translate to the new mobile platforms.
A new model began to emerge that closely mirrored changes in the software world; where software moved from being a packaged good
that consumers purchased in a box, to a service that was built on and delivered via the internet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By 2010, Playdom, Zynga and a few independent
companies had started experimenting with taking F2P games from Facebook onto the iOS platform. Almost immediately, these games
started to eclipse brand name content in terms of revenue. While many companies were trying out a Free and Paid version of their
games (the traditional shareware / try-before-you-buy model), the F2P model allowed for extreme price discrimination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The way people use, communicate and entertain
themselves using smartphones continues to evolve in 2012. As people spend more and more minutes using their phones, playing casual
games will continue to be a common activity. Games are the most popular category of applications on smartphones, representing approximately
half of the time spent on smartphone applications in the United States, according to a May 2011 report by Flurry Analytics, a market
data and analytics firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There are a number of key trends that we believe
will continue to drive the growth and popularity of social games, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><I>Growth of Smartphone Audience and proliferation of mobile applications</I>. Over the past 5
years, smartphones have emerged as a mainstream way to access the internet, utilize applications and play games, communicate and
socialize. The worldwide smartphone market grew 54.7% year over year in the fourth quarter of 2011. [IDC http://www.idc.com/getdoc.jsp?containerId=prUS23299912]
As smart phones, tablets and other increasingly powerful connected devices have proliferated worldwide, application developers
have leveraged the much greater distribution opportunity and emerging social connectivity of mobile devices. Games are the most
popular category of applications on smartphones, representing approximately half of the time spent on smartphone applications in
the United States, according to a May 2011 report by Flurry Analytics, a market data and analytics firm.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><I>Rapid Growth of Free-to-Play Games</I>. Most social games are free to play and generate revenue
through the in-game sale of virtual goods. According to In-Stat, a market intelligence firm, the worldwide market for the sale
of virtual goods was $7.3 billion in 2010 and is expected to more than double by 2014. Compared to pay-to-play business models,
the free-to-play approach tends to attract a wider audience of players, thereby increasing the number of players who have the potential
to become paying users. By attracting a larger audience, the free-to-play model also enables a higher degree of in-game social
interaction, which enhances the game experience for all players.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Opportunity</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe that mobile games represent a new form of entertainment
that will continue to capture leisure time as more games enter the market and target new demographics. Together with the growing
audience on smartphones, worldwide, we believe that mobile games will represent an increasing portion of the overall video game
software market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As we move forward, we will endeavor to create technology that allows
us to move across platforms from Android to iOS and potentially other smartphone platforms as the market continues to mature. We
intend to create tools that will allow us to deliver high end aesthetic experiences, and allow us to analyze the data in our games
and change them to better fit the actions of our user base.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We intend to invest in distribution, marketing and analytics on
behalf of games we deem to have potential and partner with promising teams to distribute their titles. We intend to selectively
invest in other game companies and make acquisitions of companies that are deemed strategic to Andover.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe that we can attract and retain high quality game development
teams to work with us by offering them a combination of (i)&nbsp;critical path resources (e.g., quick cash infusions for early
game development, a highly skilled in house team of software engineers and design specialists, and marketing expertise with whom
to consult during the game development process) and (ii)&nbsp;highly attractive compensation which they would not be able to achieve
on their own (i.e., specific cash incentives/revenue share of particular game revenue tied to the team&rsquo;s individual efforts,
together with equity grants in Ascend representing their participation in our overall effort to become a leading social mobile
gaming company).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Games</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: black">We will initially launch our games
in conjunction with other gaming companies in which we expect to invest and own a significant economic ownership stake
ranging from a minority stake to, where possible, a majority equity stake. We will attempt to maintain at least voting (but
less likely and often, economic) parity with the other owners of such gaming companies. We expect to enter into strategic
relationship agreements with such gaming companies, including, among other things, a publisher licence with a right to shared
revenues for specific game title(s) of the gaming companies with which we assist in developing and publishing. Company and
industry specific factors outside of our control will significantly impact the results of our existing and anticipated gaming
companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Currently, we have in place a variety of commercial and investment
relationships with the game companies described below, with investment in a particular company by us represented either by an equity
interest in such company or by convertible debt (which we have not converted into equity as of the date hereof), and/or a commercial
contract to share in the revenues of particular game titles in development at such companies in consideration for certain assistance
and support by us. The current game companies are described below together with a brief summary of the commercial and/or investment
terms currently in place with each such company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Rotvig Labs, LLC</I>. Currently, we own an approximate 46% equity
interest in Rotvig Labs, LLC. Rotvig is developing a web-enabled iOS game engine current titled <I>Spacecraft</I>. Under the terms
of our commercial revenue share agreement, we are entitled to 46% of Rotvig Labs, LLC&rsquo;s revenue.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Game Closure, Inc</I>. Currently, we own an approximate 0.6% equity
interest in Game Closure Inc. Game Closure offers an HTML5-based multiplayer game development kit. Currently, we have no other
commercial agreement with Game Closure relating to a share of revenues or otherwise.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Ecko Entertainment, Inc.</I> Currently we own less than one percent
of Ecko Entertainment, Inc. Ecko currently has the following mobile games: <I>Dexter, The Game</I>; <I>Weeds</I>; and <I>The Social
Club</I>. Currently, we have not converted a $50,000 convertible note we hold of Ecko into equity of Ecko and have no other commercial
agreement with Ecko relating to a share of revenues for particular game applications being developed by it or otherwise.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Infinitap Games, LLC</I>. Currently, we have no equity interest
in Infinitap Games, LLC; however, we own all of the intellectual property (i.e., software, trademarks and related intellectual
property) embodied in the only mobile game title currently in development, <I>Dino Park, </I>and are entitled to certain percentages
of the revenues derived from such game.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Apart from the games described above,  going forward we intend
to own a more significant economic ownership stake in our future games (i.e., interest in the profits of such games) which we expect
to range from a minority interest (e.g., 25%) to, where possible, a majority interest (50% or greater). Apart from the economic
interest stake in such games, we will strive to maintain at least voting parity with the other owners (i.e., shareholders, if a
corporation, or members, if a limited liability company) of such gaming companies. We also expect to enter into strategic relationship
agreements with such gaming companies, including, among other things, a publisher license with a right to shared revenues for specific
game title(s) of the gaming company with which we assist in developing and publishing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As with a number of our existing games, in exchange
for certain commitments, which will vary from game company to game company, including potentially assistance with office
space, accounting and human resources functions, and assistance with monetization, game design, analytics and marketing
spend related to the particular game title, we expect to enter into with these game companies revenue share arrangements,
ranging from 40% to 80% of net receipts derived from the particular game title(s) being developed by the game companies
with our assistance as described above. In respect of the game title(s) developed by these game companies, we will strive to
obtain a worldwide license to use, reproduce, distribute, perform, display, prepare derivative works of, make, have made,
sell and export the game title(s), and any related technologies, although we have no guaranty we will be able to obtain such
terms or even such license in every instance. The specific term and conditions of the license will be set forth in the
definitive strategic relationship agreement to be negotiated deal by deal with the particular game company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We will look to increase our ownership or revenue share
interest in these game companies, or try to acquire them completely as they or their games demonstrate success; however, with
our current game companies described above we have no such right of first refusal or other contractual right to do so. As we
grow, we will endeavor to hire as well as make full acquisitions of high quality development teams.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Core Strengths</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We believe the following strengths provide us with competitive advantages:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Mobile Gaming Knowledge</I>. All three of Andover Games&rsquo; founders, namely Craig dos Santos, Ben Lewis and Lee Linden,
                                                                                                              have built games that hit the top of the Apple App Store charts. We understand how to develop and, as importantly, operate a
                                                                                                              game as a service, monetizing it using the free to play model with virtual goods and other revenue methodologies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Industry Connections</I>. Andover Games&rsquo; founders are well known in the game industry, having worked at a top social
                                                                                                              gaming company (Playdom) and founded and created the top marketing distribution network on iOS (Tapjoy). We believe that we
                                                                                                              will be able to attract and recruit some of the best talent to work on our games because of our experience and contacts in
                                                                                                              the industry.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Forward Looking Technology</I>: We intend to create a cross platform game engine that allows us to port games easily across
iOS and Android smartphones. We also intend to create an animation framework that brings techniques from the 3D console gaming
world to mobile devices for the first time. These assets will allow us to develop games and content faster and with higher quality
than our competition.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Strategy</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our mission is to create high quality free games that are accessible
anywhere, anytime through mobile devices. In pursuit of our mission, we encourage entrepreneurship and intelligent risk taking
to produce breakthrough innovations. The key elements of our strategy are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Make Games Accessible and Fun</I>. We intend to operate our games as live services that are available anytime and anywhere.
We intend to design our mobile games to provide players with easy access to shared experiences that delight, amuse and entertain,
and we will endeavor to update our games on an ongoing basis with fresh content and new features to make them more social and fun
for our players.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Launch and Publish New Games</I>. We intend to invest in building new games in multiple genres. We will endeavor to partner
with and publish games from highly talented small teams where our analytics and planned monetization infrastructure can help move
their game forward.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Expand Our Mobile Network of Games</I>. We intend to build a network of mobile gaming users through organic growth, paid
user acquisition, and asset acquisition in order to cross promote within our proposed network of games. In addition, we will seek
opportunities to cross promote our games with partners in their existing games.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Extend and Grow our Technology Assets</I>. We are currently in beta with two isometric game engines, one on Android, and
the other on iOS. In addition, we are working on animation and analytics tools that allow us to create subsequent titles more efficiently.
We will endeavor to further increase our technology assets, as well as look to supplement them through licensing or acquisition.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Mobile Social Games</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We design our games for short, frequent, fun interactions that delight
and intrigue our users. We aim to launch the next generation of quality free-to-play games with a focus on aesthetics and extended
game play.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our games are designed to be played on internet connected mobile
devices, where users can interact and play with each other. We will continue to invest in the free-to-play model in new genres
where different demographics and audiences can experience the game for free before deciding to invest in enhancing their gameplay
with virtual good and game upgrade purchases. We will operate our games as live services and update them with fresh content and
new features to make them more social, enhance player engagement and improve monetization. We intend to analyze the data generated
by our players&rsquo; game play and social interactions to guide the creation of new content and features. We use this ongoing
feedback loop to keep our games compelling and enhance the player experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our Core Values and Team</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We founded Andover Games because we believe that small focused teams
can create great games. As the market changes, prices for acquiring users goes up and the cost of creating a competitive game rises.
We believe that bringing smaller game development teams into a larger infrastructure will increase the chance of their success,
and subsequently increase the success of the network as a whole. We think the common infrastructure needed to push out successful
games and run them as a service is a separate skill set from creating great content. We believe we can best generate consistently
great content with small teams and supplement their core competency with our experience of running games as a service business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Marketing</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We intend to employ a multi-faceted distribution strategy, leveraging
relationships with key points of distribution and by building an inter-networked set of games from which we can cross-promote other
titles. We will initially acquire most of our players through paid channels and organic growth as well as in-game features that
promote getting friends to download the game. There are currently a variety of mobile marketing companies all of whom provide a
way to reliably acquire users. We will ultimately look to build a large community of players through the viral and sharing features
provided by social networks, the social innovations in our games and the network effects of our business. We are committed to connecting
with our players. We intend to have fan pages, generally on Facebook, for each of our games to connect with our players; and we
intend to leverage various other forms of social media, including Twitter, to communicate with them. We intend to use traditional
advertising activities, primarily online advertising spending on mobile channels like Admob, Tapjoy, Fiksu, Flurry, etc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Intellectual Property</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our mobile entertainment business is based on the creation, acquisition,
use and protection of intellectual property. Some of this intellectual property is in the form of software code, licensed patented
technology and trade secrets that we use to develop our games and to enable them to run properly on multiple platforms. Other intellectual
property we create includes audio-visual elements, including graphics, music, story lines and interface design.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">While most of the intellectual property we intend to use will be
created by us, we have and plan to continue to acquire rights to proprietary intellectual property. We also plan to obtain rights
to use intellectual property through licenses and service agreements with third parties. These licenses will typically limit our
use of intellectual property to specific uses and for specific time periods, and can involve a royalty payment structured as a
revenue share for such licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We will protect our intellectual property rights by relying on federal,
state and common law rights, as well as contractual restrictions. We control access to our proprietary technology by entering into
confidentiality and invention assignment agreements with our employees and contractors, and confidentiality agreements with third
parties. In addition to these contractual arrangements, we will also rely on a combination of trade secret, copyright, trademark,
trade dress, domain name and patents to protect our games and other intellectual property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Circumstances outside our control could pose a threat to our intellectual
property rights. For example, effective intellectual property protection may not be available in the United States or other countries
in which our games are distributed. Also, the efforts we have taken and continue to take to protect our proprietary rights may
not be sufficient or effective. Any significant impairment of our intellectual property rights could harm our business or our ability
to compete. Also, protecting our intellectual property rights is costly and time-consuming. Any unauthorized disclosure or use
of our intellectual property could make it more expensive to do business, thereby harming our operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Companies in the Internet, mobile, games, social media, technology
and other industries may own large numbers of patents, copyrights and trademarks and may frequently request license agreements,
threaten litigation or file suit against us based on allegations of infringement or other violations of intellectual property rights.
From time to time, we expect to face in the future, allegations by third parties, including our competitors, that we have infringed
their trademarks, copyrights, patents and other intellectual property rights. As we face increasing competition and as our business
grows, we will likely face growing claims of infringement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Competition</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The mobile social game sector is intensely competitive and is rapidly
evolving. We face significant competition in all aspects of our business. Specifically, we compete for the leisure time, attention
and discretionary spending of players with other mobile game developers on the basis of a number of factors, including quality
of player experience, brand awareness and reputation and access to distribution channels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our industry is evolving rapidly and is becoming increasingly competitive.
Other developers of mobile social games, including the leading mobile social gaming companies, have developed and will continue
to develop compelling content that competes with our social games and adversely affects our ability to attract and retain players
and their entertainment time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Our competitors include:</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Game Developers for Mobile</I>: The mobile game sector is characterized by frequent product introductions, rapidly emerging
mobile platforms, new technologies and new mobile application storefronts. Some of our competitors in the mobile game market include
Electronic Arts, Zynga, DeNA Co. Ltd., Gameloft, Glu Mobile, Rovio Mobile Ltd, Pocket Gems Inc., Tiny Co Inc., and Storm8, Inc.
We expect new mobile-game competitors to enter the market and existing competitors to allocate more resources to develop and market
competing games and applications.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Other Game Publishers</I>: Developers we work with have the choice to publish their games independently, or with other publishers
that are focusing on the mobile games industry, including but not limited to: Zynga, Microsoft, Sony, Crowdstar, Tiny Co., GREE,
and DeNA.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Other Forms of Media and Entertainment</I>: We compete more broadly for the leisure time and attention of our players with
providers of other forms of Internet and mobile entertainment, including social networking, online casual entertainment and music.
To the extent existing or potential players choose to read, watch or listen to online content or streaming video or radio, play
interactive video games at home or on their computer or mobile devices rather than play social games, these content services pose
a competitive threat.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Government Regulation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are subject to a number of foreign and domestic laws and regulations
that affect companies conducting business on the Internet, many of which are still evolving and could be interpreted in ways that
could harm our business. In the United States and internationally, laws relating to the liability of providers of online services
for activities of their users and other third parties are currently being tested by a number of claims, including actions based
on invasion of privacy and other torts, unfair competition, copyright and trademark infringement, and other theories based on the
nature and content of the materials searched, the ads posted, or the content provided by users. Any court ruling or other governmental
action that imposes liability on providers of online services for the activities of their users and other third parties could harm
our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Additionally, due to a growing awareness of the use by criminal
factions of social networking technologies to conduct illegal activities, such as money laundering and broadcast and advocacy of
terrorist activities, governments may in the future implement legislation and pursue other means that could require changes in
our planned social gaming network, in turn resulting in additional expenses in the conduct of our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In the area of information security and data protection, many states
have passed laws requiring notification to users when there is a security breach for personal data, such as the 2002 amendment
to California&rsquo;s Information Practices Act, or requiring the adoption of minimum information security standards that are often
vaguely defined and difficult to implement. The costs of compliance with these laws may increase in the future as a result of changes
in interpretation. Furthermore, any failure on our part to comply with these laws may subject us to significant liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are also subject to federal, state and foreign laws regarding
privacy and protection of our users&rsquo; personal information and related data. We post our Terms of Service and Privacy Policy
on our website where we set forth our practices concerning the use, transmission and disclosure of player data. Our failure to
comply with our posted privacy policy or privacy related laws and regulations could result in proceedings against us by governmental
authorities or others, which could damage our reputation and business. In addition, the interpretation of data protection laws,
and their application to the Internet is evolving and not settled. There is a risk that these laws may be interpreted and applied
in an inconsistent manner by various states, countries and areas of the world where our users are located, and in a manner that
is not consistent with our current data protection practices. Complying with these varying national and international requirements
could cause us to incur additional costs and change our business practices. Further, any failure by us to adequately protect our
users&rsquo; privacy and data could result in a loss of player confidence in our services and ultimately in a loss of players,
which could adversely impact our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Employees</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">As of the date of this report,
we employ one executive officer and have consulting and advisor agreements with several individuals. See the section below titled
&ldquo;Directors and Executive Officers, Promoters and Control Persons&rdquo; for further information on our officers, directors,
consultants and advisors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Facilities</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our offices are located in San Francisco, California. We lease approximately
2,000 square feet, at lease rate of $4,000 per month, pursuant to a month to month lease. The leased space is adequate for our
current needs and we believe that additional space in the San Francisco area is available, on commercially reasonable terms, as
needed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Legal Proceedings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As of the date of this report, there are no pending legal proceedings
to which we or our properties are subject.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>You should carefully consider the risks described below, which
constitute all of the material risks facing us. If any of the following risks actually occur, our business could be harmed. You
should also refer to the other information about us contained in this report, including our financial statements and related notes.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0">We have a new business model and virtually no operating
history, which makes it difficult to evaluate our prospects and future financial results and may increase the risk that we will
not be successful.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We began operations
in 2011 and we have a short operating history and a new business model, which makes it difficult or impossible for us to predict
future results of operations and for investors to effectively assess our future prospects. As a new company, we face risks and
uncertainties relating to our ability to successfully implement our strategy. If we cannot address these risks and uncertainties
or are unable to execute our strategy, we will not be successful, which could completely extinguish the value of your investment.
We may never be able to achieve profitability, and even if we do, we may not be able to remain profitable. To achieve profitable
operations on a continuing basis, we must successfully create, develop, test, introduce, market and distribute games and develop
our site and our other products on a broad commercial basis. You should consider our business and prospects in light of the challenges
we face, which include our ability to, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>develop and then maintain a good relationship with Apple, Google and Facebook;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>convert non-paying players into paying players and attract new paying players;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>increase purchases by paying players;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>retain paying players, especially higher paying players;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>anticipate changes in the mobile and social game industry;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>cost-effectively develop and launch games;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>launch games and release enhancements that become popular;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>develop and maintain a scalable, high-performance technology infrastructure that can efficiently and reliably handle increased
player usage, fast load times and the deployment of new features and games;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>process, store and use data in compliance with governmental regulation and other legal obligations related to privacy;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>successfully compete with other companies that are currently in, or may in the future enter, the social game or entertainment
industry;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>hire, integrate and retain world class talent;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>maintain adequate control of our expenses; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>successfully expand our business, while maintaining high quality.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We will operate in a new and rapidly
changing industry, which makes it difficult to evaluate our business and prospects.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white">Social games, from
which we will derive substantially all of our revenue, is a new and rapidly evolving industry. The growth of the social game industry
and the level of demand and market acceptance of our games will be subject to a high degree of uncertainty. Our future operating
results will depend on numerous factors affecting the social game industry, many of which are beyond our control, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in consumer demographics and public tastes and preferences;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the availability and popularity of other forms of entertainment;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the worldwide growth smartphone and mobile device users, and the rate of any such growth; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>general economic conditions, particularly economic conditions adversely affecting discretionary consumer spending.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">Our ability to plan for game development,
distribution and promotional activities will be significantly affected by our ability to anticipate and adapt to relatively rapid
changes in the tastes and preferences of our potential players. New and different types of entertainment may increase in popularity
at the expense of social games. A decline in the popularity of social games in general, or our games in particular would harm our
business and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We will require additional funding in the future to continue
to operate our business, which may not be available on terms favorable to us or at all.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As of December 31, 2011, we had total
assets, on a pro forma combined basis, of $2,277,202 and working capital of $2,164,252 which includes an additional $2
million of gross proceeds by way of Ascend&rsquo;s sale of 4,000,000 common shares, at $0.50 per share. We believe that our
current working capital on hand, assuming we raise only the minimum $2 million in the Financing or raise the full $4 million
in the Financing, will satisfy our working capital needs for our current and proposed operations through June 2012 or
November 2012, respectively. However, we may require additional funding sooner than anticipated, in any event, we will
require further funding if we are to be successful in expanding our business. We will endeavor to raise the additional
required funds through various financing sources, including the sale of our equity and debt securities and the procurement of
commercial debt financing; however, there can be no guarantees that such funds will be available on commercially reasonable
terms, if at all. If such financing is not available on satisfactory terms, we may be unable to expand or continue our
business as desired and operating results may be adversely affected. Debt financing must be repaid regardless of operating
results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional
funds, the following results may occur:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the percentage ownership of our existing stockholders will be reduced;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in; text-indent: -0.2in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">our stockholders may experience additional dilution in net book value per share; or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD><FONT STYLE="font-size: 10pt">the new equity securities may have rights, preferences or privileges senior to those of the holders
of our common stock.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The report of our independent registered public
accounting firm for the fiscal year ended December 31, 2011 states that due to our losses from operations and lack of working capital
there is substantial doubt about our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We have no live games or revenue,
and we must launch and enhance games that attract and retain a significant number of paying players in order to grow our revenue.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white">We are a recently formed
company and have not commenced significant revenue producing operations to date. Our games have not yet been launched. We expect
to launch several titles in the next year, in most cases in partnership with other game companies, and expect a small number of
games to represent most of our projected revenue. Our growth depends on our ability to consistently launch new games that achieve
significant popularity. Each of our games requires significant engineering, marketing and other resources to develop, launch and
sustain via regular upgrades and expansions. Our ability to successfully launch, sustain and expand games and attract and retain
paying players largely depends on our ability to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>anticipate and effectively respond to changing game player interests and preferences;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>anticipate or respond to changes in the competitive landscape;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>attract, retain and motivate talented game designers, product managers and engineers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>develop, sustain and expand games that are fun, interesting and compelling to play and on which players want to spend money;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>effectively market new games and enhancements to our existing players and new players;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>minimize launch delays and cost overruns on new games and game expansions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>minimize downtime and other technical difficulties; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>acquire high quality assets, personnel and companies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">It is difficult to
consistently anticipate player demand on a large scale, particularly as we develop new games in new genres or new markets. If we
do not successfully launch games that attract and retain a significant number of paying players and extend the life of our existing
games, our market share, reputation and financial results will be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.5pt"><B><I>Our
results will depend on the performance of our games and the games other gaming companies develop with us, which is uncertain.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.5pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We will
initially launch our games in conjunction with other gaming companies in which we expect to own a material economic ownership
stake which can range from a minority stake to, where possible, a majority equity stake. We will attempt to maintain at least
voting (but less likely and often, economic) parity with the other owners of such gaming companies. We expect to enter into
strategic relationship agreements with such gaming companies, including, among other things, a publisher license with a right
to shared revenues for specific game title(s) of the gaming companies with which we assist in developing and publishing.
Company and industry specific factors outside of our control will significantly impact the results of our existing and
anticipated associated gaming companies. The value of our assets and our results of operations will be specifically tied to
the results of our gaming companies and their ability to succeed and deliver on their business strategies. The operating
results of these associated gaming companies, which we anticipate will be highly uncertain, may be materially adversely
affected by lack of demand for their products/services, increased competition, and mismanagement through the hyper-growth
phase of development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.5pt"><B><I>We
expect that most of the gaming companies we work with will be in an early-stage of development and will have a limited, and in
some cases no, operating history, making it difficult to evaluate their future prospects.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.5pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">The gaming companies we
are currently working with are, and we anticipate many of the future gaming companies we will work with will be, early-stage companies
and will encounter risks and difficulties frequently encountered by early-stage companies in new and rapidly evolving markets.
Most of these companies will typically have significant historical operating losses and as a result of their capital intensive
businesses, growing competition and nascent nature of the market opportunity, may incur losses for the foreseeable future. If the
gaming companies we work with do not successfully address all of these risks their businesses could be seriously harmed, and have
a materially negative affect on our operating results and reduce the value of your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Security breaches, computer viruses
and computer hacking attacks could harm our business and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Security breaches,
computer malware and computer hacking attacks have become more prevalent in our industry, have occurred on our systems in the past
and may occur on our systems in the future. Any security breach caused by hacking, which involves efforts to gain unauthorized
access to information or systems, or to cause intentional malfunctions or loss or corruption of data, software, hardware or other
computer equipment, and the inadvertent transmission of computer viruses could harm our business, financial condition and operating
results. Though it is difficult to determine what harm may directly result from any specific interruption or breach, any failure
to maintain performance, reliability, security and availability of our network infrastructure to the satisfaction of our players
may harm our reputation and our ability to retain existing players and attract new players.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>If we fail to effectively manage
our growth, our business and operating results could be harmed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We anticipate experiencing
rapid growth in our headcount and operations, which will place significant demands on our management and our operational, financial
and technological infrastructure. As we grow, we must expend significant resources to identify, hire, integrate, develop and motivate
a large number of qualified employees. If we fail to effectively manage our hiring needs and successfully integrate our new hires,
our ability to continue launching new games and enhance existing games could suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">To effectively manage
the growth of our business and operations, we will need to spend significant resources to initially develop and then improve our
technology infrastructure, our operational, financial and management controls, and our reporting systems and procedures by, among
other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>implementing, monitoring and thereafter updating our technology infrastructure to maintain high performance and minimize down
time;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>implementing and thereafter enhancing our internal controls to ensure timely and accurate reporting of all of our operations;
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>appropriately documenting our information technology systems and our business processes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our initial design
and implementation of our infrastructure and thereafter our enhancements and improvements will require significant capital expenditures
and allocation of valuable management and employee resources. If we fail to implement this infrastructure and controls effectively,
our ability to manage our expected growth and comply with the rules and regulations that are applicable to public reporting companies
will be impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Our core values of focusing on our
players first and acting for the long term may conflict with the short-term interests of our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">One of our core values
is to focus on surprising and delighting our players, which we believe is essential to our success and serves the best, long-term
interests of our stockholders. Therefore, we may make significant investments or changes in strategy that we think will benefit
our players, even if our decision negatively impacts our operating results in the short term. In addition, our philosophy of putting
our players first may cause disagreements or negatively impact our relationships with distribution partners or other third parties.
Our decisions may not result in the long-term benefits that we expect, in which case the success of our games, business and operating
results could be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>If we lose the services of our founder
and Chief Executive Officer or other members of our senior management team, we may not be able to execute our business strategy.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our
success depends in a large part upon the continued service of our senior management team. In particular,  Andover Games&rsquo;
founder and Chief Executive Officer, Craig dos Santos, is critical to our vision, strategic direction, culture, products and
technology. The loss of Mr. dos Santos, even temporarily, or any other member of senior management
would harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>If we are unable to attract and retain
highly qualified game developers, we may not be able to grow effectively.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our ability to compete
and grow depends in large part on the efforts and talents of our employees and those of the game companies we work with (i.e.,
game developer teams). Such game development teams, and employees, particularly game designers, product managers and engineers
are in high demand, and we devote significant resources to identifying, hiring, training, successfully integrating and retaining
these employees. We intend to hire a number of key personnel through acquisitions, and as competition with several other game companies
increases, we expect to incur significant expenses in this regard. The failure or other inability to hire such qualified employees,
or engage and contract with such game companies, and the loss of such employees, could result in significant disruptions to our
business, and the integration of replacement personnel could be time-consuming and expensive and cause additional disruptions to
our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>An effort to avoid registration under the Investment Company
Act of 1940 could foster less than optimal business practices.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">In an effort to avoid registration under the
Investment Company Act of 1940, as amended (the &ldquo;Investment Company Act&rdquo;), we may be required to sell, purchase or
retain certain assets, including interests in the game companies we work with, and may not be able to capitalize on other attractive
opportunities. The need to consistently manage our business practices to comply with the Investment Company Act could materially
adversely affect our results of operations, and reduce the value of your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Expansion into international markets
is important for our future growth, and as we expand internationally, we face additional business, political, regulatory, operational,
financial and economic risks, any of which could increase our costs and hinder such growth.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Attracting players
in countries other than the United States will be a critical element of our business strategy. An important part of targeting international
markets is developing offerings that are localized and customized for the players in those markets. We expect to devote significant
resources to international expansion through acquisitions, the potential establishment of overseas offices and development studios,
and developing foreign language offerings. Our ability to expand our business and to attract talented employees and players in
international markets requires considerable management attention and resources and is subject to the particular challenges of supporting
a rapidly growing business in an environment of multiple languages, cultures, customs, legal systems, alternative dispute systems,
regulatory systems and commercial infrastructures. Expanding our business to include an international focus may subject us to risks
that we have not faced before or increase risks that we currently face.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Competition within the broader entertainment
industry is intense and our potential players may be attracted to competing forms of entertainment such as offline and traditional
online games, television, movies and sports, as well as other entertainment options on the Internet.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We expect that our
players will face a vast array of entertainment choices. Other forms of entertainment, such as offline, traditional online, personal
computer and console games, television, movies, sports and the Internet, are much larger and more well-established markets and
may be perceived by our players to offer greater variety, affordability, interactivity and enjoyment. These other forms of entertainment
compete for the discretionary time and income of our players. If we are unable to sustain sufficient interest in our games in comparison
to other forms of entertainment, including new forms of entertainment, our business model may no longer be viable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>There are low barriers to entry in
the mobile social game industry, and competition is intense.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">The mobile and social
game industry is highly competitive, with low barriers to entry. We expect more companies to enter the sector and a wider range
of games to be introduced. Our competitors that develop mobile and social games for social networks vary in size and include publicly-traded
companies such as Zynga Inc, GLU Mobile Inc., Electronic Arts Inc./Playfish Inc. and The Walt Disney Company/Playdom Inc. and privately-held
companies such as Tiny Co Inc, Pocket Gems Inc, Kabam Inc., Crowdstar, Inc. and Popcap Games, Inc. In addition, online game developers
and distributors who are primarily focused on specific international markets, such as Tencent Holdings Limited in Asia, and high-profile
companies with significant online presences that to date have not developed social games, such as Amazon.com, Facebook, Google
Inc., Microsoft Corporation and Yahoo! Inc., may decide to develop mobile and social games. Nearly all of these current and potential
competitors have significant resources for developing or acquiring additional games, may be able to incorporate their own strong
brands and assets into their games, have a more diversified set of revenue sources than we do and may be less severely affected
by changes in consumer preferences, regulations or other developments that may impact the online social game industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>The value of our virtual goods will
be highly dependent on how we manage the purchase of virtual goods in our games. If we fail to manage it properly, our business
may suffer.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We expect that paying
players will purchase virtual goods in our games because of the perceived value of these goods, which is dependent on the relative
ease of securing an equivalent good via non-paid means within the game. The perceived value of these virtual goods can be impacted
by an increase in the availability of free game credits or by various actions that we take, including offering discounts for virtual
goods, giving away virtual goods in promotions or providing easier non-paid means to secure these goods. If we fail to manage the
purchase of virtual goods properly, payers may be less likely to purchase them and our business may suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Some of our players may make sales
and/or purchases of virtual goods used in our games through unauthorized third-party websites, which may impede our revenue growth.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Some of our players
may make sales and/or purchases of our virtual goods through unauthorized third-party sellers in exchange for real currency. These
unauthorized transactions are usually arranged on third-party websites. We do not generate any revenue from these transactions.
Accordingly, these unauthorized purchases and sales from third-party sellers could impede our revenue and profit growth by, among
other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>decreasing revenue from authorized transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>downward pressure on the prices we charge players for our virtual currency and virtual goods;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>lost revenue from paying players who stop playing a particular game;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>costs we incur to develop technological measures to curtail unauthorized transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>legal claims relating to the diminution of value of our virtual goods; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>increased customer support costs to respond to dissatisfied players.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">To discourage unauthorized
purchases and sales of our virtual goods, we expect to state in our terms of service that the buying or selling of virtual currency
and virtual goods from unauthorized third-party sellers may result in bans from our games and/or legal action. If we decide to
implement further restrictions on players&rsquo; ability to transfer virtual goods, we may lose players, which could harm our financial
condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>The proliferation of &ldquo;cheating&rdquo;
programs and scam offers that seek to exploit our games and players affects the game-playing experience and may lead players to
stop playing our games.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Unrelated third parties
have developed, and may continue to develop, &ldquo;cheating&rdquo; programs that enable players to exploit our games, play them
in an automated way or obtain unfair advantages over other players who do play fairly. These programs harm the experience of players
who play fairly and may disrupt the virtual economy of our games. In addition, unrelated third parties attempt to scam our players
with fake offers for virtual goods. We expect to devote significant resources to discover and disable these programs and activities,
and if we are unable to do so quickly our operations may be disrupted, our reputation damaged and players may stop playing our
games. This may lead to lost revenue from paying players, increased cost of developing technological measures to combat these programs
and activities, legal claims relating to the diminution in value of our virtual currency and goods, and increased customer service
costs needed to respond to dissatisfied players.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We expect to be dependant on two primary platforms for most
of our users and revenue and policy changes at either platform can severely impede our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">Our games primarily will run on Apple iOS and
Android operating systems. Any change to policies at either systems, payment mechanisms and marketing mechanisms can severely impede
our ability to do business. Apple changing the way they allow or disallow marketing strategies will affect our business.&nbsp;Apple
has prohibited companies from using iOS without prior warning and this poses a potential risk to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We expect a significant majority
of our game traffic to be hosted by two vendors and any failure or significant interruption in our network could impact our operations
and harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our technology infrastructure
is critical to the performance of our games and to player satisfaction. Our games run on a complex distributed system, or what
is commonly known as cloud computing. We own, operate and maintain elements of this system, but significant elements of this system
are operated by third parties that we do not control and which would require significant time to replace. We expect this dependence
on third parties to continue. In particular, we expect to use Amazon Web Services, or AWS, and Google's App Engine. We may in the
future experience website disruptions, outages and other performance problems due to a variety of factors, including infrastructure
changes, human or software errors and capacity constraints. If a particular game is unavailable when players attempt to access
it or navigation through a game is slower than they expect, players may stop playing the game and may be less likely to return
to the game as often, if at all. A failure or significant interruption in our game service would harm our reputation and operations.
