UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

R	Annual report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the fiscal year ended April 30, 2013
þ	Annual report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the fiscal year ended December 31, 2014
	Or
£	Transition report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the transition period from __________ to __________
o	Transition report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the transition period from __________ to__________

Commission File Number: 333-128614

CORNERWORLD CORPORATION

(Exact name of registrant as specified in its charter)


Nevada	98-0441869
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

13101 Preston Road Suite 510

Dallas, Texas 75240

(Address of principal executive offices)

(888) 837-3910

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $0.01 par value

(Title of class)

Indicate by check mark whether the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes £o No Rþ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes £o No Rþ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes Rþ No £o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes Rþ No £o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. £o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer £o Accelerated filer £o Non-accelerated filer £o Smaller reporting company Rþ

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act) Yes £o No Rþ

As of ~~October~~June 3130, ~~2012~~2014, the aggregate market value of the issued and outstanding common stock held by non-affiliates of the registrant, based upon the closing price of the common stock as quoted on the National Association of Securities Dealers Inc. OTC Bulletin Board of $0.0402 was approximately $63,~~292~~258,~~548~~742. For purposes of the above statement only, all directors, executive officers and 10% shareholders are assumed to be affiliates. This determination of affiliate status is not intended as a conclusive determination for any other purpose. As of ~~July~~June 30, ~~2013~~2014, there were ~~157~~162,~~313~~937,~~704~~110 shares of the registrant’s common stock outstanding.

INDEX

		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	2
Item 1B.	Unresolved Staff Comments	2
Item 2.	Properties	2
Item 3.	Legal Proceedings	2
Item 4.	Mine Safety Disclosures	2
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	32
Item 6.	Selected Financial Data	4
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	119
Item 8.	Financial Statements and Supplementary Data	119
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	1110
Item 9A.	Controls and Procedures	11
Item 9B.	Other Information	1312
PART III
Item 10.	Directors, Officers, and Corporate Governance	13
Item 11.	Executive Compensation	15
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	18
Item 13.	Certain Relationships and Related Transactions, and Director Independence	1918
Item 14.	Principal Accountant Fees and Services	2118
PART IV
Item 15	Exhibits and Financial Statement Schedules	2120
Signatures		26

PART I

ITEM 1. BUSINESS

Overview and Plan of Operation

Company History

CornerWorld Corporation (hereinafter referred to as “CornerWorld”, the “Company”, “we” “our” or “us”) was incorporated on November 9, 2004, in the State of Nevada. Effective May 2007, we changed our name to CornerWorld Corporation. Our principal executive offices are located at 13101 Preston Road, Suite 510, Dallas, Texas 75240. Our telephone number is (888) 837-3910 and our fiscal year-end is December 31 having recently been changed; prior to December 31, 2013, our fiscal year ended April 30.

The Company is a marketing and technology services company creating opportunities from the increased accessibility of content across mobile, ~~television~~ and internet platforms. Our key asset is the patented 611 Roaming ServiceTM from RANGER Wireless Solutions ®, which generates revenue by processing over 10 million calls from roaming wireless customers per year and seamlessly connecting them to their service provider. The Company conducts its business through its main operating subsidiaries as described below.

~~Our~~The ~~Enversa~~Company ~~subsidiary offers a full menu of services for brand and direct response customer acquisition campaigns, including media buying and planning for online and mobile media. It~~ provides ~~customer~~certain ~~relationship~~ marketing ~~and interactive~~ services, asthrough ~~well~~its asoperating ~~customer~~subsidiary ~~data~~Enversa ~~collection~~Companies ~~and~~LLC, ~~analysis tools used for planning and targeting client marketing efforts across~~ a ~~network~~Texas oflimited ~~partner,~~liability ~~representative~~company ~~and owned content sites~~(“Enversa”). Enversa ~~operates~~is ~~several~~a adtechnology-oriented ~~networks~~direct ~~and~~response ~~effectively enables media properties to compete against each other, empowering advertisers to extend their~~ marketing ~~budgets beyond typical marketplace levels through fair and free market competition~~company. Using its proprietary technology, Enversa identifies qualified leads for advertisers thereby connecting them with potential consumers. Enversa ~~also~~ utilizes a pay-for-performance pricing model which ~~insures~~is ~~that~~very appealing to clients because it ensures that they are billed solely for campaign performance. ~~Finally,~~Enversa also operates several ad networks. Enversa also provides search engine optimization services (“SEO”), domain leasing and website management services on a recurring monthly basis.

~~RANGER®~~The ~~Wireless,~~Company ~~LLC~~provides ~~(“Ranger”)~~telecommunications isservices athrough ~~shortcode~~its ~~application~~wholly-owned ~~service~~subsidiary, ~~provider~~Woodland toHoldings ~~the~~Corp. ~~wireless~~(“Woodland ~~industry~~Holdings”). Woodland ~~The~~Holdings ~~core~~was ~~service~~the ~~offered~~owner isof ~~611~~S ~~Roaming~~Squared, ~~Service™~~LLC, adoing ~~patented~~business ~~application~~in ~~providing~~the ~~seamless~~state ~~means~~of ~~for~~Texas ~~connecting~~as ~~wireless~~“Ranger ~~subscribers~~Wireless toLLC” ~~reach~~(“Ranger”). The ~~their~~Company ~~home~~sold ~~providers~~Ranger ~~customer service call center while roaming~~ on ~~another~~September ~~provider’s network. Calls are sent to RANGER® for treatment from over 40 wireless providers throughout North America. For the fiscal year ended April~~ 30, 2013~~, RANGER® processed approximately 10~~.2 See ~~million~~also ~~calls~~Recent ~~with~~Developments, anbelow, ~~infrastructure~~for ~~capable of handling millions~~ more. ~~RANGER® also manages an online portal which allows carriers access to their monthly statements and reporting on call volume to and from their company~~detail.

T²Woodland Holdings also provides telephony and internet services through its subsidiaries Phone Services and More, L.L.C., doing business as Visitatel (“PSM”) and T2 Communications, ~~LLC~~L.L.C. (“T²T2”). isAs a provider of Internet ~~Protocol Television (IPTV), Internet~~ and VoIP services., T²T2 delivers leading-edge technology to ~~residential~~business and ~~business~~residential customers in Michigan and Texas. Offerings include: phone lines, ~~Internet~~internet connections, long distance and toll-free services. T²T2 is a Competitive Local Exchange Carrier (CLEC). PSM, ~~that~~also ~~manages~~a ~~its~~CLEC, ~~own~~holds ~~Fiber~~an toFCC ~~the~~214 ~~Premise~~License ~~(FTTP)~~as ~~network with~~ a 10wholesale ~~gigabit~~long ~~backbone~~distance ~~and~~service upprovider to 1the ~~gigabit~~carrier ~~per~~community ~~second~~and ~~connections~~large tocommercial ~~end~~ users of transport minutes.

Phone Services and More, LLC (“PSM”) holds an FCC 214 License as a wholesale long distance service provider to the carrier community and large commercial users of transport minutes.

Recent Developments

As discussed further in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, ~~the~~during Company has certain notes payable to Emerald Crest Capital (the “Senior Lender”) which contain certain restrictive covenants, the failure to comply with which would result in the acceleration of all or part of the notes payable to the Senior Lender, depending on the particular covenant, creating a “Paydown Event.” Effective for the period ended April 30, 2013, the Company ~~was~~divested ~~required~~its tolargest ~~comply with an additional “Paydown Event” covenant~~asset, ~~pursuant~~Ranger toand ~~which~~paid ~~the~~off ~~Company’s~~substantially ~~marketing~~all ~~segment must maintain a minimum level~~ of ~~earnings~~its ~~before interest~~debt. Accordingly, ~~taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the credit agreement with the Company~~Ranger’s ~~Senior~~operations ~~Lender. The Company did not~~ have ~~sufficient~~been ~~Adjusted~~reported ~~EBITDA~~as todiscontinued beoperations in ~~compliance~~the ~~with~~accompanying ~~this~~annual ~~covenant~~report ~~at April 30, 2013~~ and ~~immediately~~consolidated ~~began~~financial ~~negotiations with its Senior Lender; additional amounts owed pursuant to Paydown Event would have totaled $1~~statements.3 approximately million. The Company has substantially completed the negotiations with its Senior Lender but the negotiations are predicated on certain concessions by the Company’s various Junior Lenders. The negotiations with the Junior Lenders have not yet been completed.

- 1 -

Business Segments

Our business consists primarily of two integrated business segments: (i) marketing services and (ii) ~~communications~~telecommunications services. Our marketing services segment is comprised of Enversa and its subsidiaries. Our ~~communication~~telecommunications services segment consists of ~~the~~T² ~~Ranger Wireless Group~~ and ~~the entities comprising the T2 Group~~PSM. Our corporate administrative functions are tracked separately and the associated costs are not pushed down to the operating segments. For financial information relating to our business segments, please see “Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8., Financial Statements and Supplementary Data.”

Regulatory Matters

Portions of our operations, particularly our ~~application~~telecommunications services ~~to the cellular industry~~, are highly regulated and subject to a variety of federal and state laws, including environmental laws, which require that we obtain various licenses, permits and approvals. We must obtain and maintain various federal, state and local governmental licenses, permits and approvals in order to provide our services. We believe we are in material compliance with all applicable licensing and similar regulatory requirements.

