CORRESP 1 filename1.htm livc_corr-111909.htm

375 Water Street, Suite 645
Vancouver, BC, V6B5C6, Canada
Telephone (604) 453-4870

November 20, 2009

VIA EDGAR

Mr. Andrew Mew
Accounting Branch Chief
United States Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549

Re: 
Live Current Media Inc.
Amendment No. 1 to Registration Statement on Form S-1
Filing Date:  May 7, 2009
File No. 333-158951
Amendments Nos. 1 and 2 to Form 10-K for the Fiscal Year Ended December 31, 2008
Filing Date:  September 11, 2009 and October 26, 2009
Amendments Nos. 1 and 2 to Form 10-Q for the Fiscal Quarter Ended March 31, 2009
Filing Date:  September 17, 2009 and October 26, 2009
File No.:  0-29929
 

Dear Mr. Mew:

This letter is in response to your letter dated November 10, 2009.  In conjunction with this letter, we are also filing Amendment No. 1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 (the “June 2009 10-Q Amendment”).

For your ease of reference, we have included your comments below.

Amendment No. 2 to Form 10-K for the Fiscal Year Ended December 31, 2008

Consolidated Statements of Operations, page F-4

1.           We note your responses to comments 2-4 of our letter dated October 7, 2009.  We note you revised your Form 10-K for the year ended December 31, 2008, and your Form 10-Q for the period ended March 31, 2009 for the issues raised in comments 2-4.  We continue to believe that you should amend your June 30, 2009 Form 10-Q to address the issues raised in our prior comments.

As noted above, we have filed the June 2009 10-Q Amendment, as you requested.

2.           We note your revisions within Amendments no 2 to Form 10-Q and Form 10-K for the periodic periods ended March 31, 2009 and December 31, 2008, respectively, regarding the reclassifications of the Global Cricket Venture expenses within the appropriate expense categories in your statements of operations.  However, we are unable to reconcile the “As previously reported” column amounts in these amended reports to your previous filings.  Please advise or revise.

In comment number 4 of your letter dated October 26, 2009, you requested that we revise our statements of operations to include the Global Cricket Venture expenses within the expense categories in our statements of operations.  As a result, we reclassified the Global Cricket Venture expenses to Corporate General and Administrative expenses, Corporate Marketing expenses, and Management Fees and Employee Salaries expenses in our Amendments No. 2 to Form 10-K and Form 10-Q for the three month period ended March 31, 2009.  The disclosures in Note 2 to our financial statements also were updated to reflect the reclassified totals.  Please see the reconciliations below.
 
 
Mr. Andrew Mew
Accounting Branch Chief
United States Securities and Exchange Commission
November 20, 2009
Page 2

 
December 31, 2008

We reclassified $1,476,255 of Global Cricket Venture expenses to separate operating expense categories.  The table below demonstrates the reclassification and the change between the “As Previously Reported” column amounts in Note 2 to our consolidated financial statements in our Amendment No. 1 to our Form 10-K and the “As Previously Reported” column amounts in our Amendment No. 2 to our Form 10-K.
 
For the year ended December 31, 2008
  
Per Amendment
No. 1
"As Previously Reported"
    
Global Cricket Venture
Reclassification
    
Per Amendment
No. 2
"As Previously Reported"
  
                   
OPERATING EXPENSES
                  
Amortization and depreciation
     253,141       -       253,141  
Amortization of website development costs
     58,640       -       58,640  
Corporate general and administrative
     2,537,422       397,133       2,934,555  
ECommerce general and administrative
     567,980       -       567,980  
Management fees and employee salaries
     4,746,255       973,679       5,719,934  
Corporate marketing
     42,399       105,443       147,842  
ECommerce marketing
     766,393       -       766,393  
Other expenses
     708,804       -       708,804  
Total Operating Expenses
     9,681,034       1,476,255       11,157,289  
                         
NON-OPERATING INCOME (EXPENSES)
                        
Global Cricket Venture expenses
     (2,476,255 )     1,476,255       (1,000,000 )
Gain from sales and sales-type lease of domain names
     498,829       -       498,829  
Accretion interest expense
     (96,700 )     -       (96,700 )
Interest and investment income
     67,683       -       67,683  
Total Non-Operating Income (Expenses)
     (2,006,443 )     1,476,255       (530,188 )
                         
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD
   $ (10,006,456 )   $ -     $ (10,006,456 )
 
 
Mr. Andrew Mew
Accounting Branch Chief
United States Securities and Exchange Commission
November 20, 2009
Page 3

 
March 31, 2009

We reclassified $227,255 of Global Cricket Venture expenses to separate operating expense categories.  The table below demonstrates the reclassification and the change between the “As Previously Reported” column amounts in Note 2 to our consolidated financial statements in our Amendment No. 1 to our Form 10-Q and the “As Previously Reported” column amounts in our Amendment No. 2 to our Form 10-Q.
 
