Glenn & Glenn
124 Main Street
Suite 8
New Paltz NY 12561
October 6, 2010
David L. Orlic
Special Counsel
Office of Mergers and Acquisitions
Securities and Exchange Commission
Washington DC 20549
Re: Live Current Media Inc.
Definitive Additional Materials
Filed on October 1, 2010 by David Jeffs, et. al.
File No. 000-29929.
Dear Mr. Orlic:
By telephone today, you asked for support for the statements of Mr. Jeffs that:
· | [Live Current Media Inc.] was named one of the top 20 fastest-growing companies in Canada in 2006 and 2007; and |
· | [Mr. Melville] served less than 20 months of his five-year contract before being hired out to work on a third party venture unrelated to LIVC in August of 2009, effectively ending his commitment to the company and leaving the company without management |
With respect to the first point, I enclose Profit magazine’s 2006 and 2007 lists of fastest-growing companies downloaded from its web site.
Regarding the second comment, I refer you to the following information from the last paragraph on page 2 of the company’s Current Report on Form 8-K filed August 31, 2009:
In order to facilitate the transfer of the Website, DHI has agreed to provide Mauritius with support services for a period of no more than 6 months (the “Transition Period”). In exchange for the support services, Mauritius has agreed to the payment of certain expenses related to the support services including (i) direct costs incurred by DHI for maintaining the Website, (ii) rent and overhead costs in the amount of $2,500 per month, (iii) employee related costs, and (iv) severance costs (not to exceed $60,000) related to the termination of employees whose employment will be terminated as a result of the transfer of the Website, as described below. In addition, Mauritius has agreed that, prior to the expiration of the Transition Period, it will either enter into an employment agreement with Mark Melville, our President and Chief Corporate Development Officer, or pay any severance costs related to his termination without cause (with the exception of special bonus payments), in accordance with the terms of his employment agreement with the Company.
In addition, the following language appears in Exhibit 10.2 to that same Form 8-K:
10. Expenses Related to Support Services. In addition to the Purchase Price, from and after the Closing Date Purchaser will pay to Vendor all reasonable costs and expenses (the "Expenses") associated with providing the Support Services for the Cricket Website. The expenses include, but are not limited to, the following: (i) the direct costs incurred by Vendor for the maintenance of the Cricket Website (e.g. hosting and other technology fees, payment for data powering the live scoring feed, e-mail or other marketing activities, contracting design activities) as agreed by both parties, (ii) an allocation for rent and other overhead incurred by Vendor in the amount of $2,500 per month, (iii) the costs (such as the salaries, bonuses, benefits, employment-related taxes; and reasonable business expenses) for the following employees of Vendor: Mark Melville and Brian Collins (the “Consultants”), and (iv) Vendor's severance costs for the remaining members of the team currently working on the Cricket Website, except that Purchaser's liability such severance shall not exceed the total sum or $60,000. During the Transition Period, so long as the Consultants continue to be employed by Vendor, the Consultants will provide Support Services to Purchaser for as long as Purchaser chooses, provided, however, that the basic duties and responsibilities of the Consultants as they relate to providing Support Services for the Cricket Website will not be materially changed without their consent and provided that Purchaser will give Vendor fifteen (15) days written notice in the event Purchaser desires not to continue receiving Support Services from a Consultant. Purchaser will be solely responsible for the payment of the salaries, bonuses, benefits, employment-related taxes and reasonable business expenses of the Consultants providing Support Services to Purchaser. Vendor will invoke Purchaser on a monthly basis for the Expenses and all Expenses must be paid via wire transfer within ten (10) calendar days of the invoice date.
11. Employment of Melville. It is the intent of Purchaser up enter into an employment contract directly with Mark Melville on or before the end of the Transition Period. In the event that Purchaser does not enter into an employment contract with Mr. Melville on or before the end of the Transition Period Purchaser will be responsible for the severance costs ("Severance Costs") associated with the termination without cause of Mr. Melville and will honour the terms of his existing employment contract with Vendor's parent company, Live Current Media Inc., in that regard. Such Severance Costs shall be due no later than 10 days after the end of the Transition Period. Notwithstanding this paragraph, Purchaser shall have no liability for the special bonuses to Mr. Melville under his existing employment contract.
We believe that the foregoing clearly indicates that Mr. Mellville’s focus after June 2009 was on the “Cricket Website,” which was separate and apart from the company. The purchaser of that website agreed to pay all of Mr. Mellville’s compensation after the conveyance of it. This could only be because he was devoting all his time to the website, which was unrelated to the company after its conveyance.