- 1 -

Employees

As of ~~April~~December 3031, ~~2013~~2014, we had 17nine full-time employees. None of these employees are represented by collective bargaining agreements and the Company considers it relations with its employees to be good.

Corporate Information

CornerWorld Corporation is a Nevada corporation with principal executive offices located at 13101 Preston Road, Suite 510, Dallas, Texas 75240. Our website address is www.cornerworld.com. We make available on our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and any amendments to such reports, as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC.

The following discussion and analysis should be read in conjunction with the consolidated financial statements of CornerWorld Corporation, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

The Company currently leases office space consisting of approximately 3,680 square feet. This office space is located in Dallas, Texas and the lease expires May 31, 2016.

The Company also maintains an office consisting of approximately 2,655 square feet of leased space in Holland, Michigan for all its Michigan operations. The lease agreement for this property expires January 31, 2014.

ITEM 3. LEGAL PROCEEDINGS

~~From~~On ~~time~~October to10, ~~time~~2013, the Company’s isformer ~~involved~~President, inMarc ~~litigation~~A. ~~matters~~Pickren ~~relating~~(“Pickren”) tofiled ~~claims~~a ~~arising~~lawsuit ~~from~~in ~~the~~Dallas ~~ordinary~~County ~~course~~District ofcourt ~~business.~~alleging, ~~While~~among other things, that the ~~results~~Company ofhad ~~such~~wrongfully ~~claims~~terminated ~~and~~his ~~legal~~employment; ~~actions~~Pickren’s ~~cannot~~suit besought ~~predicted~~claims ~~with~~approximating ~~certainty~~$265,000. As noted in the Company’s ~~management~~form ~~does~~8-K ~~not~~filed ~~believe~~on ~~that~~October ~~there~~4, ~~are~~2013, ~~claims~~Pickren’s oremployment ~~actions~~agreement expired on September 15, ~~pending~~2013, orPickren’s ~~threatened~~employment ~~against~~agreement ~~the~~was ~~Company~~not renewed, ~~the~~Pickren ~~ultimate~~was ~~disposition~~removed as President of ~~which~~CornerWorld ~~would~~on ~~have~~October a4, ~~material~~2013 ~~adverse~~and ~~effect~~the Company terminated Pickren’s employment on ~~our~~October ~~business~~8, ~~results~~2013. The Company settled Pickren’s claim out of ~~operations,~~court ~~financial~~for ~~condition~~an orundisclosed ~~cash~~amount ~~flows~~in August 2014.

~~ITEM~~The 4Company is occasionally involved in other litigation matters relating to claims arising from the ordinary course of business. ~~MINE~~The ~~SAFETY~~Company’s ~~DISCLSOURES~~management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material adverse effect on our business, results of operations and financial condition.

~~Not~~ITEM ~~applicable~~4. MINE SAFETY DISCLOSURES

-Not ~~2 -~~applicable.

PART II

Market for Common Equity and Related Stockholder Matters

The Company’s common stock is currently traded on the ~~OTCBB~~OTCQB under the symbol “CWRL”. The following table sets forth the range of high and low prices per share of our common stock for each period indicated.

These quotations reflect inter-dealer prices, without retail mark-up, mark-down, or commission, and may not necessarily reflect actual transactions.

- 2 -

Trading in our common stock in the over-the-counter market has been limited and sporadic and the quotations set forth below are not necessarily indicative of actual market conditions.

	High		Low
2013
Fiscal Year ended December 31, 2014
Quarter ended December 31, 2014	$	0.19	$	0.03
Quarter ended September 30, 2014		0.04		0.02
Quarter ended June 30, 2014		0.02		0.01
Quarter ended March 31, 2014		0.01		0.01
Eight-month period from May 1, 2013 through December 31, 2013
Quarter ended December 31, 2013	$	0.02	$	0.01
Quarter ended September 30, 2013		0.02		0.02
Two month period ended June 30, 2013		0.02		0.02
Fiscal Year ended April 30, 2013
Quarter ended April 30, 2013	$	0.02	$	0.01
Quarter ended January 31, 2013		0.06		0.02
Quarter ended October 31, 2012		0.19		0.03
Quarter ended July 31, 2012		0.27		0.10
2012
Quarter ended April 30, 2012	$	0.20	$	0.10
Quarter ended January 31, 2012		0.25		0.06
Quarter ended October 31, 2011		0.42		0.21
Quarter ended July 31, 2011		0.48		0.20

As of ~~July~~January 2922, ~~2013~~2015, there were approximately ~~125~~88 holders of record of our common stock. Because brokers and other institutions hold many of the shares on behalf of shareholders, we are unable to determine the actual number of shareholders represented by these record holders.

The Company has two equity compensation plans. Please see the information found under the “Executive Compensation” section in this document.

Dividends

We have never declared or paid cash dividends on our common stock. We currently anticipate that we will retain all future earnings to fund the operation of our business and do not anticipate paying dividends on our common stock in the foreseeable future. Pursuant to its credit agreement, the Company is precluded from paying dividends.

Penny Stock

The Company’s common stock is subject to provisions of Section 15(g) and Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), commonly referred to as the “penny stock rule.” Section 15(g) sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of “penny stock” that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines a penny stock to be any equity security that has a market price less than $5 per share, subject to certain exceptions. The Company is subject to the SEC’s Penny Stock rules.

Since the Company’s common stock is deemed to be penny stock, trading in the shares is subject to additional sales practice requirements on broker-dealers 3who sell penny stock to persons other than established customers and accredited investors. “Accredited investors” include persons with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must have the purchaser’s written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction of a risk disclosure document, prepared by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information for the penny stocks held in an account and information to the limited market in penny stocks. Consequently, these rules may restrict the ability of a broker-dealer to trade and/or maintain a market in the Company’s common stock and may affect the ability of the Company’s stockholders to sell their shares.

Since the Company’s common stock is deemed to be penny stock, trading in the shares is subject to additional sales practice requirements on broker-dealers who sell penny stock to persons other than established customers and accredited investors. “Accredited investors” include persons with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must have the purchaser’s written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt the rules require the delivery, prior to the first transaction of a risk disclosure document, prepared by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information for the penny stocks held in an account and information to the limited market in penny stocks. Consequently, these rules may restrict the ability of broker-dealer to trade and/or maintain a market in the Company’s Common Stock and may affect the ability of the Company’s stockholders to sell their shares.

Recent Issuances of Unregistered Stock

None.

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ITEM 6. SELECTED FINANCIAL DATA

The following selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. The consolidated statements of operations data for the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the ~~and~~eight-month ~~2011~~period ended December 31, 2013 and the fiscal year ended April 30, 2013 as well as the balance sheet data at ~~April~~December 3031, ~~2013~~2014 and ~~2012~~2013 are derived from our audited consolidated financial statements which are included elsewhere in this Form 10-K. The historical results are not necessarily indicative of results to be expected for future periods.

Consolidated Statements of Operations Data (prior periods have been restated to reflect the impact of discontinued operations):

For the Year Ended April 30:	2013			2012			2011			2010			2009
	For the Year Ended December 31,			For the Eight- Month Period Ended December 31,			For the Year Ended April 30:
Revenue	$	7,181,842		$	10,141,603		$	11,761,553		$	11,446,700		$	3,940,672
	2014			2013			2013			2012			2011
Costs of goods sold		1,344,453			2,598,967			3,952,158			3,601,914			1,574,859
Revenue	$	988,221		$	673,954		$	1,925,734		$	4,538,714		$	6,011,954
Gross profit (loss)		5,837,389			7,542,636			7,809,395			7,844,786			2,365,813
Costs of goods sold		528,854			271,356			722,398			1,920,832			3,086,934
Total operating expenses		(4,802,243	)		(7,381,315	)		(8,777,286	)		(7,890,895	)		(4,282,152	)
Gross profit		459,367			402,598			1,203,336			2,617,882			2,925,020
Income (loss) from operations		1,035,146			161,321			(967,891	)		(46,109	)		(1,916,339	)
Total operating expenses		1,428,384			860,143			3,174,163			5,117,206			5,038,100
Other (expense) income, net		(2,397,380	)		(2,266,368	)		(586,957	)		(1,724,108	)		(636,649	)
Loss from operations		(969,017	)		(457,545	)		(1,970,827	)		(2,499,324	)		(2,113,080	)
Income taxes		—			—			—			—	)		(10,500
Other (expense) income, net		(30,158	)		(285,332	)		(792,457	)		(245,920	)		354,951
Net loss	$	(1,362,234	)	$	(2,105,047	)	$	(1,554,848	)	$	(1,770,217	)	$	(2,563,488	)
Income taxes		—			—			—			—			—
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)	$	(0.05	)
Loss from continuing operations		(999,175	)		(742,877	)		(2,763,284	)		(2,745,244	)		(1,758,129	)
Shares used in calculation of loss per share:
Income from discontinued operations, net of tax		—			538,568			1,401,050			640,197			203,281
Basic and diluted		152,390,521			147,324,142			99,888,432			88,490,098			52,745,577
Gain from discontinued operations, net of tax		—			2,788,543			—			—			—
Net income (loss)	$	(999,175	)	$	2,584,234		$	(1,362,234	)	$	(2,105,047	)	$	(1,554,848	)
Basic earnings (loss) per share from continuing operations	$	(0.01	)	$	0.00		$	(0.02	)	$	(0.02	)	$	(0.02	)
Basic earnings (loss) per share from discontinued operations	$	0.00		$	0.02		$	0.01		$	0.01		$	0.00
Basic earnings (loss) per share	$	(0.01	)	$	0.02		$	(0.01	)	$	(0.01	)	$	(0.02	)
Diluted earnings (loss) per share from continuing operations	$	(0.01	)	$	0.00		$	(0.02	)	$	(0.02	)	$	(0.02	)
Diluted earnings (loss) per share from discontinued operations	$	0.00		$	0.02		$	0.01		$	0.01		$	0.00
Diluted earnings (loss) per share	$	(0.01	)	$	0.02		$	(0.01	)	$	(0.01	)	$	(0.02	)
Basic weighted average shares outstanding		161,880,193			157,070,847			152,390,521			147,324,142			99,888,432
Diluted weighted average shares outstanding		161,880,193			163,204,253			152,390,521			147,324,142			99,888,432