We expect to continue to make significant investments to our technology infrastructure to maintain and improve all aspects of player
experience and game performance. To the extent that our disaster recovery systems we plan to implement are not adequate, or we
do not effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and network
architecture to accommodate increasing traffic, our business and operating results may suffer. We do not maintain insurance policies
covering losses relating to our systems and we do not have business interruption insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We anticipate that our quarterly
operating results will be volatile and difficult to predict, and our stock price may decline if we fail to meet the expectations
of securities analysts or investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our revenue, traffic
and operating results could vary significantly from quarter-to-quarter and year-to-year because of a variety of factors, some of
which are outside of our control. Any of these events could cause the market price of our common stock to fluctuate. Factors that
may contribute to the variability of our operating results include:</P>

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<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the timing of the launch and the popularity of new games and enhancements to existing games by us or our competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes to the social networks or mobile platforms on which we operate;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our ability to develop and maintain popular mobile and social games and convert our game player base into paying players and
increase the amount our paying players pay;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the range, number and pricing of virtual goods available for sale;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the cost of investing in our technology infrastructure, which may be greater than we anticipate, both to address short-term
capacity needs and long-term capacity and redundancy requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>disruptions in the availability of our games or of social networking or mobile platforms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>actual or perceived violations of privacy obligations and compromises of our player data;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the entrance of new competitors in our market whether by established companies or the entrance of new companies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.7in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the cost of attracting and retaining game development personnel; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-indent: -0.25in; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">In particular, we
expect to recognize revenue from sale of our virtual goods in accordance with GAAP, which is complex and based on our assumptions
and historical data with respect to the sale and use of various types of virtual goods.&nbsp;In the event that such assumptions
are revised based on new data or there are changes in the historical mix of virtual goods sold due to new game introductions, reduced
virtual good sales in existing games or other factors, the amount of revenue that we recognize in any particular period may fluctuate
significantly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Failure by us or the game companies
we work with to protect or enforce the intellectual property rights in our games and related intellectual property or the costs
involved in such enforcement could harm our business and operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We regard the protection
of our trade secrets, copyrights, trademarks, trade dress, domain names and other product rights as critical to our success. We
strive to protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual restrictions.
We will enter into confidentiality and invention assignment agreements with our employees and contractors and confidentiality agreements
with parties with whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information,
as we generally insist the game companies we work with to do. However, these contractual arrangements and the other steps we have
taken to protect our intellectual property may not prevent the misappropriation of our proprietary information or deter independent
development of similar technologies by others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We intend to pursue
the registration of our domain names, trademarks, and service marks in the United States and in certain locations outside the United
States. We plan to seek to protect our trademarks, patents and domain names in an increasing number of jurisdictions, a process
that is expensive and time-consuming and may not be successful or which we may not pursue in every location. We may, over time,
increase our investment in protecting our innovations through increased patent filings that are expensive and time-consuming and
may not result in issued patents that can be effectively enforced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Litigation may be
necessary to enforce our intellectual property rights, protect our trade secrets or determine the validity and scope of proprietary
rights claimed by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs, adverse
publicity or diversion of management and technical resources, any of which could adversely affect our business and operating results.
If we fail to maintain, protect and enhance our intellectual property rights, our business and operating results may be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We may in the future be subject to
intellectual property disputes, which are costly to defend and could require us to pay significant damages and could limit our
ability to use certain technologies in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Due to the nature
of our business, we may face allegations that we have infringed the trademarks, copyrights, patents and other intellectual property
rights of third parties, including from our competitors, non-practicing entities and former employers of our personnel. Patent
and other intellectual property litigation may be protracted and expensive, and the results are difficult to predict. As the result
of any court judgment or settlement we may be obligated to cancel the launch of a new game, stop offering certain features, pay
royalties or significant settlement costs, purchase licenses or modify our games and features while we develop substitutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">In addition, we use
open source software in our games and expect to continue to use open source software in the future. From time to time, we may face
claims from companies that incorporate open source software into their products, claiming ownership of, or demanding release of,
the source code, the open source software and/or derivative works that were developed using such software, or otherwise seeking
to enforce the terms of the applicable open source license. These claims could also result in litigation, require us to purchase
a costly license or require us to devote additional research and development resources to change our games, any of which would
have a negative effect on our business and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Programming errors or flaws in our
games could harm our reputation or decrease market acceptance of our games, which would harm our operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our games may contain
errors, bugs, flaws or corrupted data, and these defects may only become apparent after their launch, particularly as we launch
new games and rapidly release new features to existing games under tight time constraints. We believe that if our players have
a negative experience with our games, they may be less inclined to continue or resume playing our games or recommend our games
to other potential players. Undetected programming errors, game defects and data corruption can disrupt our operations, adversely
affect the game experience of our players by allowing players to gain unfair advantage, harm our reputation, cause our players
to stop playing our games, divert our resources and delay market acceptance of our games, any of which could result in legal liability
to us or harm our operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Evolving regulations concerning data
privacy may result in increased regulation and different industry standards, which could prevent us from providing our current
games to our players, or require us to modify our games, thereby harming our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">The regulatory framework
for privacy issues worldwide is currently in flux and is likely to remain so for the foreseeable future. Practices regarding the
collection, use, storage, transmission and security of personal information by companies operating over the Internet and mobile
platforms have recently come under increased public scrutiny, and civil claims alleging liability for the breach of data privacy
have been asserted against us. The U.S. government, including the Federal Trade Commission and the Department of Commerce, has
announced that it is reviewing the need for greater regulation for the collection of information concerning consumer behavior on
the Internet, including regulation aimed at restricting certain targeted advertising practices. In addition, the European Union
is in the process of proposing reforms to its existing data protection legal framework, which may result in a greater compliance
burden for companies with users in Europe. Various government and consumer agencies have also called for new regulation and changes
in industry practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We expect the success
of our business to depend heavily on our ability to study the data of our users and will continue to be, driven by our ability
to responsibly use the data that our players share with us. Therefore, our business could be harmed by any significant change to
applicable laws, regulations or industry practices regarding the use or disclosure of data our players choose to share with us,
or regarding the manner in which the express or implied consent of consumers for such use and disclosure is obtained. Such changes
may require us to modify our games and features, possibly in a material manner, and may limit our ability to develop new games
and features that make use of the data that our players voluntarily share with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We expect to process, store and use
personal information and other data, which will subject us to governmental regulation and other legal obligations related to privacy,
and our actual or perceived failure to comply with such obligations could harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We expect to receive,
store and process personal information and other player data, and we plan to enable our players to share their personal information
with each other and with third parties, including on the Internet and mobile platforms. There are numerous federal, state and local
laws around the world regarding privacy and the storing, sharing, use, processing, disclosure and protection of personal information
and other player data on the Internet and mobile platforms, the scope of which are changing, subject to differing interpretations,
and may be inconsistent between countries or conflict with other rules. We generally expect to comply with industry standards and
are subject to the terms of our own privacy policies and privacy-related obligations to third parties. We strive to comply with
all applicable laws, policies, legal obligations and certain industry codes of conduct relating to privacy and data protection,
to the extent reasonably attainable. However, it is possible that these obligations may be interpreted and applied in a manner
that is inconsistent from one jurisdiction to another and may conflict with other rules or our practices. Any failure or perceived
failure by us to comply with our privacy policies, our privacy-related obligations to players or other third parties, or our privacy-related
legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable
information or other player data, may result in governmental enforcement actions, litigation or public statements against us by
consumer advocacy groups or others and could cause our players to lose trust in us, which could have an adverse effect on our business.
Additionally, if third parties we work with, such as players, vendors or developers, violate applicable laws or our policies, such
violations may also put our players&rsquo; information at risk and could in turn have an adverse effect on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">In the area of information
security and data protection, many states have passed laws requiring notification to players when there is a security breach for
personal data, such as the 2002 amendment to California&rsquo;s Information Practices Act, or requiring the adoption of minimum
information security standards that are often vaguely defined and difficult to practically implement. The costs of compliance with
these laws may increase in the future as a result of changes in interpretation. Furthermore, any failure on our part to comply
with these laws may subject us to significant liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Our business is subject to a variety
of other U.S. and foreign laws, many of which are unsettled and still developing and which could subject us to claims or otherwise
harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We are subject to
a variety of laws in the United States and abroad, including laws regarding consumer protection, intellectual property, export
and national security, that are continuously evolving and developing. The scope and interpretation of the laws that are or may
be applicable to us are often uncertain and may be conflicting, particularly laws outside the United States. For example, laws
relating to the liability of providers of online services for activities of their users and other third parties are currently being
tested by a number of claims, including actions based on invasion of privacy and other torts, unfair competition, copyright and
trademark infringement, and other theories based on the nature and content of the materials searched, the ads posted or the content
provided by users. It is also likely that as our business grows and evolves and our games are played in a greater number of countries,
we will become subject to laws and regulations in additional jurisdictions. We are potentially subject to a number of foreign and
domestic laws and regulations that affect the offering of certain types of content, such as that which depicts violence, many of
which are ambiguous, still evolving and could be interpreted in ways that could harm our business or expose us to liability. It
is difficult to predict how existing laws will be applied to our business and the new laws to which we may become subject. See
the discussion included in the section titled &ldquo;Description of Business &mdash; Government Regulation.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">If we are not able
to comply with these laws or regulations or if we become liable under these laws or regulations, we could be directly harmed, and
we may be forced to implement new measures to reduce our exposure to this liability. This may require us to expend substantial
resources or to modify our games, which would harm our business, financial condition and results of operations. In addition, the
increased attention focused upon liability issues as a result of lawsuits and legislative proposals could harm our reputation or
otherwise impact the growth of our business. Any costs incurred as a result of this potential liability could harm our business
and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">It is possible that
a number of laws and regulations may be adopted or construed to apply to us in the United States and elsewhere that could restrict
the online and mobile industries, including player privacy, advertising, taxation, content suitability, copyright, distribution
and antitrust. Furthermore, the growth and development of electronic commerce and virtual goods may prompt calls for more stringent
consumer protection laws that may impose additional burdens on companies such as ours conducting business through the Internet
and mobile devices. We anticipate that scrutiny and regulation of our industry will increase and we will be required to devote
legal and other resources to addressing such regulation. For example, existing laws or new laws regarding the regulation of currency
and banking institutions may be interpreted to cover virtual currency or goods. If that were to occur we may be required to seek
licenses, authorizations or approvals from relevant regulators, the granting of which may be dependent on us meeting certain capital
and other requirements and we may be subject to additional regulation and oversight, all of which could significantly increase
our operating costs. Changes in current laws or regulations or the imposition of new laws and regulations in the United States
or elsewhere regarding these activities may lessen the growth of social game services and impair our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Our business will suffer if we are
unable to successfully integrate acquired companies into our business or otherwise manage the growth associated with multiple acquisitions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We intend to acquire
businesses, personnel and technologies that are complementary to our existing business and expand our employee base and the breadth
of our offerings. Our ability to grow through future acquisitions will depend on the availability of suitable acquisition and investment
candidates at an acceptable cost, our ability to compete effectively to attract these candidates and the availability of financing
to complete larger acquisitions. Since we expect the mobile social game industry to consolidate in the future, we may face significant
competition in executing our growth strategy. Future acquisitions or investments could result in potential dilutive issuances of
equity securities, use of significant cash balances or incurrence of debt, contingent liabilities or amortization expenses related
to goodwill and other intangible assets, any of which could adversely affect our financial condition and results of operations.
The benefits of an acquisition or investment may also take considerable time to develop, and we cannot be certain that any particular
acquisition or investment will produce the intended benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Integration of a new
company&rsquo;s operations, assets and personnel into ours will require significant attention from our management. The diversion
of our management&rsquo;s attention away from our business and any difficulties encountered in the integration process could harm
our ability to manage our business. Future acquisitions will also expose us to potential risks, including risks associated with
any acquired liabilities, the integration of new operations, technologies and personnel, unforeseen or hidden liabilities and unanticipated,
information security vulnerabilities, the diversion of resources from our existing businesses, sites and technologies, the inability
to generate sufficient revenue to offset the costs and expenses of acquisitions, and potential loss of, or harm to, our relationships
with employees, players, and other suppliers as a result of integration of new businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Our facilities are located near known
earthquake fault zones, and the occurrence of an earthquake or other natural disaster could cause damage to our facilities and
equipment, which could require us to curtail or cease operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Our principal offices
and a network operations center are located in the San Francisco Bay Area, an area known for earthquakes, and are thus vulnerable
to damage. We are also vulnerable to damage from other types of disasters, including power loss, fire, explosions, floods, communications
failures, terrorist attacks and similar events. If any disaster were to occur, our ability to operate our business at our facilities
could be impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>There is currently no liquid trading
market for our common stock and we cannot ensure that one will ever develop or be sustained.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To date there has been
no liquid trading market for our common stock.&nbsp;&nbsp;We cannot predict how liquid the market for our common stock might become.&nbsp;&nbsp;Our
common stock is quoted for trading on the OTC Bulletin Board, however, and as soon as is practicable we anticipate applying for
listing of our common stock on either the NYSE Amex, The Nasdaq Capital Market or other national securities exchange, assuming
that we can satisfy the initial listing standards for such exchange. We currently do not satisfy the initial listing standards,
and cannot ensure that we will be able to satisfy such listing standards or that our common stock will be accepted for listing
on any such exchange. Further, the NYSE, Amex and The Nasdaq Capital Market have recently adopted listing rules that prohibit a
former shell company that has undergone reverse acquisition with an operating company, such as us, from listing its shares until
such time as the company has filed an annual report on Form 10-K covering a full 12 months following the close of the reverse acquisition.
Should we fail to satisfy the initial listing standards of such exchanges, or our common stock is otherwise rejected for listing
and remain quoted on the OTC Bulletin Board or suspended from the OTC Bulletin Board, the trading price of our common stock could
suffer and the trading market for our common stock may be less liquid and our common stock price may be subject to increased volatility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Furthermore, for companies
whose securities are traded in the OTC Bulletin Board, it is more difficult (1) to obtain accurate quotations, (2) to obtain coverage
for significant news events because major wire services generally do not publish press releases about such companies, and (3) to
obtain needed capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our common stock is currently deemed
a &ldquo;penny stock,&rdquo; which makes it more difficult for our investors to sell their shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our common stock is subject
to the &ldquo;penny stock&rdquo; rules adopted under Section 15(g) of the Exchange Act. The penny stock rules generally apply to
companies whose common stock is not listed on The Nasdaq Stock Market or other national securities exchange and trades at less
than $4.00 per share, other than companies that have had average revenue of at least $6,000,000 for the last three years or that
have tangible net worth of at least $5,000,000 ($2,000,000 if the company has been operating for three or more years). These rules
require, among other things, that brokers who trade penny stock to persons other than &ldquo;established customers&rdquo; complete
certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading
in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided
not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing
to act as market makers in such securities is limited. If we remain subject to the penny stock rules for any significant period,
it could have an adverse effect on the market, if any, for our securities. If our securities are subject to the penny stock rules,
investors will find it more difficult to dispose of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Because our directors and executive officers,
as a group, own majority of our outstanding common shares, they can exert significant control over our business and affairs and
have actual or potential interests that may depart from those of subscribers in the Offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our directors and executive
officers, as a group, own or control approximately 70% of the outstanding common shares of Ascend as of the date of this report.
Further the former members of Andover Games, as a group, own or control 75% of the outstanding common shares of Ascend. As a result,
in addition to their board seats and offices, such persons will have significant influence over and control all corporate actions
requiring stockholder approval, irrespective of how our other stockholders may vote, including the following actions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>to elect or defeat the election of our directors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 40.3pt; text-indent: -0.1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>to amend or prevent amendment of our certificate of incorporation or bylaws;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 40.3pt; text-indent: -0.1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>to effect or prevent a merger, sale of assets or other corporate transaction; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 40.3pt; text-indent: -0.1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>to control the outcome of any other matter submitted to our stockholders for vote.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Such persons&rsquo; stock
ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of our company,
which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our certificate of incorporation allows
for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect
the rights of the holders of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
has the authority to fix and determine the relative rights and preferences of preferred stock. Our board of directors also has
the authority to issue preferred stock without further stockholder approval. As a result, our board of directors could authorize
the issuance of a series of preferred stock that would grant to holders the preferred right to our assets upon liquidation, the
right to receive dividend payments before dividends are distributed to the holders of common stock and the right to the redemption
of the shares, together with a premium, prior to the redemption of our common stock. In addition, our board of directors could
authorize the issuance of a series of preferred stock that has greater voting power than our common stock or that is convertible
into our common stock, which could decrease the relative voting power of our common stock or result in dilution to our existing
stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>Future sales of our common stock
in the public market could cause our share price to decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white"><FONT STYLE="color: black">Sales
of a substantial number of shares of our common stock in the public market after the date of this report, or the perception that
these sales might occur, could depress the market price of our common stock and could impair our ability to raise capital through
the sale of additional equity securities. Simultaneous with the Closing, Ascend sold 4,000,000 shares of
common stock at a price of $0.50 per share</FONT><B>. </B>In connection with the offer and sale of the shares, Ascend has agreed
to file, within ten business days of the Closing, a registration statement with the Securities and Exchange Commission
covering the resale by the investors of the shares they purchased and use its best efforts to have such Registration Statement
declared effective as promptly as practicable thereafter, and keep the Registration Statement effective until (i) the date on which
the shares may be resold by the investor without registration under the Securities Act and without regard to any volume limitations
by reason of Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant
to the Registration Statement or Rule 144 under the Securities Act or any other rule of similar effect</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>The requirements of being a public
company may strain our resources, divert management&rsquo;s attention and affect our ability to attract and retain qualified board
members.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">As a public company,
we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley
Act, the Dodd-Frank Act and other applicable securities rules and regulations. Compliance with these rules and regulations will
increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand
on our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports
with respect to our business and operating results. The Sarbanes-Oxley Act requires, among other things, that we maintain effective
disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve
our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources
and management oversight may be required. As a result, management&rsquo;s attention may be diverted from other business concerns,
which could harm our business and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">In addition, pursuant
to Section&nbsp;404 of the Sarbanes-Oxley Act, we will be required to furnish a report by management on, among other things, the
effectiveness of our internal control over financial reporting as of each fiscal year end. We are in the early stages of the costly
and challenging process of compiling the system and processing documentation necessary to perform the evaluation needed to comply
with Section&nbsp;404. If we are unable to assert that our internal control over financial reporting is effective, we could lose
investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock
to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>We do not intend to pay dividends
for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in
the price of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">We have never declared
or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate
that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any
determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely
on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on
their investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<BR>
AND RESULTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Ascend is a Delaware corporation that was incorporated
on December 5, 2005. From our inception in 2005 until February 29, 2012, when we completed a reverse acquisition transaction with
Andover Games, we were a blank check company and did not engage in active business operations other than our search for, and evaluation
of, potential business opportunities for acquisition or participation. On February 29, 2012, we completed a reverse acquisition
of Andover Games through a merger transaction whereby Andover Games became our wholly-owned direct subsidiary. Accordingly, the
financial statements of Andover Games became our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Results of Operations For The Year Ended December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following financial discussion relates to
the results of operations of Andover Games for the period from January 17, 2011 (inception) through December 31, 2011. Andover
Games was formed on January 17, 2011. Andover Games is engaged in the business of creating and distributing game applications on
current smartphone and other mobile platforms, namely iOS and Android, as well as future competing smartphone platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have not commenced significant revenue producing
operations and do not expect to until the third or fourth quarters of 2012.&nbsp;&nbsp; We commenced our present operations on
January 17, 2011 and during the period from our inception to December 31, 2011, we recognized $18,750 in revenue, and incurred
$124,650 of software development costs which consist primarily of costs incurred to develop gaming applications prior to establishing
technological feasibility for the gaming software. During the same period, we also incurred $231,630 of selling, general and administrative
expenses, including $62,500 of salaries and $153,771 of professional fees relating primarily to the legal and accounting expenses
incurred in connection with the merger transaction and related financing. &nbsp;&nbsp;We expect our operating expenses will significantly
increase at such time as we commence significant revenue producing operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">During the period from January 17, 2011 (inception)
through December 31, 2011, we incurred a net loss from operations of $337,530.&nbsp;&nbsp;We also incurred other expenses of $14,662,
including a write-off of $12,009 resulting from our equity loss from an investment in Tumbleweed Technologies, LLC (now a cost
method investment in Byte Factory, LLC) and a write-off of $3,727 based on the impairment of our investment in Byte Factory, LLC.
As a result, for the period from inception to December 31, 2011, we incurred a net loss of $352,192.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Financial Condition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of December 31, 2011, Andover Games and
Ascend, on a pro forma combined basis, had total assets of $2,277,202 and working capital of $2,164,252 which included an
additional $2 million of gross proceeds by way of Ascend&rsquo;s sale of 4,000,000 common shares at $0.50 per share in the
Financing. We believe that our current working capital on hand, assuming we raise only the minimum $2 million in the
Financing or raise the full $4 million in the Financing, will satisfy our working capital needs for our current and proposed
operations through June 2012 or November 2012, respectively. However, we may require additional funding sooner than
anticipated and, in any event, we will require further funding if we are to be successful in expanding our business. We will
endeavor to raise the additional required funds through various financing sources, including the sale of our equity and debt
securities and, subject to our commencement of significant revenue producing operations, the procurement of commercial debt
financing. However, there can be no guarantees that such funds will be available on commercially reasonable terms, if at all.
If such financing is not available on satisfactory terms, we may be unable to expand or continue our business as desired and
operating results may be adversely affected. In addition, any financing arrangement may have potentially adverse effects on
us or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of
operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise
additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may
have rights, preferences or privileges senior to those of the holders of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The report of our independent registered public
accounting firm for the fiscal year ended December 31, 2011 states that due to our losses from operations and lack of working capital
there is substantial doubt about our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Off-Balance Sheet Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.55in">We do not have any off-balance
sheet financing arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below sets forth the beneficial ownership
of our common stock, as of March 5, 2012, by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">All of our current directors and executive officers, individually;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">All of our current directors and executive officers, as a group; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.1in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">All persons who beneficially owned more than 5% of our outstanding common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The beneficial ownership of each person was
calculated based on 50,926,700 shares of our common stock outstanding as of March 5, 2012, according to the record ownership listings
as of that date, the beneficial ownership reports filed by 5% beneficial owners with the SEC and the verifications we solicited
and received from each director and executive officer. The SEC has defined &ldquo;beneficial ownership&rdquo; to mean more than
ownership in the usual sense. For example, a person has beneficial ownership of a share not only if he owns it in the usual sense,
but also if he has the power (solely or shared) to vote, sell or otherwise dispose of the share. Beneficial ownership also includes
the number of shares that a person has the right to acquire within 60 days of March 5, 2012, pursuant to the exercise of options
or warrants or the conversion of notes, debentures or other indebtedness, but excludes stock appreciation rights. Two or more persons
might count as beneficial owners of the same share. Unless otherwise noted, the following persons have sole voting and sole investment
power with regard to the shares beneficially owned by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 92%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name of Director, Executive Officer or Nominee</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percentage</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Jonathan J. Ledecky</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">970 West Broadway, PMB 402</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt">Jackson, WY&nbsp; 83002</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">7,968,550</TD><TD STYLE="width: 1%; text-align: left">(1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">15.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Craig dos Santos</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">360 Ritch Street, Floor 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">San Francisco, CA&nbsp; 94107</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,967,775</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ben Lewis</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">360 Ritch Street, Floor 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">San Francisco, CA&nbsp; 94107</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,439,973</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Richard Hecker</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">360 Ritch Street, Floor 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">San Francisco, CA&nbsp; 94107</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,965,354</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.8</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Jeremy Zimmer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">9560 Wilshire Boulevard</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Beverly Hills, CA&nbsp; 90212</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">350,000</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">All executive officers and directors as a group (5 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,691,652</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70.1</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name and Address of 5% Holders</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Percentage</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Lee Linden</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">360 Ritch Street, Floor 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left; text-indent: -10pt; padding-left: 10pt">San Francisco, CA&nbsp; 94107</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">10,439,973</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">20.5</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ironbound Partners Fund, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">970 West Broadway, PMB 402</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Jackson, WY&nbsp; 83002</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,968,550</TD><TD STYLE="text-align: left">(1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.6</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 15%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">* Less than 1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(1) Jonathan J. Ledecky is the Managing Member of Ironbound and
as such has sole voting and dispositive power over the shares held by Ironbound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(2) These individuals are party to a repurchase rights agreement
pursuant to which certain individuals have the right to purchase shares from the other parties depending on the happening of certain
events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS
AND CONTROL PERSONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The names of our executive officers, directors
and key advisors and their ages, titles and biographies as of March 5, 2012 are set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</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="width: 27%; border-bottom: windowtext 1pt solid; font-weight: bold">Name</TD>
    <TD STYLE="width: 2%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Age</TD>
    <TD STYLE="width: 2%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 63%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">Position Following Change of Control</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Jonathan J. Ledecky</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">54</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Non-Executive Chairman of the Board and Interim Chief Financial Officer</TD></TR>
<TR>
    <TD STYLE="padding-left: 1pt">Craig dos Santos</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">30</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chief Executive Officer and Director</TD></TR>
<TR>
    <TD STYLE="padding-left: 1pt">Jeremy Zimmer</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">53</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="padding-left: 1pt">Ben Lewis</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">31</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="padding-left: 1pt">Richard Hecker</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">27</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="padding-left: 1pt">Lee Linden</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">30</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Advisor</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><B><I>Jonathan J. Ledecky</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Ledecky served as the Company&rsquo;s chief
executive officer from January 2011 to February 2012, and has served as chief financial officer and as a member of the Company&rsquo;s
Board of Directors since January 2011. Mr. Ledecky has served as chairman of Ironbound, a private investment management fund, since
March 1999. Since June 1999, Mr. Ledecky has also served as chairman of the Ledecky Foundation, a philanthropic organization which
contributes funds to programs for the education of disadvantaged inner city youth in Washington, D.C., New York and Boston. From
June 2007 to October 2009, Mr. Ledecky served as president, secretary and a member of the board of directors of Triplecrown Acquisition
Corp., a blank check company that completed a business combination with Cullen Agricultural Technologies, Inc. From July 2005 to
December 2007, Mr. Ledecky served as president, secretary and a director of Endeavor Acquisition Corp., a blank check company that
completed a business combination with American Apparel. From January 2007 to April 2009, Mr. Ledecky served as president, secretary
and a director of Victory Acquisition Corp., a blank check company that did not complete a business combination and returned all
of its capital, representing approximately $330 million, to its public shareholders. In October 1994, Mr. Ledecky founded U.S.
Office Products and served as its chief executive officer until November 1997 and chairman until June 1998. During his tenure,
U.S. Office Products completed over 260 acquisitions, and grew to a Fortune 500 company with over $2.6 billion in revenues. In
June 1998, U.S. Office Products completed a comprehensive restructuring plan whereby four separate entities were spun off to stockholders
and U.S. Office Products underwent a leveraged recapitalization. In connection with these transactions, Mr. Ledecky resigned from
his position as chairman of U.S. Office Products and became a director of each of the four spin-off entities. In February 1997,
Mr. Ledecky founded Building One Services Corporation (originally Consolidation Capital Corporation), an entity formed to identify
attractive consolidation opportunities which ultimately focused on the facilities management industry. In November 1997, Building
One raised $552 million in an initial public offering. Mr. Ledecky served as Building One&rsquo;s chief executive officer from
November 1997 through February 1999 and as its chairman from inception through its February 2000 merger with Group Maintenance
America Corporation. During his tenure with Building One, it completed 46 acquisitions and grew to over $1.5 billion in revenues.
From July 1999 to July 2001, Mr. Ledecky was vice chairman of Lincoln Holdings, owners of the Washington sports franchises in the
NBA, NHL and WNBA. Since June 1998, Mr. Ledecky has served as a director of School Specialty, a Nasdaq Global Market listed education
company that provides products, programs and services that enhance student achievement and development. School Specialty was spun
out of U.S. Office Products in June 1998. Since 1994, Mr. Ledecky has been involved with numerous other companies in director positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Ledecky was a trustee of George Washington
University, served as a director of the U.S. Chamber of Commerce and served as commissioner on the National Commission on Entrepreneurship.
In addition, in 2004, Mr. Ledecky was elected the Chief Marshal of the 2004 Harvard University Commencement, a singular honor bestowed
by his alumni peers for a 25th reunion graduate deemed to have made exceptional contributions to Harvard and the greater society
while achieving outstanding professional success.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Ledecky received a B.A. (cum laude) from
Harvard University in 1979 and a M.B.A. from the Harvard Business School in 1983.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">We believe Mr. Ledecky is well-qualified to
serve as a member of the Board of Directors due to his public company experience, operational experience and business contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><B><I>Craig dos Santos</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. dos Santos has served as our chief executive
officer and a member of our Board of Directors since February 2012. Mr. dos Santos co-founded Andover Games in January 2011. In
August 2009, Mr. dos Santos started the mobile division of Playdom and served in numerous positions, most recently as executive
producer, until October 2010. Playdom focused on social games on Facebook and MySpace. While at Playdom, Mr. dos Santos grew the
mobile team and launched games on iOS, Android and WebOS. As an early entrant into the mobile social games space, Mr. dos Santos
helped Playdom launch Mobsters, Sorority Life and Social City, all of which were in the top 25 charts in the Apple App Store. Playdom
also launched many other successful social games on Facebook before being sold to Disney for up to approximately $760 million in
August 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">Prior to Playdom, Mr.
dos Santos was at iLike from July 2008 until February 2009. iLike was a launch partner during the first launch of the Facebook
Platform. At iLike, Mr. dos Santos was in charge of monetization of applications and helped strike deals with Rhapsody, Ticketmaster,
Comscore and Nielsen. iLike was sold to MySpace in 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">From 2002 to 2006, Mr. dos Santos worked at
Microsoft, where he was on the Microsoft Passport and Microsoft Windows Core Security teams. He was responsible for some of the
security features in Windows XP as well as Windows Vista.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. dos Santos graduated from Rice University
in 2003 with a Bachelors of Science in Electrical and Computer Engineering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">We believe Mr. dos Santos is well-qualified
to serve as a member of the Board of Directors due to his experience in the mobile gaming industry and his business contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><B><I>Jeremy Zimmer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Zimmer has served as a member of our Board
of Directors since February 2012. Mr. Zimmer is a founding partner, Chief Executive Officer and board member of United Talent Agency,
a talent and literary agency formed in 1991. At United Talent Agency, Mr. Zimmer oversees more than 125 agents and over 350 employees
in Beverly Hills and New York, representing many widely- known and award-winning artists working in all current and emerging areas
of entertainment, including motion pictures, television, music, digital media, books, and branded entertainment. The agency is
also recognized worldwide in the areas of film and television packaging, film finance, corporate consulting, branding &amp; licensing,
endorsements and the representation of production talent. Mr. Zimmer has been a key figure behind United Talent Agency&rsquo;s
growth beyond film and television representation, having established the agency&rsquo;s Digital, Branding, Licensing, and Endorsements
divisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Zimmer is also involved in United Entertainment
Group, a joint venture company which today is among the industry&rsquo;s largest independent branded entertainment and integrated
media firms providing marketing solutions to major consumer brands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">From 1984 to 1989, Mr. Zimmer was with International
Creative Management where he eventually led both the Motion Picture Literary and Motion Picture Packaging departments. Then he
joined Bauer/Benedek Agency, a talent agency, and served as a Partner there until he co-founded United Talent Agency in 1991.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Zimmer created and oversees United Talent
Agency&rsquo;s Agent Trainee Program and is a frequent speaker on the role of Hollywood in business and culture, and he has taught
on the graduate level of UCLA&rsquo;s Producers Program. He also sits on the Board of Overseers for the Hammer Museum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">We believe Mr. Zimmer is well-qualified to
serve as a member of the Board of Directors due to his operational experience and business contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in"><B><I>Ben Lewis</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Lewis has served as a member of our Board
of Directors since February 2012. Mr. Lewis co-founded Andover Games in January 2011. Mr. Lewis co-founded Tapjoy, a leader in
mobile application distribution and monetization, in August 2008, with Lee Linden. Tapjoy started out with a single iPhone game,
TapDefense, which was downloaded more than 20 million times and helped launch the Tapjoy ads platform. The Tapjoy ads platform
was a new way to monetize free mobile applications. After reaching revenue of $1 million per month in March 2010, Tapjoy merged
with Offerpal Media, which had a similar business model for Facebook traffic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">By March 2011, Tapjoy
had 70 employees and was generating over $100 million in annualized revenue and an estimated 60 percent of paid app distribution.