He finally left the company in July 2010. The following is from the report on Form 8-K filed by the company on July 29, 2010:
On July 27, 2010, Mark Melville resigned as our President and Chief Corporate Development Officer. We reported on June 18, 2010 that Mr. Melville would continue to act in these capacities through September 30, 2010. Instead, with the appointment of Paul W. Morrison as our President and Chief Operating Officer as described herein, Mr. Melville will provide consulting services to us through September 30, 2010 to assist with the management transition.
Please feel free to call me at 845.256.8031 should you have any further questions.
Glenn & Glenn LLP
/s/ D. Roger Glenn
![](https://capedge.com/proxy/CORRESP/0001144204-10-052732/g1.jpg)
Canada's Fastest-Growing Companies
Exports | ||||||||||||||
Revenue | Revenue | Growth | Profit | Emp. | Emp. | as % of | ||||||||
Rank | Company | Ticker | $ | 2001 | 2006 | (%) | Margin | 2001 | 2006 | Sales | ||||
1 | Rentcash Inc. | RCS | CAD | 456,121 | 154,168,953 | 33,700 | 0-10% | 11 | 1,521 | 0 | ||||
2 | Digital Oilfield Inc. | CAD | 134,747 | 11,934,402 | 8,757 | >10% | 19 | 77 | 60.00 | |||||
3 | Rutter Inc. | RUT | CAD | 904,504 | 74,297,000 | 8,114 | LOSS | 4 | 485 | 81.00 | ||||
4 | Digital Rapids Corp. | CAD | 208,915 | 14,773,864 | 6,972 | >10% | 5 | 48 | 90.00 | |||||
5 | BTI Photonic Systems Inc. | CAD | 219,585 | 12,532,378 | 5,607 | LOSS | 29 | 69 | 95.00 | |||||
6 | Savanna Energy Services Corp. | SVY | CAD | 5,202,763 | 247,082,000 | 4,649 | >10% | 100 | 1,810 | 5.00 | ||||
7 | Solium Capital Inc. | SUM | CAD | 195,987 | 8,695,784 | 4,337 | >10% | 10 | 62 | 97.00 | ||||
8 | Optimal Geomatics Inc. | OPG | CAD | 399,784 | 16,489,960 | 4,025 | LOSS | 18 | 110 | 99.00 | ||||
9 | PEER 1 Network Enterprises | PIX | USD | 1,475,422 | 60,726,000 | 4,016 | LOSS | 21 | 277 | 80.00 | ||||
Inc. | ||||||||||||||
10 | Knor Plast Inc. | CAD | 161,637 | 6,568,645 | 3,964 | 0-10% | 2 | 47 | 80.00 | |||||
11 | Canada Web Hosting | CAD | 102,739 | 4,037,965 | 3,830 | LOSS | 5 | 67 | 20.00 | |||||
12 | I Love Rewards Inc. | CAD | 143,670 | 5,422,949 | 3,675 | 0-10% | 7 | 44 | 10.00 | |||||
13 | Geotech Ltd. | CAD | 709,437 | 23,385,517 | 3,196 | >10% | 7 | 81 | 30.00 | |||||
14 | Brahma Compression Ltd. | CAD | 1,086,922 | 35,070,704 | 3,127 | >10% | 21 | 106 | 0 | |||||
15 | Rapid Technology Corp. | RPD | CAD | 114,588 | 3,689,537 | 3,120 | >10% | 12 | 65 | 5.00 | ||||
16 | Kaboose Inc. | KAB | CAD | 649,445 | 20,574,000 | 3,068 | LOSS | 8 | 155 | 99.00 | ||||
17 | Communicate.com Inc. | CMNN | USD | 276,434 | 8,434,468 | 2,951 | 0-10% | 4 | 11 | 99.00 | ||||
18 | Coastalcontacts.com | COA | CAD | 2,699,501 | 81,013,951 | 2,901 | LOSS | 8 | 164 | 98.00 | ||||
19 | Disc Go Technologies Inc. | CAD | 108,031 | 3,221,505 | 2,882 | LOSS | 6 | 23 | 95.00 | |||||