Consolidated Balance Sheet Data:

	April 30,
		December 31,					April 30,
	2013			2012			2011			2010			2009
		2014		2013			2013			2012			2011
Cash and cash equivalents	$	170,~~150,880~~746		$	~~890~~857,~~415~~954		$	~~934~~1,~~250~~150,880		$	~~590~~890,~~163~~415		$	~~601~~934,~~743~~250
Total assets	$	7180,~~966,033~~663		$	101,~~384~~177,~~652~~661		$	137,~~109~~966,~~032~~033		$	1410,~~923~~384,~~441~~652		$	1713,~~627~~109,~~095~~032
Long-term obligations	$	2186,~~243,440~~006		$	7239,~~247,851~~373		$	7193,~~836,237~~801		$	9236,~~629,199~~187		$	101,~~825~~314,~~000~~910
Total Shareholders’ equity (deficit)	$	(2,418,750	)	$	(2,685,503	)	$	(738,970	)	$	(1,502,318	)	$	16,624
Total stockholders’ equity (deficit)	$	(805,147	)	$	182,263		$	(2,418,750	)	$	(2,685,503	)	$	(738,970	)

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction

The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

Overview

CornerWorld is a marketing and technology services company providing services for the increased accessibility of content across mobile, ~~television~~ and Internet platforms. The Company is a holding company whose wholly owned subsidiaries operate in two rapidly changing business segments: marketing services and communication services.

Originally a development stage company ~~just over four years ago~~, the Company has completely evolved into a fully integrated telecommunications and marketing services company ~~servicing approximately 40 cell phone carriers and multiple marketing customers~~. Since completing the integration of our two segments, we have developed a consistent revenue stream and gross margins that support not only our administrative and operating costs but also produce the cash-flows necessary to service our financing commitments.

Our marketing services segment includes Enversa and all its subsidiaries. Enversa is an interactive media company with a focus inon marketing ~~that leverages its proprietary lead generation engine~~ to ~~garner~~generate qualified leads (consumers) for ~~Fortune~~its ~~1000 advertisers across social networking and niche based websites~~customers. In addition, Enversa provides SEO services, domain leasing and website management services on a recurring monthly basis. We believe the marketing industry will continue to trend toward digital and social media as well as search ~~engine~~retargeting ~~optimization~~ and we are attempting to position our marketing services segment to address the rapidly changing needs of our customers.

Our key ~~asset~~assets in our communication services segment isare aour ~~patented~~CLEC’s ~~611 Roaming Service™ from RANGER Wireless Solutions®, which generates revenue by processing approximately 10.2 million calls per year from wireless customers~~ and ~~seamlessly connecting them to~~ their ~~service~~respective ~~provider~~licenses. Though the mobile industry has experienced and continues to experience consolidation, our communication services segment revenues continue to remain stable. However, further consolidation in the mobile industry could adversely impact our roaming revenues.

~~Fiscal~~ Year ~~2013~~ended December 31, 2014 Highlights:

· We ~~continue~~completed to generate positive operating cash flow and paid down approximately $1,450,000 in principal on our outstanding debt. · We converted $1,364,199 in principal on our outstanding debt as well as $100,716 of accrued interest to equity via the ~~issuance~~change of ~~common~~our stock at the rate of $0.15/share. · After removal of non-cash amortization of loan discounts (interest expense) totaling $501,987, impairments of goodwill totaling $554,986, bad debt expenses totaling $162,560 and depreciation & amortization and stock-based compensation expenses totaling $1,640,215 and $164,071, respectively, the Company’s pro-forma profit for the year ended April 30, 2013 would have totaled approximately $1,661,585. See the table that follows for more details. The Company expects to generate positive operating cash flows for the fiscal year ~~ending~~end ~~April~~from ~~30, 2014. · As noted in our annual report on Form 10-K for the year ended~~ April 30, ~~2012,~~to ~~during~~December ~~the quarter ended October~~ 31~~, 2011, we lost a significant enterprise client in our marketing services division~~. · We ~~billed~~completed ~~on average in excess of $110,000/month to this client which, at~~ the ~~time~~development of ~~their departure, represented approximately 27% of~~ our ~~marketing~~TinyDial ~~services~~mobile ~~division’s~~telecommunications ~~revenue~~application. ~~This~~· ~~loss~~We ~~was~~signed ~~due~~a ~~to the client discontinuing the outsourcing of its lead generation campaigns resulting from significant decreases in federal funding of for~~non-~~profit~~binding ~~educational~~LOI ~~institutions.~~to ~~The~~merge ~~Company recognized these events were permanent in nature and reflective of a permanent decline in the~~ operations ofwith ~~the~~Florida ~~marketing~~based ~~services division. As a result of this and other factors~~Neogenix, ~~the~~LLC ~~Company~~DBA ~~impaired the goodwill of the marketing services division as of April 30~~Ogenix, ~~2013~~LLC.

WeCritical define “Adjusted Net Income1” as net loss after removal of non-cash charges including amortization of loan discounts (interest expense), bad debt expense, depreciation, amortization of intangibles and stock-based compensation as well as certain non-recurring cash items such as legal fees and acquisition related fees. Management believes that Adjusted Net Income provides useful additional information concerning the Company’s potential profitability. However, Adjusted Net Income is not a measure of financial performance under Generally Accepted Accounting ~~Principles~~Policies (“GAAP”). Accordingly, Adjusted Net Income should not be considered an alternative to net income as an indicator of operating performance. The table that follows provides a reconciliation between GAAP net income and Adjusted Net Income.

~~___________________________~~Use of Estimates

1In ~~This~~preparing ~~measure~~our ~~presented~~consolidated ~~may~~financial ~~not~~statements, bewe ~~comparable~~make estimates, assumptions and judgments that can have a significant effect on our revenues, income (loss) from operations, and net income, as well as on the value of certain assets on our consolidated balance sheet. We believe that there are several accounting policies that are critical to ~~similarly~~an ~~titled~~understanding ~~measures~~of our historical and future performance as these policies affect the reported amounts of revenues, expenses and significant estimates and judgments applied by ~~other~~management. ~~companies~~While there are a number of accounting policies, methods and estimates affecting our consolidated financial statements, areas that are particularly significant include allowance for doubtful accounts, recoverability of long-lived assets (including goodwill), revenue recognition and stock-based compensation. In addition, please refer to Note 1 to the accompanying consolidated financial statements for further discussion of our accounting policies.

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	April 30, 2013						April 30, 2012
	Total			Per share data			Total			Per share data
	(unaudited)						(unaudited)
Net Loss	$	(1,362,234	)	$	(0.01	)	$	(2,105,047	)	$	(0.01	)
Non-recurring cash charges:
Fees associated with acquisition		—			—			228,390			0.00
Non-cash charges:
Amortization of loan discounts		501,987			0.00			841,101			0.01
Bad debt expense		162,560			0.00			—			—
Impairment of goodwill		554,986			0.00			—			—
Stock-based compensation		164,071			0.00			158,514			0.00
Depreciation and amortization		1,640,215			0.01			2,024,538			0.01
Total non-cash charges		3,023,819			0.01			3,024,153			0.01
Pro-Forma Net Income	$	1,661,585		$	0.01		$	1,147,496		$	0.01
Weighted average common shares outstanding:
Basic and diluted		152,390,521						147,324,142

Critical Accounting Policies and Estimates

In June 2009, the Financial Accounting Standards Board (“FASB”) issued the FASB Accounting Standards Codification (the “ASC”), the single source of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (“GAAP”) in the United States. All guidance contained in the ASC carries an equal level of authority. The ASC supersedes all existing non-SEC accounting and reporting standards and was effective for the Company beginning July 1, 2009. The FASB will not issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead, it will issue Accounting Standards Updates. The FASB will not consider Accounting Standards Updates as authoritative in their own right; these updates will serve only to update the ASC, provide background information about the guidance, and provide the bases for conclusions on the changes in the ASC.