Mr. Lewis then left to pursue a new mobile opportunity with Lee Linden called Karma Science, a San Francisco based mobile e-commerce
company that makes products and services instantly giftable to millions of consumers from their smartphones.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Lewis graduated from the University of
Michigan with a Computer engineering degree in 2001. He started his professional career at Microsoft from July 2002 to August 2003
as one of the founding engineers of the Xbox Live team. He then returned to the University of Michigan to get his MBA. After graduating
from Michigan again, Mr. Lewis went to pursue a career at Google as a Product Manager. While at Google from July 2005 to January
2009, Mr. Lewis managed many successful products including growing the Toolbar from 60 million to 200 million-plus users, managing
the launch and growth of Google Checkout, adding sports scores to Search and other products, as well as winning two EMG awards
for his work on client team products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">While at the University of Michigan, Mr. Lewis
also co-founded an internet company called Bidcentives with Lee Linden.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">We believe Mr. Lewis is well-qualified to serve
as a member of the Board of Directors due to his experience in the mobile gaming industry and his business contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><B><I>Richard Hecker</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Hecker has served as a member of our Board
of Directors since February 2012. Mr. Hecker has been a board member of Andover Games since January 2011. In March 2011, Mr. Hecker
founded Stockton Equity LLC, a private equity firm specializing in digital media and direct marketing turn-around situations,
and serves as its Managing Director. He also co-founded Double Dutch Studios Inc, parent of inSparq, a referral marketing platform
for online retailers, in June 2011 and serves as its Executive Chairman. He also recently co-founded <U>tractionandscale.com</U>,
an investment company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">From June 2010 to March 2011, Mr. Hecker was
a consultant for <U>Bebo.com</U>, a social networking internet site. From September 2006 to June 2010, Mr. Hecker was the &ldquo;chief
bootstrapper&rdquo; at <U>Bootstrapper.com</U>, a blog and conference producer for the private equity, venture capital and digital
media industries. From June 2008 to January 2009, Mr. Hecker was Chief Marketing Officer of <U>Groupable.com</U>, an online marketplace
and platform connecting groups and sponsors. From October 2003 to March 2006, Mr. Hecker was the Chairman and Chief Executive
Officer of ZenFinancial, Inc., a call center outsourcing company. In April 2000, Mr. Hecker co-founded ClickZen Worldwide, an
interactive advertising agency based in New York, and served as its President until September 2002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">In March 2008, Mr. Hecker co-founded <U>TakesAllTypes.org</U>,
a non-profit social media platform for blood donation. Mr. Hecker also serves as a board member of Stakehouse, a social betting
platform, and Buyinara, an email marketing company for the direct response television industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in">Mr. Hecker graduated from the State University of New
York at Binghamton with a B.S. in financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">We believe Mr. Hecker is well-qualified to
serve as a member of the Board of Directors due to his IT experience and his business contacts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><B><I>Lee Linden</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Linden has served as an advisor to our
Board of Directors since February 2012. Mr. Linden co-founded Andover Games in January 2011. Mr. Linden co-founded (with Ben Lewis)
Karma Science in March 2011 and Tapjoy in August 2008. At Tapjoy, Mr. Linden led fundraising and drove business development until
its merger with Offerpal Media in March 2010. He then helped grow the combined business to over $100 million in annual revenue,
over 9,000 network applications, and the development of first party applications with over 45 million downloads. Prior to Tapjoy,
Mr. Linden worked as an associate at Kleiner Perkins Caufield &amp; Byers from February 2008 to the end of 2008 and was a key member
of the iFund team, which has made investments in several leading mobile companies. From June 2003 to May 2007, Mr. Linden worked
in product development at Microsoft, leading engineering teams for both enterprise and consumer offerings including co-founding
the Windows Home Server division. He is also the co-founder of ContestMachine (via YCombinator), a self-service online promotional
marketing service with thousands of small business customers. Mr. Linden also co-founded an internet company called Bidcentives
with Ben Lewis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">Mr. Linden received a degree in computer engineering
at the University of Michigan in 2003 and obtained an MBA from Stanford's Graduate School of Business 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Director Independence and Board Committees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">The Company believes that
using the definition of independence set forth in the Nasdaq Marketplace Rules, Jeremy Zimmer and Ben Lewis are independent. The
Company is not a &ldquo;listed company&rdquo; under SEC rules. The Company&rsquo;s common stock is currently traded on the OTC
Bulletin Board. Accordingly, the Company is not required to have an audit committee (and therefore does not have a member that
would qualify as an audit committee financial expert), compensation committee, or nominating committee. Furthermore, the Company
does not believe it is necessary for the Board of Directors to appoint such committees, or have a separately designated lead director,
because the volume of matters that come before the Board of Directors for consideration permits the full board to give sufficient
time and attention to such matters to be involved in all decision making.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">The Board of Directors is responsible for overseeing
risk management, and receives reports from management periodically.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in"><B>Family Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in">There are no family relationships among the Company&rsquo;s
existing or incoming directors or officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt"><B>Committee Interlocks
and Insider Participation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No member of our Board
of Directors is or was formerly employed by us or our subsidiaries, except for Mr.&nbsp;Ledecky and Mr. dos Santos. None of our
executive officers serve on the Board of Directors of another entity, whose executive officers serves on our Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Summary Compensation Table</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets forth the compensation
awarded to, earned by or paid to, our chief executive officer and chief financial officer for the years ended December&nbsp;31,
2011 and 2010 and our other two highest paid executive officers earning in excess of $100,000 for services rendered in all capacities
the years ended December&nbsp;31, 2011 and 2010. In reviewing the table, please note that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Don K. Rice served as our CEO and CFO from 2005 to January 2011, however he received no compensation of any kind during 2011
or 2010 for serving as on officer or employee;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Jonathan Ledecky served as our CEO and CFO from January 2011 until the close of the merger on February 29, 2012 at which time
he resigned as CEO and remains as interim CFO, however he received no compensation of any kind during 2011 or 2010 for serving
as an officer or employee of Ascend; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Craig dos Santos became our CEO on February 29, 2012. The compensation reported for Craig dos Santos represents compensation
paid to him by Andover Games, where he has served as president and CEO since January 2011.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">(amounts&nbsp;in&nbsp;thousands)<BR> Name&nbsp;and&nbsp;Principal<BR> Position(a)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year<BR> (b)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary<BR> (c)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Bonus<BR> (d)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock<BR> Awards<BR> (e)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards<BR> (f)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All&nbsp;Other<BR> Compensation<BR> (g)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total<BR> (h)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Don K. Rice, CEO and <BR>CFO (Former)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jonathan Ledecky, CEO <BR>(Former) and CFO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%; text-align: left; text-indent: -10pt; padding-left: 10pt">Craig dos Santos, CEO</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">2011</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">62,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Craig dos Santos serves as Chief Executive Officer of the Company
pursuant to a two-year employment agreement with the Company effective as of February 29, 2012 providing for him to be paid an
annual salary of $225,000 in exchange for his services. Richard Hecker and the Company have entered into a two-year consulting
agreement effective as of February 29, 2012 providing for him to be paid an annual consulting fee of $150,000 in exchange for his
services. Jonathan Ledecky and the Company have entered into a two-year consulting agreement effective as of February 29, 2012
providing for him to receive an annual consulting fee of $150,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Directors&rsquo; Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has not paid any compensation to
its directors for service on the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Outstanding Equity Awards at Fiscal Year
End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had no outstanding equity awards
as of December 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Indemnification of Directors and Executive Officers and Limitation
of Liability</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our bylaws provide for the indemnification
of our present and prior directors and officers or any person who may have served at our request as a director or officer of another
corporation in which we own shares of capital stock or of which we are a creditor, against expenses actually and necessarily incurred
by them in connection with the defense of any actions, suits or proceedings in which they, or any of them, are made parties, or
a party, by reason of being or having been director(s) or officer(s) of us or of such other corporation, in the absence of negligence
or misconduct in the performance of their duties. This indemnification policy could result in substantial expenditure by us, which
we may be unable to recoup.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon the Closing, Ascend entered into indemnification
agreements with each of its executive officers and directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Insofar as indemnification by us for liabilities
arising under the Exchange Act may be permitted to our directors, officers and controlling persons pursuant to provisions of the
Certificate of Incorporation and Bylaws, or otherwise, we have been advised that in the opinion of the SEC, such indemnification
is against public policy and is, therefore, unenforceable. In the event that a claim for indemnification by such director, officer
or controlling person of us in the successful defense of any action, suit or proceeding is asserted by such director, officer or
controlling person in connection with the securities being offered, we will, unless in the opinion of our counsel the matter has
been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by us is against public policy as expressed in the Exchange Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the present time, there is no pending litigation
or proceeding involving a director, officer, employee or other agent of ours in which indemnification would be required or permitted.
We are not aware of any threatened litigation or proceeding which may result in a claim for such indemnification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In January 2011, the Company executed a convertible promissory note
in favor of Donald K. Rice, a former officer and director of the Company, with a principal amount of $15,000. The promissory note
represented amounts advanced to the Company by Mr. Rice during August and November 2010. The promissory note was due and payable
in full on demand, and bore interest at the rate of 5% per annum. At any time prior to the payment in full of the entire balance
of the promissory note, Mr. Rice had the option of converting all or any portion of the unpaid balance of the promissory note into
shares of the Company&rsquo;s common stock at a conversion price equal to $0.15 per share, subject to adjustment upon certain events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In January 21, 2011, the Company entered into and consummated a
Stock Purchase Agreement (the &ldquo;Purchase Agreement&rdquo;) with Mr. Rice and Ironbound. Pursuant to the Purchase Agreement,
Mr. Rice converted all principal and accrued interest on convertible promissory notes held by him, including the one issued to
him in January 2011 described above, into an aggregate of 7,075,000 shares of the Company&rsquo;s common stock. Immediately after
the conversion of the notes, Mr. Rice sold to Ironbound such shares together with an additional 218,550 shares of common stock
of the Company held by Mr. Rice, or an aggregate of 7,293,550 shares of common stock for an aggregate purchase price of $310,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In connection with the Company&rsquo;s initial public offering in
May 2006, Mr. Rice and the Company had entered into a registration rights agreement providing for registration rights with respect
to certain of the shares held by Mr. Rice. In connection with the Purchase Agreement, these rights were assigned by Mr. Rice to
Ironbound. Accordingly, pursuant to the registration rights agreement, Ironbound has the right to demand that the Company register
certain of the shares of common stock of the Company acquired by it from Mr. Rice. In addition, Ironbound has certain &ldquo;piggy-back&rdquo;
registration rights on registration statements filed by the Company with respect to such securities. The Company is required to
bear the expenses incurred in connection with the filing of any such registration statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In March 2011, the Company executed a convertible promissory note
in favor of Jonathan Ledecky, with a principal amount of $25,000. The note was due and payable in full on demand and bore interest
at the rate of 5% per annum. At any time prior to the payment in full of the entire balance of the note, Mr. Ledecky had the option
of converting all or any portion of the unpaid balance of the note into shares of the Company&rsquo;s common stock at a conversion
price equal to $0.19 per share, subject to adjustment upon certain events. The conversion price was based on the market price of
the Company&rsquo;s common stock at the time of the issuance of the note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In July 2011, the Company executed a convertible promissory note
in favor of Mr. Ledecky, with a principal amount of $10,000. The promissory note represented amounts advanced to the Company by
Mr. Ledecky during June 2011. The promissory note was due and payable in full on demand and bore an interest rate of 5% per annum.
At any time prior to the payment in full of the entire balance of the note, Mr. Ledecky had the option of converting all or any
portion of the unpaid balance of the note into shares of the Company&rsquo;s common stock at a conversion price equal to $0.20
per share, subject to adjustment upon certain events. The conversion price was at a premium to the market price of the Company&rsquo;s
common stock at the time of the issuance of the note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In July 2011, Mr. Ledecky converted the $35,000 principal amount
of the promissory notes issued to him in March 2011 and June 2011 into an aggregate of 175,000 shares of common stock of the Company,
or $0.20 per share. Although the promissory note issued to Mr. Ledecky in March 2011 had a conversion price of $0.19, Mr. Ledecky
voluntarily converted such note into the Company&rsquo;s common stock at $0.20 per share. Additionally, the accrued interest on
the notes totaling $380 was forfeited and credited to additional paid-in capital as part of the cost of securities issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In July 2011, Jeremy Zimmer purchased 250,000 shares of common stock
from us for an aggregate purchase price of $50,000, or $0.20 per share, in a private placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company has agreed to file a registration statement with the
SEC to register the resale of the shares of common stock issued upon conversion of the promissory notes converted by Mr. Ledecky
in July 2011 and sold in the private placement to Mr. Zimmer promptly after consummation by the Company of a merger, stock exchange,
asset acquisition or other form of business combination and to use its best efforts to have such registration statement declared
effective as soon as possible. The Company is required to bear the expenses incurred in connection with the filing of such registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In December 2011, the Company executed a convertible promissory
note in favor of Ironbound with a principal amount of $250,000. The promissory note represented amounts advanced to the Company
by Ironbound so that the Company could provide certain bridge financing to Andover Games upon execution of the Merger Agreement.
The note was due and payable in full upon closing of the merger or, if not consummated, on demand and bears interest at the rate
of 5% per annum. Upon consummation of the merger, the note was used as consideration for Ironbound purchasing an aggregate of 500,000
shares of Ascend common stock in the Financing and was cancelled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Jeremy Zimmer also purchased 100,000 shares of common stock in the
Financing. Each of the officers or directors of the Company may participate in the remaining portion of the Financing on the same
terms as other unaffiliated investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>DESCRIPTION OF SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are authorized to issue up to 300,000,000 shares of common stock,
par value $0.0001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each outstanding share of common stock entitles
the holder thereof to one vote per share on all matters. Our bylaws provide that the persons receiving the greatest number of votes
shall be the directors. Stockholders do not have preemptive rights to purchase shares in any future issuance of our common stock.
Upon our liquidation, dissolution or winding up, and after payment of creditors and preferred stockholders, if any, our assets
will be divided pro-rata on a share-for-share basis among the holders of the shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The holders of shares of our common stock are
entitled to dividends out of funds legally available when and as declared by our board of directors. Our Board of Directors has
never declared a dividend and does not anticipate declaring a dividend in the foreseeable future. Should we decide in the future
to pay dividends, as a holding company, our ability to do so and meet other obligations depends upon the receipt of dividends or
other payments from our operating subsidiaries and other holdings and investments. In addition, our operating subsidiaries, from
time to time, may be subject to restrictions on their ability to make distributions to us, including as a result of restrictive
covenants in loan agreements, restrictions on the conversion of local currency into U.S. dollars or other hard currency and other
regulatory restrictions. In the event of our liquidation, dissolution or winding up, holders of our common stock are entitled to
receive, ratably, the net assets available to stockholders after payment of all creditors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the issued and outstanding shares of
our common stock are duly authorized, validly issued, fully paid and non-assessable. To the extent that additional shares of our
common stock are issued, the relative interests of existing stockholders will be diluted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are authorized to issue 1,000,000 shares
of preferred stock, par value $0.0001 per share. We may issue shares of preferred stock in one or more classes or series within
a class as may be determined by our Board of Directors, who may establish the number of shares to be included in each class or
series, may fix the designation, powers, preferences and rights of the shares of each such class or series and any qualifications,
limitations or restrictions thereof. Any preferred stock so issued by the Board of Directors may rank senior to the common stock
with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up of us, or both. Moreover, under
certain circumstances, the issuance of preferred stock or the existence of the un-issued preferred stock might tend to discourage
or render more difficult a merger or other change in control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Transfer Agent and Registrar</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our independent stock transfer agent is Continental Stock Transfer
&amp; Trust Company. Their mailing address is 17&nbsp;Battery Place, 8<SUP>th</SUP> Floor, New York, New York 10004. Their phone
number is (212) 509-4000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our common stock is quoted on the OTC Bulletin Board maintained
by the National Association of Securities Dealers, Inc. under the symbol &ldquo;ASCQ.OB&rdquo; but has not been traded in the Over-The-Counter
market except on a limited and sporadic basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table sets forth, for the periods indicated, the high
and last sale prices of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 70%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.3in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center">Last Sale Prices <SUP>(1)</SUP></TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">High</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Low</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; font-style: italic">TYD Through February 2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-align: left">1<SUP>st</SUP> Fiscal Quarter (1/1/12-2/29/12)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0.48</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="font-weight: bold; font-style: italic">Fiscal Year Ended December 31, 2011</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">1<SUP>st</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2<SUP>nd</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.15</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">3<SUP>rd</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.25</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.11</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">4<SUP>th</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.05</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="9" STYLE="font-weight: bold; font-style: italic">Year Ended December 31, 2010</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">1<SUP>st</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.042</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2<SUP>nd</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.0311</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">3<SUP>rd</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.0311</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">4<SUP>th</SUP> Fiscal Quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.0311</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>The above tables set forth the range of high and low last sale prices per share of our common stock as reported by www.nasdaq.com
for the periods indicated.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>Reports to Stockholders</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We plan to furnish our stockholders with an
annual report for each fiscal year ending December 31 containing financial statements audited by our independent certified public
accountants. We intend to comply with the periodic reporting requirements of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>Approximate Number of Holders of Our Common Stock</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On March 5, 2012, there are approximately 8 stockholders of record
of our common stock. We believe we have significantly more beneficial holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>RESENT SALE OF UNREGISTERED SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Reference is made to the disclosure set forth under Item 3.02 of
this report, which disclosure is incorporated by reference into this section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to Item 304 of Regulation S-K, there has been no disagreement
with accountants or any reportable event that would require additional disclosure in this report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>ITEM 3.02</B></TD><TD STYLE="text-align: justify"><B>UNREGISTERED SALES OF EQUITY SECURITIES</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 29, 2012, we consummated the transactions
contemplated the Merger Agreement, as described more fully in Item 1.01 of this report, which disclosure is incorporated herein
by reference. Pursuant to the Merger Agreement, we acquired 100% of the outstanding membership interests of Andover Games in exchange
for 38,195,025 shares of our common stock issued to the former members of Andover Games. The issuances were made in reliance upon
exemptions provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering&nbsp;and
Regulation D promulgated thereunder<FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black">On February 29,
2012, and in connection with the </FONT>consummation the transactions contemplated the Merger Agreement, Ascend sold an aggregate
of 4,000,000 shares of common stock to 15 accredited investors on a private placement basis, for an aggregate purchase price of
$2,000,000, or $0.50 per share. The issuances were made in reliance upon exemptions provided by Section 4(2) of the Securities
Act for the offer and sale of securities not involving a public offering&nbsp;and Regulation D promulgated thereunder<FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 27, 2011, Ascend sold an aggregate of 625,000 shares of
common stock to three accredited investors on a private placement basis, for an aggregate purchase price of $125,000, or $0.20
per share. On the same day, our then chief executive officer, Jonathan J. Ledecky, converted $35,000 owed to him by Ascend into
an aggregate of 175,000 shares of common stock of Ascend. The issuances were made in reliance upon exemptions provided by Section
4(2) of the Securities Act for the offer and sale of securities not involving a public offering<FONT STYLE="color: black">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In instances described above where we issued
securities in reliance upon Regulation D, we relied upon Rule 506 of Regulation D of the Securities Act. These stockholders who
received the securities in such instances made representations that (a) the stockholder is acquiring the securities for his, her
or its own account for investment and not for the account of any other person and not with a view to or for distribution, assignment
or resale in connection with any distribution within the meaning of the Securities Act, (b) the stockholder agrees not to sell
or otherwise transfer the purchased shares unless they are registered under the Securities Act and any applicable state securities
laws, or an exemption or exemptions from such registration are available, (c) the stockholder has knowledge and experience in financial
and business matters such that he, she or it is capable of evaluating the merits and risks of an investment in us, (d) the stockholder
had access to all of our documents, records, and books pertaining to the investment and was provided the opportunity ask questions
and receive answers regarding the terms and conditions of the offering and to obtain any additional information which we possessed
or were able to acquire without unreasonable effort and expense, and (e) the stockholder has no need for the liquidity in its investment
in us and could afford the complete loss of such investment. Management made the determination that the investors in instances
where we relied on Regulation D are accredited investors (as defined in Regulation D) based upon management&rsquo;s inquiry into
their sophistication and net worth. In addition, there was no general solicitation or advertising for securities issued in reliance
upon Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>ITEM&nbsp;5.01</B></TD><TD STYLE="text-align: justify"><B>CHANGES IN CONTROL OF REGISTRANT</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Reference is made to the disclosure set forth under Item 2.01 of
this report, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of the consummation the transactions contemplated the
Merger Agreement and after giving effect to the Financing, the former members of Andover Games, own 75% of the total outstanding
shares of our common stock on a fully diluted basis, subject to further adjustment as provided for in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>ITEM&nbsp;5.02</B></TD><TD STYLE="text-align: justify"><B>DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION
OF IRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY RRANGEMENTS OF CERTAIN OFFICERS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">I<FONT STYLE="color: black">n connection
with the </FONT>consummation the transactions contemplated the Merger Agreement, as of February 29, 2012, our chief executive
officer, Jonathan J. Ledecky, submitted his resignation letter pursuant to which he resigned as chief executive officer of the
Company. However, Mr. Ledecky remains as our chief financial officer on an interim basis and became our non-executive chairman
of the board.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 29, 2012, in connection with the
consummation the transactions contemplated the Merger Agreement, Craig dos Santos was appointed as our chief executive officer
and Mr. dos Santos, Jeremy Zimmer, Ben Lewis and Richard Hecker were appointed to the board of directors of Ascend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain biographical and other information
regarding the newly appointed officers and directors, see the disclosure under Item 2.01 of this report, which disclosure is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>ITEM 5.06</B></TD><TD STYLE="text-align: justify"><B>CHANGE IN SHELL COMPANY STATUS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Reference is made to the disclosure set forth under Item 2.01 and
5.01 of this report, which disclosure is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>ITEM 9.01</B></TD><TD STYLE="text-align: justify"><B>FINANCIAL STATEMENTS AND EXHIBITS</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>Financial Statements of Business Acquired</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Filed herewith are audited consolidated financial
statements of Andover Games, LLC as of December 31, 2011 and for the period from January 17, 2011 (inception) through December
31, 2011. Such financial statements are included following this Item 9.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(b)</TD><TD>Pro forma financial information</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Filed herewith is the unaudited pro forma condensed consolidated
financial information of Andover Games, LLC for the requisite periods. Such pro forma condensed consolidated financial information
is included following this Item 9.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(d)</TD><TD>Exhibits</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; text-decoration: none; border-bottom: Black 1pt solid">Exhibit No.&#9;</TD>
    <TD STYLE="width: 2%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 83%; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2.1</TD>
    <TD>&nbsp;</TD>
    <TD>Merger Agreement and Plan of Reorganization, dated as of December 30, 2011, by and among Ascend Acquisition Corp., Ascend Merger Sub, LLC, Andover Games, LLC and the members of Andover Games, LLC.&nbsp; (Incorporated by reference to the Registrant&rsquo;s Current Report on Form 8-K filed with the SEC on January 4. 2012.)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>Second Amended and Restated Certificate of Incorporation. (Incorporated by reference to the Registrant&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2008 and filed with the SEC on March 31, 2009.)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.2</TD>
    <TD>&nbsp;</TD>
    <TD>By-Laws. (Incorporated by reference to the Registrant&rsquo;s Registration Statement on Form S-1 or amendments thereto (SEC File No. 333-131529).)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Specimen Common Stock Certificate. (Incorporated by reference to the Registrant&rsquo;s Registration Statement on Form S-1 or amendments thereto (SEC File No. 333-131529).)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Development and Licensing Agreement dated May 18, 2011 between Andover Fund, LLC and Infinitap Games, LLC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2</TD>
    <TD>&nbsp;</TD>
    <TD>License Agreement dated May 18, 2011, between Andover Fund, LLC and Infinitap Games, LLC.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%">10.3</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 83%">Operating Agreement for Manager-Managed Rotvig Labs, LLC dated as of January&nbsp;28, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Membership Interest Agreement dated May 7, 2011 between all the Members of Rotvig Labs, LLC<FONT STYLE="color: black"> and Concept Art House, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Service and Profit Sharing Agreement dated <FONT STYLE="color: black">April 19, 2011 </FONT>between Rotvig Labs, LLC and Concept Art House, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6</TD>
    <TD>&nbsp;</TD>
    <TD>Note Purchase Agreement dated August 31, 2011 by and among Ecko Entertainment, Inc. and <FONT STYLE="color: black">each of the purchasers listed on the Schedule of Purchasers attached thereto as Exhibit A.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.7</TD>
    <TD>&nbsp;</TD>
    <TD>Note Purchase Agreement dated September 14, 2011 by and among Game Closure Inc. <FONT STYLE="color: black">and the persons named on the Schedule of Purchasers attached thereto.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.8</TD>
    <TD>&nbsp;</TD>
    <TD>Intentionally Omitted.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.9</TD>
    <TD>&nbsp;</TD>
    <TD>Operating Agreement for Member-Managed Byte Factory LLC dated September 18, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD>Tapjoy Publisher Agreement: Term Sheet by and between Andover Fund, LLC and Tapjoy dated March 29th, 2011.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD>Intentionally Omitted.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.12*</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement dated November 1, 2011 between Andover Fund, LLC and Craig Dos Santos.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.13*</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement dated February 29, 2012 between Registrant and Traction and Scale, LLC (Richard Hecker).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.14*</TD>
    <TD>&nbsp;</TD>
    <TD>Consulting Agreement dated February 29, 2012 between Registrant and Jonathan Ledecky.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.15</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Lock Up Agreement between Registrant and each of Craig dos Santos, Richard Hecker, Ben Lewis, Lee Linden, Jon Diamond, Jonathan J. Ledecky and Ironbound Partners Fund, LLC. (Incorporated by reference to the Registrant&rsquo;s Current Report on Form 8-K filed with the SEC on January 4. 2012.)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.16</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Right of First Look Agreement between Registrant and Craig dos Santos, Richard Hecker, Lee Linden, Ben Lewis and Jon Diamond. (Incorporated by reference to the Registrant&rsquo;s Current Report on Form 8-K filed with the SEC on January 4. 2012.)&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.25</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Subscription Agreement between Registrant and the certain investors.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.26</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Indemnification Agreement.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>21</TD>
    <TD>&nbsp;</TD>
    <TD>List of subsidiaries of the Registrant.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press Release, dated March 2, 2012</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">* Indicates management compensatory plan, contract or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Index to the Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</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: 88%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center">Page</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Independent Auditors' Report on the Financial Statements</TD>
    <TD STYLE="text-align: center">F-1 &ndash; F-2</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Financial Statements</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Consolidated Balance Sheet</TD>
    <TD STYLE="text-align: center">F-3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Consolidated Statement of Operations and Members' Deficiency</TD>
    <TD STYLE="text-align: center">F-4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Consolidated Statement of Cash Flows</TD>
    <TD STYLE="text-align: center">F-5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Notes to the Consolidated Financial Statements</TD>
    <TD STYLE="text-align: center">F-6 &ndash; F-14</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>



<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INDEPENDENT AUDITORS&rsquo; REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the Managing Members of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Andover Games, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have audited the accompanying consolidated
balance sheet of Andover Games, LLC and Subsidiary (a development stage company) (the &ldquo;Company&rdquo;) as of December 31,
2011, and the related consolidated statements of operations and members&rsquo; deficiency and cash flows for the period from January
17, 2011 (inception) through December 31, 2011. These consolidated financial statements are the responsibility of the Company&rsquo;s
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our
audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control
over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In our opinion, the financial statements referred
to above present fairly, in all material respects, the consolidated financial position of Andover Games, LLC and Subsidiary (a
development stage company) as of December 31, 2011, and the results of its operations, and its cash flows for the period from January
17, 2011 (inception) through December 31, 2011, in conformity with accounting principles generally accepted in the United States
of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated
financial statements, the Company has incurred a substantial loss from operations for the period from January 17, 2011
(inception) through December 31, 2011. Based on the Company&rsquo;s liquidity position, continued losses
could result in the Company not having sufficient liquidity or minimum cash levels to operate its business. These conditions
raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. Management&rsquo;s plan in regard
to these matters is also described in Note 1. The consolidated financial statements do not include any adjustments that
might result from the outcome of these uncertainties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">/s/ Marcum LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Marcum LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Melville, NY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">February 27, 2012, except for note 11(b) of
which the date is March 6, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary<BR>
(A Development Stage Company)<BR>
Consolidated Balance Sheet<BR>
December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.5in">Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left; padding-left: 0.25in">Cash ($25,000 related to the variable interest entity)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">80,588</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Convertible note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Accrued interest receivable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">833</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.5in">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">131,421</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.5in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Investments in private companies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">114,505</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Equipment, at cost</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">815</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 0.5in">Total Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">246,741</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.5in">Liabilities and Members' Equity (Deficiency)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">78,307</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Payroll tax liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,601</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Convertible note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Due to member (liability of the variable interest entity)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.5in">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,408</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Deferred revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">206,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.5in">Total Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">366,658</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Commitments and Contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Members' Deficiency</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Members' Deficiency Accumulated During the</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.5in">Development Stage:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.75in">Controlling Members' Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(147,341</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.75in">Non-controlling Members' Interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,424</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(119,917</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.75in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 0.5in">Total Liabilities and Members' Deficiency</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">246,741</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<!-- Field: Page; Sequence: 42; Value: 1 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Consolidated Statement of Operations and
Members' Deficiency</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>From January 17, 2011 (Date of Inception)
to December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; padding-bottom: 1pt">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">18,750</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Software development costs</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">124,650</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Selling General and Administrative Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Salaries</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Payroll taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,149</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Office expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,710</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Professional fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">153,771</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Other administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.5in">Total Selling, General and Administrative Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">231,630</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.5in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Loss from Operations ($300,054 attributable to controlling interest)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(337,530</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Other Income (Expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Interest Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,074</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">Impairment of Investment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,727</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Equity Loss from Investment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,009</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Total Other Income (Expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(14,662</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">(352,192</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Less: Net Loss Attributable to the Non-controlling Interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,476</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net Loss Attributable to the Controlling Interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(314,716</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Members' Equity at Beginning of Period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Controlling Members' Contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">167,375</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Non-controlling Members' Contributions (net of receivable for $100)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Net Loss - Controlling Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(314,716</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net Loss - Non-controlling Interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(37,476</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Members' Deficiency at End of Period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(119,917</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Consolidated Statement of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>From January 17, 2011 (Date of Inception)
to December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Cash Flows From Operating Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Net Loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(352,192</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Adjustments to Reconcile Net Loss to Net Cash Used in</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Operating Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">Impairment of investment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,727</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Equity loss from investment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,009</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Compensation for software development costs in exchange for non-controlling interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Direct payment of operating expenses by member</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Changes in Assets and Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,074</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78,307</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Payroll tax liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,601</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.35in">Deferred revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">206,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 34.2pt">Net Cash Used in Operating Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">44,028</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 34.2pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Cash Flows From Investing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">Purchases of equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(815</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Investments in private companies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.35in">Purchase of convertible notes receivables</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(130,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 34.2pt">Net Cash Used in Investing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(180,815</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 34.2pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Cash Flows From Financing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in">Proceeds from convertible note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.35in">Members' contributions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">167,375</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.35in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 34.2pt">Net Cash Provided by Financing Activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">217,375</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 34.2pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Net Increase in Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,588</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Cash at Beginning of Period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Cash at End of Period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">80,588</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Supplemental disclosure of non-cash financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt">Conversion of note receivable/accrued interest into investment in preferred stock of company</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">80,241</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">Nature of Organization</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Andover Games, LLC, (the &quot;Company&quot;)
a development stage company, is a limited liability company formed on January 17, 2011 under the laws of the State of Delaware
as Andover Fund, LLC. The name was changed in December, 2011 to Andover Games, LLC. The entity has an indefinite life. The Company's
principal business is focused on developing mobile games for iPhone and Android platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Development Stage Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company is a development stage
company as defined by section 810-10-20 of the Financial Accounting Standards Board (&quot;FASB&quot;) Accounting Standards Codification
(&quot;ASC&quot;). The Company is still devoting substantially all of its efforts on establishing the business and its planned
principal operations have not commenced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Principles of Consolidation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The consolidated financial statements
include the accounts of the Company and the less than majority owned variable interest entity which it controls (see NOTE 3). Significant
inter-company accounts and transactions have been eliminated in consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Cash</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For purposes of the statement of
cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market
accounts to be cash equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Investments in private companies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Investments in private companies
in which the Company owns less than 20% of the entity and does not influence the operating or financial decisions of the investee
are carried at cost. The Company reviews the investments for impairment and records a loss on impairment based on the difference
between the fair value of the investment and the carrying amount when indicators of impairment exist.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Equipment</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Equipment is carried at cost and
is depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed
as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition.
The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect
the fact that their recorded value may not be recoverable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Income Taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company is a limited liability
company (an &quot;LLC&quot;) and is treated as a partnership for income tax purposes. As such, the members of the LLC are taxed
on their proportionate share of the Company's taxable income. Therefore, no provision or liability for federal or state income
taxes has been included in the consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Management has concluded that the
Company is a pass-through entity and there are no uncertain tax positions that would require recognition in the consolidated financial
statements. If the Company were to incur an income tax liability in the future, interest on any income tax liability would be reported
as interest expense and penalties on any income tax would be reported as income taxes. Management&rsquo;s conclusions regarding
uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations
and interpretations thereof as well as other factors. Generally, Federal, State and Local authorities may examine the Company&rsquo;s
tax returns for three years from the date of filing and as a result the current year remains subject to examination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Software development costs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">In accordance with ASC 985-20 &ldquo;Accounting
for the Cost of Computer Software to be Sold, Leased or Otherwise Marketed,&rdquo; software development costs are expensed as incurred
until technological feasibility (generally in the form of a working model) has been established. Research and development costs
which consist primarily of salaries and fees paid to third parties for the development of software and applications are expensed
as incurred. The Company capitalizes only those costs directly attributable to the development of the software. Capitalization
of these costs begins upon the establishment of technological feasibility. Activities undertaken after the products are available
for release to customers to correct errors or keep the product up to date are expensed as incurred. Capitalized software development
costs will be amortized over the estimated economic life of the software once the product is available for general release to customers.
Capitalized software development costs will be amortized over the greater of the ratio of current revenue to total projected revenue
for a product or the straight-line method. The Company will periodically perform reviews of the recoverability of such capitalized
software costs. At the time a determination is made that capitalized amounts are not recoverable based on the estimated cash flows
to be generated from the applicable software, any remaining capitalized amounts are written off. During the period from January
17, 2011 (inception) through December 31, 2011, the Company expensed $124,650 in software development costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Revenue Recognition</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company evaluates revenue recognition
based on the criteria set forth in FASB ASC 985-605, &ldquo;Software: Revenue Recognition.&rdquo; The Company recognizes revenue
when persuasive evidence of an arrangement exists, the product, image or game has been delivered, the fee is fixed or determinable,
and collectability is reasonably assured. The Company&rsquo;s specific revenue recognition policies are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company recognizes revenue from
the sale of its social games and mobile applications (&ldquo;Apps&rdquo;) from two revenue sources: direct payment revenue or alternative
payment service revenue. Direct payment revenue results from payments from the end users of Apps for virtual goods or currency
(i.e. items within the game and virtual money to buy items and upgrades in a game) in an application from a variety of direct payment
sources, less deductions for fraud, charge-backs, refunds, credit card processing fees or uncollected amounts (assuming all other
recognition criteria are met). Alternative payment service revenue results from utilization of the platform provided by a publisher
that is party to a collaborative arrangement with the Company (see &ldquo;Collaborative Arrangement&rdquo;). The publisher's platform
incentivizes end users to complete certain tasks in response to advertisements presented within the application (i.e. to purchase
other applications on the publisher&rsquo;s platform). Revenue from the alternative payment service (subject to a &ldquo;Recoupment
Amount&rdquo; by the vendor - see NOTE 10) would be recognized as the service is rendered, with a portion of the revenue allocated
to the vendor. If the service period is not defined, the Company would recognize the revenue over the estimated service period.