20 | QuestAir Technologies Inc. | QAR | CAD | 276,537 | 7,558,093 | 2,633 | LOSS | 90 | 86 | 95.00 | ||||
21 | CityXpress Corp. | USD | 195,453 | 5,190,632 | 2,556 | LOSS | 23 | 52 | 90.00 | |||||
22 | Workbrain Corp. | WB | USD | 3,738,000 | 96,509,000 | 2,482 | LOSS | 44 | 640 | 97.00 | ||||
23 | Pareto Corp. | PTO | CAD | 1,988,067 | 51,080,008 | 2,469 | 0-10% | 24 | 508 | 4.00 | ||||
24 | N-Able Technologies Inc. | CAD | 567,946 | 14,259,152 | 2,411 | LOSS | 16 | 129 | 85.00 | |||||
25 | Arthur's Fresh Company Ltd. | CAD | 219,312 | 5,479,263 | 2,398 | 0-10% | 9 | 11 | 0 | |||||
26 | iVedha Inc. | CAD | 233,397 | 5,475,306 | 2,246 | 0-10% | 6 | 59 | 30.00 | |||||
27 | WebTech Wireless Inc. | WEW | CAD | 697,266 | 16,344,000 | 2,244 | 0-10% | 7 | 121 | 89.00 | ||||
28 | The Skor Food Group Inc. | SKF | CAD | 6,578,455 | 153,385,395 | 2,232 | 0-10% | 20 | 350 | 1.00 | ||||
29 | Poptech Ltd. | CAD | 139,368 | 2,875,174 | 1,963 | LOSS | 6 | 26 | 50.00 | |||||
30 | Armament Technology Inc. | CAD | 445,497 | 9,127,326 | 1,949 | 0-10% | 2 | 4 | 30.00 | |||||
31 | Magnetsigns Advertising Inc. | CAD | 212,378 | 4,257,048 | 1,904 | >10% | 2 | 10 | 14.00 | |||||
32 | Radialpoint Inc. | CAD | 1,022,286 | 20,430,387 | 1,899 | 0-10% | 157 | 134 | 75.00 | |||||
33 | Grey Island Systems | GIS | CAD | 639,697 | 11,848,243 | 1,752 | LOSS | 12 | 55 | 60.00 | ||||
International Inc. | ||||||||||||||
34 | Carmanah Technologies Corp. | CMH | CAD | 3,374,394 | 62,445,860 | 1,751 | 0-10% | 33 | 250 | 70.00 | ||||
35 | Latitude Geographics Group Ltd. | CAD | 178,753 | 3,044,204 | 1,603 | 0-10% | 6 | 28 | 80.00 | |||||
36 | GDG Informatique et Gestion | CAD | 684,064 | 11,574,927 | 1,592 | 0-10% | 10 | 155 | 0 | |||||
inc. | ||||||||||||||
37 | The Fulmer Development Corp. | CAD | 2,258,197 | 38,038,689 | 1,584 | LOSS | 65 | 1,004 | 0 | |||||
38 | VRX Studios Inc. | VRW | CAD | 309,486 | 5,167,452 | 1,570 | LOSS | 27 | 120 | 90.00 | ||||
39 | Optrics Engineering | CAD | 271,298 | 4,397,788 | 1,521 | >10% | 2 | 12 | 66.00 | |||||
40 | Vanguard Global Services Inc. | CAD | 968,792 | 15,105,300 | 1,459 | 0-10% | 8 | 24 | 85.00 | |||||
41 | CCS Income Trust | CCR.UN CAD | 110,961,000 1,673,819,000 | 1,408 | 0-10% | 300 | 2,900 | 0 | ||||||
42 | AirIQ Inc. | IQ | CAD | 2,741,467 | 40,455,897 | 1,376 | LOSS | 69 | 121 | 95.00 | ||||
43 | Itergy International Inc. | CAD | 248,167 | 3,538,793 | 1,326 | 0-10% | 2 | 38 | 10.00 | |||||
44 | Virtual Causeway | CAD | 169,179 | 2,364,615 | 1,298 | 0-10% | 5 | 31 | 73.00 | |||||
45 | Dynamic Source Manufacturing | CAD | 680,498 | 9,425,359 | 1,285 | 0-10% | 31 | 203 | 6.00 | |||||
Inc. | ||||||||||||||
46 | Henderson Builders Ltd. | CAD | 797,361 | 11,012,261 | 1,281 | 0-10% | 7 | 22 | 0 | |||||
47 | PQA (Professional Quality | CAD | 220,772 | 2,963,215 | 1,242 | >10% | 3 | 77 | 26.00 | |||||
Assurance Ltd.) | ||||||||||||||