Use of Estimates and Critical Accounting Policies

In preparing our consolidated financial statements, we make estimates, assumptions and judgments that can have a significant effect on our revenues, income (loss) from operations, and net income, as well as on the value of certain assets on our consolidated balance sheet. We believe that there are several accounting policies that are critical to an understanding of our historical and future performance as these policies affect the reported amounts of revenues, expenses and significant estimates and judgments applied by management. While there are a number of accounting policies, methods and estimates affecting our financial statements, areas that are particularly significant include allowance for doubtful accounts, recoverability of long-lived assets (including goodwill), revenue recognition and stock-based compensation. In addition, please refer to Note 1 to the accompanying financial statements for further discussion of our accounting policies.

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based on an estimate of buckets of customer accounts receivable, stratified by age, that, historically, have proven to be uncollectible; in addition, in certain cases, the allowance estimate is supplemented by specific identification of larger customer accounts and our best estimate of the likelihood of potential loss, taking into account such factors as the financial condition and payment history of major customers. We evaluate the collectability of our receivables at least quarterly. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The differences could be material and could significantly impact cash flows from operating activities.

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Impairment of Long-Lived Assets

The Company’s management assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long-lived assets over their remaining lives can be recovered through projected undiscounted future cash flows. The amount of long-lived asset impairment is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management.

Goodwill

Goodwill represents the excess of acquisition cost over the net assets acquired in a business combination. Management reviews, on an annual basis, the carrying value of goodwill in order to determine whether impairment has occurred. Impairment is based on several factors including the Company’s projection of future undiscounted operating cash flows. When an impairment of the carrying value is indicated by this review, the Company adjusts the carrying value of goodwill to its estimated fair value.

Revenue Recognition

It is the Company’s policy that revenue from product sales or services will be recognized in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (“SAB No. 104”), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (“SAB No. 101”). SAB No. 101 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

Stock-Based Compensation

The Company accounts for awards made under its two stock-based compensation plans pursuant to the fair value provisions of ASC No. 718. ASC No. 718 requires the recognition of stock-based compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options. ASC No. 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company accounts for stock-based compensation in accordance with ASC No. 718 and estimates its fair value based on using the Black-Scholes option valuation model.

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. This model also requires the input of highly subjective assumptions including:


	(a)	The expected volatility of our common stock price, which we determine based on comparable companies;

	(b)	Expected dividends (which does not apply, as we do not anticipate issuing dividends);

	(c)	Expected life of the award, which is estimated based on the historical award exercise behavior of our employees; and

	(d)	The risk-free interest rate which we determine based on the yield of a U.S. Treasury bond whose maturity period equals the options expected term.

These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. In the future, we may elect to use different assumptions under the Black-Scholes valuation model or a different valuation model, which could result in a significantly different impact on our net income or loss.

The Company’s determination of fair value of share-based payment awards is made as of their respective dates of grant using the Black Scholes option valuation model. Because the Company’s options have certain characteristics that are significantly different from traded options, the Black Scholes option valuation model may not provide an accurate measure of the fair value of the Company’s options. Although the fair value of the Company’s options is determined in accordance with ASC No. 718, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options.

See also Note 98 – “Stock Based Compensation Plans”– to the consolidated financial statements contained in this report for additional information regarding our accounting policies for stock-based compensation.

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Recent Accounting Pronouncements

There were various accounting standards and interpretations issued during the year ended ~~April~~December 3031, ~~2013~~2014, none of which are expected to have a material impact on the Company’s consolidated financial position, operations, or cash flows.

~~Comparison~~- of6 ~~the twelve months ended April 30, 2013 to the twelve months ended April 30, 2012~~ -

Comparison of the Year Ended December 31, 2014 to the Year Ended December 31, 2013

Consolidated CornerWorld Corporation

Revenues ~~and Gross profit:~~

We had revenues totaling $7988,~~181,842~~221 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to $101,~~141~~091,~~603~~171 for the ~~year~~corresponding ~~ended~~period ~~April~~in ~~30,~~the ~~2012~~prior year. The decrease of $2102,~~959~~950,~~761~~ or 9.4%, is primarily due to revenue decreases in our marketing services segment resulting from the deterioration of the market for lead generation in the for-profit education space ~~and the loss of a significant enterprise client in October 2011~~. In addition, to a much smaller extent, our communications services segment experienced a decrease in revenues due to the fact that, as our customers built out their networks, the Company experienced a reduction in roaming traffic.

~~Similarly,~~Depreciation ~~gross~~and ~~profit decreased for the year ended April 30, 2013 to $5,837,389 from $7,542,636 for the year ended April 30, 2012. This decrease was consistent with the revenue decrease.~~Amortization

~~Selling~~Depreciation and Amortization expenses totaled $16,808 ~~General~~for ~~and~~the ~~Administrative~~year ~~Expenses:~~ended December 31, 2014 as compared to $56,400 for the corresponding period in the prior year. The decrease of $39,592 is due to the fact that several of our larger telecommunications fixed assets have become fully depreciated.

~~SG&A~~Loss ~~expenses totaled $3,162,028 for the year ended April 30, 2013 as compared to $5,356,777 for the year ended April 30, 2012. The decrease of $2,194,749 is primarily due to the cost savings resulting~~ from ~~staff~~Continuing ~~reductions,~~Operations ~~office~~Before ~~closures and other cost cutting measures.~~ Taxes

~~Depreciation~~Loss from Continuing Operations Before Taxes totaled $999,175 for the year ended December 31, 2014 as compared to $2,098,981 for the corresponding period in the prior year. The improvement of $1,099,806 is primarily due to reductions in SG&A expenses, which included reductions in rent and ~~Amortization:~~personnel, combined with the fact that, during the year ended December 31, 2013, we impaired our remaining Goodwill recording a charge of $554,986.

~~Depreciation~~Net ~~and~~Income amortization expenses totaled $1,640,215 for the year ended April 30, 2013 as compared to $2,024,538 for the year ended April 30, 2012. The decrease of $384,323 is due to the fact that our customer list for our marketing company became fully amortized during the year ended April 30, 2012 and several of our larger telecommunications fixed assets have become fully depreciated.(Loss)

Net Loss ~~from~~totaled ~~Continuing~~$999,175 ~~Operations~~for ~~Before~~the ~~Taxes~~year ~~and~~ended December 31, 2014 as compared to a Net Income of $1,482,532 for the corresponding period in the prior year. The Net Income (Loss:) decrease of $2,481,707 is primarily due to the absence of prior year’s aforementioned reductions in SG&A expenses and Goodwill impairment charge of $554,986 which were offset by the fact that prior year Net Income numbers included earnings from discontinued operations totaling $792,970 as well as a gain on the sale of discontinued operations totaling $2,788,543.

~~Loss~~Marketing ~~from~~Services continuing operations before taxes and net loss totaled $1,362,234 for the year ended April 30, 2013 as compared to a net loss of $2,105,047 for the year ended April 30, 2012. The improvement of $742,813 is primarily due to reductions in SG&A and depreciation as well as decreases in interest expenses resulting from the Company’s continued repayment of debt. These changes were offset, to some extent, by the fact that the Company recorded an impairment charge totaling by $554,986 by writing down all the goodwill associated with our marketing division.

Marketing services

Revenues:

Our marketing services segment had revenues totaling $1706,~~749,491~~556 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to $4955,~~311,811~~702 for the year ended ~~April~~December 3031, ~~2012~~2013. ~~The~~This decrease ~~of $2,562,320~~ is due to the ~~loss of a significant enterprise client in October 2011,~~ deterioration in the for-profit educational lead generation space and significant ongoing challenges and customer churn in our search engine optimization and website leasing businesses.

Depreciation ~~and Amortization~~:

Our marketing services segment had depreciation expenses totaling $~~6,183~~0 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to $~~117~~5,~~104~~429 for the year ended ~~April~~December 3031, ~~2012~~2013. The decrease ofwas ~~$110,921 is~~ due to ~~the~~all ~~fact~~of ~~that~~ our ~~previously~~marketing ~~capitalized~~fixed ~~customer~~assets ~~list~~becoming ~~became~~ fully ~~amortized August 31, 2011~~depreciated.

-Income 8(Loss) -from Continuing Operations Before Taxes and Net Income (Loss):

Income from Continuing Operations Before Taxes and Net Income: totaled $42,321 for the year ended December 31, 2014 as compared to Loss from Continuing Operations Before Taxes and Net Loss of $33,131 for the corresponding period in the prior year. The slight decrease is due to significant reductions in SG&A, primarily in the form of headcount, which were offset, to some extent, by the aforementioned reductions in revenue.

~~Income~~Telecommunications from continuing operations before taxes and net income totaled $554,997 for the year ended April 30, 2013 as compared to a loss $104,303 for the year ended April 30, 2012. The improvement of $659,330 is primarily due to reallocation of certain employee salaries to corporate and significant cost savings measures corresponding to the decreases in revenues. Services

~~Communications~~Our communications services segment consists of our Woodland division.

