Local (LOCMQ) 8-K Regulation FD Disclosure

Exhibit 99.1

Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE UNITED STATES TRUSTEE

CENTRAL DISTRICT OF CALIFORNIA

In Re:	CHAPTER 11 (BUSINESS)
Local Corporation,	Case Number:	8:15-bk-13153 SC
dba Local.Com Corporation,	Operating Report Number:	#5
Debtor(s).	For the Month Ending:	10/31/2015

I. CASH RECEIPTS AND DISBURSEMENTS

A. (GENERAL ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		7,256,526.36
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		3,852,082.41
3. BEGINNING BALANCE:		3,404,443.95
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable - Post-filing
Accounts Receivable - Pre-filing	1,965,974.75
General Sales
Other (Specify)
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:		1,965,974.75
5. BALANCE:		5,370,418.70
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)	0.00
Disbursements (from page 2)	3,007,853.36
TOTAL DISBURSEMENTS THIS PERIOD:***		3,007,853.36
7. ENDING BALANCE:		2,362,565.34
8. General Account Number(s):	XXXXX1477
Depository Name & Location:	Wells Fargo

* All receipts must be deposited into the general account.

* Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

*** This amount should be the same as the total from page 2.

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

GENERAL ACCOUNT

BANK RECONCILIATION

	Bank statement Date:		8/31/2015	Balance on Statement:		$	2,362,565.34
Plus deposits in transit (a):		Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT							0.00
Less Outstanding Checks (a):
	Check Number	Check Date		Check Amount
					��
TOTAL OUTSTANDING CHECKS:							0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:						$	2,362,565.34

* It is acceptable to replace this form with a similar form

** Please attach a detailed explanation of any bank statement adjustment

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

1. CASH RECEIPTS AND DISBURSEMENTS

C. (Merchant Account)

1. TOTAL RECEIPTS PER ALL PRIOR MERCHANT ACCOUNT REPORTS		2,792,028.01
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR Merchant ACCOUNT REPORTS		2,792,028.01
3. BEGINNING BALANCE:		—
4. RECEIPTS DURING CURRENT PERIOD: (Transferred from General Account)		1,887,429.52
5. BALANCE:		1,887,429.52
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:***		1,887,429.52
7. ENDING BALANCE:		0.00
8. Merchant Account Number(s):	XXX0049
Depository Name & Location:	Square 1 Merchant Account

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:

(Provide a copy of monthly account statements for each of the below)

		General Account:	$	2,362,565.34
		Payroll Account:
		Tax Account:
*Other Accounts:		Merchant Account:		0.00
*Other Monies:
		**Petty Cash (from below):		0.00
TOTAL CASH AVAILABLE:					$	2,362,565.34
Petty Cash Transactions: Date	Purpose		Amount
TOTAL PETTY CASH TRANSACTIONS:						0.00

* Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#

** Attach Exhibit Itemizing all petty cash transactions

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS

AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, Etc.	Frequency of Payments (Mo/Qtr)	Amount of Payment	Post-Petition payments not made (Number)	Total Due
TOTAL DUE:					0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:
Total Wages Paid:	329,738.33

	Total Post-Petition Amounts Owing		Amount Delinquent		Date Delinquent Amount Due
Federal Withholding		66,201.23
State Withholding		41,482.26
FICA- Employer’s Share		13,995.54
FICA- Employee’s Share		13,995.54
Federal Unemployment
Sales and Use
Real Property
Other:
TOTAL:		135,674.57		0.00

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	* Accounts Payable		Accounts Receivable
	Post-Petition		Pre-Petition		Post-Petition
30 days or less		2,569,064.13				2,495,250.78
31 - 60 days						198,482.71
61 - 90 days				1,079,122.89
91 - 120 days				906,247.04
Over 120 days				4,421,655.12
TOTAL:		2,569,064.13		6,407,025.05		2,693,733.49

V. INSURANCE COVERAGE

	Name of Carrier	Amount of Coverage		Policy Expiration Date		Premium Paid Through (Date)
General Liability	Hartford		3,000,000.00		10/18/2016		Full Paid
Worker’s Compensation	One Beacon		1,000,000.00		4/10/2016		Full Paid
Casualty	Hartford		5,764,000.00		10/18/2016		Full Paid
Vehicle	Hartford		1,000,000.00		10/18/2016		Full Paid
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES

(TOTAL PAYMENTS)

Quarterly Period Ending (Date)	Total Disbursements		Quarterly Fees		Date Paid		Amount Paid		Quarterly Fees Still Owing
30-Jun-2015		256,888.91		1,950.00		1-Aug-2015		1,950.00		0.00
30-Sep-2015		7,006,848		12,675.00		30-Oct-2015		12,675.00		0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
				14,625.00				14,625.00		0.00

* Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation		* Authorized Gross Compensation		Gross Compensation Paid During the Month
Ken Cragun		7/6/2015		31,748.00		31,748.00
Scott Reinke		7/6/2015		30,806.73		30,806.73
Fred Thiel		7/6/2015		49,928.07		49,928.07

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Name of Insider Date of Order
Authorizing
Compensation Description Amount Paid
During the Month

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

IX PROFIT AND LOSS STATEMENT

(ACCRUAL BASIS ONLY)

	Current Month			Cumulative Post-Petition
Sales/Revenue:
Gross Sales/Revenue		2,745,083			12,389,787
Less: Returns/Discounts
Net Sales/Revenue		2,745,083			12,389,787
Cost of Goods Sold:
Beginning Inventory at cost
TAC		2,224,717			10,072,158
Less: Ending Inventory at cost
Cost of Goods Sold (COGS)		2,224,717			10,072,158
Gross Profit		520,366			2,317,629
Other Operating Income (Itemize)
Operating Expenses:
Payroll - Insiders		88,667			374,820
Payroll - Other Employees		444,797			1,881,431
Payroll Taxes		40,810			172,603
Benefits		62,353			259,492
Connectivity & Content		113,228			480,368
Credit Card Fees		15,000			61,633
Other Taxes (Itemize)					0
Depreciation and Amortization		343,195			1,442,651
Rent Expense - Real Property		26,761			107,044
Lease Expense - Personal Property		2,300			22,267
Insurance		6,403			27,409
Real Property Taxes					0
Telephone, Utilities, Office Expense		56,610			230,687
Repairs and Maintenance		9,010			37,300
Travel and Entertainment (Itemize)		0			0
Consulting		13,000			56,200
Advertising and Marketing		32,750			138,525
Miscellaneous Operating Expenses (Itemize)		0.00			0
Total Operating Expenses		1,254,884			5,292,429
Net Gain/(Loss) from Operations		(734,518	)		(2,974,801	)
Non-Operating Income:
Interest Income		0			0
Net Gain on Sale of Assets (Itemize)		0			0
Other (Itemize)		0			0
Total Non-Operating income		0			0
Non-Operating Expenses:
Interest Expense
Legal and Professional (Itemize)		95,000			398,580
Stock Compensation		45,096			135,288
Other (Itemize)
Total Non-Operating Expenses		140,096			533,868
NET INCOME/(LOSS)		(874,614	)		(3,508,668	)

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

X BALANCE SHEET

(ACCRUAL BASIS ONLY)

	Current Month End
ASSETS
Current Assets:
Unrestricted Cash		2,362,565.34
Restricted Cash		0.00
Accounts Receivable		9,100,758.54
Inventory		0.00
Notes Receivable		0.00
Prepaid Expenses		824,833.00
Other (Itemize)
Total Current Assets				12,288,156.88
Property, Plant, and Equipment		21,135,233.00
Accumulated Depreciation/Depletion		(20,615,410.00	)
Net Property, Plant, and Equipment				519,823.00
Other Assets (Net of Amortization):
Due from Insiders		0.00
Goodwill		19,280,579.00
Intangible Assets		1,606,137.00
Deposits		60,005.00
Other (Itemize)		0.00
Total Other Assets				20,946,721.00
TOTAL ASSETS				33,754,700.88
LIABILITIES
Post-petition Liabilities:
Accounts Payable		2,569,064.13
Taxes Payable		0.00
Notes Payable		0.00
Professional fees		0.00
Secured Debt		0.00
Other (Itemize)
Total Post-petition Liabilities				2,569,064.13
Pre-petition Liabilities:
Secured Liabilities		1,974,099.94
Priority Liabilities		184,952.00
Unsecured Liabilities		26,404,640.72
Deferred Revenue		112,462.00
Total Pre-petition Liabilities				28,676,154.66
TOTAL LIABILITIES				31,245,218.79
EQUITY:
Pre-petition Owners’ Equity		3,244,000
Post-petition Profit/(Loss)		(734,518.41	)
Direct Charges to Equity		0.00
TOTAL EQUITY				2,509,482.08
TOTAL LIABILITIES & EQUITY				33,754,700.87

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Case 8:15-bk-13153-SC Doc 243 Filed 11/20/15 Entered 11/20/15 10:13:36 Desc

XI QUESTIONAIRE

		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	x	¨
		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	x	¨
3.	State what progress was made during the reporting period toward filing a plan of reorganization Selected a stalking horse bidder candidate, working on an asset purchase agreement and drafting Section 363 bidding procedures.
4.	Describe potential future developments which may have a significant impact on the case: Future developments include the possible sale of assets through a Section 363 sales process.
5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	¨	`¨
I,	Kenneth S. Cragun, Chief Financial Officer, declare under penalty of perjury that I have fully read and understood the foregoing debtor-in- possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Nov 17, 2015	/s/ Kenneth S. Cragun
Date	Principal for debtor-in-possession

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