48 | Procom Québec Inc. | CAD | 1,137,069 | 14,449,904 | 1,171 | 0-10% | 11 | 132 | 0 | |||||
49 | MediaWave Communications | CAD | 174,498 | 2,207,278 | 1,165 | 0-10% | 5 | 5 | 90.00 | |||||
Corp. | ||||||||||||||
50 | Big Eagle Services | CAD | 9,373,563 | 118,429,000 | 1,163 | 0-10% | 60 | 785 | 0 |
![]() | The 18th annual PROFIT 100 ranking of Canada’s Fastest-Growing Companies |
Canada's Fastest-Growing Companies
Exports | ||||||||||||||
Revenue | Revenue | Growth | Profit | Emp. | Emp. | as % of | ||||||||
Rank | Company | Ticker | $ | 2000 | 2005 | (%) | Margin | 2000 | 2005 | Sales | ||||
1 | Rutter Inc. | RUT | CAD | 223,800 | 70,939,704 | 31,598 | LOSS | 2 | 424 | 60.00 | ||||
2 | Workbrain Corp. | WB | USD | 383,000 | 88,742,000 | 23,070 | 0-10% | 44 | 674 | 97.00 | ||||
3 | Fruit d'Or Inc. | CAD | 100,508 | 19,700,696 | 19,501 | 0-10% | 2 | 96 | 76.00 | |||||
4 | Peer 1 Network Enterprises Inc. | PIX | CAD | 232,062 | 24,113,000 | 10,291 | LOSS | 13 | 230 | 75.00 | ||||
5 | Imaging Dynamics Co. Ltd. | IDL | CAD | 282,780 | 28,878,669 | 10,112 | 0-10% | 11 | 80 | 97.00 | ||||
6 | Selectcor (1382285 Ontario Ltd.) | CAD | 259,491 | 24,388,295 | 9,299 | 0-10% | 3 | 8 | 0 | |||||
7 | FundTrade Financial Corp. | CAD | 518,300 | 32,809,701 | 6,230 | 0-10% | 26 | 310 | 0 | |||||
8 | ASP Inc. | CAD | 131,243 | 7,876,610 | 5,902 | 0-10% | 30 | 360 | 0 | |||||
9 | Angiotech Pharmaceuticals Inc. | ANP | USD | 3,336,000 | 199,648,000 | 5,885 | LOSS | 48 | 207 | 95.00 | ||||
10 | Vanguard Global Services Inc. | CAD | 212,894 | 12,506,377 | 5,774 | LOSS | 2 | 16 | 89.00 | |||||
11 | Robeez Footwear Ltd. | CAD | 602,639 | 28,514,549 | 4,632 | 0-10% | 40 | 586 | 75.00 | |||||
12 | Netfirms Inc. | CAD | 135,724 | 5,883,775 | 4,235 | >10% | 6 | 35 | 80.00 | |||||
13 | Electrovaya Corp. | EFL | USD | 152,309 | 6,540,000 | 4,194 | LOSS | 30 | 100 | 90.00 | ||||
14 | LOREX Technology Inc. | LOX | USD | 1,189,650 | 42,966,785 | 3,512 | 0-10% | 13 | 58 | 87.00 | ||||
15 | Atrium Biotechnologies Inc. | ATB.SV USD | 5,602,872 | 200,863,000 | 3,485 | 0-10% | 25 | 489 | 91.00 | |||||
16 | GDG Informatique et Gestion | CAD | 283,350 | 9,280,415 | 3,175 | 0-10% | 3 | 120 | 0 | |||||
Inc. | ||||||||||||||
17 | AirIQ Inc. | IQ | CAD | 1,257,958 | 40,048,499 | 3,084 | LOSS | 60 | 147 | 98.00 | ||||
18 | Communicate.com Inc. | CMNN | USD | 181,941 | 5,768,063 | 3,070 | 0-10% | 3 | 25 | 99.00 | ||||
19 | CityXpress Corp. | CYXP | USD | 133,120 | 4,190,444 | 3,048 | LOSS | 30 | 60 | 90.00 | ||||
20 | Response Biomedical Corp. | RBM | CAD | 112,125 | 3,489,680 | 3,012 | LOSS | 30 | 88 | 95.00 | ||||
21 | Brahma Compression Ltd. | CAD | 849,215 | 24,415,756 | 2,775 | >10% | 4 | 92 | 0 | |||||
22 | Guest-Tek Interactive | GTK | CAD | 1,535,697 | 41,808,964 | 2,622 | LOSS | 50 | 375 | 95.00 | ||||
Entertainment Ltd. | ||||||||||||||