In conjunction with the collaborative arrangement, the Company receives proceeds that are recognized on a straight line basis over
the period that the Company is required to keep its applications on the publisher&rsquo;s platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Advertising Costs</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Advertising costs are charged to
operations when incurred. There were no advertising costs incurred for the period from January 17, 2011 (inception) through December
31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Non-controlling Interest</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company has consolidated Rotvig
Labs, LLC (&quot;Rotvig&quot; - see NOTE 3), which qualifies as a variable interest entity (&ldquo; VIE&rdquo;) because the Company
determined that it is the primary beneficiary and has a controlling financial interest. Therefore, Rotvig&rsquo;s financial statements
are consolidated in the Company&rsquo;s consolidated financial statements and the other member&rsquo;s equity in Rotvig is recorded
as non-controlling member&rsquo;s interest as a component of consolidated members&rsquo; equity. At December 31, 2011, non-controlling
interest was $27,424.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Going Concern</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The financial statements
have been prepared assuming that the Company will continue as a going concern. The Company had minimal revenue
inception-to-date, and the Company has incurred a substantial loss from operations for the period from January 17, 2011
(inception) through December 31, 2011. Based on the Company&rsquo;s liquidity position, continued losses could result in the
Company not having sufficient liquidity or minimum cash levels to operate its business. These conditions raise substantial
doubt about the Company's ability to continue as a going concern. Management's plan in regard to these matters includes
raising additional proceeds from debt and equity transactions (see note 11(b) for a description of the subsequent financing
received) and completing strategic acquisitions that will generate positive cash flows. The consolidated financial statements
do not include any adjustments that might result from the outcome of these uncertainties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Use of Estimates</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. The significant estimates utilized related to the
impairment of investment in companies. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Recent Accounting Pronouncements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Accounting standards that have been
issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial
statements upon adoption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Subsequent Events</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Company evaluated the
events and transactions subsequent to December 31, 2011 balance sheet date and through February 27, 2012, except for
note 11(b) in which events described were evaluated through March 6, 2012 which is the date the financial statements were issued, to determine if they require potential adjustment to or disclosure in the financial statements. Except
as disclosed in NOTE 11, the Company concluded no other events required disclosure in the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 2 - CONVERTIBLE NOTE RECEIVABLE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In August 2011 the Company invested
$50,000 in an unsecured convertible promissory note issued by Ecko Entertainment, Inc. (&quot;Ecko&quot;). The note bears interest
at 5% and matures on August 31, 2012. In the event Ecko closes a qualified financing of $2,000,000 prior to maturity of the note,
all principal and accrued interest then outstanding will automatically convert into shares of common stock. The price per share
for such conversion shall equal the lesser of i) 70% of the price per share of the capital stock paid by investors in the qualified
financing or ii) the price per share that would result based on a valuation of the company immediately prior to the closing of
the qualified financing equal to $15,000,000. The Company accrued $833 in interest related to the note as of December 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In the event Ecko closes an equity
financing which is not deemed a qualified financing, on, prior to or after the maturity date, or closes a qualified financing after
the maturity date, the Company, at its option, may convert all of the principal and accrued interest then outstanding at the same
terms as noted above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 3 - VARIABLE INTEREST ENTITY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><U>Rotvig Labs, LLC</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In January 2011, the Company acquired
a 50% membership interest in Rotvig Labs, LLC (&quot;Rotvig Labs&quot;) for $25,000. Rotvig Labs is also involved on developing
applications for the mobile game industry. The Company evaluated its investment in Rotvig Labs and determined that it was the primary
beneficiary and held a controlling interest in Rotvig Labs, and that the assets, liabilities and operations of Rotvig Labs should
be consolidated into its financial statements. The key assumption in making this determination was that the Company held the sole
cash basis investment at risk in the entity and share common management. The other founding member contributed services to the
entity, which were recorded based on the agreed-upon capital contribution of $25,000, which approximates the fair value of the
services rendered and the non-controlling interest at acquisition. The assets of Rotvig Labs can only be used to satisfy the liabilities
of Rotvig Labs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Included in the accompanying financial
statements are the following assets and liabilities of Rotvig Labs as of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 75%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; padding-bottom: 1pt; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">25,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Due to member of Andover Games, LLC</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In April 2011, Rotvig Labs entered
into a Service and Profit Sharing Agreement with Concepts Art House, Inc (&quot;CAH&quot;), a graphics design company. Under this
agreement, CAH would provide $40,000 in committed art services in exchange for an eight percent (8%) membership interest in Rotvig
Labs. CAH's membership interest is subject to vesting, whereby the equity interest is earned 25% for each $10,000 of committed
art services provided for under the agreement. As of December 31, 2011, CAH had provided all such services and therefore had earned
an 8% membership interest. Thus, the Company owns 46% of the membership interest of Rotvig Labs at December 31, 2011. In addition,
CAH is entitled to profit sharing of 16% of Rotvig Labs&rsquo; gross revenue up to a cumulative amount of $80,000. After the cumulative
80% is reached CAH is entitled to 8% of gross revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 4 - INVESTMENTS IN PRIVATE COMPANIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><U>Game Closure, Inc.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On September 14, 2011, the Company
invested $80,000 in an unsecured and subordinated convertible promissory note issued by Game Closure, Inc. (&quot;GCI&quot;). The
note bore interest at 2%, and had a maturity date of September 14, 2013. In December 2011, GCI issued and sold shares of its Preferred
Stock to investors in an equity financing of at least $1,000,000 including conversion of this note. Based on the terms of the note,
the outstanding principal and accrued interest then outstanding at the closing of the financing automatically converted into shares
of Series A Preferred Stock equal to the the number obtained by dividing the aggregate amount of principal and accrued interest
outstanding by the amount equal to the lesser of i) 100% of the purchase price for the Preferred Stock in the financing or ii)
the price per share of such Preferred Stock assuming a $16,000,000 fully diluted pre-money valuation of the company. Upon conversion
of principal of $80,000 and accrued interest of $241, the Company received 174,989 shares of Series A Preferred Stock of GCI. The
holders of this Series A Preferred Stock have a non-cumulative dividend right at a rate of $0.0871128 per annum and conversion
privileges at $1.08891 per share (unless automatically converted upon a qualified financing). The investment is accounted for using
the cost method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 4 - INVESTMENTS IN PRIVATE COMPANIES (continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"><U>Tumbleweed Technologies, LLC/Byte
Factory, LLC</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In July 2011, the Company invested
$50,000 for a 33% membership interest in Tumbleweed Technologies, LLC (&quot;Tumbleweed&quot;). Subsequently, in September 2011,
the Company contributed its interest in Tumbleweed for a 6.5% membership interest in Byte Factory, LLC (&quot;Byte Factory&quot;).
The Company accounted for its investment in Tumbleweed under the equity method of accounting through the date of its transfer to
Byte Factory. During the period from July 2011 through the date of transfer, the Company recognized losses under the equity method
totaling $12,009, reducing the carrying value of the investment to $37,991. The Company accounts for its investment in Byte Factory
under the cost method of accounting. Subsequent to December 31, 2011, the Company learned that Byte Factory was in the process
of dissolution. Because of this fact, the Company assessed the value of its investment to determine whether there was any subsequent
decline in value. The Company estimated the fair value of its investment in Byte Factory using a discounted cash flow model and
determined there was a decline in value below the carrying value at December 31, 2011 that was other than temporary and recognized
an impairment loss of $3,727, reducing the carrying value to $34,264.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 5 - EQUIPMENT AND IMPROVEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Equipment and improvements consists
of the following as of December 31, 2011:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%">Equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">815</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">815</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 6 - FINANCIAL INSTRUMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Concentrations of Credit Risk</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">At times throughout the year, the
Company may maintain certain bank accounts in excess of FDIC insured limits. These cash balances are held at one financial institution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Fair Value</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company has financial instruments,
including investments in companies at cost, convertible notes receivable, and contingently convertible debt, none of which are
held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2011 does not
differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying balance sheet. The
estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies.
Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly,
the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 7 - CONVERTIBLE NOTE PAYABLE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">On December 30, 2011, the Company
issued a convertible bridge note in the amount of $50,000 with Ascend Acquisition Corp. (see NOTE 10). The note bears interest
at the prime rate (3.25%) plus 5% on an annual basis. Unless prepaid, accelerated or converted in accordance with the terms outlined
below, the note and any accrued interest shall be due and payable on the earlier of (i) the closing of the merger transaction contemplated
between the holder and the Company (see NOTE 10, below) and (ii) June 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In the event that the Company consummates,
prior to the maturity date, an equity financing with aggregate proceeds of not less than $2,000,000, the note and any accrued interest
may be converted at the option of the holder into equity securities at a price per unit/share equal to 80% of the price per unit/share
of the equity securities, or the holder may require prepayment in full of the principal and accrued interest. The contingent option
of the holder was accounted for as a contingent beneficial conversion option as the event that triggers conversion was within the
Company&rsquo;s control. The intrinsic value of the beneficial conversion option at the date of grant was $12,500 and will be recognized
in the event that the contingency is resolved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 8 - FAIR VALUE MEASUREMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">ASC 820, <I>Fair Value Measurements
and Disclosures</I>, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level
3 measurements). The three levels of the fair value hierarchy under ASC 820 are described as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in">(1)</TD><TD STYLE="text-align: justify">Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets
or liabilities in active markets that the Company has the ability to access.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in">(2)</TD><TD STYLE="text-align: justify">Level 2 - Inputs other than quoted prices that are observable for the asset or liability; inputs
that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability
has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in; text-align: justify">Inputs to the valuation methodology
include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in; text-align: justify">&bull; quoted prices for similar
assets or liabilities in active markets;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.45in; text-align: justify">&bull; quoted prices for identical
or similar assets or liabilities in inactive markets;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.2in">(3)</TD><TD STYLE="text-align: justify">Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The asset's or liability's fair
value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable
inputs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 8 - FAIR VALUE MEASUREMENTS (continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Following is a description of the
valuation methodologies used for assets and liabilities recognized at fair value. There have been no changes in the methodologies
used during the period from January 17, 2011 (inception) through December 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">Investment in companies, cost method:
The fair value of one of the investments in companies under the cost method has been estimated due to identified events or changes
in circumstances that may have had a significant adverse effect on the fair value. The Company used a discounted cash flow model
to estimate fair value and determined the impairment was other than temporary. The Company applied a 20% discount rate to the expected
future cash flows to determine the fair value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The table below represents the Company's
assets and liabilities that are recorded at fair value on a non-recurring basis. There were no assets or liabilities recorded at
fair value on a recurring basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 96%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid">Fair&nbsp;Value&nbsp;Measurements&nbsp;at&nbsp;Reporting&nbsp;Date&nbsp;Using</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Quoted&nbsp;Prices</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Significant</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">in&nbsp;Active</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Other</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Significant</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Markets&nbsp;for</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Observable</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Unobservable</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Identical&nbsp;Assets</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Inputs</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Inputs</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">12/31/11</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(Level&nbsp;1)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(Level&nbsp;2)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">(Level&nbsp;3)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; text-align: left; padding-bottom: 1pt">Investment in company, cost method</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">34,264</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">34,264</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">34,264</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">34,264</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 9 - MEMBERSHIP INTERESTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">A total of 10,000,000 membership
units are authorized, issued and outstanding at December 31, 2011. The Operating Agreement provided for initial capital contributions
of $160,000, with each of two members holding a 50% membership interest. Allocations of net income or loss are allocated to
the members in accordance with their respective percentage interests. In May 2011, another member was admitted, with a revised
membership interest of 33 1/3% for each member. The new member's interest would vest ratably the first of each month after the
amendment over a four year term. These three members are referred to as the &quot;Founders&quot;. In October 2011, the Operating
Agreement was again amended to re-allocate membership interests and grant membership interests to two additional individuals
for additional cash contributions totaling $2,278. In addition, the member who was admitted in May 2011 contributed $5,097 for
his membership interest. The contributions made by these three members in October 2011 were made in amounts that approximated the
fair value of the units received.The holders of the top four membership percentage interests are referred to as the &quot;Signatory
Members&quot;. In addition, the two original members of the Company were granted priority distribution rights of $205,000 each
for any distributions of profits or net proceeds arising from any sale of the Company. Founders that have not been terminated have
certain rights to repurchase the unvested equity interests of the other members if the services of any such member are terminated.
These purchase rights lapse over time until such time that each member's units are considered &quot;vested&quot;. The purchase
rights shall be exercisable by the remaining Signatory Members pro rata with their holdings (vested and unvested) at an exercise
price equal to the original price paid per membership unit purchased. Units that have not yet vested are subject to acceleration
upon the occurrence of certain financing or restructuring events, or upon the achievement of certain revenue milestones. As of
December 31, 2011, the purchase rights had lapsed and membership interests had &ldquo;vested&rdquo; for a total of 967,223 units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 10 - COMMITMENTS AND CONTINGENCIES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The Company is party to a Publisher
Agreement with a service provider to generate publishing revenue. The Company received $225,000 in deposits by the publisher. Two
members of the Company also co-founded this service provider. The Company may earn revenue based on direct payments under the application
(100% of such payments allocated to the Company) and/or based on alternative payment service revenue which results from utilization
of the platform provided by the publisher which incentivizes end users to complete certain tasks in response to advertisements
presented within the application (i.e. to purchase other applications on the publisher&rsquo;s platform) (70% of such revenues
allocated to the Company). The latter revenue source is shared with the publisher, who will be the exclusive provider of the service
that incentivizes the site user completion described above starting from the date that the first application begins utilizing this
service. This revenue is subject to a $50,000 recoupment (the &ldquo;Recoupment Amount&rdquo;) which would be withheld by the service
provider in settlement of the $225,000 deposit or any marketing credits (as discussed below) that it provides to the Company. The
Company is required to maintain exclusivity on the Publisher&rsquo;s platform for 24 months, plus any extension period. In addition,
the Company can receive $50,000 in marketing credits, which may be used in lieu of other forms of payment and only for the promotion
and distribution of the applications within the publisher's network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In May 2011, the Company entered
into a Development and Licensing Agreement with a consultant to build an Android game platform for the Company. The Agreement called
for a payment of $32,500 upon the execution of the agreement, and the final payment of $32,500 when the product is completed as
agreed upon by the parties and shipped. The application was deployed as of December 31, 2011, with $55,250 expensed for software
application development costs with $9,750 to be recognized in future periods based on the completion of services. The consultant
will also be entitled to 20% of the net revenue paid to the Company by the publisher above (which primarily markets on Android)
or Apple, Inc. platforms (less any marketing credits paid by the third parties), but only effective after the Company first receives
$65,000 in such net revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In May 2011, the Company entered
into an Employment Agreement with an individual who became a Signatory member in October 2011 (see NOTE 9 above). The individual's
employment was approved as Managing Director. The agreement term is for one year unless terminated by good cause, and renews automatically
for one year unless cancelled six months from the date of signing. The employee&rsquo;s annual salary is $225,000 per the terms
of the employment agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In November 2011, the Company entered
into Employment Agreements with the Chief Executive Officer and Executive Vice President. The individuals' employment will begin
upon the closing of a minimum financing of $250,000. Both agreements' term are for one year unless terminated by good cause, and
renew automatically for one year unless cancelled six months from the date of signing. The employee&rsquo;s annual salary is $150,000
per the terms of the employment agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In November 2011, the Company entered
into an Employment Agreement with a Non-Executive Chairman. The individual's employment will begin upon the closing of a minimum
financing of $5,000,000. The agreement may be terminated for good cause within the first year. The employee&rsquo;s annual salary
is $150,000 per the terms of the employment agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andover Games, LLC and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 10 - COMMITMENTS AND CONTINGENCIES (continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">In December 2011, the Company entered
into a Merger Agreement and Plan of Reorganization with Ascend Acquisition Corp (&quot;Ascend&quot;), a publicly traded shell company.
The effective date of the merger will be upon closing of the transaction, which had not occurred as of December 31, 2011. Upon
the closing of the transaction, the members of the Company will exchange their membership interests for common stock of Ascend,
which will provide the former members with a minimum ownership of 75% of the fully diluted capitalization of Ascend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 11 - SUBSEQUENT EVENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(a)</TD><TD STYLE="text-align: justify">In January 2012, the Company issued a convertible bridge note in the amount of $200,000 to
                                                                                   Ascend under the same terms as described in Note 7.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(b)</TD><TD STYLE="text-align: justify">On February 29, 2012, the Company and Ascend closed the transactions under the Merger
                                                                 Agreement and Plan of Reorganization (the &ldquo;Merger Agreement&rdquo;) with the Company becoming a wholly-owned subsidiary
                                                                 of Ascend (the                                                                  &quot;Closing&quot;). At the Closing, the
                                                                 holders of membership interests of the Company&nbsp; received 38,195,025 shares of
                                                                 Ascend common stock, representing 75% of the fully diluted capitalization of Ascend immediately after the closing of the
                                                                 merger and the Financing (defined below), subject to further adjustment as provided for in the Merger Agreement.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Pursuant to the Merger
Agreement, Ascend was obligated to use its commercial best efforts to raise at least $4 million of equity capital through the
sale of Ascend's capital stock (the &quot;Financing&quot;), of which at least $2 million was to be raised prior to or
simultaneously with the closing and such additional proceeds are to be raised, if at all, within the next 30 days so as to
raise up to $4 million in aggregate proceeds. Pursuant to the Merger Agreement, Ascend is required to use its commercial best
efforts to raise an additional $2 million of proceeds within 30 days after the Closing. Pursuant to the Merger Agreement, if
Ascend sells additional shares of its capital stock in the Financing during such period, Ascend will issue additional
shares of its common stock to the former members of the Company to maintain their collective ownership of Ascend common stock
at 75% on a fully diluted basis.&nbsp; Alternatively, if Ascend sells less than the maximum $4 million in aggregate proceeds
in the Financing, then such number of additional shares of Ascend capital stock shall be issued to the former members of the
Company at the final closing of the Financing so as to increase their collective pro-rata percentage ownership in Ascend by
one percent (1%) for every $200,000 in proceeds that Ascend falls short of the $4 million maximum proceeds in the
Financing.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Simultaneously with the Closing,
Ascend sold 4,000,000 shares of its common stock, at $0.50 per share, for gross proceeds of $2 million pursuant to the Financing.
In addition, The Company repaid $250,000 of outstanding convertible notes payable to Ascend.</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">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>



<P STYLE="margin: 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ASCEND ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PRO FORMA FINANCIAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 30, 2011 Ascend Acquisition Corp.,
a Delaware corporation (&ldquo;Ascend&rdquo;), entered into a Merger Agreement and Plan of Reorganization (the &ldquo;Merger Agreement&rdquo;)
by and among Ascend, Ascend Merger Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Ascend (&ldquo;Merger
Sub&rdquo;), Andover Games, LLC, a Delaware limited liability company (&ldquo;Andover Games&rdquo;), and the members of Andover
Games (&ldquo;Signing Members&rdquo;). Ascend was a non-operating public shell. On February 29, 2012, the parties closed the transactions
under the Merger Agreement and, pursuant to the Merger Agreement, the Merger Sub merged with and into Andover Games, with Andover
Games surviving the merger and becoming a wholly-owned subsidiary of Ascend.<FONT STYLE="color: black">&#9;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the close of the merger, the holders of
membership interests of Andover Games received 38,195,025 shares of Ascend common stock, representing 75% of the fully diluted
capitalization of Ascend immediately after the closing of the merger and the Financing (defined in Notes to Pro Forma Statements
below), subject to further adjustment as provided for in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For accounting purposes, the acquisition
will be treated as an acquisition of Ascend by Andover Games and as a recapitalization of Andover Games as Andover Games
members will hold a majority of the Ascend shares and will exercise significant influence over the operating and financial
policies of the consolidated entity and Ascend was a non-operating public shell prior to the transaction. Pursuant to
Securities and Exchange Commission rules, the merger or acquisition of a private operating company into a non-operating
public shell with nominal assets is considered a capital transaction in substance rather than a business combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following unaudited pro forma
information as of December 31, 2011 and for the period from January 17, 2011 (inception) thorough December 31, 2011 is
presented herein to show the effect of the merger transactions noted above as if the merger took place at December 31, 2011
for the pro forma condensed balance sheet and at the beginning of the period presented for the pro forma condensed statement
of operations. The unaudited pro forma financial information does not necessarily reflect the results of operations that
would have occurred had Ascend constituted a single entity during the period presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<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"></P>



<P STYLE="margin: 0"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Ascend Acquisition Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Proforma Condensed Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>December 31, 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Ascend Acquisition Corporation</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Andover Games, LLC</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Proforma Adjustments</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Proforma Combined</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">December&nbsp;31,&nbsp;2011</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">December&nbsp;31, 2011</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">December&nbsp;31,&nbsp;&nbsp; 2011</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">December&nbsp;31, 2011</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">ASSETS</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-left: 27px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Current assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; font-size: 10pt; text-align: left; padding-left: 18px; text-indent: -9px">Cash and cash equivalents ($25,000 related to variable interest entity)</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">30,461</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">80,588</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,000,000</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left">(b)</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,111,049</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Note receivable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">50,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(50,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">)(a)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Convertible note receivable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">50,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">50,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 9px">Accrued interest receivable</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">833</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">833</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px">Total current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">80,461</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">131,421</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,950,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,161,882</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Investments in private companies</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">114,505</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">114,505</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 9px">Equipment, at cost</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">815</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">815</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 27px">Total assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">80,461</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">246,741</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,950,000</TD><TD NOWRAP STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">2,277,202</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Current liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Accounts payable and accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">916</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">78,307</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">79,223</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px; text-indent: -9px">Advances from related party ($4,500 related to variable interest entity)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,626</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,126</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Payroll tax liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,601</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,601</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 9px">Convertible note payable</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">50,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(50,000</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)(a)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px">Total current liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2,542</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">160,408</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(50,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">112,950</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 9px">Deferred revenue</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">206,250</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">206,250</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 27px">Total liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,542</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">366,658</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(50,000</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">319,200</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Stockholders' Equity (Deficit)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Controlling Interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px; text-indent: -9px">Preferred stock, $0.0001 par value, 1,000,000 shares authorized; none issued</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 18px; text-indent: -9px">Common stock, $0.0001 par value, 300,000,000 shares authorized; 50,926,700 shares issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">873</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">400</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">(b)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,093</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,820</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">(c)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Additional paid-in capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">655,398</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,999,600</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">(b)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,240,201</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(414,797</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">)(c)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px; padding-bottom: 1pt">Deficit accumulated during the development stage</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">(578,352</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">(147,341</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">410,977</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">(c)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">(314,716</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Total Stockholders' Equity of Ascend Acquisition Corporation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">77,919</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(147,341</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,000,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,930,578</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">Non-controlling interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,424</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,424</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 18px">Total stockholders' equity (deficit)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">77,919</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(119,917</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,000,000</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,958,002</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 9px">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 27px">Total liabilities and stockholders' equity (deficit)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">80,461</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">246,741</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,950,000</TD><TD NOWRAP STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">2,277,202</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Ascend Acquisition Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Proforma Condensed Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Ascend</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Andover&nbsp;Games,<BR>
LLC</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proforma Combined</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold"></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Acquisition</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Period From</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Proforma</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Period From</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Corporation</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">January 17, 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Adjustments</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">January 17, 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Year Ended</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">(Inception) to</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Year Ended</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">(Inception) to </TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">December 31, <BR> 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">December 31, <BR> 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">December 31, <BR> 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">December 31, <BR> 2011</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; font-weight: bold; text-indent: -0.1in; padding-left: 0.1in; padding-bottom: 1pt">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="width: 10%; text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="width: 10%; text-align: right; border-bottom: Black 1pt solid">18,750</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="width: 10%; text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$</TD><TD STYLE="width: 10%; text-align: right; border-bottom: Black 1pt solid">18,750</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt">Software development costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,650</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,650</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">General and administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">80,048</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">231,630</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">476,767</TD><TD STYLE="padding-bottom: 1pt; text-align: left">(d)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">788,445</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.35in; padding-bottom: 1pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">80,048</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">356,280</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">476,767</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">913,095</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(80,048</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(337,530</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(476,767</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(894,345</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Other income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt">Equity loss from investment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,009</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,009</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 16.2pt">Other income (expense)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(366</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,653</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(3,019</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(80,414</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(352,192</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(476,767</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(909,373</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Less: Net loss attributable to non-controlling interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,476</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,476</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Net loss attributable to controlling interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(80,414</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(314,716</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(476,767</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(871,897</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Weighted average common shares outstanding, basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,064,757</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">40,320,025</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">(e)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">48,384,782</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -0.1in; padding-left: 0.1in">Net loss per common share, basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.02</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ASCEND ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PRO FORMA FINANCIAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Pro forma Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following adjustments would be required if the transaction had
occurred as of December 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify">To eliminate the bridge loan entered into between Ascend and Andover Games in December 2011 (see
&ldquo;Bridge Loans&rdquo; below)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(b)</TD><TD STYLE="text-align: justify">To record the effect of the $2 million financing (condition precedent to the closing)</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(c)</TD><TD STYLE="text-align: justify">To record effect of reverse merger recapitalization of Andover Games (Note: see &ldquo;Financing&rdquo;
below)</TD></TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following adjustments would be required if the transaction had
occurred at the beginning of the period presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(d)</TD><TD STYLE="text-align: justify">To record pro forma compensation expense (and related payroll tax expense) for employment agreements
entered into with named executive officers and directors.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(e)</TD><TD STYLE="text-align: justify">To record pro forma adjustment to weighted average shares outstanding for the period presented.</TD></TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The historical information in these Pro Forma
Statements for Ascend as of and for the year ended December 31, 2011 is derived from the audited financial statements included
in its annual report on Form 10-K filed February 28, 2012. The historical information in these Pro Forma Statements for Andover
as of December 31, 2011 and for the period from January 17, 2011 (Inception) through December 31, 2011 is derived from the audited
financial statements included herein this Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Bridge Loans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Merger Agreement, Ascend provided
bridge loans in the aggregate amount of $250,000 to Andover Games (the &ldquo;Bridge Loans&rdquo;), with $50,000 provided prior
to December 31, 2011.&nbsp;To provide the necessary funding for Ascend to make the above-referenced Bridge Loans, Ascend received
a loan from Ironbound (the &ldquo;loan&rdquo;) in an aggregate principal amount of $250,000 and in return issued to Ironbound a
convertible promissory note to evidence the loan.&nbsp;&nbsp;Both the Bridge Loans and loan were due on the closing of the merger
and were repaid.<FONT STYLE="color: black"> Since the loan and $200,000 of the Bridge Loans would have been paid in full at closing,
these items have been excluded from the presentation of the pro forma statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ASCEND ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(A Development Stage Company)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PRO FORMA FINANCIAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notes to Pro forma Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Financing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the Merger Agreement, Ascend was obligated to use
its commercial best efforts to raise at least $4 million of equity capital through the sale of Ascend&rsquo;s capital stock
(the &ldquo;Financing&rdquo;), of which at least $2 million was to be raised prior to the closing of the merger and such
additional proceeds are to be raised, if at all, within the 30 days post-closing so as to raise $4 million in aggregate
proceeds. &nbsp;&nbsp;Prior to the consummation of the merger, Ascend sold 4,000,000 shares (&ldquo;Shares&rdquo;) of its
common stock, at $0.50 per share, for the gross proceeds of $2 million<FONT STYLE="color: black">.</FONT><FONT STYLE="font-size: 10pt"> </FONT>Pursuant
to the Merger Agreement, if Ascend sells additional shares of its capital stock during the 30 days post-closing Ascend will
issue additional shares of its common stock to the former members of Andover Games to maintain their collective ownership of
Ascend common stock at 75% on a fully diluted basis. Alternatively, if Ascend sells less than the maximum $4 million in
aggregate proceeds in the Financing, then such number of additional shares of Ascend capital stock shall be issued to holders
of the membership interests of Andover Games at the final closing of the Financing so as to increase their collective
pro-rata percentage ownership in Ascend by one percent (1%) for every $200,000 in proceeds that Ascend falls short of the $4
million maximum proceeds in the Financing. As such, if Ascend does not sell any additional shares of common stock in the
Financing, an additional 33,951,133 shares would be issued to the holders of the membership interests of Andover Games. The
effect of such an issuance would be to adjust the proforma earnings per share to ($0.01). The pro forma effects of the merger
recapitalization do not reflect any adjustments that could have resulted in the first 30 days post-closing due to the nature
of this contingency. Instead, they reflect the shares issued prior to closing from the Financing (4,000,000 shares) plus the
shares that would have been issued to Andover Games, representing 75% of the fully diluted capitalization of Ascend
immediately after the closing of the merger at December 31, 2011 (38,195,025 shares) for the Pro Forma Balance Sheet and the
beginning of the period presented (36,320,025 shares) for the Pro Forma Statement of Operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The income tax benefit associated with any net operating loss carry
forwards has not been recorded in these pro forma statements as it cannot be determined on a more likely than not basis at this
time if they will be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">Ascend Acquisition Corp.</TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: March 6, 2012</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: none; border-bottom: Black 1pt solid">/s/ Craig dos Santos</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Chief Executive Officer</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
February 29, 2012
ASCEND ACQUISITION CORP.
(Exact name of registrant as specified in its charter)
Delaware
000-51840
20-3881465
(State of Incorporation)
(Commission File No.)
(IRS Employer ID No.)
360 Ritch Street, Floor 3
San Francisco, California 94107
(Address of Principal Executive Offices)
(786) 245-3786
(Registrant's Telephone Number, Including
Area Code)
970 West Broadway, PMB 402
Jackson, Wyoming  83002
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR.425)
¨
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements,
which reflect our views with respect to future events and financial performance. These forward-looking statements are subject to
certain uncertainties and other factors that could cause actual results to differ materially from such statements. These forward-looking
statements are identified by, among other things, the words "anticipates", "believes", "estimates",
"expects", "plans", "projects", "targets" and similar expressions. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events
or otherwise. Important factors that may cause actual results to differ from those projected include the risk factors set forth
in Item 2.02 of this report.
USE
OF DEFINED TERMS
Except as
otherwise indicated by the context, references in this report to "Ascend" or the "Company" are references
to Ascend Acquisition Corp., a Delaware corporation, and references to "Andover Games" are references to Andover Games,
LLC, a Delaware limited liability company that is wholly-owned by Ascend. References to "we," "us" or "our"
are references to the combined business of Ascend and Andover Games.
ITEM 1.01	ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
General; Merger Agreement
On December 30, 2011, Ascend entered into a
Merger Agreement and Plan of Reorganization (the "Merger Agreement") by and among Ascend, Ascend Merger Sub, LLC, a
Delaware limited liability company and a wholly-owned subsidiary of Ascend ("Merger Sub"), Andover Games and the members
of Andover Games ("Signing Members"). On February 29, 2012, the parties closed the transactions under the Merger Agreement
and, pursuant to the Merger Agreement, the Merger Sub merged with and into Andover Games, with Andover Games surviving the merger
and becoming a wholly-owned subsidiary of Ascend.
Andover Games is a company formed to create
and distribute game applications on current smartphone and other mobile platforms, namely iOS and Android, as well as future competing
smartphone platforms.
The following summaries of the merger and related
transactions, the Merger Agreement and the other agreements entered into by the parties are qualified in their entirety by reference
to the text of the agreements, certain of which are attached as exhibits hereto and are incorporated herein by reference.
Merger Consideration
At the close of the merger ("Closing"),
the holders of membership interests of Andover Games received 38,195,025 shares of Ascend common stock, representing 75% of the
fully diluted capitalization of Ascend immediately after the closing of the merger and the Financing (defined below), subject to
further adjustment as provided for in the Merger Agreement.
Pursuant to the Merger Agreement, Ascend
was obligated to use its commercial best efforts to raise at least $4 million of equity capital through the sale of
Ascend's capital stock (the "Financing"), of which at least $2 million was to be raised prior to or
simultaneously with the Closing and such additional proceeds are to be raised, if at all, within the next 30 days so as to
raise up to $4 million in aggregate proceeds.   As described under "Financing" below, simultaneously
with the Closing, Ascend sold 4,000,000 shares of its common stock, at $0.50 per share, for gross proceeds of $2 million.
Pursuant to the Merger Agreement, Ascend is required to use its commercial best efforts to raise an additional $2 million of
proceeds within 30 days after the Closing. Pursuant to the Merger Agreement, if Ascend sells additional shares of its capital
stock in the Financing during such period, Ascend will issue additional shares of its common stock to the former members of
Andover Games to maintain their collective ownership of Ascend common stock at 75% on a fully diluted basis. Alternatively,
if Ascend sells less than the maximum $4 million in aggregate proceeds in the Financing, then such number of additional
shares of Ascend capital stock shall be issued to the former members of Andover Games at the final closing of the Financing
so as to increase their collective pro-rata percentage ownership in Ascend by one percent (1%) for every $200,000 in proceeds
that Ascend falls short of the $4 million maximum proceeds in the Financing. By way of example, if Ascend raises only an
additional $1,000,000 in a second and final closing of the Financing, then Ascend shall issue to the former members of
Andover Games additional shares of common stock in Ascend such that the former members of Andover Games, as a group, hold 80%
of the outstanding shares of Ascend common stock on a fully diluted basis.
2
Financing
Simultaneously
with the Closing, Ascend sold 4,000,000 shares ("Shares") of its common stock, at $0.50 per share, for gross proceeds
of $2 million to 15 accredited investors, including Ironbound Partners Fund, LLC ("Ironbound"), an affiliate of Jonathan
J. Ledecky, Ascend's former Chief Executive Officer and the holder of approximately 85% of Ascend's outstanding common
stock prior to the consummation of the merger and Financing. Pursuant to the Merger Agreement, Ascend is required to use its commercial
best efforts to raise such additional proceeds within 30 days after the Closing so as to raise $4 million in aggregate proceeds.
The purchase and sale of the Shares was conducted pursuant to a Subscription Agreement entered into between Ascend and each of
the investors. Pursuant to the terms of the Subscription Agreement, Ascend has agreed to file, within ten business days of the
Closing, a registration statement ("Registration Statement") with the Securities and Exchange Commission covering the
resale by the investors of the Shares they purchased and use its best efforts to have such Registration Statement declared effective
as promptly as practicable thereafter, and keep the Registration Statement effective until (i) the date on which the Shares may
be resold by the investor without registration under the Securities Act and without regard to any volume limitations by reason
of Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the Shares have been sold pursuant to the
Registration Statement or Rule 144 under the Securities Act or any other rule of similar effect.