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Revenues:

Our communications services segment had revenues totaling $5244,~~432,351~~155 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to $5135,~~829,792~~469 for the year ended ~~April~~December 3031, ~~2012~~2013. The ~~decrease~~increase ofin ~~$397,441~~revenue ~~was~~is ~~primarily~~ due to ~~the~~a ~~reduction~~new ofcontract ~~roaming~~signed ~~traffic~~by ~~and~~one ~~call~~of ~~volumes~~our ~~resulting~~CLEC’s ~~from~~that ~~the~~enables ~~continued~~it ~~buildout~~to ofbill ~~nationwide~~and ~~mobile~~collect revenues from carrier ~~networks~~access billing.

Depreciation ~~and Amortization~~:

Our communications services segment had ~~depreciation~~Depreciation ~~and amortization~~ expenses totaling $110,~~587,005~~709 for the year ended ~~April~~December 3031, ~~2013~~2014 asversus ~~compared to~~ $116,~~846,364~~607 for the year ended ~~April~~December 3031, ~~2012~~2013. The decrease ~~of $259,359~~ is ~~primarily~~ due to ~~the~~more ~~fact that several~~ of our ~~larger~~telecom ~~fixed~~ assets ~~have~~becoming ~~become~~ fully depreciated.

~~Income~~Loss from Continuing Operations Before Taxes ~~and Net Income~~:

~~Income~~Loss from ~~continuing~~Continuing ~~operations~~Operations ~~before~~Before ~~taxes~~Taxes ~~and net income~~ totaled $146,~~350,649~~723 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to a ~~net~~Loss ~~income~~from ofContinuing Operations Before Taxes totaling $1290,~~344,736~~200 for the year ended ~~April~~December 3031, ~~2012~~2013. The ~~increase~~improvement of $5243,~~913~~477 is primarily due to ~~the~~reductions ~~aforementioned decreases~~ in ~~depreciation~~SG&A expenses ~~and~~which ~~decreases~~included inthe ~~interest~~closure ~~expenses~~of asour aMichigan ~~result~~office ofalong ~~our~~with ~~continued~~the ~~paydown~~termination of ~~debt. These~~its ~~expense~~associated ~~decreases~~personnel ~~were~~as ~~offset,~~well tothe ~~some~~fact ~~extent,~~that bythe ~~decreases~~prior inyear’s ~~revenues~~results ~~and~~included ~~gross~~a ~~profit~~$249,000 asinvestment ~~well~~banking asfee ~~slight~~related ~~increases~~to inthe ~~selling,~~divestiture ~~general~~of ~~and~~our ~~administrative~~discontinued ~~expenses~~operations.

Net Income (Loss):

Net Loss totaled $46,723 for the year ended December 31, 2014 as compared to Net Income of $3,254,873 for the corresponding period in the prior year. The decrease of $3,301,596 is due to the fact that prior year Net Income numbers included earnings from discontinued operations totaling $1,000,815 as well as a gain on the sale of discontinued operations totaling $2,544,258.

Corporate

Depreciation ~~and Amortization~~:

~~Depreciation~~Corporate ~~and~~had ~~amortization~~Depreciation expenses ~~totaled~~totaling $476,~~027~~099 for the year ended ~~April~~December 3031, ~~2013~~2014 asversus ~~compared to~~ $6134,~~070~~364 for the ~~year~~corresponding ~~ended~~period ~~April~~in ~~30, 2012~~2013. The decrease ~~of $14,043~~ is due to the ~~fact~~disposal ~~that~~of ~~many~~selected ~~corporate~~ fixed assets ~~have~~as ~~become~~we ~~fully~~downsized ~~depreciated~~our corporate operations.

Loss from Continuing Operations Before Taxes ~~and Net Loss~~:

Loss from ~~continuing~~Continuing ~~operations~~Operations ~~and~~Before ~~net~~Taxes ~~loss~~ totaled $3994,~~267,880~~773 for the year ended ~~April~~December 3031, ~~2013~~2014 as compared to a ~~net~~ loss of $31,~~345~~841,~~480~~912 for the ~~year~~corresponding ~~ended~~period ~~April~~in ~~30,~~the ~~2012~~prior year. The improvement of $77847,~~600~~139 is primarily due to ~~decreases~~reductions in ~~selling,~~SG&A ~~general and administrative~~ expenses, ~~resulting~~which ~~from~~included ~~cost savings measures including~~ reductions in ~~headcount~~rent and ~~related expenses. In addition~~personnel, ~~interest~~as ~~expenses~~well ~~decreased $404,084~~ as adue ~~result~~to ofthe ~~our~~fact ~~continued~~that, ~~paydown~~during ~~and~~the ~~conversion~~year ofended ~~debt. These~~December ~~changes were offset~~31, ~~to some extent~~2013, bywe ~~the~~impaired ~~$554,986~~all ~~impairment~~of ~~charge~~our ~~associated~~Goodwill ~~with~~recording ~~the~~a ~~goodwill~~charge of ~~our marketing division~~$554,986.

Net Loss:

Net Loss totaled $994,773 for the year ended December 31, 2014 as compared to $1,805,472 for the corresponding period in the prior year. The Net Loss improvement of $810,699 is due to the elimination of interest expenses at Corporate associated with our discontinued operations which was offset, to some extent, by the aforementioned increases in SG&A expenses related to the buildout of our TinyDial mobile application.

Liquidity and Capital Resources

As of ~~April~~December 3031, ~~2013~~2014, we had anegative working capital ~~deficit~~totaling ~~of approximately~~ $~~5.5~~621,825 ~~million~~including ~~and~~ cash of $170,~~150,880~~746. Approximately ~~Our~~$233,188 ~~working capital deficit is primarily related to certain large accounts payable associated with our 2009 Woodland Acquisition as well as the short-term nature~~ of ~~selected tranches of the debt we issued in March 2011 when we recapitalized the Company. We believe the cash flows from~~ our ~~existing~~negative ~~operations~~working ~~will~~capital berelates ~~adequate~~directly to ~~manage~~amounts ~~our~~owed ~~debt~~for ~~commitments~~accrued ~~and~~bonuses ~~we have good relationships with the vendors associated with the large accounts payable who we continue to pay with excess cash flow. Management expects that its current cash~~ and ~~operational~~accrued ~~cash flow will sustain the Company~~interest.

~~The~~- ~~notes~~8 payable to Emerald Crest Capital (the “Senior Lender”) contain certain restrictive covenants, the failure to comply with which would result in the acceleration of all or part of the notes payable, depending on the particular covenant, creating a “Paydown Event.” Effective for the period ended April 30, 2013, the Company was required to comply with an additional “Paydown Event” covenant, pursuant to which the Company’s marketing segment must maintain a minimum level of earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the credit agreement with the Company’s Senior Lender. Prior to April 30, 2013, the Company received written notice from its Senior Lender that it would be calling an event of default on April 30, 2013. As a result of the Senior Lender’s notice, the Company believed that, pursuant to the Credit Agreement with the Senior Lender, the Company was precluded from paying any principal or interest to any junior creditors.-

-The 9Company’s -only secured debt is the note payable to the Company’s CEO, Scott Beck (the “CEO Note”). On December 31, 2014, the Company did not make its regularly scheduled payment totaling $12,746 to Scott N. Beck, the Company’s Chief Executive Officer, which constituted an event of default under the Company’s lone senior secured note. Mr. Beck did not call default but there can be no assurance that, as the Company’s senior secured lender, he will not do so. It is anticipated that the Company will amend the note with Mr. Beck at some future point but there can be no assurance that we will be successful in amending the terms of Mr. Beck’s senior secured note. Should we be unsuccessful in executing an amendment or an extension, Mr. Beck, as the senior secured lender, could move to seize the underlying collateral which would have a material adverse effect on the Company’s ability to continue as a going concern.

AsOur ofinvesting ~~April~~activity ~~30, 2013, the Company did not have sufficient Adjusted EBITDA to be in compliance with the minimum EBITDA covenant~~ for the ~~marketing~~year ~~division~~ended ~~and~~December ~~the Company did not have sufficient cash reserves to completely make the anticipated Paydown Event to the Senior Lenders. Accordingly~~31, ~~the Company stopped paying all Junior Creditors and received a notice of default from two junior creditors~~2014, ~~Ned~~totaled ~~Timmer and IU Holdings~~$2,639 ~~LP,~~which ~~shortly~~consisted ~~thereafter. .The~~of ~~Company~~acquisitions ~~immediately~~of ~~began~~fixed ~~negotiations with its Senior Lender~~assets.

InOur ~~the~~financing ~~second~~activities ~~half~~for ~~of July 2013,~~ the ~~Company~~year ~~and~~ended ~~its~~December ~~Senior Lender reached an agreement in principle whereby the Paydown Event and all requirements with respect to the Company’s marketing division~~31, ~~including~~2014 ~~the~~totaled ~~Paydown Event~~$7,785 ~~would~~which beconsisted ~~removed~~entirely via an amendment to the credit agreement with the Senior Lender. In addition, the Senior Lender waived the default related to the Paydown Event, modified the Company’s interest rate and adjusted the Company’s amortization schedule, among other things. The Company and it Senior Lender are currently in the process of ~~memorializing~~payments ~~the~~pursuant ~~modifications~~ to the Company’s credit agreement with the Senior Lender but the modifications must also be approved by the Company’s multiple subordinated creditors which has not yet taken place. See also note 13, Subsequent Events, in our consolidated financial statements to this Annual Report on Form 10-K. Assuming we are successful in completing the proposed amendment with the Senior Lender, negotiating a ~~waiver~~capital ~~with our subordinated lenders and our operations remain consistent with their historical levels, we anticipate we will have adequate cash to support our existing operations over the next twelve months~~lease. However, there can be no assurance that we will consummate the proposed amendment with the Senior Lender or the Junior Lenders. Should we be unsuccessful in executing the proposed amendments, the Senior Lender could move to seize the underlying collateral which would have a material adverse effect on the Company’s ability to continue as a going concern.