23 | Grey Island Systems | GIS | CAD | 282,289 | 7,570,486 | 2,582 | LOSS | 6 | 48 | 36.00 | ||||
International Inc. | ||||||||||||||
24 | 1-800-GOT-JUNK? (RBDS Inc.) | CAD | 594,249 | 15,918,852 | 2,579 | 0-10% | 25 | 133 | 80.00 | |||||
25 | Pethealth Inc. | PTZ | CAD | 542,710 | 14,430,186 | 2,559 | LOSS | 23 | 94 | 85.00 | ||||
26 | QuestAir Technologies Inc. | QAR | CAD | 236,735 | 6,292,309 | 2,558 | LOSS | 100 | 71 | 98.00 | ||||
27 | MaxSys Staffing & Consulting | CAD | 453,430 | 12,034,511 | 2,554 | 0-10% | 6 | 603 | 5.00 | |||||
28 | Whitefish Group Holdings Ltd. | CAD | 504,352 | 11,664,074 | 2,213 | >10% | 16 | 72 | 0 | |||||
29 | Novipro Inc. | CAD | 1,898,355 | 42,349,014 | 2,131 | 0-10% | 23 | 35 | 0 | |||||
30 | Mercurial Communications Inc. | CAD | 427,306 | 9,192,270 | 2,051 | >10% | 31 | 115 | 60.00 | |||||
31 | Frantic Films Corp. | CAD | 430,815 | 9,199,674 | 2,035 | 0-10% | 8 | 80 | 50.00 | |||||
32 | Digital Payment Technologies | CAD | 312,212 | 6,553,005 | 1,999 | LOSS | 7 | 34 | 80.00 | |||||
Corp. | ||||||||||||||
33 | i3DVR International Inc. | CAD | 960,794 | 19,056,782 | 1,883 | 0-10% | 7 | 112 | 55.00 | |||||
34 | Latitude Geographics Group Ltd. | CAD | 105,388 | 2,060,461 | 1,855 | >10% | 3 | 24 | 80.00 | |||||
35 | Quick Service Software Inc. | CAD | 158,250 | 3,093,052 | 1,855 | >10% | 3 | 17 | 20.00 | |||||
36 | National Waste Services Inc. | CAD | 814,809 | 15,589,041 | 1,813 | LOSS | 8 | 139 | 0 | |||||
37 | Carmanah Technologies Corp. | CMH | CAD | 2,240,897 | 38,729,885 | 1,628 | 0-10% | 15 | 235 | 70.00 | ||||
38 | Price Mattress Inc. | CAD | 1,278,004 | 21,578,212 | 1,588 | 0-10% | 8 | 58 | 70.00 | |||||
39 | Protus IP Solutions | CAD | 1,286,316 | 20,705,263 | 1,510 | 0-10% | 41 | 100 | 90.00 | |||||
40 | Hostopia.com Inc. | USD | 1,204,206 | 17,956,907 | 1,391 | 0-10% | 57 | 171 | 54.00 | |||||
41 | CV Technologies Inc. | CVQ | CAD | 2,140,036 | 31,850,112 | 1,388 | >10% | 22 | 37 | 1.00 | ||||
42 | Premiere Executive Suites Inc. | CAD | 676,447 | 9,892,695 | 1,362 | 0-10% | 5 | 85 | 0 | |||||
43 | Display Transportation (L.M. | CAD | 573,833 | 8,370,273 | 1,359 | 0-10% | 5 | 50 | 50.00 | |||||
Transport Inc.) | ||||||||||||||
44 | Optrics Engineering (Optrics Inc.) | CAD | 239,648 | 3,414,039 | 1,325 | 0-10% | 2 | 9 | 65.00 | |||||
45 | Oceanwide Inc. | CAD | 912,039 | 12,390,767 | 1,259 | 0-10% | 60 | 145 | 90.00 | |||||
46 | VoiceGenie Technologies Inc. | CAD | 1,552,841 | 20,643,812 | 1,229 | LOSS | 25 | 87 | 95.00 | |||||
47 | Extreme CCTV Inc. | EXC | CAD | 1,820,989 | 23,903,000 | 1,213 | 0-10% | 31 | 104 | 95.00 | ||||
48 | C-Com Satellite Systems Inc. | CMI | CAD | 472,097 | 6,001,802 | 1,171 | 0-10% | 2 | 24 | 80.00 | ||||
49 | Millennium Research Group Inc. | CAD | 918,144 | 11,578,341 | 1,161 | 0-10% | 6 | 74 | 95.00 | |||||
50 | Optimal Geomatics Inc. | OPG | CAD | 805,624 | 10,039,577 | 1,146 | >10% | 41 | 46 | 100.00 |