Lock-Up Agreements
Pursuant to the terms of lock-up agreements
entered into upon signing of the Merger Agreement, all of the officers, managers and former holders of membership interests of
Andover Games, together with Jonathan J. Ledecky and Ironbound, have agreed not to sell their shares of Ascend common stock until
the 12-month anniversary of the Closing.
Tax and Accounting Considerations
The merger constituted a tax-free reorganization
within the meaning of Section 368 of the Internal Revenue Code of 1986, as amended.
The merger will be accounted for as a "reverse
merger" and recapitalization since immediately following the completion of the transaction, the holders of membership interests
of Andover Games immediately prior to the merger have effective control of Ascend through their approximately 75% aggregate stockholder
interest in the combined entity. In addition, all of Andover Games' senior executive positions continue on as management
of the combined entity after consummation of the merger. For accounting purposes, Andover Games will be deemed to be the accounting
acquirer in the transaction and, consequently, the transaction will be treated as a recapitalization of Andover Games. Accordingly,
Andover Games' assets, liabilities and results of operations will become the historical financial statements of Ascend, and
Ascend's assets, liabilities and results of operations will be consolidated with Andover Games effective as of the merger
date.
Right of First Look Letter
Each former holder of Andover Games'
membership interests has entered into a right of first look letter agreement with Ascend pursuant to which each such individual
has agreed to disclose and present to Ascend new potential business opportunities which relate to Andover Games' business
prior to pursuing such opportunities themselves, alone or with any other person, subject to certain limited exceptions, so long
as such person either owns at least 1% of the of the outstanding capital stock of Ascend or is an officer, director, employee or
consultant of Ascend.  Even if Ascend does not desire to pursue such opportunity, it can prevent the individual from
pursuing it by notice to such individual.
3
Noncompetition
Pursuant to the Merger Agreement, each former
holder of Andover Games' membership interests, including Craig dos Santos, Ben Lewis, Lee Linden and Richard Hecker, have
agreed not to compete with Ascend for a period of two years from the Closing and to not solicit any employees of Ascend
during such period.
Representations and Warranties
The Merger Agreement included customary representations
and warranties of each of Ascend, Merger Sub, Andover Games and the Signing Members.
Management of Ascend Following Merger
Upon the Closing, Craig dos Santos, Andover
Games' Chief Executive Officer, Ben Lewis, a founder of Andover Games, Richard Hecker, a board member of Andover Games, and
Jeremy Zimmer were appointed to Ascend's Board to join Jonathan Ledecky as board members.
Upon consummation of the merger, Jonathan Ledecky
resigned from his position of Chief Executive Officer of Ascend and became the non-executive Chairman of the Board and Interim
Chief Financial Officer of Ascend.  Mr. Ledecky entered into a two-year consulting agreement with Ascend upon consummation
of the merger providing for him to receive an annual consulting fee of $150,000.  Additionally, Craig dos Santos became
the Chief Executive Officer of Ascend and will also be the Chief Executive Officer and a Manager of Andover Games, and entered
into a two-year employment agreement with Ascend upon the Closing providing for him to be paid an annual salary of $225,000.  
Traction and Scale LLC, a limited liability company in which Richard Hecker owns 100% of the membership interests, also entered
into a two-year consulting agreement with Ascend pursuant to which it will make the services of Mr. Hecker available to Ascend
during the term and providing for $150,000 in aggregate consulting fees per year.
Bridge Loans
Pursuant to the Merger Agreement, prior to
the Closing, Ascend provided bridge loans in the aggregate amount of $250,000 to Andover Games (the "Bridge Loans").  The
Bridge Loans were evidenced by promissory notes bearing interest at the prime annual rate plus 5%.  The promissory notes
were due on the closing of the merger and have been repaid.
To provide the necessary funding for Ascend
to make the above-referenced Bridge Loans, Ascend received a loan from Ironbound in an aggregate principal amount of $250,000 and
in return issued to Ironbound a convertible promissory note to evidence the loan.  The note was due on the Closing and
was used as consideration for Ironbound to purchase shares of Ascend's common stock in the first closing of the Financing
on the same terms as the other investors. The interest owed on the note was forgiven.
Indemnification Agreements
Upon the Closing, Ascend entered into indemnification
agreements with each of its executive officers and directors.
Copies of the Merger Agreement, Lock Up
Agreements, Right of First Look Agreements, Indemnification Agreements, Employment Agreements and Consulting Agreements with
our officers and directors and the form of Subscription Agreement used in the Financing are filed as exhibits to this report.
On March 2, 2012, we issued a press release describing the closing of the merger and the Financing. A copy of the press
release is filed as Exhibit 99.1 to this report.
4
ITEM 2.01	COMPLETION OF ACQUISITION
OR DISPOSITION OF ASSETS
On February 29, 2012, we completed an acquisition
of Andover Games pursuant to the Merger Agreement. The acquisition was accounted for as a recapitalization effected by merger,
wherein Andover Games is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of
the acquired entity have been brought forward at their book value and no goodwill has been recognized.
FORM 10 DISCLOSURE
As disclosed elsewhere in this report, we acquired
Andover Games in a reverse acquisition transaction. Item 2.01(f) of Form 8-K states that if the registrant was a shell company
(as we were immediately before the reverse acquisition transaction disclosed under Item 2.01), then the registrant must disclose
the information that would be required if the registrant were filing a general form for registration of securities on Form 10.
Accordingly, we are providing below the information
that would be included in a Form 10 if we were to file a Form 10. Please note that the information provided below relates
to the combined enterprises after the acquisition of Andover Games, except that information relating to periods prior to the date
of the reverse acquisition relate to only Ascend Acquisition Corp., unless otherwise specifically indicated.
DESCRIPTION OF BUSINESS
Our Vision for Play
We founded Andover Games in January 2011 with
the belief that mobile entertainment is becoming one of the most ubiquitous forms of entertainment as smartphone devices become
the standard. We believe that online and mobile games are no longer a past time for just male teenagers. All ages are spending
more time on their mobile devices, and the demand for high quality mobile entertainment will continue to increase. We aim to bring
together the best teams of game designers and engineers and pioneer a new standard for mobile entertainment.
Overview
Our goal is to become one of the leading gaming
companies focused purely in the social mobile arena. We intend to use a multi-faceted approach to developing, producing, marketing
and distributing games on iOS and Android devices. We aim for fun, engaging consumer interaction, experienced anywhere, at any
time, on your phone. Our team has acquired its expertise gleaned from not only working at, but starting, top social gaming companies,
and the leading marketing/distribution company in the mobile gaming space. We expect that the majority of our games will be free
to play, and we expect to generate revenue through the in-game sale of virtual goods and advertising. We intend to recruit experienced
public company executives who have a track record of building numerous successful public companies to join forces with our existing
team of top mobile executives and technologists.
We believe opportunities in mobile gaming are
growing faster than ever because of the dramatic increase in audience size (more and more people have iPhones and Android devices)
as well as the increasing popularity of casual, social games. These factors have opened up the gaming market to a wider audience,
attracting a broad range of users who have never previously considered themselves "gamers". We have an opportunity
to grow quickly and use our deep relationships in the mobile gaming space and operational expertise to build technical tools that
we believe will allow us to launch games faster and with a higher quality barrier to entry than the current competition. We intend
to attract the top talent in the industry by narrowing our focus on executing a free to play business model while simultaneously
increasing the quality of aesthetics and interaction in the game.
5
Industry Background
Social Games
Since the mid-1970s, video game companies have
focused on console games, selling individual games for $30 to $50 in retail stores. A smaller but growing section of the market
concentrated on PC games and online games. In 2008, the online gaming market started growing exponentially with the introduction
of games on the Facebook platform. Facebook allowed for easy, viral distribution of games and a new type of game was introduced
to the US market: Social Games.
Free to Play Gaming Model
By early 2009, a few leaders in the industry
(Zynga, Playdom, Playfish) had emerged and were generating hundreds of millions of dollars in revenue by offering games that were
Free to Play (F2P). Companies earned revenue by selling virtual currencies and virtual goods within the game. Instead of creating
a game, packaging it and selling it in a store, these games were created quickly and launched and then updated frequently. Games
became a service, instead of a packaged good product. We believe that many of the traditional gaming companies have been slow to
enter into this world, and that game companies of this F2P era continue to be led by technologists coming from the web software
world.
Mobile Gaming on the iOS platform
Since the introduction of the iOS developer
platform in 2008, game development has been extremely popular. Most developers view the iPhone and iPod Touch as another portable
game console. Games and entertainment quickly comprised 26% of all downloads in the iOS app store. Porting games from other consoles
was an initial strategy by most developers but the problem they encountered was that the price points were very different. Consumers
wanted apps for free, or at best were willing to pay a few dollars for an application. Price points of $5 rarely brought enough
downloads to make the investment worthwhile. Most console game developers were accustomed to spending a year or more developing
each title and charging upwards of $30 per game unit sold.
Meanwhile, the development costs were considerable
for brand name content as companies started to copy the model for building console games onto mobile devices. In addition, the
usual channels for marketing and distribution didn't work, leading to costly mistakes. Many firms lost money on their heavy
hitting game titles, and even lucrative franchises like Madden and Call of Duty could not dominate the top games charts for a competitive
length of time. The packaged good model of gaming that had dominated the console gaming did not translate to the new mobile platforms.
A new model began to emerge that closely mirrored changes in the software world; where software moved from being a packaged good
that consumers purchased in a box, to a service that was built on and delivered via the internet.
By 2010, Playdom, Zynga and a few independent
companies had started experimenting with taking F2P games from Facebook onto the iOS platform. Almost immediately, these games
started to eclipse brand name content in terms of revenue. While many companies were trying out a Free and Paid version of their
games (the traditional shareware / try-before-you-buy model), the F2P model allowed for extreme price discrimination.
The way people use, communicate and entertain
themselves using smartphones continues to evolve in 2012. As people spend more and more minutes using their phones, playing casual
games will continue to be a common activity. Games are the most popular category of applications on smartphones, representing approximately
half of the time spent on smartphone applications in the United States, according to a May 2011 report by Flurry Analytics, a market
data and analytics firm.
There are a number of key trends that we believe
will continue to drive the growth and popularity of social games, including:
·
Growth of Smartphone Audience and proliferation of mobile applications
. Over the past 5
years, smartphones have emerged as a mainstream way to access the internet, utilize applications and play games, communicate and
socialize. The worldwide smartphone market grew 54.7% year over year in the fourth quarter of 2011. [IDC http://www.idc.com/getdoc.jsp?containerId=prUS23299912]
As smart phones, tablets and other increasingly powerful connected devices have proliferated worldwide, application developers
have leveraged the much greater distribution opportunity and emerging social connectivity of mobile devices. Games are the most
popular category of applications on smartphones, representing approximately half of the time spent on smartphone applications in
the United States, according to a May 2011 report by Flurry Analytics, a market data and analytics firm.
6
·
Rapid Growth of Free-to-Play Games
. Most social games are free to play and generate revenue
through the in-game sale of virtual goods. According to In-Stat, a market intelligence firm, the worldwide market for the sale
of virtual goods was $7.3 billion in 2010 and is expected to more than double by 2014. Compared to pay-to-play business models,
the free-to-play approach tends to attract a wider audience of players, thereby increasing the number of players who have the potential
to become paying users. By attracting a larger audience, the free-to-play model also enables a higher degree of in-game social
interaction, which enhances the game experience for all players.
Our Opportunity
We believe that mobile games represent a new form of entertainment
that will continue to capture leisure time as more games enter the market and target new demographics. Together with the growing
audience on smartphones, worldwide, we believe that mobile games will represent an increasing portion of the overall video game
software market.
As we move forward, we will endeavor to create technology that allows
us to move across platforms from Android to iOS and potentially other smartphone platforms as the market continues to mature. We
intend to create tools that will allow us to deliver high end aesthetic experiences, and allow us to analyze the data in our games
and change them to better fit the actions of our user base.
We intend to invest in distribution, marketing and analytics on
behalf of games we deem to have potential and partner with promising teams to distribute their titles. We intend to selectively
invest in other game companies and make acquisitions of companies that are deemed strategic to Andover.
We believe that we can attract and retain high quality game development
teams to work with us by offering them a combination of (i) critical path resources (e.g., quick cash infusions for early
game development, a highly skilled in house team of software engineers and design specialists, and marketing expertise with whom
to consult during the game development process) and (ii) highly attractive compensation which they would not be able to achieve
on their own (i.e., specific cash incentives/revenue share of particular game revenue tied to the team's individual efforts,
together with equity grants in Ascend representing their participation in our overall effort to become a leading social mobile
gaming company).
Our Games
We will initially launch our games
in conjunction with other gaming companies in which we expect to invest and own a significant economic ownership stake
ranging from a minority stake to, where possible, a majority equity stake. We will attempt to maintain at least voting (but
less likely and often, economic) parity with the other owners of such gaming companies. We expect to enter into strategic
relationship agreements with such gaming companies, including, among other things, a publisher licence with a right to shared
revenues for specific game title(s) of the gaming companies with which we assist in developing and publishing. Company and
industry specific factors outside of our control will significantly impact the results of our existing and anticipated gaming
companies.
Currently, we have in place a variety of commercial and investment
relationships with the game companies described below, with investment in a particular company by us represented either by an equity
interest in such company or by convertible debt (which we have not converted into equity as of the date hereof), and/or a commercial
contract to share in the revenues of particular game titles in development at such companies in consideration for certain assistance
and support by us. The current game companies are described below together with a brief summary of the commercial and/or investment
terms currently in place with each such company.
7
·
Rotvig Labs, LLC
. Currently, we own an approximate 46% equity
interest in Rotvig Labs, LLC. Rotvig is developing a web-enabled iOS game engine current titled
Spacecraft
. Under the terms
of our commercial revenue share agreement, we are entitled to 46% of Rotvig Labs, LLC's revenue.
·
Game Closure, Inc
. Currently, we own an approximate 0.6% equity
interest in Game Closure Inc. Game Closure offers an HTML5-based multiplayer game development kit. Currently, we have no other
commercial agreement with Game Closure relating to a share of revenues or otherwise.
·
Ecko Entertainment, Inc.
Currently we own less than one percent
of Ecko Entertainment, Inc. Ecko currently has the following mobile games:
Dexter, The Game
;
Weeds
; and
The Social
Club
. Currently, we have not converted a $50,000 convertible note we hold of Ecko into equity of Ecko and have no other commercial
agreement with Ecko relating to a share of revenues for particular game applications being developed by it or otherwise.
·
Infinitap Games, LLC
. Currently, we have no equity interest
in Infinitap Games, LLC; however, we own all of the intellectual property (i.e., software, trademarks and related intellectual
property) embodied in the only mobile game title currently in development,
Dino Park,
and are entitled to certain percentages
of the revenues derived from such game.
Apart from the games described above,  going forward we intend
to own a more significant economic ownership stake in our future games (i.e., interest in the profits of such games) which we expect
to range from a minority interest (e.g., 25%) to, where possible, a majority interest (50% or greater). Apart from the economic
interest stake in such games, we will strive to maintain at least voting parity with the other owners (i.e., shareholders, if a
corporation, or members, if a limited liability company) of such gaming companies. We also expect to enter into strategic relationship
agreements with such gaming companies, including, among other things, a publisher license with a right to shared revenues for specific
game title(s) of the gaming company with which we assist in developing and publishing.
As with a number of our existing games, in exchange
for certain commitments, which will vary from game company to game company, including potentially assistance with office
space, accounting and human resources functions, and assistance with monetization, game design, analytics and marketing
spend related to the particular game title, we expect to enter into with these game companies revenue share arrangements,
ranging from 40% to 80% of net receipts derived from the particular game title(s) being developed by the game companies
with our assistance as described above. In respect of the game title(s) developed by these game companies, we will strive to
obtain a worldwide license to use, reproduce, distribute, perform, display, prepare derivative works of, make, have made,
sell and export the game title(s), and any related technologies, although we have no guaranty we will be able to obtain such
terms or even such license in every instance. The specific term and conditions of the license will be set forth in the
definitive strategic relationship agreement to be negotiated deal by deal with the particular game company.
We will look to increase our ownership or revenue share
interest in these game companies, or try to acquire them completely as they or their games demonstrate success; however, with
our current game companies described above we have no such right of first refusal or other contractual right to do so. As we
grow, we will endeavor to hire as well as make full acquisitions of high quality development teams.
Our Core Strengths
We believe the following strengths provide us with competitive advantages:
·
Mobile Gaming Knowledge
. All three of Andover Games' founders, namely Craig dos Santos, Ben Lewis and Lee Linden,
                                                                                                              have built games that hit the top of the Apple App Store charts. We understand how to develop and, as importantly, operate a
                                                                                                              game as a service, monetizing it using the free to play model with virtual goods and other revenue methodologies.
·
Industry Connections
. Andover Games' founders are well known in the game industry, having worked at a top social
                                                                                                              gaming company (Playdom) and founded and created the top marketing distribution network on iOS (Tapjoy). We believe that we
                                                                                                              will be able to attract and recruit some of the best talent to work on our games because of our experience and contacts in
                                                                                                              the industry.
8
·
Forward Looking Technology
: We intend to create a cross platform game engine that allows us to port games easily across
iOS and Android smartphones. We also intend to create an animation framework that brings techniques from the 3D console gaming
world to mobile devices for the first time. These assets will allow us to develop games and content faster and with higher quality
than our competition.
Our Strategy
Our mission is to create high quality free games that are accessible
anywhere, anytime through mobile devices. In pursuit of our mission, we encourage entrepreneurship and intelligent risk taking
to produce breakthrough innovations. The key elements of our strategy are:
·
Make Games Accessible and Fun
. We intend to operate our games as live services that are available anytime and anywhere.
We intend to design our mobile games to provide players with easy access to shared experiences that delight, amuse and entertain,
and we will endeavor to update our games on an ongoing basis with fresh content and new features to make them more social and fun
for our players.
·
Launch and Publish New Games
. We intend to invest in building new games in multiple genres. We will endeavor to partner
with and publish games from highly talented small teams where our analytics and planned monetization infrastructure can help move
their game forward.
·
Expand Our Mobile Network of Games
. We intend to build a network of mobile gaming users through organic growth, paid
user acquisition, and asset acquisition in order to cross promote within our proposed network of games. In addition, we will seek
opportunities to cross promote our games with partners in their existing games.
·
Extend and Grow our Technology Assets
. We are currently in beta with two isometric game engines, one on Android, and
the other on iOS. In addition, we are working on animation and analytics tools that allow us to create subsequent titles more efficiently.
We will endeavor to further increase our technology assets, as well as look to supplement them through licensing or acquisition.
Our Mobile Social Games
We design our games for short, frequent, fun interactions that delight
and intrigue our users. We aim to launch the next generation of quality free-to-play games with a focus on aesthetics and extended
game play.
Our games are designed to be played on internet connected mobile
devices, where users can interact and play with each other. We will continue to invest in the free-to-play model in new genres
where different demographics and audiences can experience the game for free before deciding to invest in enhancing their gameplay
with virtual good and game upgrade purchases. We will operate our games as live services and update them with fresh content and
new features to make them more social, enhance player engagement and improve monetization. We intend to analyze the data generated
by our players' game play and social interactions to guide the creation of new content and features. We use this ongoing
feedback loop to keep our games compelling and enhance the player experience.
Our Core Values and Team
We founded Andover Games because we believe that small focused teams
can create great games. As the market changes, prices for acquiring users goes up and the cost of creating a competitive game rises.
We believe that bringing smaller game development teams into a larger infrastructure will increase the chance of their success,
and subsequently increase the success of the network as a whole. We think the common infrastructure needed to push out successful
games and run them as a service is a separate skill set from creating great content. We believe we can best generate consistently
great content with small teams and supplement their core competency with our experience of running games as a service business.
9
Marketing
We intend to employ a multi-faceted distribution strategy, leveraging
relationships with key points of distribution and by building an inter-networked set of games from which we can cross-promote other
titles. We will initially acquire most of our players through paid channels and organic growth as well as in-game features that
promote getting friends to download the game. There are currently a variety of mobile marketing companies all of whom provide a
way to reliably acquire users. We will ultimately look to build a large community of players through the viral and sharing features
provided by social networks, the social innovations in our games and the network effects of our business. We are committed to connecting
with our players. We intend to have fan pages, generally on Facebook, for each of our games to connect with our players; and we
intend to leverage various other forms of social media, including Twitter, to communicate with them. We intend to use traditional
advertising activities, primarily online advertising spending on mobile channels like Admob, Tapjoy, Fiksu, Flurry, etc.
Intellectual Property
Our mobile entertainment business is based on the creation, acquisition,
use and protection of intellectual property. Some of this intellectual property is in the form of software code, licensed patented
technology and trade secrets that we use to develop our games and to enable them to run properly on multiple platforms. Other intellectual
property we create includes audio-visual elements, including graphics, music, story lines and interface design.
While most of the intellectual property we intend to use will be
created by us, we have and plan to continue to acquire rights to proprietary intellectual property. We also plan to obtain rights
to use intellectual property through licenses and service agreements with third parties. These licenses will typically limit our
use of intellectual property to specific uses and for specific time periods, and can involve a royalty payment structured as a
revenue share for such licenses.
We will protect our intellectual property rights by relying on federal,
state and common law rights, as well as contractual restrictions. We control access to our proprietary technology by entering into
confidentiality and invention assignment agreements with our employees and contractors, and confidentiality agreements with third
parties. In addition to these contractual arrangements, we will also rely on a combination of trade secret, copyright, trademark,
trade dress, domain name and patents to protect our games and other intellectual property.
Circumstances outside our control could pose a threat to our intellectual
property rights. For example, effective intellectual property protection may not be available in the United States or other countries
in which our games are distributed. Also, the efforts we have taken and continue to take to protect our proprietary rights may
not be sufficient or effective. Any significant impairment of our intellectual property rights could harm our business or our ability
to compete. Also, protecting our intellectual property rights is costly and time-consuming. Any unauthorized disclosure or use
of our intellectual property could make it more expensive to do business, thereby harming our operating results.
Companies in the Internet, mobile, games, social media, technology
and other industries may own large numbers of patents, copyrights and trademarks and may frequently request license agreements,
threaten litigation or file suit against us based on allegations of infringement or other violations of intellectual property rights.
From time to time, we expect to face in the future, allegations by third parties, including our competitors, that we have infringed
their trademarks, copyrights, patents and other intellectual property rights. As we face increasing competition and as our business
grows, we will likely face growing claims of infringement.
Competition
The mobile social game sector is intensely competitive and is rapidly
evolving. We face significant competition in all aspects of our business. Specifically, we compete for the leisure time, attention
and discretionary spending of players with other mobile game developers on the basis of a number of factors, including quality
of player experience, brand awareness and reputation and access to distribution channels.
10
Our industry is evolving rapidly and is becoming increasingly competitive.
Other developers of mobile social games, including the leading mobile social gaming companies, have developed and will continue
to develop compelling content that competes with our social games and adversely affects our ability to attract and retain players
and their entertainment time.
Our competitors include:
·
Game Developers for Mobile
: The mobile game sector is characterized by frequent product introductions, rapidly emerging
mobile platforms, new technologies and new mobile application storefronts. Some of our competitors in the mobile game market include
Electronic Arts, Zynga, DeNA Co. Ltd., Gameloft, Glu Mobile, Rovio Mobile Ltd, Pocket Gems Inc., Tiny Co Inc., and Storm8, Inc.
We expect new mobile-game competitors to enter the market and existing competitors to allocate more resources to develop and market
competing games and applications.
·
Other Game Publishers
: Developers we work with have the choice to publish their games independently, or with other publishers
that are focusing on the mobile games industry, including but not limited to: Zynga, Microsoft, Sony, Crowdstar, Tiny Co., GREE,
and DeNA.
·
Other Forms of Media and Entertainment
: We compete more broadly for the leisure time and attention of our players with
providers of other forms of Internet and mobile entertainment, including social networking, online casual entertainment and music.
To the extent existing or potential players choose to read, watch or listen to online content or streaming video or radio, play
interactive video games at home or on their computer or mobile devices rather than play social games, these content services pose
a competitive threat.
Government Regulation
We are subject to a number of foreign and domestic laws and regulations
that affect companies conducting business on the Internet, many of which are still evolving and could be interpreted in ways that
could harm our business. In the United States and internationally, laws relating to the liability of providers of online services
for activities of their users and other third parties are currently being tested by a number of claims, including actions based
on invasion of privacy and other torts, unfair competition, copyright and trademark infringement, and other theories based on the
nature and content of the materials searched, the ads posted, or the content provided by users. Any court ruling or other governmental
action that imposes liability on providers of online services for the activities of their users and other third parties could harm
our business.
Additionally, due to a growing awareness of the use by criminal
factions of social networking technologies to conduct illegal activities, such as money laundering and broadcast and advocacy of
terrorist activities, governments may in the future implement legislation and pursue other means that could require changes in
our planned social gaming network, in turn resulting in additional expenses in the conduct of our business.
In the area of information security and data protection, many states
have passed laws requiring notification to users when there is a security breach for personal data, such as the 2002 amendment
to California's Information Practices Act, or requiring the adoption of minimum information security standards that are often
vaguely defined and difficult to implement. The costs of compliance with these laws may increase in the future as a result of changes
in interpretation. Furthermore, any failure on our part to comply with these laws may subject us to significant liabilities.
We are also subject to federal, state and foreign laws regarding
privacy and protection of our users' personal information and related data. We post our Terms of Service and Privacy Policy
on our website where we set forth our practices concerning the use, transmission and disclosure of player data. Our failure to
comply with our posted privacy policy or privacy related laws and regulations could result in proceedings against us by governmental
authorities or others, which could damage our reputation and business. In addition, the interpretation of data protection laws,
and their application to the Internet is evolving and not settled. There is a risk that these laws may be interpreted and applied
in an inconsistent manner by various states, countries and areas of the world where our users are located, and in a manner that
is not consistent with our current data protection practices. Complying with these varying national and international requirements
could cause us to incur additional costs and change our business practices. Further, any failure by us to adequately protect our
users' privacy and data could result in a loss of player confidence in our services and ultimately in a loss of players,
which could adversely impact our business.
11
Employees
As of the date of this report,
we employ one executive officer and have consulting and advisor agreements with several individuals. See the section below titled
"Directors and Executive Officers, Promoters and Control Persons" for further information on our officers, directors,
consultants and advisors.
Facilities
Our offices are located in San Francisco, California. We lease approximately
2,000 square feet, at lease rate of $4,000 per month, pursuant to a month to month lease. The leased space is adequate for our
current needs and we believe that additional space in the San Francisco area is available, on commercially reasonable terms, as
needed.
Legal Proceedings
As of the date of this report, there are no pending legal proceedings
to which we or our properties are subject.
RISK FACTORS
You should carefully consider the risks described below, which
constitute all of the material risks facing us. If any of the following risks actually occur, our business could be harmed. You
should also refer to the other information about us contained in this report, including our financial statements and related notes.
We have a new business model and virtually no operating
history, which makes it difficult to evaluate our prospects and future financial results and may increase the risk that we will
not be successful.
We began operations
in 2011 and we have a short operating history and a new business model, which makes it difficult or impossible for us to predict
future results of operations and for investors to effectively assess our future prospects. As a new company, we face risks and
uncertainties relating to our ability to successfully implement our strategy. If we cannot address these risks and uncertainties
or are unable to execute our strategy, we will not be successful, which could completely extinguish the value of your investment.
We may never be able to achieve profitability, and even if we do, we may not be able to remain profitable. To achieve profitable
operations on a continuing basis, we must successfully create, develop, test, introduce, market and distribute games and develop
our site and our other products on a broad commercial basis. You should consider our business and prospects in light of the challenges
we face, which include our ability to, among other things:
·
develop and then maintain a good relationship with Apple, Google and Facebook;
·
convert non-paying players into paying players and attract new paying players;
·
increase purchases by paying players;
·
retain paying players, especially higher paying players;
·
anticipate changes in the mobile and social game industry;
·
cost-effectively develop and launch games;
·
launch games and release enhancements that become popular;
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·
develop and maintain a scalable, high-performance technology infrastructure that can efficiently and reliably handle increased
player usage, fast load times and the deployment of new features and games;
·
process, store and use data in compliance with governmental regulation and other legal obligations related to privacy;
·
successfully compete with other companies that are currently in, or may in the future enter, the social game or entertainment
industry;
·
hire, integrate and retain world class talent;
·
maintain adequate control of our expenses; and
·
successfully expand our business, while maintaining high quality.
We will operate in a new and rapidly
changing industry, which makes it difficult to evaluate our business and prospects.
Social games, from
which we will derive substantially all of our revenue, is a new and rapidly evolving industry. The growth of the social game industry
and the level of demand and market acceptance of our games will be subject to a high degree of uncertainty. Our future operating
results will depend on numerous factors affecting the social game industry, many of which are beyond our control, including:
·
changes in consumer demographics and public tastes and preferences;
·
the availability and popularity of other forms of entertainment;
·
the worldwide growth smartphone and mobile device users, and the rate of any such growth; and
·
general economic conditions, particularly economic conditions adversely affecting discretionary consumer spending.
Our ability to plan for game development,
distribution and promotional activities will be significantly affected by our ability to anticipate and adapt to relatively rapid
changes in the tastes and preferences of our potential players. New and different types of entertainment may increase in popularity
at the expense of social games. A decline in the popularity of social games in general, or our games in particular would harm our
business and prospects.
We will require additional funding in the future to continue
to operate our business, which may not be available on terms favorable to us or at all.
As of December 31, 2011, we had total
assets, on a pro forma combined basis, of $2,277,202 and working capital of $2,164,252 which includes an additional $2
million of gross proceeds by way of Ascend's sale of 4,000,000 common shares, at $0.50 per share. We believe that our
current working capital on hand, assuming we raise only the minimum $2 million in the Financing or raise the full $4 million
in the Financing, will satisfy our working capital needs for our current and proposed operations through June 2012 or
November 2012, respectively. However, we may require additional funding sooner than anticipated, in any event, we will
require further funding if we are to be successful in expanding our business. We will endeavor to raise the additional
required funds through various financing sources, including the sale of our equity and debt securities and the procurement of
commercial debt financing; however, there can be no guarantees that such funds will be available on commercially reasonable
terms, if at all. If such financing is not available on satisfactory terms, we may be unable to expand or continue our
business as desired and operating results may be adversely affected. Debt financing must be repaid regardless of operating
results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional
funds, the following results may occur:
•
the percentage ownership of our existing stockholders will be reduced;
•
our stockholders may experience additional dilution in net book value per share; or
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•
the new equity securities may have rights, preferences or privileges senior to those of the holders
of our common stock.
The report of our independent registered public
accounting firm for the fiscal year ended December 31, 2011 states that due to our losses from operations and lack of working capital
there is substantial doubt about our ability to continue as a going concern.
We have no live games or revenue,
and we must launch and enhance games that attract and retain a significant number of paying players in order to grow our revenue.
We are a recently formed
company and have not commenced significant revenue producing operations to date. Our games have not yet been launched. We expect
to launch several titles in the next year, in most cases in partnership with other game companies, and expect a small number of
games to represent most of our projected revenue. Our growth depends on our ability to consistently launch new games that achieve
significant popularity. Each of our games requires significant engineering, marketing and other resources to develop, launch and
sustain via regular upgrades and expansions. Our ability to successfully launch, sustain and expand games and attract and retain
paying players largely depends on our ability to:
·
anticipate and effectively respond to changing game player interests and preferences;
·
anticipate or respond to changes in the competitive landscape;
·
attract, retain and motivate talented game designers, product managers and engineers;
·
develop, sustain and expand games that are fun, interesting and compelling to play and on which players want to spend money;
·
effectively market new games and enhancements to our existing players and new players;
·
minimize launch delays and cost overruns on new games and game expansions;
·
minimize downtime and other technical difficulties; and
·
acquire high quality assets, personnel and companies.
It is difficult to
consistently anticipate player demand on a large scale, particularly as we develop new games in new genres or new markets. If we
do not successfully launch games that attract and retain a significant number of paying players and extend the life of our existing
games, our market share, reputation and financial results will be harmed.
Our
results will depend on the performance of our games and the games other gaming companies develop with us, which is uncertain.
We will
initially launch our games in conjunction with other gaming companies in which we expect to own a material economic ownership
stake which can range from a minority stake to, where possible, a majority equity stake. We will attempt to maintain at least
voting (but less likely and often, economic) parity with the other owners of such gaming companies. We expect to enter into
strategic relationship agreements with such gaming companies, including, among other things, a publisher license with a right
to shared revenues for specific game title(s) of the gaming companies with which we assist in developing and publishing.
Company and industry specific factors outside of our control will significantly impact the results of our existing and
anticipated associated gaming companies. The value of our assets and our results of operations will be specifically tied to
the results of our gaming companies and their ability to succeed and deliver on their business strategies. The operating
results of these associated gaming companies, which we anticipate will be highly uncertain, may be materially adversely
affected by lack of demand for their products/services, increased competition, and mismanagement through the hyper-growth
phase of development.
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We
expect that most of the gaming companies we work with will be in an early-stage of development and will have a limited, and in
some cases no, operating history, making it difficult to evaluate their future prospects.
The gaming companies we
are currently working with are, and we anticipate many of the future gaming companies we will work with will be, early-stage companies
and will encounter risks and difficulties frequently encountered by early-stage companies in new and rapidly evolving markets.
Most of these companies will typically have significant historical operating losses and as a result of their capital intensive
businesses, growing competition and nascent nature of the market opportunity, may incur losses for the foreseeable future. If the
gaming companies we work with do not successfully address all of these risks their businesses could be seriously harmed, and have
a materially negative affect on our operating results and reduce the value of your investment.
Security breaches, computer viruses
and computer hacking attacks could harm our business and results of operations.
Security breaches,
computer malware and computer hacking attacks have become more prevalent in our industry, have occurred on our systems in the past
and may occur on our systems in the future. Any security breach caused by hacking, which involves efforts to gain unauthorized
access to information or systems, or to cause intentional malfunctions or loss or corruption of data, software, hardware or other
computer equipment, and the inadvertent transmission of computer viruses could harm our business, financial condition and operating
results. Though it is difficult to determine what harm may directly result from any specific interruption or breach, any failure
to maintain performance, reliability, security and availability of our network infrastructure to the satisfaction of our players
may harm our reputation and our ability to retain existing players and attract new players.
