The company’s own 10 report is quite another.

Have you read what management has to say in the notes to the 10K?

Apparently paying virtually everyone, lawyers as well as landlords in shares instead of cash?

10K quote:

Subsequent to fiscal 2009, Modavox completed the following transactions:

1)
Modavox issued 1,499,691 shares for cash.
2)
Modavox issued 254,799 shares for services.
3)
Modavox issued 169,362 shares to former employees under cashless exercise of options.
4)
Modavox issued 948,572 warrants for services and to investors.

Liquidity and Capital Resources

Cash generated from revenues exceeded our cash based operating expenses. During fiscal 2009, we raised $1,672,353 of capital through the issuance of unregistered shares of common stock.

As of February 28, 2009, we had cash balances of $374,696 and working capital deficit of $1,302,471. We do not believe that this liquidity is adequate to fund our current operations without supplemental funds from sales of our equity.

In conjunction with several of my colleagues, I believe that Modavox is about to prevail across the board vs. Tacoda/AOL.

The legal team advocating on behalf of Modavox has been brilliant. Point by point they have hammered their viewpoint home in a quite persuasive way.

It helps that they have the facts in their favor of course.

If this were a heavyweight fight it would have been stopped by now.

The collective opinion is solidifying around a total victory on all counts for Modavox.

As a side not, this morning I note that a cease and desist or has been issued to Yahoo/Blue Lithium in relation to the same issue raised with Tacoda/AOL.

If I were sitting in the board room of mother company Time/Warner this morning, I would be quite alarmed.

Hats off to the executives at Modavox for their text book handling of a complex issue and a double tip of the hat to their legal team. Yahoo/Blue Litium better put their helmets on.