~~Our~~We ~~investing~~have ~~activity~~no ~~for~~other ~~the~~bank ~~year~~financing ~~ended~~or ~~April~~other ~~30,~~external ~~2013,~~sources ~~consisted~~of ~~primarily~~liquidity. There ofcan ~~$2,463~~be ofno ~~capital~~assurance ~~expenditures~~that, ~~primarily~~going ~~associated with the relocation of several of our facilities~~forward, ~~including~~ our ~~home~~operations ~~office. Management believes the reduced rents in the new locations~~ will ~~more~~generate ~~than~~positive ~~offset~~operating ~~the~~cash ~~capital expenditures~~flow.

~~Our~~As ~~financing~~previously ~~activities~~noted, ~~for~~the Company’s marketing revenues have been adversely impacted by industry forces. The marketing services division has completely exited the ~~year~~for-profit ~~ended~~educational ~~April~~lead ~~30,~~generation ~~2013~~space ~~included~~and ~~repayment~~continues ofbut ~~approximately~~has ~~$1,450,000~~substantially eliminated the customer churn in ~~debt~~our search engine optimization and ~~related~~website ~~finance~~leasing ~~fees~~businesses. The Company cannot be certain how much further its marketing services revenues could deteriorate.

We ~~have~~will nomost ~~other~~likely ~~bank~~need ~~financing~~to orobtain ~~other~~additional ~~external~~capital ~~sources~~in oforder ~~liquidity~~to further expand our operations. We ~~source~~are ~~all~~currently ofinvestigating ~~our~~other ~~liquidity~~financial ~~through~~alternatives, ~~our~~including ~~operations~~additional ~~and~~equity ~~this~~financing. ~~was~~In ~~our~~order ~~second~~to ~~consecutive~~obtain ~~year~~capital, ~~where~~we ~~the~~may ~~Company’s~~need ~~operations~~to ~~generated~~sell ~~positive~~additional ~~operating~~shares ~~cash~~of ~~flow~~our common stock or borrow funds from private lenders. We ~~expect~~However, there can be no assurance that ~~trend~~any additional financing will become available to ~~continue~~us, ~~assuming~~and ~~the~~if ~~debt~~available, ~~modifications~~that ~~noted~~such ~~above~~financing will be on terms acceptable to us.

We will most likely need to obtain additional capital in order to further expand our operations. We are currently investigating other financial alternatives, including additional equity and/or debt financing. In order to obtain capital, we may need to sell additional shares of our common stock or borrow funds from private lenders. However, there can be no assurance that any additional financing will become available to us, and if available, that such financing will be on terms acceptable to us.

Contractual Obligations

The following table presents our contractual obligations as of ~~April~~December 3031, ~~2013~~2014:

	Payments Due by Period
Contractual Obligations	Total		Less than 1 Year		1 – 3 Years		3 – 5 Years		More than 5 Years
Notes payable to related parties	$	2338,~~376,873~~958	$	~~900~~152,~~206~~952	$	1186,~~476,667~~006	$	—	$	—
Notes payable		5,156,316		3,452,773		1,703,543		—		—
Operating and capital leases		47,185		33,685		13,500		—		—
Operating and capital leases		128,976		55,559		73,417		—		—
Total	$	386,143	$	186,637	$	199,506	$	—	$	—
Total	$	7,662,165	$	4,408,538	$	3,253,627	$	—	$	—

Off-~~balance~~Balance ~~sheet~~Sheet ~~arrangements~~Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Inflation

We believe that, for the year ended ~~April~~December 3031, ~~2013~~2014, inflation has not had a material effect on our operations.

- 10 -

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The Company’s consolidated financial statements and supplementary data are included in pages F-21 through F-2419 of this Annual Report on Form 10-K.

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Quarterly Results of Operation (Unaudited)

The following table presents the Company’s unaudited quarterly statements of operations for each of the eight quarters in the two-year period ended ~~April~~December 3031, ~~2013~~2014. The information in the table should be read in conjunction with the Company’s audited consolidated financial statements and related notes contained elsewhere in this report. The underlying unaudited financial statements are prepared on the same basis as the audited consolidated financial statements included in this report, which include all adjustments, consisting only of normal recurring adjustments, that are considered necessary for the fair presentation of the Company’s financial position and operating results for the quarters presented. Operating results for any quarter are not necessarily indicative of results for any future periods.

	Three Months Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013			March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
	July 31, 2011			October 31, 2011			January 31, 2012			April 30, 2012			July 31, 2012			October 31, 2012			January 31, 2013			April 30, 2013
Net sales	$	311,755		$	301,168		$	255,557		$	222,691		$	279,399		$	203,141		$	223,149		$	282,532
Net sales	$	2,941,673		$	2,914,058		$	2,292,764		$	1,993,108		$	2,175,067		$	1,868,331		$	1,680,494		$	1,457,950
Cost of Sales		134,434			126,472			109,741			81,299			162,502			127,509			116,166			122,677
Cost of Sales		851,497			728,924			596,348			422,198			424,976			351,502			277,482			290,493
Gross profit		177,321			174,696			145,816			141,392			116,897			75,632			106,983			159,855
Gross profit		2,090,176			2,185,134			1,696,416			1,570,910			1,750,091			1,516,829			1,403,012			1,167,457
Selling, general and administrative expenses		734,462			712,078			560,418			(171,696	)		331,491			448,626			353,097			278,362
Selling, general and administrative expenses		1,336,011			1,619,189			1,320,049			1,081,528			981,942			711,827			705,663			762,596
Depreciation expense		17,058			14,345			14,428			10,569			8,775			2,679			2,677			2,677
Depreciation and amortization		577,251			518,505			489,163			439,619			410,752			411,044			409,358			409,061
Operating Income (loss)		(574,199	)		(551,727	)		(429,030	)		302,519			(223,369	)		(375,673	)		(248,791	)		(121,184	)
Operating Income (loss)		176,914			47,440			(112,796	)		49,763			357,397			393,958			287,991			(4,200	)
Other income (expense), net		(3,071	)		(609,597	)		(240,040	)		6,164			(9,824	)		6,007			(6,802	)		(19,539	)
Other income (expense), net		(698,574	)		(518,848	)		(530,710	)		(518,236	)		(512,096	)		(499,005	)		(411,399	)		(974,880	)
Income (loss) from continuing operations before income taxes		(577,270	)		(1,161,324	)		(669,070	)		308,683			(233,193	)		(369,666	)		(255,593	)		(140,723	)
Loss before income taxes		(521,660	)		(471,408	)		(643,506	)		(468,473	)		(154,699	)		(105,047	)		(123,408	)		(979,080	)
Income tax expense		—			—			—			—			—			—			—			—
Net loss	$	(521,660	)	$	(471,408	)	$	(643,506	)	$	(468,473	)	$	(154,699	)	$	(105,047	)	$	(123,408	)	$	(979,080	)
Income (loss) from continuing operations		(577,270	)		(1,161,324	)		(669,070	)		308,683			(233,193	)		(369,666	)		(255,593	)		(140,723	)
Basic and diluted net loss per share	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Income from discontinued operations, net of tax		227,687			306,026			308,651			(49,394	)		—			—			—			—
Weighted average common shares outstanding:
Gain from discontinued operations, net of tax		—			—			1,988,456			800,087			—			—			—			—
Basic and diluted		146,972,901			147,207,875			147,487,606			147,547,607			147,547,607			147,547,607			157,313,704			157,313,704
Net income (loss)	$	(349,583	)	$	(855,298	)	$	1,628,037		$	1,059,376		$	(233,193	)	$	(369,666	)	$	(255,593	)	$	(140,723	)
Basic earnings (loss) per share from continuing operations	$	0.00		$	(0.01	)	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Basic earnings (loss) per share from discontinued operations	$	0.00		$	0.00		$	0.01		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Basic earnings (loss) per share	$	0.00		$	0.00		$	0.01		$	0.01		$	0.00		$	0.00		$	0.00		$	0.00
Diluted earnings (loss) per share from continuing operations	$	0.00		$	(0.01	)	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Diluted earnings (loss) per share from discontinued operations	$	0.00		$	0.00		$	0.01		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Diluted earnings (loss) per share	$	0.00		$	0.00		$	0.01		$	0.01		$	0.00		$	0.00		$	0.00		$	0.00
Basic weighted average common shares outstanding		157,313,704			157,313,704			157,166,965			157,313,704			158,650,726			162,937,110			162,937,110			162,937,110
Diluted weighted average common shares outstanding		157,313,704			157,313,704			163,300,371			157,313,704			158,650,726			162,937,110			162,937,110			162,937,110

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

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ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in its reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of its chief executive officer and its chief financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) 11or 15d-15(e)) as of December 31, 2014. Based on that evaluation, the Company’s chief executive officer and chief financial officer concluded that, as of that date, the Company’s disclosure controls and procedures, were not effective simply due to the fact that the small size of the accounting department could not provide for adequate segregation of duties typically established in larger reporting companies.