If we fail to effectively manage
our growth, our business and operating results could be harmed.
We anticipate experiencing
rapid growth in our headcount and operations, which will place significant demands on our management and our operational, financial
and technological infrastructure. As we grow, we must expend significant resources to identify, hire, integrate, develop and motivate
a large number of qualified employees. If we fail to effectively manage our hiring needs and successfully integrate our new hires,
our ability to continue launching new games and enhance existing games could suffer.
To effectively manage
the growth of our business and operations, we will need to spend significant resources to initially develop and then improve our
technology infrastructure, our operational, financial and management controls, and our reporting systems and procedures by, among
other things:
·
implementing, monitoring and thereafter updating our technology infrastructure to maintain high performance and minimize down
time;
·
implementing and thereafter enhancing our internal controls to ensure timely and accurate reporting of all of our operations;
and
·
appropriately documenting our information technology systems and our business processes.
Our initial design
and implementation of our infrastructure and thereafter our enhancements and improvements will require significant capital expenditures
and allocation of valuable management and employee resources. If we fail to implement this infrastructure and controls effectively,
our ability to manage our expected growth and comply with the rules and regulations that are applicable to public reporting companies
will be impaired.
Our core values of focusing on our
players first and acting for the long term may conflict with the short-term interests of our business.
One of our core values
is to focus on surprising and delighting our players, which we believe is essential to our success and serves the best, long-term
interests of our stockholders. Therefore, we may make significant investments or changes in strategy that we think will benefit
our players, even if our decision negatively impacts our operating results in the short term. In addition, our philosophy of putting
our players first may cause disagreements or negatively impact our relationships with distribution partners or other third parties.
Our decisions may not result in the long-term benefits that we expect, in which case the success of our games, business and operating
results could be harmed.
15
If we lose the services of our founder
and Chief Executive Officer or other members of our senior management team, we may not be able to execute our business strategy.
Our
success depends in a large part upon the continued service of our senior management team. In particular,  Andover Games'
founder and Chief Executive Officer, Craig dos Santos, is critical to our vision, strategic direction, culture, products and
technology. The loss of Mr. dos Santos, even temporarily, or any other member of senior management
would harm our business.
If we are unable to attract and retain
highly qualified game developers, we may not be able to grow effectively.
Our ability to compete
and grow depends in large part on the efforts and talents of our employees and those of the game companies we work with (i.e.,
game developer teams). Such game development teams, and employees, particularly game designers, product managers and engineers
are in high demand, and we devote significant resources to identifying, hiring, training, successfully integrating and retaining
these employees. We intend to hire a number of key personnel through acquisitions, and as competition with several other game companies
increases, we expect to incur significant expenses in this regard. The failure or other inability to hire such qualified employees,
or engage and contract with such game companies, and the loss of such employees, could result in significant disruptions to our
business, and the integration of replacement personnel could be time-consuming and expensive and cause additional disruptions to
our business.
An effort to avoid registration under the Investment Company
Act of 1940 could foster less than optimal business practices.
In an effort to avoid registration under the
Investment Company Act of 1940, as amended (the "Investment Company Act"), we may be required to sell, purchase or
retain certain assets, including interests in the game companies we work with, and may not be able to capitalize on other attractive
opportunities. The need to consistently manage our business practices to comply with the Investment Company Act could materially
adversely affect our results of operations, and reduce the value of your investment.
Expansion into international markets
is important for our future growth, and as we expand internationally, we face additional business, political, regulatory, operational,
financial and economic risks, any of which could increase our costs and hinder such growth.
Attracting players
in countries other than the United States will be a critical element of our business strategy. An important part of targeting international
markets is developing offerings that are localized and customized for the players in those markets. We expect to devote significant
resources to international expansion through acquisitions, the potential establishment of overseas offices and development studios,
and developing foreign language offerings. Our ability to expand our business and to attract talented employees and players in
international markets requires considerable management attention and resources and is subject to the particular challenges of supporting
a rapidly growing business in an environment of multiple languages, cultures, customs, legal systems, alternative dispute systems,
regulatory systems and commercial infrastructures. Expanding our business to include an international focus may subject us to risks
that we have not faced before or increase risks that we currently face.
Competition within the broader entertainment
industry is intense and our potential players may be attracted to competing forms of entertainment such as offline and traditional
online games, television, movies and sports, as well as other entertainment options on the Internet.
We expect that our
players will face a vast array of entertainment choices. Other forms of entertainment, such as offline, traditional online, personal
computer and console games, television, movies, sports and the Internet, are much larger and more well-established markets and
may be perceived by our players to offer greater variety, affordability, interactivity and enjoyment. These other forms of entertainment
compete for the discretionary time and income of our players. If we are unable to sustain sufficient interest in our games in comparison
to other forms of entertainment, including new forms of entertainment, our business model may no longer be viable.
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There are low barriers to entry in
the mobile social game industry, and competition is intense.
The mobile and social
game industry is highly competitive, with low barriers to entry. We expect more companies to enter the sector and a wider range
of games to be introduced. Our competitors that develop mobile and social games for social networks vary in size and include publicly-traded
companies such as Zynga Inc, GLU Mobile Inc., Electronic Arts Inc./Playfish Inc. and The Walt Disney Company/Playdom Inc. and privately-held
companies such as Tiny Co Inc, Pocket Gems Inc, Kabam Inc., Crowdstar, Inc. and Popcap Games, Inc. In addition, online game developers
and distributors who are primarily focused on specific international markets, such as Tencent Holdings Limited in Asia, and high-profile
companies with significant online presences that to date have not developed social games, such as Amazon.com, Facebook, Google
Inc., Microsoft Corporation and Yahoo! Inc., may decide to develop mobile and social games. Nearly all of these current and potential
competitors have significant resources for developing or acquiring additional games, may be able to incorporate their own strong
brands and assets into their games, have a more diversified set of revenue sources than we do and may be less severely affected
by changes in consumer preferences, regulations or other developments that may impact the online social game industry.
The value of our virtual goods will
be highly dependent on how we manage the purchase of virtual goods in our games. If we fail to manage it properly, our business
may suffer.
We expect that paying
players will purchase virtual goods in our games because of the perceived value of these goods, which is dependent on the relative
ease of securing an equivalent good via non-paid means within the game. The perceived value of these virtual goods can be impacted
by an increase in the availability of free game credits or by various actions that we take, including offering discounts for virtual
goods, giving away virtual goods in promotions or providing easier non-paid means to secure these goods. If we fail to manage the
purchase of virtual goods properly, payers may be less likely to purchase them and our business may suffer.
Some of our players may make sales
and/or purchases of virtual goods used in our games through unauthorized third-party websites, which may impede our revenue growth.
Some of our players
may make sales and/or purchases of our virtual goods through unauthorized third-party sellers in exchange for real currency. These
unauthorized transactions are usually arranged on third-party websites. We do not generate any revenue from these transactions.
Accordingly, these unauthorized purchases and sales from third-party sellers could impede our revenue and profit growth by, among
other things:
·
decreasing revenue from authorized transactions;
·
downward pressure on the prices we charge players for our virtual currency and virtual goods;
·
lost revenue from paying players who stop playing a particular game;
·
costs we incur to develop technological measures to curtail unauthorized transactions;
·
legal claims relating to the diminution of value of our virtual goods; and
·
increased customer support costs to respond to dissatisfied players.
To discourage unauthorized
purchases and sales of our virtual goods, we expect to state in our terms of service that the buying or selling of virtual currency
and virtual goods from unauthorized third-party sellers may result in bans from our games and/or legal action. If we decide to
implement further restrictions on players' ability to transfer virtual goods, we may lose players, which could harm our financial
condition and results of operations.
The proliferation of "cheating"
programs and scam offers that seek to exploit our games and players affects the game-playing experience and may lead players to
stop playing our games.
Unrelated third parties
have developed, and may continue to develop, "cheating" programs that enable players to exploit our games, play them
in an automated way or obtain unfair advantages over other players who do play fairly. These programs harm the experience of players
who play fairly and may disrupt the virtual economy of our games. In addition, unrelated third parties attempt to scam our players
with fake offers for virtual goods. We expect to devote significant resources to discover and disable these programs and activities,
and if we are unable to do so quickly our operations may be disrupted, our reputation damaged and players may stop playing our
games. This may lead to lost revenue from paying players, increased cost of developing technological measures to combat these programs
and activities, legal claims relating to the diminution in value of our virtual currency and goods, and increased customer service
costs needed to respond to dissatisfied players.
17
We expect to be dependant on two primary platforms for most
of our users and revenue and policy changes at either platform can severely impede our business.
Our games primarily will run on Apple iOS and
Android operating systems. Any change to policies at either systems, payment mechanisms and marketing mechanisms can severely impede
our ability to do business. Apple changing the way they allow or disallow marketing strategies will affect our business. Apple
has prohibited companies from using iOS without prior warning and this poses a potential risk to us.
We expect a significant majority
of our game traffic to be hosted by two vendors and any failure or significant interruption in our network could impact our operations
and harm our business.
Our technology infrastructure
is critical to the performance of our games and to player satisfaction. Our games run on a complex distributed system, or what
is commonly known as cloud computing. We own, operate and maintain elements of this system, but significant elements of this system
are operated by third parties that we do not control and which would require significant time to replace. We expect this dependence
on third parties to continue. In particular, we expect to use Amazon Web Services, or AWS, and Google's App Engine. We may in the
future experience website disruptions, outages and other performance problems due to a variety of factors, including infrastructure
changes, human or software errors and capacity constraints. If a particular game is unavailable when players attempt to access
it or navigation through a game is slower than they expect, players may stop playing the game and may be less likely to return
to the game as often, if at all. A failure or significant interruption in our game service would harm our reputation and operations.
We expect to continue to make significant investments to our technology infrastructure to maintain and improve all aspects of player
experience and game performance. To the extent that our disaster recovery systems we plan to implement are not adequate, or we
do not effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and network
architecture to accommodate increasing traffic, our business and operating results may suffer. We do not maintain insurance policies
covering losses relating to our systems and we do not have business interruption insurance.
We anticipate that our quarterly
operating results will be volatile and difficult to predict, and our stock price may decline if we fail to meet the expectations
of securities analysts or investors.
Our revenue, traffic
and operating results could vary significantly from quarter-to-quarter and year-to-year because of a variety of factors, some of
which are outside of our control. Any of these events could cause the market price of our common stock to fluctuate. Factors that
may contribute to the variability of our operating results include:
·
the timing of the launch and the popularity of new games and enhancements to existing games by us or our competitors;
·
changes to the social networks or mobile platforms on which we operate;
·
our ability to develop and maintain popular mobile and social games and convert our game player base into paying players and
increase the amount our paying players pay;
·
the range, number and pricing of virtual goods available for sale;
·
the cost of investing in our technology infrastructure, which may be greater than we anticipate, both to address short-term
capacity needs and long-term capacity and redundancy requirements;
·
disruptions in the availability of our games or of social networking or mobile platforms;
·
actual or perceived violations of privacy obligations and compromises of our player data;
·
the entrance of new competitors in our market whether by established companies or the entrance of new companies;
·
the cost of attracting and retaining game development personnel; and
18
In particular, we
expect to recognize revenue from sale of our virtual goods in accordance with GAAP, which is complex and based on our assumptions
and historical data with respect to the sale and use of various types of virtual goods. In the event that such assumptions
are revised based on new data or there are changes in the historical mix of virtual goods sold due to new game introductions, reduced
virtual good sales in existing games or other factors, the amount of revenue that we recognize in any particular period may fluctuate
significantly.
Failure by us or the game companies
we work with to protect or enforce the intellectual property rights in our games and related intellectual property or the costs
involved in such enforcement could harm our business and operating results.
We regard the protection
of our trade secrets, copyrights, trademarks, trade dress, domain names and other product rights as critical to our success. We
strive to protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual restrictions.
We will enter into confidentiality and invention assignment agreements with our employees and contractors and confidentiality agreements
with parties with whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information,
as we generally insist the game companies we work with to do. However, these contractual arrangements and the other steps we have
taken to protect our intellectual property may not prevent the misappropriation of our proprietary information or deter independent
development of similar technologies by others.
We intend to pursue
the registration of our domain names, trademarks, and service marks in the United States and in certain locations outside the United
States. We plan to seek to protect our trademarks, patents and domain names in an increasing number of jurisdictions, a process
that is expensive and time-consuming and may not be successful or which we may not pursue in every location. We may, over time,
increase our investment in protecting our innovations through increased patent filings that are expensive and time-consuming and
may not result in issued patents that can be effectively enforced.
Litigation may be
necessary to enforce our intellectual property rights, protect our trade secrets or determine the validity and scope of proprietary
rights claimed by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs, adverse
publicity or diversion of management and technical resources, any of which could adversely affect our business and operating results.
If we fail to maintain, protect and enhance our intellectual property rights, our business and operating results may be harmed.
We may in the future be subject to
intellectual property disputes, which are costly to defend and could require us to pay significant damages and could limit our
ability to use certain technologies in the future.
Due to the nature
of our business, we may face allegations that we have infringed the trademarks, copyrights, patents and other intellectual property
rights of third parties, including from our competitors, non-practicing entities and former employers of our personnel. Patent
and other intellectual property litigation may be protracted and expensive, and the results are difficult to predict. As the result
of any court judgment or settlement we may be obligated to cancel the launch of a new game, stop offering certain features, pay
royalties or significant settlement costs, purchase licenses or modify our games and features while we develop substitutes.
In addition, we use
open source software in our games and expect to continue to use open source software in the future. From time to time, we may face
claims from companies that incorporate open source software into their products, claiming ownership of, or demanding release of,
the source code, the open source software and/or derivative works that were developed using such software, or otherwise seeking
to enforce the terms of the applicable open source license. These claims could also result in litigation, require us to purchase
a costly license or require us to devote additional research and development resources to change our games, any of which would
have a negative effect on our business and operating results.
Programming errors or flaws in our
games could harm our reputation or decrease market acceptance of our games, which would harm our operating results.
Our games may contain
errors, bugs, flaws or corrupted data, and these defects may only become apparent after their launch, particularly as we launch
new games and rapidly release new features to existing games under tight time constraints. We believe that if our players have
a negative experience with our games, they may be less inclined to continue or resume playing our games or recommend our games
to other potential players. Undetected programming errors, game defects and data corruption can disrupt our operations, adversely
affect the game experience of our players by allowing players to gain unfair advantage, harm our reputation, cause our players
to stop playing our games, divert our resources and delay market acceptance of our games, any of which could result in legal liability
to us or harm our operating results.
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Evolving regulations concerning data
privacy may result in increased regulation and different industry standards, which could prevent us from providing our current
games to our players, or require us to modify our games, thereby harming our business.
The regulatory framework
for privacy issues worldwide is currently in flux and is likely to remain so for the foreseeable future. Practices regarding the
collection, use, storage, transmission and security of personal information by companies operating over the Internet and mobile
platforms have recently come under increased public scrutiny, and civil claims alleging liability for the breach of data privacy
have been asserted against us. The U.S. government, including the Federal Trade Commission and the Department of Commerce, has
announced that it is reviewing the need for greater regulation for the collection of information concerning consumer behavior on
the Internet, including regulation aimed at restricting certain targeted advertising practices. In addition, the European Union
is in the process of proposing reforms to its existing data protection legal framework, which may result in a greater compliance
burden for companies with users in Europe. Various government and consumer agencies have also called for new regulation and changes
in industry practices.
We expect the success
of our business to depend heavily on our ability to study the data of our users and will continue to be, driven by our ability
to responsibly use the data that our players share with us. Therefore, our business could be harmed by any significant change to
applicable laws, regulations or industry practices regarding the use or disclosure of data our players choose to share with us,
or regarding the manner in which the express or implied consent of consumers for such use and disclosure is obtained. Such changes
may require us to modify our games and features, possibly in a material manner, and may limit our ability to develop new games
and features that make use of the data that our players voluntarily share with us.
We expect to process, store and use
personal information and other data, which will subject us to governmental regulation and other legal obligations related to privacy,
and our actual or perceived failure to comply with such obligations could harm our business.
We expect to receive,
store and process personal information and other player data, and we plan to enable our players to share their personal information
with each other and with third parties, including on the Internet and mobile platforms. There are numerous federal, state and local
laws around the world regarding privacy and the storing, sharing, use, processing, disclosure and protection of personal information
and other player data on the Internet and mobile platforms, the scope of which are changing, subject to differing interpretations,
and may be inconsistent between countries or conflict with other rules. We generally expect to comply with industry standards and
are subject to the terms of our own privacy policies and privacy-related obligations to third parties. We strive to comply with
all applicable laws, policies, legal obligations and certain industry codes of conduct relating to privacy and data protection,
to the extent reasonably attainable. However, it is possible that these obligations may be interpreted and applied in a manner
that is inconsistent from one jurisdiction to another and may conflict with other rules or our practices. Any failure or perceived
failure by us to comply with our privacy policies, our privacy-related obligations to players or other third parties, or our privacy-related
legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable
information or other player data, may result in governmental enforcement actions, litigation or public statements against us by
consumer advocacy groups or others and could cause our players to lose trust in us, which could have an adverse effect on our business.
Additionally, if third parties we work with, such as players, vendors or developers, violate applicable laws or our policies, such
violations may also put our players' information at risk and could in turn have an adverse effect on our business.
In the area of information
security and data protection, many states have passed laws requiring notification to players when there is a security breach for
personal data, such as the 2002 amendment to California's Information Practices Act, or requiring the adoption of minimum
information security standards that are often vaguely defined and difficult to practically implement. The costs of compliance with
these laws may increase in the future as a result of changes in interpretation. Furthermore, any failure on our part to comply
with these laws may subject us to significant liabilities.
20
Our business is subject to a variety
of other U.S. and foreign laws, many of which are unsettled and still developing and which could subject us to claims or otherwise
harm our business.
We are subject to
a variety of laws in the United States and abroad, including laws regarding consumer protection, intellectual property, export
and national security, that are continuously evolving and developing. The scope and interpretation of the laws that are or may
be applicable to us are often uncertain and may be conflicting, particularly laws outside the United States. For example, laws
relating to the liability of providers of online services for activities of their users and other third parties are currently being
tested by a number of claims, including actions based on invasion of privacy and other torts, unfair competition, copyright and
trademark infringement, and other theories based on the nature and content of the materials searched, the ads posted or the content
provided by users. It is also likely that as our business grows and evolves and our games are played in a greater number of countries,
we will become subject to laws and regulations in additional jurisdictions. We are potentially subject to a number of foreign and
domestic laws and regulations that affect the offering of certain types of content, such as that which depicts violence, many of
which are ambiguous, still evolving and could be interpreted in ways that could harm our business or expose us to liability. It
is difficult to predict how existing laws will be applied to our business and the new laws to which we may become subject. See
the discussion included in the section titled "Description of Business — Government Regulation."
If we are not able
to comply with these laws or regulations or if we become liable under these laws or regulations, we could be directly harmed, and
we may be forced to implement new measures to reduce our exposure to this liability. This may require us to expend substantial
resources or to modify our games, which would harm our business, financial condition and results of operations. In addition, the
increased attention focused upon liability issues as a result of lawsuits and legislative proposals could harm our reputation or
otherwise impact the growth of our business. Any costs incurred as a result of this potential liability could harm our business
and operating results.
It is possible that
a number of laws and regulations may be adopted or construed to apply to us in the United States and elsewhere that could restrict
the online and mobile industries, including player privacy, advertising, taxation, content suitability, copyright, distribution
and antitrust. Furthermore, the growth and development of electronic commerce and virtual goods may prompt calls for more stringent
consumer protection laws that may impose additional burdens on companies such as ours conducting business through the Internet
and mobile devices. We anticipate that scrutiny and regulation of our industry will increase and we will be required to devote
legal and other resources to addressing such regulation. For example, existing laws or new laws regarding the regulation of currency
and banking institutions may be interpreted to cover virtual currency or goods. If that were to occur we may be required to seek
licenses, authorizations or approvals from relevant regulators, the granting of which may be dependent on us meeting certain capital
and other requirements and we may be subject to additional regulation and oversight, all of which could significantly increase
our operating costs. Changes in current laws or regulations or the imposition of new laws and regulations in the United States
or elsewhere regarding these activities may lessen the growth of social game services and impair our business.
Our business will suffer if we are
unable to successfully integrate acquired companies into our business or otherwise manage the growth associated with multiple acquisitions.
We intend to acquire
businesses, personnel and technologies that are complementary to our existing business and expand our employee base and the breadth
of our offerings. Our ability to grow through future acquisitions will depend on the availability of suitable acquisition and investment
candidates at an acceptable cost, our ability to compete effectively to attract these candidates and the availability of financing
to complete larger acquisitions. Since we expect the mobile social game industry to consolidate in the future, we may face significant
competition in executing our growth strategy. Future acquisitions or investments could result in potential dilutive issuances of
equity securities, use of significant cash balances or incurrence of debt, contingent liabilities or amortization expenses related
to goodwill and other intangible assets, any of which could adversely affect our financial condition and results of operations.
The benefits of an acquisition or investment may also take considerable time to develop, and we cannot be certain that any particular
acquisition or investment will produce the intended benefits.
21
Integration of a new
company's operations, assets and personnel into ours will require significant attention from our management. The diversion
of our management's attention away from our business and any difficulties encountered in the integration process could harm
our ability to manage our business. Future acquisitions will also expose us to potential risks, including risks associated with
any acquired liabilities, the integration of new operations, technologies and personnel, unforeseen or hidden liabilities and unanticipated,
information security vulnerabilities, the diversion of resources from our existing businesses, sites and technologies, the inability
to generate sufficient revenue to offset the costs and expenses of acquisitions, and potential loss of, or harm to, our relationships
with employees, players, and other suppliers as a result of integration of new businesses.
Our facilities are located near known
earthquake fault zones, and the occurrence of an earthquake or other natural disaster could cause damage to our facilities and
equipment, which could require us to curtail or cease operations.
Our principal offices
and a network operations center are located in the San Francisco Bay Area, an area known for earthquakes, and are thus vulnerable
to damage. We are also vulnerable to damage from other types of disasters, including power loss, fire, explosions, floods, communications
failures, terrorist attacks and similar events. If any disaster were to occur, our ability to operate our business at our facilities
could be impaired.
There is currently no liquid trading
market for our common stock and we cannot ensure that one will ever develop or be sustained.
To date there has been
no liquid trading market for our common stock.  We cannot predict how liquid the market for our common stock might become.  Our
common stock is quoted for trading on the OTC Bulletin Board, however, and as soon as is practicable we anticipate applying for
listing of our common stock on either the NYSE Amex, The Nasdaq Capital Market or other national securities exchange, assuming
that we can satisfy the initial listing standards for such exchange. We currently do not satisfy the initial listing standards,
and cannot ensure that we will be able to satisfy such listing standards or that our common stock will be accepted for listing
on any such exchange. Further, the NYSE, Amex and The Nasdaq Capital Market have recently adopted listing rules that prohibit a
former shell company that has undergone reverse acquisition with an operating company, such as us, from listing its shares until
such time as the company has filed an annual report on Form 10-K covering a full 12 months following the close of the reverse acquisition.
Should we fail to satisfy the initial listing standards of such exchanges, or our common stock is otherwise rejected for listing
and remain quoted on the OTC Bulletin Board or suspended from the OTC Bulletin Board, the trading price of our common stock could
suffer and the trading market for our common stock may be less liquid and our common stock price may be subject to increased volatility.
Furthermore, for companies
whose securities are traded in the OTC Bulletin Board, it is more difficult (1) to obtain accurate quotations, (2) to obtain coverage
for significant news events because major wire services generally do not publish press releases about such companies, and (3) to
obtain needed capital.
Our common stock is currently deemed
a "penny stock," which makes it more difficult for our investors to sell their shares.
Our common stock is subject
to the "penny stock" rules adopted under Section 15(g) of the Exchange Act. The penny stock rules generally apply to
companies whose common stock is not listed on The Nasdaq Stock Market or other national securities exchange and trades at less
than $4.00 per share, other than companies that have had average revenue of at least $6,000,000 for the last three years or that
have tangible net worth of at least $5,000,000 ($2,000,000 if the company has been operating for three or more years). These rules
require, among other things, that brokers who trade penny stock to persons other than "established customers" complete
certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading
in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided
not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing
to act as market makers in such securities is limited. If we remain subject to the penny stock rules for any significant period,
it could have an adverse effect on the market, if any, for our securities. If our securities are subject to the penny stock rules,
investors will find it more difficult to dispose of our securities.
22
Because our directors and executive officers,
as a group, own majority of our outstanding common shares, they can exert significant control over our business and affairs and
have actual or potential interests that may depart from those of subscribers in the Offering.
Our directors and executive
officers, as a group, own or control approximately 70% of the outstanding common shares of Ascend as of the date of this report.
Further the former members of Andover Games, as a group, own or control 75% of the outstanding common shares of Ascend. As a result,
in addition to their board seats and offices, such persons will have significant influence over and control all corporate actions
requiring stockholder approval, irrespective of how our other stockholders may vote, including the following actions:
·
to elect or defeat the election of our directors;
·
to amend or prevent amendment of our certificate of incorporation or bylaws;
·
to effect or prevent a merger, sale of assets or other corporate transaction; and
·
to control the outcome of any other matter submitted to our stockholders for vote.
Such persons' stock
ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of our company,
which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.
Our certificate of incorporation allows
for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect
the rights of the holders of our common stock.
Our Board of Directors
has the authority to fix and determine the relative rights and preferences of preferred stock. Our board of directors also has
the authority to issue preferred stock without further stockholder approval. As a result, our board of directors could authorize
the issuance of a series of preferred stock that would grant to holders the preferred right to our assets upon liquidation, the
right to receive dividend payments before dividends are distributed to the holders of common stock and the right to the redemption
of the shares, together with a premium, prior to the redemption of our common stock. In addition, our board of directors could
authorize the issuance of a series of preferred stock that has greater voting power than our common stock or that is convertible
into our common stock, which could decrease the relative voting power of our common stock or result in dilution to our existing
stockholders.
Future sales of our common stock
in the public market could cause our share price to decline.
Sales
of a substantial number of shares of our common stock in the public market after the date of this report, or the perception that
these sales might occur, could depress the market price of our common stock and could impair our ability to raise capital through
the sale of additional equity securities. Simultaneous with the Closing, Ascend sold 4,000,000 shares of
common stock at a price of $0.50 per share
.
In connection with the offer and sale of the shares, Ascend has agreed
to file, within ten business days of the Closing, a registration statement with the Securities and Exchange Commission
covering the resale by the investors of the shares they purchased and use its best efforts to have such Registration Statement
declared effective as promptly as practicable thereafter, and keep the Registration Statement effective until (i) the date on which
the shares may be resold by the investor without registration under the Securities Act and without regard to any volume limitations
by reason of Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant
to the Registration Statement or Rule 144 under the Securities Act or any other rule of similar effect
23
The requirements of being a public
company may strain our resources, divert management's attention and affect our ability to attract and retain qualified board
members.
As a public company,
we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley
Act, the Dodd-Frank Act and other applicable securities rules and regulations. Compliance with these rules and regulations will
increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand
on our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports
with respect to our business and operating results. The Sarbanes-Oxley Act requires, among other things, that we maintain effective
disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve
our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources
and management oversight may be required. As a result, management's attention may be diverted from other business concerns,
which could harm our business and operating results.
In addition, pursuant
to Section 404 of the Sarbanes-Oxley Act, we will be required to furnish a report by management on, among other things, the
effectiveness of our internal control over financial reporting as of each fiscal year end. We are in the early stages of the costly
and challenging process of compiling the system and processing documentation necessary to perform the evaluation needed to comply
with Section 404. If we are unable to assert that our internal control over financial reporting is effective, we could lose
investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock
to decline.
We do not intend to pay dividends
for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in
the price of our common stock.
We have never declared
or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate
that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any
determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely
on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on
their investments.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General
Ascend is a Delaware corporation that was incorporated
on December 5, 2005. From our inception in 2005 until February 29, 2012, when we completed a reverse acquisition transaction with
Andover Games, we were a blank check company and did not engage in active business operations other than our search for, and evaluation
of, potential business opportunities for acquisition or participation. On February 29, 2012, we completed a reverse acquisition
of Andover Games through a merger transaction whereby Andover Games became our wholly-owned direct subsidiary. Accordingly, the
financial statements of Andover Games became our financial statements.
Results of Operations For The Year Ended December 31, 2011
The following financial discussion relates to
the results of operations of Andover Games for the period from January 17, 2011 (inception) through December 31, 2011. Andover
Games was formed on January 17, 2011. Andover Games is engaged in the business of creating and distributing game applications on
current smartphone and other mobile platforms, namely iOS and Android, as well as future competing smartphone platforms.
We have not commenced significant revenue producing
operations and do not expect to until the third or fourth quarters of 2012.   We commenced our present operations on
January 17, 2011 and during the period from our inception to December 31, 2011, we recognized $18,750 in revenue, and incurred
$124,650 of software development costs which consist primarily of costs incurred to develop gaming applications prior to establishing
technological feasibility for the gaming software. During the same period, we also incurred $231,630 of selling, general and administrative
expenses, including $62,500 of salaries and $153,771 of professional fees relating primarily to the legal and accounting expenses
incurred in connection with the merger transaction and related financing.   We expect our operating expenses will significantly
increase at such time as we commence significant revenue producing operations.
24
During the period from January 17, 2011 (inception)
through December 31, 2011, we incurred a net loss from operations of $337,530.  We also incurred other expenses of $14,662,
including a write-off of $12,009 resulting from our equity loss from an investment in Tumbleweed Technologies, LLC (now a cost
method investment in Byte Factory, LLC) and a write-off of $3,727 based on the impairment of our investment in Byte Factory, LLC.
As a result, for the period from inception to December 31, 2011, we incurred a net loss of $352,192.
Financial Condition
Liquidity and Capital Resources
As of December 31, 2011, Andover Games and
Ascend, on a pro forma combined basis, had total assets of $2,277,202 and working capital of $2,164,252 which included an
additional $2 million of gross proceeds by way of Ascend's sale of 4,000,000 common shares at $0.50 per share in the
Financing. We believe that our current working capital on hand, assuming we raise only the minimum $2 million in the
Financing or raise the full $4 million in the Financing, will satisfy our working capital needs for our current and proposed
operations through June 2012 or November 2012, respectively. However, we may require additional funding sooner than
anticipated and, in any event, we will require further funding if we are to be successful in expanding our business. We will
endeavor to raise the additional required funds through various financing sources, including the sale of our equity and debt
securities and, subject to our commencement of significant revenue producing operations, the procurement of commercial debt
financing. However, there can be no guarantees that such funds will be available on commercially reasonable terms, if at all.
If such financing is not available on satisfactory terms, we may be unable to expand or continue our business as desired and
operating results may be adversely affected. In addition, any financing arrangement may have potentially adverse effects on
us or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of
operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise
additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may
have rights, preferences or privileges senior to those of the holders of our common stock.
The report of our independent registered public
accounting firm for the fiscal year ended December 31, 2011 states that due to our losses from operations and lack of working capital
there is substantial doubt about our ability to continue as a going concern.
Off-Balance Sheet Arrangements
We do not have any off-balance
sheet financing arrangements.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The table below sets forth the beneficial ownership
of our common stock, as of March 5, 2012, by:
·
All of our current directors and executive officers, individually;
·
All of our current directors and executive officers, as a group; and
·
All persons who beneficially owned more than 5% of our outstanding common stock.
The beneficial ownership of each person was
calculated based on 50,926,700 shares of our common stock outstanding as of March 5, 2012, according to the record ownership listings
as of that date, the beneficial ownership reports filed by 5% beneficial owners with the SEC and the verifications we solicited
and received from each director and executive officer. The SEC has defined "beneficial ownership" to mean more than
ownership in the usual sense. For example, a person has beneficial ownership of a share not only if he owns it in the usual sense,
but also if he has the power (solely or shared) to vote, sell or otherwise dispose of the share. Beneficial ownership also includes
the number of shares that a person has the right to acquire within 60 days of March 5, 2012, pursuant to the exercise of options
or warrants or the conversion of notes, debentures or other indebtedness, but excludes stock appreciation rights. Two or more persons
might count as beneficial owners of the same share. Unless otherwise noted, the following persons have sole voting and sole investment
power with regard to the shares beneficially owned by them.
25
Name of Director, Executive Officer or Nominee
Shares
Percentage
Jonathan J. Ledecky
970 West Broadway, PMB 402
Jackson, WY  83002
7,968,550
(1)
15.6
%
Craig dos Santos
360 Ritch Street, Floor 3
San Francisco, CA  94107
11,967,775
(2)
23.5
%
Ben Lewis
360 Ritch Street, Floor 3
San Francisco, CA  94107
10,439,973
(2)
20.5
%
Richard Hecker
360 Ritch Street, Floor 3
San Francisco, CA  94107
4,965,354
(2)
9.8
%
Jeremy Zimmer
9560 Wilshire Boulevard
Beverly Hills, CA  90212
350,000
*
All executive officers and directors as a group (5 persons)
35,691,652
70.1
%
Name and Address of 5% Holders
Shares
Percentage
Lee Linden
360 Ritch Street, Floor 3
San Francisco, CA  94107
10,439,973
(2)
20.5
%
Ironbound Partners Fund, LLC
970 West Broadway, PMB 402
Jackson, WY  83002
7,968,550
(1)
15.6
%
* Less than 1%.
(1) Jonathan J. Ledecky is the Managing Member of Ironbound and
as such has sole voting and dispositive power over the shares held by Ironbound.
(2) These individuals are party to a repurchase rights agreement
pursuant to which certain individuals have the right to purchase shares from the other parties depending on the happening of certain
events.
DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS
AND CONTROL PERSONS
The names of our executive officers, directors
and key advisors and their ages, titles and biographies as of March 5, 2012 are set forth below:
Name
Age
Position Following Change of Control
Jonathan J. Ledecky
54
Non-Executive Chairman of the Board and Interim Chief Financial Officer
Craig dos Santos
30
Chief Executive Officer and Director
Jeremy Zimmer
53
Director
Ben Lewis
31
Director
Richard Hecker
27
Director
Lee Linden
30
Advisor
26
Jonathan J. Ledecky
Mr. Ledecky served as the Company's chief
executive officer from January 2011 to February 2012, and has served as chief financial officer and as a member of the Company's
Board of Directors since January 2011. Mr. Ledecky has served as chairman of Ironbound, a private investment management fund, since
March 1999. Since June 1999, Mr. Ledecky has also served as chairman of the Ledecky Foundation, a philanthropic organization which
contributes funds to programs for the education of disadvantaged inner city youth in Washington, D.C., New York and Boston. From
June 2007 to October 2009, Mr. Ledecky served as president, secretary and a member of the board of directors of Triplecrown Acquisition
Corp., a blank check company that completed a business combination with Cullen Agricultural Technologies, Inc. From July 2005 to
December 2007, Mr. Ledecky served as president, secretary and a director of Endeavor Acquisition Corp., a blank check company that
completed a business combination with American Apparel. From January 2007 to April 2009, Mr. Ledecky served as president, secretary
and a director of Victory Acquisition Corp., a blank check company that did not complete a business combination and returned all
of its capital, representing approximately $330 million, to its public shareholders. In October 1994, Mr. Ledecky founded U.S.
Office Products and served as its chief executive officer until November 1997 and chairman until June 1998. During his tenure,
U.S. Office Products completed over 260 acquisitions, and grew to a Fortune 500 company with over $2.6 billion in revenues. In
June 1998, U.S. Office Products completed a comprehensive restructuring plan whereby four separate entities were spun off to stockholders
and U.S. Office Products underwent a leveraged recapitalization. In connection with these transactions, Mr. Ledecky resigned from
his position as chairman of U.S. Office Products and became a director of each of the four spin-off entities. In February 1997,
Mr. Ledecky founded Building One Services Corporation (originally Consolidation Capital Corporation), an entity formed to identify
attractive consolidation opportunities which ultimately focused on the facilities management industry. In November 1997, Building
One raised $552 million in an initial public offering. Mr. Ledecky served as Building One's chief executive officer from
November 1997 through February 1999 and as its chairman from inception through its February 2000 merger with Group Maintenance
America Corporation. During his tenure with Building One, it completed 46 acquisitions and grew to over $1.5 billion in revenues.
From July 1999 to July 2001, Mr. Ledecky was vice chairman of Lincoln Holdings, owners of the Washington sports franchises in the
NBA, NHL and WNBA. Since June 1998, Mr. Ledecky has served as a director of School Specialty, a Nasdaq Global Market listed education
company that provides products, programs and services that enhance student achievement and development. School Specialty was spun
out of U.S. Office Products in June 1998. Since 1994, Mr. Ledecky has been involved with numerous other companies in director positions.
Mr. Ledecky was a trustee of George Washington
University, served as a director of the U.S. Chamber of Commerce and served as commissioner on the National Commission on Entrepreneurship.
In addition, in 2004, Mr. Ledecky was elected the Chief Marshal of the 2004 Harvard University Commencement, a singular honor bestowed
by his alumni peers for a 25th reunion graduate deemed to have made exceptional contributions to Harvard and the greater society
while achieving outstanding professional success.
Mr. Ledecky received a B.A. (cum laude) from
Harvard University in 1979 and a M.B.A. from the Harvard Business School in 1983.
We believe Mr. Ledecky is well-qualified to
serve as a member of the Board of Directors due to his public company experience, operational experience and business contacts.
Craig dos Santos
Mr. dos Santos has served as our chief executive
officer and a member of our Board of Directors since February 2012. Mr. dos Santos co-founded Andover Games in January 2011. In
August 2009, Mr. dos Santos started the mobile division of Playdom and served in numerous positions, most recently as executive
producer, until October 2010. Playdom focused on social games on Facebook and MySpace. While at Playdom, Mr. dos Santos grew the
mobile team and launched games on iOS, Android and WebOS. As an early entrant into the mobile social games space, Mr. dos Santos
helped Playdom launch Mobsters, Sorority Life and Social City, all of which were in the top 25 charts in the Apple App Store. Playdom
also launched many other successful social games on Facebook before being sold to Disney for up to approximately $760 million in
August 2010.
27
Prior to Playdom, Mr.
dos Santos was at iLike from July 2008 until February 2009. iLike was a launch partner during the first launch of the Facebook
Platform. At iLike, Mr. dos Santos was in charge of monetization of applications and helped strike deals with Rhapsody, Ticketmaster,
Comscore and Nielsen. iLike was sold to MySpace in 2009.
From 2002 to 2006, Mr. dos Santos worked at
Microsoft, where he was on the Microsoft Passport and Microsoft Windows Core Security teams. He was responsible for some of the
security features in Windows XP as well as Windows Vista.
Mr. dos Santos graduated from Rice University
in 2003 with a Bachelors of Science in Electrical and Computer Engineering.
We believe Mr. dos Santos is well-qualified
to serve as a member of the Board of Directors due to his experience in the mobile gaming industry and his business contacts.
Jeremy Zimmer
Mr. Zimmer has served as a member of our Board
of Directors since February 2012. Mr. Zimmer is a founding partner, Chief Executive Officer and board member of United Talent Agency,
a talent and literary agency formed in 1991. At United Talent Agency, Mr. Zimmer oversees more than 125 agents and over 350 employees
in Beverly Hills and New York, representing many widely- known and award-winning artists working in all current and emerging areas
of entertainment, including motion pictures, television, music, digital media, books, and branded entertainment. The agency is
also recognized worldwide in the areas of film and television packaging, film finance, corporate consulting, branding & licensing,
endorsements and the representation of production talent. Mr. Zimmer has been a key figure behind United Talent Agency's
growth beyond film and television representation, having established the agency's Digital, Branding, Licensing, and Endorsements
divisions.
Mr. Zimmer is also involved in United Entertainment
Group, a joint venture company which today is among the industry's largest independent branded entertainment and integrated
media firms providing marketing solutions to major consumer brands.
From 1984 to 1989, Mr. Zimmer was with International
Creative Management where he eventually led both the Motion Picture Literary and Motion Picture Packaging departments. Then he
joined Bauer/Benedek Agency, a talent agency, and served as a Partner there until he co-founded United Talent Agency in 1991.
Mr. Zimmer created and oversees United Talent
Agency's Agent Trainee Program and is a frequent speaker on the role of Hollywood in business and culture, and he has taught
on the graduate level of UCLA's Producers Program. He also sits on the Board of Overseers for the Hammer Museum.
We believe Mr. Zimmer is well-qualified to
serve as a member of the Board of Directors due to his operational experience and business contacts.
Ben Lewis
Mr. Lewis has served as a member of our Board
of Directors since February 2012. Mr. Lewis co-founded Andover Games in January 2011. Mr. Lewis co-founded Tapjoy, a leader in
mobile application distribution and monetization, in August 2008, with Lee Linden. Tapjoy started out with a single iPhone game,
TapDefense, which was downloaded more than 20 million times and helped launch the Tapjoy ads platform. The Tapjoy ads platform
was a new way to monetize free mobile applications. After reaching revenue of $1 million per month in March 2010, Tapjoy merged
with Offerpal Media, which had a similar business model for Facebook traffic.
28
By March 2011, Tapjoy
had 70 employees and was generating over $100 million in annualized revenue and an estimated 60 percent of paid app distribution.
Mr. Lewis then left to pursue a new mobile opportunity with Lee Linden called Karma Science, a San Francisco based mobile e-commerce
company that makes products and services instantly giftable to millions of consumers from their smartphones.
Mr. Lewis graduated from the University of
Michigan with a Computer engineering degree in 2001. He started his professional career at Microsoft from July 2002 to August 2003
as one of the founding engineers of the Xbox Live team. He then returned to the University of Michigan to get his MBA. After graduating
from Michigan again, Mr. Lewis went to pursue a career at Google as a Product Manager. While at Google from July 2005 to January
2009, Mr. Lewis managed many successful products including growing the Toolbar from 60 million to 200 million-plus users, managing
the launch and growth of Google Checkout, adding sports scores to Search and other products, as well as winning two EMG awards
for his work on client team products.
While at the University of Michigan, Mr. Lewis
also co-founded an internet company called Bidcentives with Lee Linden.
We believe Mr. Lewis is well-qualified to serve
as a member of the Board of Directors due to his experience in the mobile gaming industry and his business contacts.
Richard Hecker
Mr. Hecker has served as a member of our Board
of Directors since February 2012. Mr. Hecker has been a board member of Andover Games since January 2011. In March 2011, Mr. Hecker
founded Stockton Equity LLC, a private equity firm specializing in digital media and direct marketing turn-around situations,
and serves as its Managing Director. He also co-founded Double Dutch Studios Inc, parent of inSparq, a referral marketing platform
for online retailers, in June 2011 and serves as its Executive Chairman. He also recently co-founded
tractionandscale.com
,
an investment company.
From June 2010 to March 2011, Mr. Hecker was
a consultant for
Bebo.com
, a social networking internet site. From September 2006 to June 2010, Mr. Hecker was the "chief
bootstrapper" at
Bootstrapper.com
, a blog and conference producer for the private equity, venture capital and digital
media industries. From June 2008 to January 2009, Mr. Hecker was Chief Marketing Officer of
Groupable.com
, an online marketplace
and platform connecting groups and sponsors. From October 2003 to March 2006, Mr. Hecker was the Chairman and Chief Executive
Officer of ZenFinancial, Inc., a call center outsourcing company. In April 2000, Mr. Hecker co-founded ClickZen Worldwide, an
interactive advertising agency based in New York, and served as its President until September 2002.
In March 2008, Mr. Hecker co-founded
TakesAllTypes.org
,
a non-profit social media platform for blood donation. Mr. Hecker also serves as a board member of Stakehouse, a social betting
platform, and Buyinara, an email marketing company for the direct response television industry.
Mr. Hecker graduated from the State University of New
York at Binghamton with a B.S. in financing.
We believe Mr. Hecker is well-qualified to
serve as a member of the Board of Directors due to his IT experience and his business contacts.
Lee Linden
Mr. Linden has served as an advisor to our
Board of Directors since February 2012. Mr. Linden co-founded Andover Games in January 2011. Mr. Linden co-founded (with Ben Lewis)
Karma Science in March 2011 and Tapjoy in August 2008. At Tapjoy, Mr. Linden led fundraising and drove business development until
its merger with Offerpal Media in March 2010. He then helped grow the combined business to over $100 million in annual revenue,
over 9,000 network applications, and the development of first party applications with over 45 million downloads. Prior to Tapjoy,
Mr. Linden worked as an associate at Kleiner Perkins Caufield & Byers from February 2008 to the end of 2008 and was a key member
of the iFund team, which has made investments in several leading mobile companies. From June 2003 to May 2007, Mr. Linden worked
in product development at Microsoft, leading engineering teams for both enterprise and consumer offerings including co-founding
the Windows Home Server division. He is also the co-founder of ContestMachine (via YCombinator), a self-service online promotional
marketing service with thousands of small business customers. Mr. Linden also co-founded an internet company called Bidcentives
with Ben Lewis.
29
Mr. Linden received a degree in computer engineering
at the University of Michigan in 2003 and obtained an MBA from Stanford's Graduate School of Business 2009.
Director Independence and Board Committees
The Company believes that
using the definition of independence set forth in the Nasdaq Marketplace Rules, Jeremy Zimmer and Ben Lewis are independent. The
Company is not a "listed company" under SEC rules. The Company's common stock is currently traded on the OTC
Bulletin Board. Accordingly, the Company is not required to have an audit committee (and therefore does not have a member that
would qualify as an audit committee financial expert), compensation committee, or nominating committee. Furthermore, the Company
does not believe it is necessary for the Board of Directors to appoint such committees, or have a separately designated lead director,
because the volume of matters that come before the Board of Directors for consideration permits the full board to give sufficient
time and attention to such matters to be involved in all decision making.
The Board of Directors is responsible for overseeing
risk management, and receives reports from management periodically.
Family Relationships
There are no family relationships among the Company's
existing or incoming directors or officers.
Committee Interlocks
and Insider Participation
No member of our Board
of Directors is or was formerly employed by us or our subsidiaries, except for Mr. Ledecky and Mr. dos Santos. None of our
executive officers serve on the Board of Directors of another entity, whose executive officers serves on our Board of Directors.
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table sets forth the compensation
awarded to, earned by or paid to, our chief executive officer and chief financial officer for the years ended December 31,
2011 and 2010 and our other two highest paid executive officers earning in excess of $100,000 for services rendered in all capacities
the years ended December 31, 2011 and 2010. In reviewing the table, please note that:
·
Don K. Rice served as our CEO and CFO from 2005 to January 2011, however he received no compensation of any kind during 2011
or 2010 for serving as on officer or employee;
·
Jonathan Ledecky served as our CEO and CFO from January 2011 until the close of the merger on February 29, 2012 at which time
he resigned as CEO and remains as interim CFO, however he received no compensation of any kind during 2011 or 2010 for serving
as an officer or employee of Ascend; and
·
Craig dos Santos became our CEO on February 29, 2012. The compensation reported for Craig dos Santos represents compensation
paid to him by Andover Games, where he has served as president and CEO since January 2011.
30
(amounts in thousands)
Name and Principal
Position(a)
Year
(b)
Salary
(c)
Bonus
(d)
Stock
Awards
(e)
Option
Awards
(f)
All Other
Compensation
(g)
Total
(h)
Don K. Rice, CEO and
CFO (Former)
2011
$
—
$
—
$
—
$
—
$
—
$
—
2010
$
—
$
—
$
—
$
—
$
—
$
—
Jonathan Ledecky, CEO
(Former) and CFO
2011
$
—
$
—
$
—
$
—
$
—
$
—
2010
$
—
$
—
$
—
$
—
$
—
$
—
Craig dos Santos, CEO
2011
$
62,500
$
—
$
—
$
—
$
—
$
—
2010
$
—
$
—
$
—
$
—
$
—
$
—
Craig dos Santos serves as Chief Executive Officer of the Company
pursuant to a two-year employment agreement with the Company effective as of February 29, 2012 providing for him to be paid an
annual salary of $225,000 in exchange for his services. Richard Hecker and the Company have entered into a two-year consulting
agreement effective as of February 29, 2012 providing for him to be paid an annual consulting fee of $150,000 in exchange for his
services. Jonathan Ledecky and the Company have entered into a two-year consulting agreement effective as of February 29, 2012
providing for him to receive an annual consulting fee of $150,000.
Directors' Compensation
The Company has not paid any compensation to
its directors for service on the Board of Directors.
Outstanding Equity Awards at Fiscal Year
End
The Company had no outstanding equity awards
as of December 31, 2011.
Indemnification of Directors and Executive Officers and Limitation
of Liability
Our bylaws provide for the indemnification
of our present and prior directors and officers or any person who may have served at our request as a director or officer of another
corporation in which we own shares of capital stock or of which we are a creditor, against expenses actually and necessarily incurred
by them in connection with the defense of any actions, suits or proceedings in which they, or any of them, are made parties, or
a party, by reason of being or having been director(s) or officer(s) of us or of such other corporation, in the absence of negligence
or misconduct in the performance of their duties. This indemnification policy could result in substantial expenditure by us, which
we may be unable to recoup.
Upon the Closing, Ascend entered into indemnification
agreements with each of its executive officers and directors.
Insofar as indemnification by us for liabilities
arising under the Exchange Act may be permitted to our directors, officers and controlling persons pursuant to provisions of the
Certificate of Incorporation and Bylaws, or otherwise, we have been advised that in the opinion of the SEC, such indemnification
is against public policy and is, therefore, unenforceable. In the event that a claim for indemnification by such director, officer
or controlling person of us in the successful defense of any action, suit or proceeding is asserted by such director, officer or
controlling person in connection with the securities being offered, we will, unless in the opinion of our counsel the matter has
been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by us is against public policy as expressed in the Exchange Act and will be governed by the final adjudication of such issue.
At the present time, there is no pending litigation
or proceeding involving a director, officer, employee or other agent of ours in which indemnification would be required or permitted.
We are not aware of any threatened litigation or proceeding which may result in a claim for such indemnification.
31
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
In January 2011, the Company executed a convertible promissory note
in favor of Donald K. Rice, a former officer and director of the Company, with a principal amount of $15,000. The promissory note
represented amounts advanced to the Company by Mr. Rice during August and November 2010. The promissory note was due and payable
in full on demand, and bore interest at the rate of 5% per annum. At any time prior to the payment in full of the entire balance
of the promissory note, Mr. Rice had the option of converting all or any portion of the unpaid balance of the promissory note into
shares of the Company's common stock at a conversion price equal to $0.15 per share, subject to adjustment upon certain events.
In January 21, 2011, the Company entered into and consummated a
Stock Purchase Agreement (the "Purchase Agreement") with Mr. Rice and Ironbound. Pursuant to the Purchase Agreement,
Mr. Rice converted all principal and accrued interest on convertible promissory notes held by him, including the one issued to
him in January 2011 described above, into an aggregate of 7,075,000 shares of the Company's common stock. Immediately after
the conversion of the notes, Mr. Rice sold to Ironbound such shares together with an additional 218,550 shares of common stock
of the Company held by Mr. Rice, or an aggregate of 7,293,550 shares of common stock for an aggregate purchase price of $310,000.
In connection with the Company's initial public offering in
May 2006, Mr. Rice and the Company had entered into a registration rights agreement providing for registration rights with respect
to certain of the shares held by Mr. Rice. In connection with the Purchase Agreement, these rights were assigned by Mr. Rice to
Ironbound. Accordingly, pursuant to the registration rights agreement, Ironbound has the right to demand that the Company register
certain of the shares of common stock of the Company acquired by it from Mr. Rice. In addition, Ironbound has certain "piggy-back"
registration rights on registration statements filed by the Company with respect to such securities. The Company is required to
bear the expenses incurred in connection with the filing of any such registration statements.
In March 2011, the Company executed a convertible promissory note
in favor of Jonathan Ledecky, with a principal amount of $25,000. The note was due and payable in full on demand and bore interest
at the rate of 5% per annum. At any time prior to the payment in full of the entire balance of the note, Mr. Ledecky had the option
of converting all or any portion of the unpaid balance of the note into shares of the Company's common stock at a conversion
price equal to $0.19 per share, subject to adjustment upon certain events. The conversion price was based on the market price of
the Company's common stock at the time of the issuance of the note.
In July 2011, the Company executed a convertible promissory note
in favor of Mr. Ledecky, with a principal amount of $10,000. The promissory note represented amounts advanced to the Company by
Mr. Ledecky during June 2011. The promissory note was due and payable in full on demand and bore an interest rate of 5% per annum.
At any time prior to the payment in full of the entire balance of the note, Mr. Ledecky had the option of converting all or any
portion of the unpaid balance of the note into shares of the Company's common stock at a conversion price equal to $0.20
per share, subject to adjustment upon certain events. The conversion price was at a premium to the market price of the Company's
common stock at the time of the issuance of the note.
In July 2011, Mr. Ledecky converted the $35,000 principal amount
of the promissory notes issued to him in March 2011 and June 2011 into an aggregate of 175,000 shares of common stock of the Company,
or $0.20 per share. Although the promissory note issued to Mr. Ledecky in March 2011 had a conversion price of $0.19, Mr. Ledecky
voluntarily converted such note into the Company's common stock at $0.20 per share. Additionally, the accrued interest on
the notes totaling $380 was forfeited and credited to additional paid-in capital as part of the cost of securities issued.
In July 2011, Jeremy Zimmer purchased 250,000 shares of common stock
from us for an aggregate purchase price of $50,000, or $0.20 per share, in a private placement.
The Company has agreed to file a registration statement with the
SEC to register the resale of the shares of common stock issued upon conversion of the promissory notes converted by Mr. Ledecky
in July 2011 and sold in the private placement to Mr. Zimmer promptly after consummation by the Company of a merger, stock exchange,
asset acquisition or other form of business combination and to use its best efforts to have such registration statement declared
effective as soon as possible. The Company is required to bear the expenses incurred in connection with the filing of such registration
statement.
32
In December 2011, the Company executed a convertible promissory
note in favor of Ironbound with a principal amount of $250,000. The promissory note represented amounts advanced to the Company
by Ironbound so that the Company could provide certain bridge financing to Andover Games upon execution of the Merger Agreement.
The note was due and payable in full upon closing of the merger or, if not consummated, on demand and bears interest at the rate
of 5% per annum. Upon consummation of the merger, the note was used as consideration for Ironbound purchasing an aggregate of 500,000
shares of Ascend common stock in the Financing and was cancelled.
Jeremy Zimmer also purchased 100,000 shares of common stock in the
Financing. Each of the officers or directors of the Company may participate in the remaining portion of the Financing on the same
terms as other unaffiliated investors.
DESCRIPTION OF SECURITIES
Common Stock
We are authorized to issue up to 300,000,000 shares of common stock,
par value $0.0001 per share.
Each outstanding share of common stock entitles
the holder thereof to one vote per share on all matters. Our bylaws provide that the persons receiving the greatest number of votes
shall be the directors. Stockholders do not have preemptive rights to purchase shares in any future issuance of our common stock.
Upon our liquidation, dissolution or winding up, and after payment of creditors and preferred stockholders, if any, our assets
will be divided pro-rata on a share-for-share basis among the holders of the shares of common stock.
The holders of shares of our common stock are
entitled to dividends out of funds legally available when and as declared by our board of directors. Our Board of Directors has
never declared a dividend and does not anticipate declaring a dividend in the foreseeable future. Should we decide in the future
to pay dividends, as a holding company, our ability to do so and meet other obligations depends upon the receipt of dividends or
other payments from our operating subsidiaries and other holdings and investments. In addition, our operating subsidiaries, from
time to time, may be subject to restrictions on their ability to make distributions to us, including as a result of restrictive
covenants in loan agreements, restrictions on the conversion of local currency into U.S. dollars or other hard currency and other
regulatory restrictions. In the event of our liquidation, dissolution or winding up, holders of our common stock are entitled to
receive, ratably, the net assets available to stockholders after payment of all creditors.
All of the issued and outstanding shares of
our common stock are duly authorized, validly issued, fully paid and non-assessable. To the extent that additional shares of our
common stock are issued, the relative interests of existing stockholders will be diluted.
Preferred Stock
We are authorized to issue 1,000,000 shares
of preferred stock, par value $0.0001 per share. We may issue shares of preferred stock in one or more classes or series within
a class as may be determined by our Board of Directors, who may establish the number of shares to be included in each class or
series, may fix the designation, powers, preferences and rights of the shares of each such class or series and any qualifications,
limitations or restrictions thereof. Any preferred stock so issued by the Board of Directors may rank senior to the common stock
with respect to the payment of dividends or amounts upon liquidation, dissolution or winding up of us, or both. Moreover, under
certain circumstances, the issuance of preferred stock or the existence of the un-issued preferred stock might tend to discourage
or render more difficult a merger or other change in control.
Transfer Agent and Registrar
Our independent stock transfer agent is Continental Stock Transfer
& Trust Company. Their mailing address is 17 Battery Place, 8
th
Floor, New York, New York 10004. Their phone
number is (212) 509-4000.
33
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Our common stock is quoted on the OTC Bulletin Board maintained
by the National Association of Securities Dealers, Inc. under the symbol "ASCQ.OB" but has not been traded in the Over-The-Counter
market except on a limited and sporadic basis.
The following table sets forth, for the periods indicated, the high
and last sale prices of our common stock.
Last Sale Prices
(1)
High
Low
TYD Through February 2012
1
st
Fiscal Quarter (1/1/12-2/29/12)
0.48
0.05
Fiscal Year Ended December 31, 2011
1
st
Fiscal Quarter
0.20
0.11
2
nd
Fiscal Quarter
0.30
0.15
3
rd
Fiscal Quarter
0.25
0.11
4
th
Fiscal Quarter
0.24
0.05
Year Ended December 31, 2010
1
st
Fiscal Quarter
0.07
0.042
2
nd
Fiscal Quarter
0.10
0.0311
3
rd
Fiscal Quarter
0.07
0.0311
4
th
Fiscal Quarter
0.28
0.0311
(1)
The above tables set forth the range of high and low last sale prices per share of our common stock as reported by www.nasdaq.com
for the periods indicated.
Reports to Stockholders
We plan to furnish our stockholders with an
annual report for each fiscal year ending December 31 containing financial statements audited by our independent certified public
accountants. We intend to comply with the periodic reporting requirements of the Exchange Act.
Approximate Number of Holders of Our Common Stock
On March 5, 2012, there are approximately 8 stockholders of record
of our common stock. We believe we have significantly more beneficial holders.
RESENT SALE OF UNREGISTERED SECURITIES
Reference is made to the disclosure set forth under Item 3.02 of
this report, which disclosure is incorporated by reference into this section.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Pursuant to Item 304 of Regulation S-K, there has been no disagreement
with accountants or any reportable event that would require additional disclosure in this report.
34
ITEM 3.02
UNREGISTERED SALES OF EQUITY SECURITIES
On February 29, 2012, we consummated the transactions
contemplated the Merger Agreement, as described more fully in Item 1.01 of this report, which disclosure is incorporated herein
by reference. Pursuant to the Merger Agreement, we acquired 100% of the outstanding membership interests of Andover Games in exchange
for 38,195,025 shares of our common stock issued to the former members of Andover Games. The issuances were made in reliance upon
exemptions provided by Section 4(2) of the Securities Act for the offer and sale of securities not involving a public offering and
Regulation D promulgated thereunder
.
On February 29,
2012, and in connection with the
consummation the transactions contemplated the Merger Agreement, Ascend sold an aggregate
of 4,000,000 shares of common stock to 15 accredited investors on a private placement basis, for an aggregate purchase price of
$2,000,000, or $0.50 per share. The issuances were made in reliance upon exemptions provided by Section 4(2) of the Securities
Act for the offer and sale of securities not involving a public offering and Regulation D promulgated thereunder
.
On July 27, 2011, Ascend sold an aggregate of 625,000 shares of
common stock to three accredited investors on a private placement basis, for an aggregate purchase price of $125,000, or $0.20
per share. On the same day, our then chief executive officer, Jonathan J. Ledecky, converted $35,000 owed to him by Ascend into
an aggregate of 175,000 shares of common stock of Ascend. The issuances were made in reliance upon exemptions provided by Section
4(2) of the Securities Act for the offer and sale of securities not involving a public offering
.
In instances described above where we issued
securities in reliance upon Regulation D, we relied upon Rule 506 of Regulation D of the Securities Act. These stockholders who
received the securities in such instances made representations that (a) the stockholder is acquiring the securities for his, her
or its own account for investment and not for the account of any other person and not with a view to or for distribution, assignment
or resale in connection with any distribution within the meaning of the Securities Act, (b) the stockholder agrees not to sell
or otherwise transfer the purchased shares unless they are registered under the Securities Act and any applicable state securities
laws, or an exemption or exemptions from such registration are available, (c) the stockholder has knowledge and experience in financial
and business matters such that he, she or it is capable of evaluating the merits and risks of an investment in us, (d) the stockholder
had access to all of our documents, records, and books pertaining to the investment and was provided the opportunity ask questions
and receive answers regarding the terms and conditions of the offering and to obtain any additional information which we possessed
or were able to acquire without unreasonable effort and expense, and (e) the stockholder has no need for the liquidity in its investment
in us and could afford the complete loss of such investment. Management made the determination that the investors in instances
where we relied on Regulation D are accredited investors (as defined in Regulation D) based upon management's inquiry into
their sophistication and net worth. In addition, there was no general solicitation or advertising for securities issued in reliance
upon Regulation D.
ITEM 5.01
CHANGES IN CONTROL OF REGISTRANT
Reference is made to the disclosure set forth under Item 2.01 of
this report, which disclosure is incorporated herein by reference.
As a result of the consummation the transactions contemplated the
Merger Agreement and after giving effect to the Financing, the former members of Andover Games, own 75% of the total outstanding
shares of our common stock on a fully diluted basis, subject to further adjustment as provided for in the Merger Agreement.
ITEM 5.02
DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION
OF IRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY RRANGEMENTS OF CERTAIN OFFICERS
I
n connection
with the
consummation the transactions contemplated the Merger Agreement, as of February 29, 2012, our chief executive
officer, Jonathan J. Ledecky, submitted his resignation letter pursuant to which he resigned as chief executive officer of the
Company. However, Mr. Ledecky remains as our chief financial officer on an interim basis and became our non-executive chairman
of the board.
35
On February 29, 2012, in connection with the
consummation the transactions contemplated the Merger Agreement, Craig dos Santos was appointed as our chief executive officer
and Mr. dos Santos, Jeremy Zimmer, Ben Lewis and Richard Hecker were appointed to the board of directors of Ascend.
For certain biographical and other information
regarding the newly appointed officers and directors, see the disclosure under Item 2.01 of this report, which disclosure is incorporated
herein by reference.
ITEM 5.06
CHANGE IN SHELL COMPANY STATUS
Reference is made to the disclosure set forth under Item 2.01 and
5.01 of this report, which disclosure is incorporated herein by reference.
ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS
(a)
Financial Statements of Business Acquired
Filed herewith are audited consolidated financial
statements of Andover Games, LLC as of December 31, 2011 and for the period from January 17, 2011 (inception) through December
31, 2011. Such financial statements are included following this Item 9.01.
(b)
Pro forma financial information
Filed herewith is the unaudited pro forma condensed consolidated
financial information of Andover Games, LLC for the requisite periods. Such pro forma condensed consolidated financial information
is included following this Item 9.01.
(d)
Exhibits
Exhibit No.
Description
2.1
Merger Agreement and Plan of Reorganization, dated as of December 30, 2011, by and among Ascend Acquisition Corp., Ascend Merger Sub, LLC, Andover Games, LLC and the members of Andover Games, LLC.  (Incorporated by reference to the Registrant's Current Report on Form 8-K filed with the SEC on January 4. 2012.)
3.1
Second Amended and Restated Certificate of Incorporation. (Incorporated by reference to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 and filed with the SEC on March 31, 2009.)
3.2
By-Laws. (Incorporated by reference to the Registrant's Registration Statement on Form S-1 or amendments thereto (SEC File No. 333-131529).)
4.1
Specimen Common Stock Certificate. (Incorporated by reference to the Registrant's Registration Statement on Form S-1 or amendments thereto (SEC File No. 333-131529).)
10.1
Development and Licensing Agreement dated May 18, 2011 between Andover Fund, LLC and Infinitap Games, LLC.
10.2
License Agreement dated May 18, 2011, between Andover Fund, LLC and Infinitap Games, LLC.
36
10.3
Operating Agreement for Manager-Managed Rotvig Labs, LLC dated as of January 28, 2011.
10.4
Membership Interest Agreement dated May 7, 2011 between all the Members of Rotvig Labs, LLC
and Concept Art House, Inc.
10.5
Service and Profit Sharing Agreement dated
April 19, 2011
between Rotvig Labs, LLC and Concept Art House, Inc.
10.6
Note Purchase Agreement dated August 31, 2011 by and among Ecko Entertainment, Inc. and
each of the purchasers listed on the Schedule of Purchasers attached thereto as Exhibit A.
10.7
Note Purchase Agreement dated September 14, 2011 by and among Game Closure Inc.
and the persons named on the Schedule of Purchasers attached thereto.
10.8
Intentionally Omitted.
10.9
Operating Agreement for Member-Managed Byte Factory LLC dated September 18, 2011.
10.10
Tapjoy Publisher Agreement: Term Sheet by and between Andover Fund, LLC and Tapjoy dated March 29th, 2011.
10.11
Intentionally Omitted.
10.12*
Employment Agreement dated November 1, 2011 between Andover Fund, LLC and Craig Dos Santos.
10.13*
Consulting Agreement dated February 29, 2012 between Registrant and Traction and Scale, LLC (Richard Hecker).
10.14*
Consulting Agreement dated February 29, 2012 between Registrant and Jonathan Ledecky.
10.15
Form of Lock Up Agreement between Registrant and each of Craig dos Santos, Richard Hecker, Ben Lewis, Lee Linden, Jon Diamond, Jonathan J. Ledecky and Ironbound Partners Fund, LLC. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed with the SEC on January 4. 2012.)
10.16
Form of Right of First Look Agreement between Registrant and Craig dos Santos, Richard Hecker, Lee Linden, Ben Lewis and Jon Diamond. (Incorporated by reference to the Registrant's Current Report on Form 8-K filed with the SEC on January 4. 2012.)
10.25
Form of Subscription Agreement between Registrant and the certain investors.
10.26
Form of Indemnification Agreement.
21
List of subsidiaries of the Registrant.
99.1
Press Release, dated March 2, 2012
* Indicates management compensatory plan, contract or arrangement.
37
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Financial Statements
December 31, 2011
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Index to the Financial Statements
December 31, 2011
Page
Independent Auditors' Report on the Financial Statements
F-1 – F-2
Financial Statements
Consolidated Balance Sheet
F-3
Consolidated Statement of Operations and Members' Deficiency
F-4
Consolidated Statement of Cash Flows
F-5
Notes to the Consolidated Financial Statements
F-6 – F-14
INDEPENDENT AUDITORS' REPORT
To the Managing Members of
Andover Games, LLC
We have audited the accompanying consolidated
balance sheet of Andover Games, LLC and Subsidiary (a development stage company) (the "Company") as of December 31,
2011, and the related consolidated statements of operations and members' deficiency and cash flows for the period from January
17, 2011 (inception) through December 31, 2011. These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our
audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements referred
to above present fairly, in all material respects, the consolidated financial position of Andover Games, LLC and Subsidiary (a
development stage company) as of December 31, 2011, and the results of its operations, and its cash flows for the period from January
17, 2011 (inception) through December 31, 2011, in conformity with accounting principles generally accepted in the United States
of America.
F-
1
The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated
financial statements, the Company has incurred a substantial loss from operations for the period from January 17, 2011
(inception) through December 31, 2011. Based on the Company's liquidity position, continued losses
could result in the Company not having sufficient liquidity or minimum cash levels to operate its business. These conditions
raise substantial doubt about the Company's ability to continue as a going concern. Management's plan in regard
to these matters is also described in Note 1. The consolidated financial statements do not include any adjustments that
might result from the outcome of these uncertainties.
/s/ Marcum LLP
Marcum LLP
Melville, NY
February 27, 2012, except for note 11(b) of
which the date is March 6, 2012.
F-
2
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Consolidated Balance Sheet
December 31, 2011
Assets
Current Assets
Cash ($25,000 related to the variable interest entity)
$
80,588
Convertible note receivable
50,000
Accrued interest receivable
833
Total Current Assets
131,421
Investments in private companies
114,505
Equipment, at cost
815
Total Assets
$
246,741
Liabilities and Members' Equity (Deficiency)
Current Liabilities
Accounts payable and accrued expenses
$
78,307
Payroll tax liabilities
27,601
Convertible note payable
50,000
Due to member (liability of the variable interest entity)
4,500
Total Current Liabilities
160,408
Deferred revenue
206,250
Total Liabilities
366,658
Commitments and Contingencies
-
Members' Deficiency
Members' Deficiency Accumulated During the
Development Stage:
Controlling Members' Interest
(147,341
)
Non-controlling Members' Interest
27,424
(119,917
)
Total Liabilities and Members' Deficiency
$
246,741
The accompanying notes are an integral part
of these consolidated financial statements.