For the three months ended March 31, 2009
  
Per Amendment
No. 1
"As Previously Reported"
    
Global Cricket Venture
Reclassification
    
Per Amendment
No. 2
"As Previously Reported"
  
                   
OPERATING EXPENSES
                  
Amortization and depreciation
     98,166       -       98,166  
Amortization of website development costs
     32,562       -       32,562  
Corporate general and administrative
     118,210       40,064       158,274  
ECommerce general and administrative
     80,220       -       80,220  
Management fees and employee salaries
     774,972       185,874       960,846  
Corporate marketing
     2,454       1,317       3,771  
ECommerce marketing
     111,422       -       111,422  
Other expenses
     346,564       -       346,564  
Total Operating Expenses
     1,564,570       227,255       1,791,825  
                         
NON-OPERATING INCOME (EXPENSES)
                        
Global Cricket Venture expenses
     22,745       227,255       250,000  
Global Cricket Venture payments
     -       -       -  
Gain from sales and sales-type lease of domain names
     580,525       -       580,525  
Accretion interest expense
     (40,000 )     -       (40,000 )
Interest and investment income
     890       -       890  
Total Non-Operating Income (Expenses)
     564,160       227,255       791,415  
                         
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD
   $ (634,647 )   $ -     $ (634,647 )
 
 
 
Mr. Andrew Mew
Accounting Branch Chief
United States Securities and Exchange Commission
November 20, 2009
Page 4

 
June 30, 2009

In our consolidated financial statements included in the June 2009 10-Q Amendment, we have reclassified $155,968 of Global Cricket Venture expenses to separate operating expense categories for the three month period ended June 30, 2009.  The table below demonstrates the reclassification of these amounts included in the June 2009 10-Q Amendment for the three months ended June 30, 2009.
 
For the three months ended June 30, 2009
  
As Reported on
Form 10-Q
    
Global Cricket Venture
Reclassification
    
Per Amendment
No. 1
  
                   
OPERATING EXPENSES
                  
Amortization and depreciation
     98,246       -       98,246  
Amortization of website development costs
     33,507       -       33,507  
Corporate general and administrative
     215,472       (8,344 )     207,128  
ECommerce general and administrative
     73,668       -       73,668  
Management fees and employee salaries
     836,968       159,693       996,661  
Corporate marketing
     1,602       4,619       6,221  
ECommerce marketing
     114,965       -       114,965  
Total Operating Expenses
     1,374,428       155,968       1,530,396  
                         
NON-OPERATING INCOME (EXPENSES)
                        
Global Cricket Venture expenses
     (155,968 )     155,968       -  
Gain from sales and sales-type lease of domain names
     326,934       -       326,934  
Accretion interest expense
     (23,300 )     -       (23,300 )
Interest and investment income
     665       -       665  
Impairment of Auction Software
     (590,973 )     -       (590,973 )
Total Non-Operating Income (Expenses)
     (442,642 )     155,968       (286,674 )
                         
NET LOSS BEFORE TAXES
   $ (1,427,912 )   $ -     $ (1,427,912 )
 
 
 
Mr. Andrew Mew
Accounting Branch Chief
United States Securities and Exchange Commission
November 20, 2009
Page 5

 
Also in our consolidated financial statements included in the June 2009 10-Q Amendment, we have reclassified $383,223 of Global Cricket Venture expenses to separate operating expense categories for the six month period ended June 30, 2009.  The table below demonstrates the reclassification of these amounts included in the June 2009 10-Q Amendment for the six months ended June 30, 2009.
 
For the six months ended June 30, 2009
  
As Reported on
Form 10-Q
    
Global Cricket Venture
Reclassification
    
Per Amendment
No. 1
  
                   
OPERATING EXPENSES
                  
Amortization and depreciation
     196,412       -       196,412  
Amortization of website development costs
     66,069       -       66,069  
Corporate general and administrative
     501,658       31,824       533,482  
ECommerce general and administrative
     153,888       -       153,888  
Management fees and employee salaries
     1,844,689       345,567       2,190,256  
Corporate marketing
     4,161       5,832       9,993  
ECommerce marketing
     226,387       -       226,387  
Other expenses
     264,904       -       264,904  
Total Operating Expenses
     3,258,168       383,223       3,641,391  
                         
NON-OPERATING INCOME (EXPENSES)
                        
Global Cricket Venture expenses
     (383,223 )     383,223       -  
Global Cricket Venture payments
     250,000       -       250,000  
Gain from sales and sales-type lease of domain names
     944,867       -       944,867  
Accretion interest expense
     (63,300 )     -       (63,300 )
Interest and investment income
     1,555       -       1,555  
Impairment of Auction Software
     (590,973 )     -       (590,973 )
Total Non-Operating Income (Expenses)
     158,926       383,223       542,149  
                         
NET LOSS BEFORE TAXES
   $ (2,344,321 )   $ -     $ (2,344,321 )

In making our responses we acknowledge that:

·  
the Company is responsible for the adequacy and accuracy of the disclosure in the filings;

·  
staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and

·  
the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

We hope that we have adequately addressed your comments.  If you have further comments, we ask that you forward them by facsimile to Mary Ann Sapone, Esq. of Richardson & Patel LLP at (310) 208-1154.  Ms. Sapone’s direct telephone number is (707) 937-2059.

We look forward to hearing from you shortly.
 
Very truly yours,
 
LIVECURRENT MEDIA INC.
 
By: /s/ C. Geoffrey Hampson      
C. Geoffrey Hampson, Chief Financial Officer

cc:  Robert Babula