The Company’s management, with the participation of its chief executive officer and its chief financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) or 15d-15(e)) as of April 30, 2013. Based on that evaluation, the Company’s chief executive officer and chief financial officer concluded that, as of that date, the Company’s disclosure controls and procedures, were not effective at a reasonable assurance level.

Management’s Report on Internal Control over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Section 13a-15(f) of the Securities Exchange Act of 1934, as amended). Internal control over financial reporting is a process designed by, or under the supervision of, the Company’s CEO and the Company’s CFO and effected by the Company’s ~~board~~Board of ~~directors~~Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s consolidated financial statements for external reporting purposes in conformity with U.S. GAAP and include those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.

As of ~~April 30~~December 31, ~~2013~~2014, management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the criteria established by COSO, management concluded that the Company’s internal control over financial reporting was not effective as of ~~April~~December 3031, ~~2013~~2014, as a result of the identification of the material weakness described below.

A material weakness is a deficiency or combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim consolidated financial statements will not be prevented or detected on a timely basis by the Company’s internal controls.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with associated policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

The Company’s management has identified a material weakness in the effectiveness of internal control over financial reporting related to a shortage of resources in the accounting department required to assure appropriate segregation of duties.

- 11 -

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities Exchange Commission that permit the Company to provide only management’s report in this annual report.

Management’s Remediation Plan

Management determined that a material weakness existed due to an inability to appropriately segregate duties in the Company’s accounting department due to its small size. The Company has ~~replaced selected accounting personnel with more seasoned professionals, including additional certified public accountants, to help perform certain accounting functions and also has~~ included additional reviews to mitigate the size of the accounting department and the overlap of responsibilities. Management believes the foregoing efforts ~~will~~ effectively remediate this material weakness but the Company can give no assurance that the additional controls will be effective. As the Company continues to evaluate and work to improve its internal control over financial reporting, management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan described above. We cannot assure you that, as circumstances change, any additional material weakness will not be identified.

- 12 -

Changes in Internal Control over Financial Reporting

Except as noted above, there were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

~~None.~~Submission of Matters to a Vote of Securities Holders

The Annual Meeting of Stockholders of CornerWorld was held on March 25, 2014. The holders of 148,191,320 shares of common stock, 91.0% of the outstanding shares entitled to vote as of the record date, were represented at the meeting in person or by proxy, and this amount represented a quorum. At the meeting, three proposals were submitted to CornerWorld’s stockholders, as more fully described in CornerWorld’s proxy statement filed with the Securities and Exchange Commission on February 3, 2015 (“Proxy Statement”). The final voting results for each proposal are set forth below:

Proposal 1

The individuals named below were elected as Directors of the Company:


Individual	For	Withheld	Broker Non-Votes
Scott N. Beck	128,286,002	3,496,550	16,408,768
Marc Blumberg	127,373,262	4,409,290	16,408,768

Proposal 2

To ratify the selection of Montgomery, Coscia and Greilich, LLP as the Company’s independent registered public accountants for the fiscal year ending December 31, 2015:


For	Against	Abstain
145,679,683	11,522	2,500,115

Proposal 3

To consider and vote upon a proposal to grant the Company’s Board of Directors (the “Board”) the authority to effect a Reverse Stock Split of the Company’s outstanding common stock, $0.001 par value per share (the “Common Stock”) at an exchange ratio ranging between 1-for-2 and 1-for-100, with the exact exchange ratio to be determined by the Board in its sole discretion, by filing amendments to the Company’s Articles of Incorporation:


For	Against	Abstain
145,973,551	2,217,769	0

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.

The Company currently has two Directors. The term of each Director expires at the Company’s annual meeting each year. The persons whose names are listed below will serve until the Annual Meeting in ~~2014~~2015 or until his successor has been elected and qualified. Our Board of Directors is not currently divided into classes.

Name of Director	Age	Positions with CornerWorld Since
Scott N. Beck	3941	Chief Executive Officer, Chairman and Director, 2007
Marc Blumberg	4042	Director, 2008

Scott N. Beck was appointed Chairman and Chief Executive Officer of ~~CornerWorld~~CWC after founding ~~CornerWorld~~CWC in 2007. Prior to founding ~~CornerWorld~~CWC, from 2004 to present, Mr. Beck has served as Chairman and President of Beck Ventures, a venture capital firm that he founded. Prior to founding Beck Ventures, Mr. Beck worked as an Associate Vice-President at JP Morgan Chase and Co’s Lab Morgan where he focused on new business formation and corporate strategy for the bank globally. Prior to joining JP Morgan Chase, Mr. Beck was a member of SG Cowen’s ~~leveraged~~Leveraged Finance Group, where he provided support to clients who access the high yield and leveraged finance capital markets. Preceding SG, Mr. Beck was a senior auditor at Ernst and Young LLP. Mr. Beck received a Masters of Accounting from the Kozmetsky School of Business at the University of Texas at Austin where he completed his B.B.A. Mr. Beck is a member of the Board of Directors of United Texas Bank and is President of Beck Properties Trophy Club. The Board of Directors has determined that Mr. Beck’s prior experience working as an investment banker on Wall Street with both high-tech and public companies make him uniquely qualified to serve as the ~~chairman~~Chairman of CornerWorld.

Marc Blumberg was appointed Director subsequent to ~~CornerWorld~~CWC’s August 27, 2008 acquisition of Enversa Companies LLC (“Enversa”). Mr. Blumberg currently is the co-owner and co-founder of Chooze shoes, an entity that is taking advantage of the highly lucrative children’s apparel market. Mr. Blumberg ~~has~~had previously been with imc2 ~~since~~from 1997 ~~and~~to ~~currently~~2013 ~~serves~~where he served as their President. HeAt ~~leads~~imc2, he led their clients in developing innovative and effective marketing strategies. Mr. Blumberg helped build the company from six to a staff of over 500 people providing services to Procter & Gamble, The Coca-Cola Company, and GlaxoSmithKline. Before joining imc2, Mr. Blumberg was a strategy consultant for Gemini Consulting’s MAC Group and for the New England Consulting Group. Mr. Blumberg has spent his professional career consulting with FORTUNE 500 companies. He holds a Bachelor of Science in Economics from the University of Pennsylvania’s Wharton School of Business. The Board of Directors has determined that Mr. Blumberg’s joint experience with imc2 and serving as a consultant to FORTUNE 500 companies adequately qualifies him to serve on the Board of Directors.

The business and affairs of the Company are managed under the direction of the Board of Directors. The Board believes that good corporate governance is a critical factor in achieving business success and in fulfilling the Board’s responsibilities to stockholders. The Board believes that its practices align management and stockholder interests. Highlights of our corporate governance practices are described below.

Additional Executive Officers

~~Marc~~V. ~~Pickren~~Chase McCrea III, age 4246, has served as our ~~President~~Chief Financial Officer since his appointment onSeptember ~~May 9~~18, ~~2011~~2009. ~~Prior~~Mr. toMcCrea ~~his~~is ~~appointment~~a asCPA ~~President~~with over 20 years of ~~CornerWorld~~experience working with and for public companies serving in a variety of capacities. Until July 2007, heMr. McCrea had served atas the ~~Company’s~~Interim Chief ~~Marketing~~Financial Officer and asVice President of ~~the~~Finance ~~Company’s~~of ~~Enversa~~Home ~~division~~Solutions of America, ~~which~~Inc., hea ~~co-founded~~publicly ~~with~~traded ~~Marc~~construction ~~Blumberg~~concern. He isPrior ~~responsible~~to ~~for~~that, ~~strategic~~he ~~vision,~~worked ~~process~~as ~~architecture,~~the ~~and~~Director ~~sales~~of ~~and~~Finance ~~marketing. Before~~for ~~founding~~Penson ~~Enversa~~Worldwide, MrInc., ~~Pickren~~an ~~spent~~international ~~nearly~~securities ~~three~~clearing ~~years~~firm ~~with~~dating J.to ~~Walter~~the ~~Thompson~~summer of 2006, and also as a ~~partner~~Manager inof ~~their~~SEC ~~Government~~Reporting ~~and~~for ~~Direct-Response~~chemical ~~Practice~~giant ~~where~~Celanese hedating ~~directed~~to athe ~~worldwide~~summer ~~team~~ of ~~account~~2005. ~~managers~~For ~~and~~several ~~online~~years ~~strategists~~prior to 2005 Mr. ~~Prior~~McCrea had served as the Director of SEC Reporting for technology company DG Systems (the predecessor company to JDG/FastChannel, Inc.) ~~Walter~~as ~~Thompson,~~well as serving as the Director of Finance for approximately five years for a telecommunications provider. Mr. ~~Pickren~~McCrea’s ~~was~~experience ~~with~~includes ~~TMP~~over ~~Worldwide/Monster.com~~eight years working for Big Four accounting firms, where he ~~helped~~attained the ~~private~~level ~~yellow~~of ~~pages~~assurance ~~agency~~manager. ~~grow~~Mr. toMcCrea holds a ~~leading~~Bachelor’s ~~public~~of ~~Internet~~Science ~~media~~in ~~concern~~Accounting ~~that~~from ~~would~~the ~~become~~highly ~~one~~regarded ofaccounting ~~the~~school ~~most~~at ~~successful~~the ~~public~~University ~~offerings~~ of ~~the~~Southern ~~late 1990’s~~California.