F-
3
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Consolidated Statement of Operations and
Members' Deficiency
From January 17, 2011 (Date of Inception)
to December 31, 2011
Revenues
$
18,750
Software development costs
124,650
Selling General and Administrative Expenses
Salaries
62,500
Payroll taxes
5,149
Office expenses
4,710
Professional fees
153,771
Other administrative expenses
5,500
Total Selling, General and Administrative Expenses
231,630
Loss from Operations ($300,054 attributable to controlling interest)
(337,530
)
Other Income (Expense):
Interest Income
1,074
Impairment of Investment
(3,727
)
Equity Loss from Investment
(12,009
)
Total Other Income (Expense)
(14,662
)
Net Loss
(352,192
)
Less: Net Loss Attributable to the Non-controlling Interest
37,476
Net Loss Attributable to the Controlling Interest
$
(314,716
)
Members' Equity at Beginning of Period
$
-
Controlling Members' Contributions
167,375
Non-controlling Members' Contributions (net of receivable for $100)
64,900
Net Loss - Controlling Interest
(314,716
)
Net Loss - Non-controlling Interest
(37,476
)
Members' Deficiency at End of Period
$
(119,917
)
The accompanying notes are an integral part
of these consolidated financial statements.
F-
4
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Consolidated Statement of Cash Flows
From January 17, 2011 (Date of Inception)
to December 31, 2011
Cash Flows From Operating Activities
Net Loss
$
(352,192
)
Adjustments to Reconcile Net Loss to Net Cash Used in
Operating Activities
Impairment of investment
3,727
Equity loss from investment
12,009
Compensation for software development costs in exchange for non-controlling interest
64,900
Direct payment of operating expenses by member
4,500
Changes in Assets and Liabilities
Accrued interest receivable
(1,074
)
Accounts payable and accrued expenses
78,307
Payroll tax liabilities
27,601
Deferred revenue
206,250
Net Cash Used in Operating Activities
44,028
Cash Flows From Investing Activities
Purchases of equipment
(815
)
Investments in private companies
(50,000
)
Purchase of convertible notes receivables
(130,000
)
Net Cash Used in Investing Activities
(180,815
)
Cash Flows From Financing Activities
Proceeds from convertible note payable
50,000
Members' contributions
167,375
Net Cash Provided by Financing Activities
217,375
Net Increase in Cash
80,588
Cash at Beginning of Period
-
Cash at End of Period
$
80,588
Supplemental disclosure of non-cash financing activities:
Conversion of note receivable/accrued interest into investment in preferred stock of company
$
80,241
The accompanying notes are an integral part
of these consolidated financial statements.
F-
5
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Nature of Organization
Andover Games, LLC, (the "Company")
a development stage company, is a limited liability company formed on January 17, 2011 under the laws of the State of Delaware
as Andover Fund, LLC. The name was changed in December, 2011 to Andover Games, LLC. The entity has an indefinite life. The Company's
principal business is focused on developing mobile games for iPhone and Android platforms.
Development Stage Company
The Company is a development stage
company as defined by section 810-10-20 of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC"). The Company is still devoting substantially all of its efforts on establishing the business and its planned
principal operations have not commenced.
Principles of Consolidation
The consolidated financial statements
include the accounts of the Company and the less than majority owned variable interest entity which it controls (see NOTE 3). Significant
inter-company accounts and transactions have been eliminated in consolidation.
Cash
For purposes of the statement of
cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market
accounts to be cash equivalents.
Investments in private companies
Investments in private companies
in which the Company owns less than 20% of the entity and does not influence the operating or financial decisions of the investee
are carried at cost. The Company reviews the investments for impairment and records a loss on impairment based on the difference
between the fair value of the investment and the carrying amount when indicators of impairment exist.
Equipment
Equipment is carried at cost and
is depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed
as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition.
The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect
the fact that their recorded value may not be recoverable.
Income Taxes
The Company is a limited liability
company (an "LLC") and is treated as a partnership for income tax purposes. As such, the members of the LLC are taxed
on their proportionate share of the Company's taxable income. Therefore, no provision or liability for federal or state income
taxes has been included in the consolidated financial statements.
Management has concluded that the
Company is a pass-through entity and there are no uncertain tax positions that would require recognition in the consolidated financial
statements. If the Company were to incur an income tax liability in the future, interest on any income tax liability would be reported
as interest expense and penalties on any income tax would be reported as income taxes. Management's conclusions regarding
uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations
and interpretations thereof as well as other factors. Generally, Federal, State and Local authorities may examine the Company's
tax returns for three years from the date of filing and as a result the current year remains subject to examination.
F-
6
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Software development costs
In accordance with ASC 985-20 "Accounting
for the Cost of Computer Software to be Sold, Leased or Otherwise Marketed," software development costs are expensed as incurred
until technological feasibility (generally in the form of a working model) has been established. Research and development costs
which consist primarily of salaries and fees paid to third parties for the development of software and applications are expensed
as incurred. The Company capitalizes only those costs directly attributable to the development of the software. Capitalization
of these costs begins upon the establishment of technological feasibility. Activities undertaken after the products are available
for release to customers to correct errors or keep the product up to date are expensed as incurred. Capitalized software development
costs will be amortized over the estimated economic life of the software once the product is available for general release to customers.
Capitalized software development costs will be amortized over the greater of the ratio of current revenue to total projected revenue
for a product or the straight-line method. The Company will periodically perform reviews of the recoverability of such capitalized
software costs. At the time a determination is made that capitalized amounts are not recoverable based on the estimated cash flows
to be generated from the applicable software, any remaining capitalized amounts are written off. During the period from January
17, 2011 (inception) through December 31, 2011, the Company expensed $124,650 in software development costs.
Revenue Recognition
The Company evaluates revenue recognition
based on the criteria set forth in FASB ASC 985-605, "Software: Revenue Recognition." The Company recognizes revenue
when persuasive evidence of an arrangement exists, the product, image or game has been delivered, the fee is fixed or determinable,
and collectability is reasonably assured. The Company's specific revenue recognition policies are as follows:
The Company recognizes revenue from
the sale of its social games and mobile applications ("Apps") from two revenue sources: direct payment revenue or alternative
payment service revenue. Direct payment revenue results from payments from the end users of Apps for virtual goods or currency
(i.e. items within the game and virtual money to buy items and upgrades in a game) in an application from a variety of direct payment
sources, less deductions for fraud, charge-backs, refunds, credit card processing fees or uncollected amounts (assuming all other
recognition criteria are met). Alternative payment service revenue results from utilization of the platform provided by a publisher
that is party to a collaborative arrangement with the Company (see "Collaborative Arrangement"). The publisher's platform
incentivizes end users to complete certain tasks in response to advertisements presented within the application (i.e. to purchase
other applications on the publisher's platform). Revenue from the alternative payment service (subject to a "Recoupment
Amount" by the vendor - see NOTE 10) would be recognized as the service is rendered, with a portion of the revenue allocated
to the vendor. If the service period is not defined, the Company would recognize the revenue over the estimated service period.
In conjunction with the collaborative arrangement, the Company receives proceeds that are recognized on a straight line basis over
the period that the Company is required to keep its applications on the publisher's platform.
Advertising Costs
Advertising costs are charged to
operations when incurred. There were no advertising costs incurred for the period from January 17, 2011 (inception) through December
31, 2011.
Non-controlling Interest
The Company has consolidated Rotvig
Labs, LLC ("Rotvig" - see NOTE 3), which qualifies as a variable interest entity (" VIE") because the Company
determined that it is the primary beneficiary and has a controlling financial interest. Therefore, Rotvig's financial statements
are consolidated in the Company's consolidated financial statements and the other member's equity in Rotvig is recorded
as non-controlling member's interest as a component of consolidated members' equity. At December 31, 2011, non-controlling
interest was $27,424.
F-
7
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Going Concern
The financial statements
have been prepared assuming that the Company will continue as a going concern. The Company had minimal revenue
inception-to-date, and the Company has incurred a substantial loss from operations for the period from January 17, 2011
(inception) through December 31, 2011. Based on the Company's liquidity position, continued losses could result in the
Company not having sufficient liquidity or minimum cash levels to operate its business. These conditions raise substantial
doubt about the Company's ability to continue as a going concern. Management's plan in regard to these matters includes
raising additional proceeds from debt and equity transactions (see note 11(b) for a description of the subsequent financing
received) and completing strategic acquisitions that will generate positive cash flows. The consolidated financial statements
do not include any adjustments that might result from the outcome of these uncertainties.
Use of Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. The significant estimates utilized related to the
impairment of investment in companies. Actual results could differ from those estimates.
Recent Accounting Pronouncements
Accounting standards that have been
issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial
statements upon adoption.
Subsequent Events
The Company evaluated the
events and transactions subsequent to December 31, 2011 balance sheet date and through February 27, 2012, except for
note 11(b) in which events described were evaluated through March 6, 2012 which is the date the financial statements were issued, to determine if they require potential adjustment to or disclosure in the financial statements. Except
as disclosed in NOTE 11, the Company concluded no other events required disclosure in the financial statements.
NOTE 2 - CONVERTIBLE NOTE RECEIVABLE
In August 2011 the Company invested
$50,000 in an unsecured convertible promissory note issued by Ecko Entertainment, Inc. ("Ecko"). The note bears interest
at 5% and matures on August 31, 2012. In the event Ecko closes a qualified financing of $2,000,000 prior to maturity of the note,
all principal and accrued interest then outstanding will automatically convert into shares of common stock. The price per share
for such conversion shall equal the lesser of i) 70% of the price per share of the capital stock paid by investors in the qualified
financing or ii) the price per share that would result based on a valuation of the company immediately prior to the closing of
the qualified financing equal to $15,000,000. The Company accrued $833 in interest related to the note as of December 31, 2011.
In the event Ecko closes an equity
financing which is not deemed a qualified financing, on, prior to or after the maturity date, or closes a qualified financing after
the maturity date, the Company, at its option, may convert all of the principal and accrued interest then outstanding at the same
terms as noted above.
F-
8
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 3 - VARIABLE INTEREST ENTITY
Rotvig Labs, LLC
In January 2011, the Company acquired
a 50% membership interest in Rotvig Labs, LLC ("Rotvig Labs") for $25,000. Rotvig Labs is also involved on developing
applications for the mobile game industry. The Company evaluated its investment in Rotvig Labs and determined that it was the primary
beneficiary and held a controlling interest in Rotvig Labs, and that the assets, liabilities and operations of Rotvig Labs should
be consolidated into its financial statements. The key assumption in making this determination was that the Company held the sole
cash basis investment at risk in the entity and share common management. The other founding member contributed services to the
entity, which were recorded based on the agreed-upon capital contribution of $25,000, which approximates the fair value of the
services rendered and the non-controlling interest at acquisition. The assets of Rotvig Labs can only be used to satisfy the liabilities
of Rotvig Labs.
Included in the accompanying financial
statements are the following assets and liabilities of Rotvig Labs as of
Assets:
Cash
$
25,000
Liabilities:
Due to member of Andover Games, LLC
4,500
In April 2011, Rotvig Labs entered
into a Service and Profit Sharing Agreement with Concepts Art House, Inc ("CAH"), a graphics design company. Under this
agreement, CAH would provide $40,000 in committed art services in exchange for an eight percent (8%) membership interest in Rotvig
Labs. CAH's membership interest is subject to vesting, whereby the equity interest is earned 25% for each $10,000 of committed
art services provided for under the agreement. As of December 31, 2011, CAH had provided all such services and therefore had earned
an 8% membership interest. Thus, the Company owns 46% of the membership interest of Rotvig Labs at December 31, 2011. In addition,
CAH is entitled to profit sharing of 16% of Rotvig Labs' gross revenue up to a cumulative amount of $80,000. After the cumulative
80% is reached CAH is entitled to 8% of gross revenues.
NOTE 4 - INVESTMENTS IN PRIVATE COMPANIES
Game Closure, Inc.
On September 14, 2011, the Company
invested $80,000 in an unsecured and subordinated convertible promissory note issued by Game Closure, Inc. ("GCI"). The
note bore interest at 2%, and had a maturity date of September 14, 2013. In December 2011, GCI issued and sold shares of its Preferred
Stock to investors in an equity financing of at least $1,000,000 including conversion of this note. Based on the terms of the note,
the outstanding principal and accrued interest then outstanding at the closing of the financing automatically converted into shares
of Series A Preferred Stock equal to the the number obtained by dividing the aggregate amount of principal and accrued interest
outstanding by the amount equal to the lesser of i) 100% of the purchase price for the Preferred Stock in the financing or ii)
the price per share of such Preferred Stock assuming a $16,000,000 fully diluted pre-money valuation of the company. Upon conversion
of principal of $80,000 and accrued interest of $241, the Company received 174,989 shares of Series A Preferred Stock of GCI. The
holders of this Series A Preferred Stock have a non-cumulative dividend right at a rate of $0.0871128 per annum and conversion
privileges at $1.08891 per share (unless automatically converted upon a qualified financing). The investment is accounted for using
the cost method.
F-
9
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 4 - INVESTMENTS IN PRIVATE COMPANIES (continued)
Tumbleweed Technologies, LLC/Byte
Factory, LLC
In July 2011, the Company invested
$50,000 for a 33% membership interest in Tumbleweed Technologies, LLC ("Tumbleweed"). Subsequently, in September 2011,
the Company contributed its interest in Tumbleweed for a 6.5% membership interest in Byte Factory, LLC ("Byte Factory").
The Company accounted for its investment in Tumbleweed under the equity method of accounting through the date of its transfer to
Byte Factory. During the period from July 2011 through the date of transfer, the Company recognized losses under the equity method
totaling $12,009, reducing the carrying value of the investment to $37,991. The Company accounts for its investment in Byte Factory
under the cost method of accounting. Subsequent to December 31, 2011, the Company learned that Byte Factory was in the process
of dissolution. Because of this fact, the Company assessed the value of its investment to determine whether there was any subsequent
decline in value. The Company estimated the fair value of its investment in Byte Factory using a discounted cash flow model and
determined there was a decline in value below the carrying value at December 31, 2011 that was other than temporary and recognized
an impairment loss of $3,727, reducing the carrying value to $34,264.
NOTE 5 - EQUIPMENT AND IMPROVEMENTS
Equipment and improvements consists
of the following as of December 31, 2011:
Equipment
$
815
Less accumulated depreciation
-
$
815
NOTE 6 - FINANCIAL INSTRUMENTS
Concentrations of Credit Risk
At times throughout the year, the
Company may maintain certain bank accounts in excess of FDIC insured limits. These cash balances are held at one financial institution.
Fair Value
The Company has financial instruments,
including investments in companies at cost, convertible notes receivable, and contingently convertible debt, none of which are
held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2011 does not
differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying balance sheet. The
estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies.
Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly,
the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange.
F-
10
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 7 - CONVERTIBLE NOTE PAYABLE
On December 30, 2011, the Company
issued a convertible bridge note in the amount of $50,000 with Ascend Acquisition Corp. (see NOTE 10). The note bears interest
at the prime rate (3.25%) plus 5% on an annual basis. Unless prepaid, accelerated or converted in accordance with the terms outlined
below, the note and any accrued interest shall be due and payable on the earlier of (i) the closing of the merger transaction contemplated
between the holder and the Company (see NOTE 10, below) and (ii) June 30, 2012.
In the event that the Company consummates,
prior to the maturity date, an equity financing with aggregate proceeds of not less than $2,000,000, the note and any accrued interest
may be converted at the option of the holder into equity securities at a price per unit/share equal to 80% of the price per unit/share
of the equity securities, or the holder may require prepayment in full of the principal and accrued interest. The contingent option
of the holder was accounted for as a contingent beneficial conversion option as the event that triggers conversion was within the
Company's control. The intrinsic value of the beneficial conversion option at the date of grant was $12,500 and will be recognized
in the event that the contingency is resolved.
NOTE 8 - FAIR VALUE MEASUREMENTS
ASC 820,
Fair Value Measurements
and Disclosures
, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level
3 measurements). The three levels of the fair value hierarchy under ASC 820 are described as follows:
(1)
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets
or liabilities in active markets that the Company has the ability to access.
(2)
Level 2 - Inputs other than quoted prices that are observable for the asset or liability; inputs
that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability
has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.
Inputs to the valuation methodology
include:
• quoted prices for similar
assets or liabilities in active markets;
• quoted prices for identical
or similar assets or liabilities in inactive markets;
(3)
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset's or liability's fair
value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable
inputs.
F-
11
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 8 - FAIR VALUE MEASUREMENTS (continued)
Following is a description of the
valuation methodologies used for assets and liabilities recognized at fair value. There have been no changes in the methodologies
used during the period from January 17, 2011 (inception) through December 31, 2011.
Investment in companies, cost method:
The fair value of one of the investments in companies under the cost method has been estimated due to identified events or changes
in circumstances that may have had a significant adverse effect on the fair value. The Company used a discounted cash flow model
to estimate fair value and determined the impairment was other than temporary. The Company applied a 20% discount rate to the expected
future cash flows to determine the fair value.
The table below represents the Company's
assets and liabilities that are recorded at fair value on a non-recurring basis. There were no assets or liabilities recorded at
fair value on a recurring basis.
Fair Value Measurements at Reporting Date Using
Quoted Prices
Significant
in Active
Other
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
12/31/11
(Level 1)
(Level 2)
(Level 3)
Investment in company, cost method
$
34,264
-
-
$
34,264
$
34,264
$
-
$
-
$
34,264
NOTE 9 - MEMBERSHIP INTERESTS
A total of 10,000,000 membership
units are authorized, issued and outstanding at December 31, 2011. The Operating Agreement provided for initial capital contributions
of $160,000, with each of two members holding a 50% membership interest. Allocations of net income or loss are allocated to
the members in accordance with their respective percentage interests. In May 2011, another member was admitted, with a revised
membership interest of 33 1/3% for each member. The new member's interest would vest ratably the first of each month after the
amendment over a four year term. These three members are referred to as the "Founders". In October 2011, the Operating
Agreement was again amended to re-allocate membership interests and grant membership interests to two additional individuals
for additional cash contributions totaling $2,278. In addition, the member who was admitted in May 2011 contributed $5,097 for
his membership interest. The contributions made by these three members in October 2011 were made in amounts that approximated the
fair value of the units received.The holders of the top four membership percentage interests are referred to as the "Signatory
Members". In addition, the two original members of the Company were granted priority distribution rights of $205,000 each
for any distributions of profits or net proceeds arising from any sale of the Company. Founders that have not been terminated have
certain rights to repurchase the unvested equity interests of the other members if the services of any such member are terminated.
These purchase rights lapse over time until such time that each member's units are considered "vested". The purchase
rights shall be exercisable by the remaining Signatory Members pro rata with their holdings (vested and unvested) at an exercise
price equal to the original price paid per membership unit purchased. Units that have not yet vested are subject to acceleration
upon the occurrence of certain financing or restructuring events, or upon the achievement of certain revenue milestones. As of
December 31, 2011, the purchase rights had lapsed and membership interests had "vested" for a total of 967,223 units.
F-
12
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 10 - COMMITMENTS AND CONTINGENCIES
The Company is party to a Publisher
Agreement with a service provider to generate publishing revenue. The Company received $225,000 in deposits by the publisher. Two
members of the Company also co-founded this service provider. The Company may earn revenue based on direct payments under the application
(100% of such payments allocated to the Company) and/or based on alternative payment service revenue which results from utilization
of the platform provided by the publisher which incentivizes end users to complete certain tasks in response to advertisements
presented within the application (i.e. to purchase other applications on the publisher's platform) (70% of such revenues
allocated to the Company). The latter revenue source is shared with the publisher, who will be the exclusive provider of the service
that incentivizes the site user completion described above starting from the date that the first application begins utilizing this
service. This revenue is subject to a $50,000 recoupment (the "Recoupment Amount") which would be withheld by the service
provider in settlement of the $225,000 deposit or any marketing credits (as discussed below) that it provides to the Company. The
Company is required to maintain exclusivity on the Publisher's platform for 24 months, plus any extension period. In addition,
the Company can receive $50,000 in marketing credits, which may be used in lieu of other forms of payment and only for the promotion
and distribution of the applications within the publisher's network.
In May 2011, the Company entered
into a Development and Licensing Agreement with a consultant to build an Android game platform for the Company. The Agreement called
for a payment of $32,500 upon the execution of the agreement, and the final payment of $32,500 when the product is completed as
agreed upon by the parties and shipped. The application was deployed as of December 31, 2011, with $55,250 expensed for software
application development costs with $9,750 to be recognized in future periods based on the completion of services. The consultant
will also be entitled to 20% of the net revenue paid to the Company by the publisher above (which primarily markets on Android)
or Apple, Inc. platforms (less any marketing credits paid by the third parties), but only effective after the Company first receives
$65,000 in such net revenue.
In May 2011, the Company entered
into an Employment Agreement with an individual who became a Signatory member in October 2011 (see NOTE 9 above). The individual's
employment was approved as Managing Director. The agreement term is for one year unless terminated by good cause, and renews automatically
for one year unless cancelled six months from the date of signing. The employee's annual salary is $225,000 per the terms
of the employment agreement.
In November 2011, the Company entered
into Employment Agreements with the Chief Executive Officer and Executive Vice President. The individuals' employment will begin
upon the closing of a minimum financing of $250,000. Both agreements' term are for one year unless terminated by good cause, and
renew automatically for one year unless cancelled six months from the date of signing. The employee's annual salary is $150,000
per the terms of the employment agreement.
In November 2011, the Company entered
into an Employment Agreement with a Non-Executive Chairman. The individual's employment will begin upon the closing of a minimum
financing of $5,000,000. The agreement may be terminated for good cause within the first year. The employee's annual salary
is $150,000 per the terms of the employment agreement.
F-
13
Andover Games, LLC and Subsidiary
(A Development Stage Company)
Notes to the Consolidated Financial Statements
NOTE 10 - COMMITMENTS AND CONTINGENCIES (continued)
In December 2011, the Company entered
into a Merger Agreement and Plan of Reorganization with Ascend Acquisition Corp ("Ascend"), a publicly traded shell company.
The effective date of the merger will be upon closing of the transaction, which had not occurred as of December 31, 2011. Upon
the closing of the transaction, the members of the Company will exchange their membership interests for common stock of Ascend,
which will provide the former members with a minimum ownership of 75% of the fully diluted capitalization of Ascend.
NOTE 11 - SUBSEQUENT EVENTS
(a)
In January 2012, the Company issued a convertible bridge note in the amount of $200,000 to
                                                                                   Ascend under the same terms as described in Note 7.
(b)
On February 29, 2012, the Company and Ascend closed the transactions under the Merger
                                                                 Agreement and Plan of Reorganization (the "Merger Agreement") with the Company becoming a wholly-owned subsidiary
                                                                 of Ascend (the                                                                  "Closing"). At the Closing, the
                                                                 holders of membership interests of the Company  received 38,195,025 shares of
                                                                 Ascend common stock, representing 75% of the fully diluted capitalization of Ascend immediately after the closing of the
                                                                 merger and the Financing (defined below), subject to further adjustment as provided for in the Merger Agreement.
Pursuant to the Merger
Agreement, Ascend was obligated to use its commercial best efforts to raise at least $4 million of equity capital through the
sale of Ascend's capital stock (the "Financing"), of which at least $2 million was to be raised prior to or
simultaneously with the closing and such additional proceeds are to be raised, if at all, within the next 30 days so as to
raise up to $4 million in aggregate proceeds. Pursuant to the Merger Agreement, Ascend is required to use its commercial best
efforts to raise an additional $2 million of proceeds within 30 days after the Closing. Pursuant to the Merger Agreement, if
Ascend sells additional shares of its capital stock in the Financing during such period, Ascend will issue additional
shares of its common stock to the former members of the Company to maintain their collective ownership of Ascend common stock
at 75% on a fully diluted basis.  Alternatively, if Ascend sells less than the maximum $4 million in aggregate proceeds
in the Financing, then such number of additional shares of Ascend capital stock shall be issued to the former members of the
Company at the final closing of the Financing so as to increase their collective pro-rata percentage ownership in Ascend by
one percent (1%) for every $200,000 in proceeds that Ascend falls short of the $4 million maximum proceeds in the
Financing.
Simultaneously with the Closing,
Ascend sold 4,000,000 shares of its common stock, at $0.50 per share, for gross proceeds of $2 million pursuant to the Financing.
In addition, The Company repaid $250,000 of outstanding convertible notes payable to Ascend.
F-
14
ASCEND ACQUISITION CORP.
(A Development Stage Company)
PRO FORMA FINANCIAL INFORMATION
(UNAUDITED)
On December 30, 2011 Ascend Acquisition Corp.,
a Delaware corporation ("Ascend"), entered into a Merger Agreement and Plan of Reorganization (the "Merger Agreement")
by and among Ascend, Ascend Merger Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Ascend ("Merger
Sub"), Andover Games, LLC, a Delaware limited liability company ("Andover Games"), and the members of Andover
Games ("Signing Members"). Ascend was a non-operating public shell. On February 29, 2012, the parties closed the transactions
under the Merger Agreement and, pursuant to the Merger Agreement, the Merger Sub merged with and into Andover Games, with Andover
Games surviving the merger and becoming a wholly-owned subsidiary of Ascend.
At the close of the merger, the holders of
membership interests of Andover Games received 38,195,025 shares of Ascend common stock, representing 75% of the fully diluted
capitalization of Ascend immediately after the closing of the merger and the Financing (defined in Notes to Pro Forma Statements
below), subject to further adjustment as provided for in the Merger Agreement.
For accounting purposes, the acquisition
will be treated as an acquisition of Ascend by Andover Games and as a recapitalization of Andover Games as Andover Games
members will hold a majority of the Ascend shares and will exercise significant influence over the operating and financial
policies of the consolidated entity and Ascend was a non-operating public shell prior to the transaction. Pursuant to
Securities and Exchange Commission rules, the merger or acquisition of a private operating company into a non-operating
public shell with nominal assets is considered a capital transaction in substance rather than a business combination.
The following unaudited pro forma
information as of December 31, 2011 and for the period from January 17, 2011 (inception) thorough December 31, 2011 is
presented herein to show the effect of the merger transactions noted above as if the merger took place at December 31, 2011
for the pro forma condensed balance sheet and at the beginning of the period presented for the pro forma condensed statement
of operations. The unaudited pro forma financial information does not necessarily reflect the results of operations that
would have occurred had Ascend constituted a single entity during the period presented.
PF-
1
Ascend Acquisition Corporation
(A Development Stage Company)
Proforma Condensed Balance Sheets
December 31, 2011
Ascend Acquisition Corporation
Andover Games, LLC
Proforma Adjustments
Proforma Combined
December 31, 2011
December 31, 2011
December 31,   2011
December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents ($25,000 related to variable interest entity)
$
30,461
$
80,588
$
2,000,000
(b)
$
2,111,049
Note receivable
50,000
-
(50,000
)(a)
-
Convertible note receivable
-
50,000
-
50,000
Accrued interest receivable
-
833
-
833
Total current assets
80,461
131,421
1,950,000
2,161,882
Investments in private companies
-
114,505
-
114,505
Equipment, at cost
-
815
-
815
Total assets
$
80,461
$
246,741
$
1,950,000
$
2,277,202
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses
$
916
$
78,307
$
-
$
79,223
Advances from related party ($4,500 related to variable interest entity)
1,626
4,500
-
6,126
Payroll tax liabilities
-
27,601
-
27,601
Convertible note payable
-
50,000
(50,000
)(a)
-
Total current liabilities
$
2,542
$
160,408
$
(50,000
)
$
112,950
Deferred revenue
-
206,250
-
206,250
Total liabilities
$
2,542
$
366,658
$
(50,000
)
$
319,200
Stockholders' Equity (Deficit)
Controlling Interest
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; none issued
-
-
-
-
Common stock, $0.0001 par value, 300,000,000 shares authorized; 50,926,700 shares issued and outstanding
873
-
400
(b)
5,093
3,820
(c)
Additional paid-in capital
655,398
-
1,999,600
(b)
2,240,201
(414,797
)(c)
Deficit accumulated during the development stage
(578,352
)
(147,341
)
410,977
(c)
(314,716
)
Total Stockholders' Equity of Ascend Acquisition Corporation
77,919
(147,341
)
2,000,000
1,930,578
Non-controlling interest
-
27,424
27,424
Total stockholders' equity (deficit)
77,919
(119,917
)
2,000,000
1,958,002
Total liabilities and stockholders' equity (deficit)
$
80,461
$
246,741
$
1,950,000
$
2,277,202
PF-
2
Ascend Acquisition Corporation
(A Development Stage Company)
Proforma Condensed Statements of Operations
Ascend
Andover Games,
LLC
Proforma Combined
Acquisition
Period From
Proforma
Period From
Corporation
January 17, 2011
Adjustments
January 17, 2011
Year Ended
(Inception) to
Year Ended
(Inception) to
December 31,
2011
December 31,
2011
December 31,
2011
December 31,
2011
Revenues
$
-
$
18,750
$
-
$
18,750
Operating expenses:
Software development costs
-
124,650
-
124,650
General and administrative expenses
80,048
231,630
476,767
(d)
788,445
Total operating expenses
80,048
356,280
476,767
913,095
Loss from operations
(80,048
)
(337,530
)
(476,767
)
(894,345
)
Other income (expense):
Equity loss from investment
-
(12,009
)
-
(12,009
)
Other income (expense)
(366
)
(2,653
)
-
(3,019
)
Net loss
(80,414
)
(352,192
)
(476,767
)
(909,373
)
Less: Net loss attributable to non-controlling interest
-
37,476
-
37,476
Net loss attributable to controlling interest
$
(80,414
)
$
(314,716
)
$
(476,767
)
$
(871,897
)
Weighted average common shares outstanding, basic and diluted
8,064,757
40,320,025
(e)
48,384,782
Net loss per common share, basic and diluted
$
(0.01
)
$
(0.02
)
PF-
3
ASCEND ACQUISITION CORP.
(A Development Stage Company)
PRO FORMA FINANCIAL INFORMATION
Notes to Pro forma Statements
The following adjustments would be required if the transaction had
occurred as of December 31, 2011.
(a)
To eliminate the bridge loan entered into between Ascend and Andover Games in December 2011 (see
"Bridge Loans" below)
(b)
To record the effect of the $2 million financing (condition precedent to the closing)
(c)
To record effect of reverse merger recapitalization of Andover Games (Note: see "Financing"
below)
The following adjustments would be required if the transaction had
occurred at the beginning of the period presented.
(d)
To record pro forma compensation expense (and related payroll tax expense) for employment agreements
entered into with named executive officers and directors.
(e)
To record pro forma adjustment to weighted average shares outstanding for the period presented.
The historical information in these Pro Forma
Statements for Ascend as of and for the year ended December 31, 2011 is derived from the audited financial statements included
in its annual report on Form 10-K filed February 28, 2012. The historical information in these Pro Forma Statements for Andover
as of December 31, 2011 and for the period from January 17, 2011 (Inception) through December 31, 2011 is derived from the audited
financial statements included herein this Form 8-K.
Bridge Loans
Pursuant to the Merger Agreement, Ascend provided
bridge loans in the aggregate amount of $250,000 to Andover Games (the "Bridge Loans"), with $50,000 provided prior
to December 31, 2011. To provide the necessary funding for Ascend to make the above-referenced Bridge Loans, Ascend received
a loan from Ironbound (the "loan") in an aggregate principal amount of $250,000 and in return issued to Ironbound a
convertible promissory note to evidence the loan.  Both the Bridge Loans and loan were due on the closing of the merger
and were repaid.
Since the loan and $200,000 of the Bridge Loans would have been paid in full at closing,
these items have been excluded from the presentation of the pro forma statements.
PF-
4
ASCEND ACQUISITION CORP.
(A Development Stage Company)
PRO FORMA FINANCIAL INFORMATION
Notes to Pro forma Statements
Financing
Pursuant to the Merger Agreement, Ascend was obligated to use
its commercial best efforts to raise at least $4 million of equity capital through the sale of Ascend's capital stock
(the "Financing"), of which at least $2 million was to be raised prior to the closing of the merger and such
additional proceeds are to be raised, if at all, within the 30 days post-closing so as to raise $4 million in aggregate
proceeds.   Prior to the consummation of the merger, Ascend sold 4,000,000 shares ("Shares") of its
common stock, at $0.50 per share, for the gross proceeds of $2 million
.
Pursuant
to the Merger Agreement, if Ascend sells additional shares of its capital stock during the 30 days post-closing Ascend will
issue additional shares of its common stock to the former members of Andover Games to maintain their collective ownership of
Ascend common stock at 75% on a fully diluted basis. Alternatively, if Ascend sells less than the maximum $4 million in
aggregate proceeds in the Financing, then such number of additional shares of Ascend capital stock shall be issued to holders
of the membership interests of Andover Games at the final closing of the Financing so as to increase their collective
pro-rata percentage ownership in Ascend by one percent (1%) for every $200,000 in proceeds that Ascend falls short of the $4
million maximum proceeds in the Financing. As such, if Ascend does not sell any additional shares of common stock in the
Financing, an additional 33,951,133 shares would be issued to the holders of the membership interests of Andover Games. The
effect of such an issuance would be to adjust the proforma earnings per share to ($0.01). The pro forma effects of the merger
recapitalization do not reflect any adjustments that could have resulted in the first 30 days post-closing due to the nature
of this contingency. Instead, they reflect the shares issued prior to closing from the Financing (4,000,000 shares) plus the
shares that would have been issued to Andover Games, representing 75% of the fully diluted capitalization of Ascend
immediately after the closing of the merger at December 31, 2011 (38,195,025 shares) for the Pro Forma Balance Sheet and the
beginning of the period presented (36,320,025 shares) for the Pro Forma Statement of Operations.
Income Taxes
The income tax benefit associated with any net operating loss carry
forwards has not been recorded in these pro forma statements as it cannot be determined on a more likely than not basis at this
time if they will be realized.
PF-
5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Ascend Acquisition Corp.
Date: March 6, 2012
/s/ Craig dos Santos
Chief Executive Officer