- 13 -

V. Chase McCrea III, age 45, has served as our Chief Financial Officer since his appointment September 18, 2009. Mr. McCrea is a CPA with over 22 years of experience working with and for public companies serving in a variety of capacities. Until July 2007, Mr. McCrea had served as the Interim Chief Financial Officer and Vice President of Finance of Home Solutions of America, Inc., a publicly traded construction concern. Prior to that, he worked as the Director of Finance for Penson Worldwide, Inc., an international securities clearing firm dating to the summer of 2006, and also as a Manager of SEC Reporting for chemical giant Celanese dating to the summer of 2005. For several years prior to 2005 Mr. McCrea had served as the Director of SEC Reporting for technology company DG Systems (the predecessor company to DG/FastChannel, Inc.) as well as serving as the Director of Finance for approximately five years for a telecommunications provider. Mr. McCrea’s experience includes over eight years working for Big Four accounting firms, where he attained the level of assurance manager. Mr. McCrea holds a Bachelor’s of Science in Accounting from the highly regarded accounting school at the University of Southern California.

Code of ethics

AsThe ofCompany ~~April 30, 2013, our Board of Directors~~ has not currently adopted a code of ethics ~~because of the small number of persons involved in the management of the Company~~.

- 13 -

Director Independence

Our common stock is currently quoted on the ~~OTCBB~~OTCQB. ~~and~~Accordingly, iswe ~~not~~are ~~listed~~currently onsubject to the ~~Nasdaq~~OTCQB ~~Stock~~continued ~~Market~~listing orrequirements ~~any~~which ~~other~~include, ~~national~~among ~~securities~~other ~~exchange. Accordingly~~things, weconducting ~~are~~an ~~not~~annual ~~currently~~audit ~~subject~~and toremaining ~~the~~current ~~Nasdaq~~with ~~continued~~all ~~listing~~reporting requirements orof the ~~requirements~~Securities Act of ~~any other national securities exchange~~1934. ~~Nevertheless,~~In in determining whether a director or nominee for director should be considered “independent” the board utilizes the definition of independence set forth in Rule 5605(a)(2) of the ~~Nasdaq~~NASDAQ Marketplace Rules. The Company currently does not have an independent director.

Board ~~meetings~~Meetings

The Board of Directors held one meeting during the ~~fiscal~~ year ended ~~April~~December 3031, ~~2013~~2014. Mr. Beck and Mr. Blumberg attended the meeting. Directors receive no compensation for meeting attendance.

Board ~~committees~~Committees

We do not have an audit, nominating or compensation committee. Due to the small size of the Board of Directors, at this time we do not intend, to establish either an audit committee or a compensation committee of our Board of Directors. When we do ultimately establish these committees, we envision that the audit committee will be primarily responsible for reviewing the services performed by our independent auditors and evaluating our accounting policies and our system of internal controls. The compensation committee will be primarily responsible for reviewing and approving our salary and benefits policies (including stock options) and other compensation of our executive officers. We do not have an audit committee financial expert on our Board because we do not have an audit committee.

Board Structure

Our Board has not chosen to separate the positions of Chief Executive Officer and Chairman of the Board in recognition of the fact that our operations are sufficiently limited that such separation would not serve any useful purpose. Our Chairman and Chief Executive Officer is responsible for setting the strategic direction for our ~~company~~Company and for the day-to-day leadership of our Company, as well as setting the agenda for Board meetings and presiding over meetings of the full Board.

Role of Board in Risk Oversight Process

Management is responsible for the day-to-day management of risk and for identifying our risk exposures and communicating such exposures to our Board. Our Board is responsible for designing, implementing and overseeing our risk management processes. The Board does not have a standing risk management committee, but administers this function directly through the Board as a whole. The whole Board considers strategic risks and. opportunities and receives reports from its officers regarding risk oversight in their areas of responsibility as necessary. We believe our Board’s leadership structure facilitates the division of risk management oversight responsibilities and enhances the Board’s efficiency in fulfilling its oversight function with respect to different areas of our business risks and our risk mitigation practices.

- 14 -

Communications with the Board of Directors

Stockholders with questions about the Company are encouraged to contact the Company by sending communications to the attention of the Chief Executive Officer at 13101 Preston Road Suite 510, Dallas Texas 75240. If stockholders feel that their questions have not been sufficiently addressed through communications with the Chief Executive Officer, they may communicate with the Board of Directors by sending their communications to the Board of Directors, c/o the Chief Executive Officer at the same address.

- 14 -

ITEM 11. EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

The ~~table on the~~ following ~~page~~table sets forth the compensation earned by our Chief Executive Officer, our President, who had previously served as our Chief Marketing Officer, and our Chief Financial Officer for the last three fiscal years. We do not have any other executive officers who were awarded, earned or were paid over $100,000.

Name and principal position (a)	~~Year~~Period (b)	Salary ($)(c)	Bonus ($)(d)	Stock Awards ($)(e) (14)	Option Awards ($)(f)(25)	All Other Compensation ($)(i)	Total ($)(j)
Scott N. Beck, Chairman of the Board of Directors, Chief Executive Officer	~~2013~~2014(1)	~~250~~23,000(6)	—	—	—	—	~~250~~23,000
	2012	250,000	—	—	—	—	250,000
	2013(2)	138,417(6)	—	—	—	—	138,417
	2011	250,000	65,470(3)	107,662	—	—	423,132
	2013(3)	250,000	—	—	—	—	250,000
Marc A. Pickren, President, previously Chief Marketing Officer	~~2013~~2014(1)	~~220,000~~—	—	—	—	—	~~220,000~~—
	2012	216,250	45,000	—	35,000	—	296,250
	2013(2)	108,202(7)	—	—	—	—	108,202
	2011	200,000	55,000(4)	40,633	—	—	295,633
	2013(3)	220,000	—	—	—	—	220,000
V. Chase McCrea III, Chief Financial Officer	~~2013~~2014(1)	165,000	353,000(58)	—	—	—	~~200~~168,000
	2012	165,000	27,514	—	—	—	192,514
	2013(2)	116,875	41,250(8)	—	—	—	158,125
	2011	156,250	39,376	25,633	6,800	—	228,589
	2013(3)	165,000	27,514(8)	—	—	—	192,514

(1)	~~The~~Amounts ~~amounts~~ in column (e) reflect the dollar amount recognized for financial statement reporting purposes for the applicable fiscal year, in accordance with ASC Topic 718 (formerly FAS 123[R]) of stock awards granted to each named executive officer, and therefore include amounts from awards granted in and prior to the applicable fiscal year. Assumptions used in the calculation of this ~~amount~~row are ~~included in footnote 8 to the Company’s audited financial statements~~ for the ~~fiscal~~ year ended ~~April~~December 3031, ~~2013 included in this Annual Report on Form 10-K~~2014.
(2)	~~The~~Amounts ~~amounts~~ in column (f) reflect the dollar amount recognized for financial statement reporting purposes for the applicable fiscal year, in accordance with ASC 718 with respect to outstanding stock options granted to each executive officer, whether granted in that fiscal year or in prior fiscal years. These balances have not been adjusted for the potential impact of estimated forfeitures. Assumptions used in the calculation of this ~~amount~~row are ~~included in footnote 9 to the Company’s audited financial statements~~ for the ~~fiscal~~eight-month ~~year~~period ended ~~April~~December 3031, 2013 ~~included in this Annual Report on Form 10-K~~.
(3)	~~Mr.~~Amounts ~~Beck’s~~in ~~bonus~~this ~~was~~row ~~accrued~~are atfor ~~April~~the ~~30,~~twelve-month ~~2011~~period ~~and~~ended isApril ~~payable~~30 inof ~~cash~~the ~~pursuant~~respective ~~to a schedule provided in his employment agreement.~~year
(4)	~~Approximately~~The ~~$39~~amounts in column (e) reflect the dollar amount recognized for financial statement reporting purposes for the applicable fiscal year,~~479~~ in accordance with ASC Topic 718 (formerly FAS 123[R]) of ~~Mr.~~stock ~~Pickren’s~~awards ~~bonus~~granted ~~was~~to ~~cash~~each ~~settled~~named executive officer, and therefore include amounts from awards granted in and prior to ~~April~~the ~~30,~~applicable ~~2011~~fiscal ~~while~~year. ~~$15,521~~Assumptions ~~remains~~used ~~payable~~in asthe calculation of ~~April~~this 30amount are included in Note 8 to the Company’s audited consolidated financial statements for the eight-month period ended December 31, 2013 included in this Transition Report on Form 10-K.
(5)	~~Mr.~~The ~~McCrea’s~~amounts ~~bonus~~in ~~was~~column ~~accrued~~(f) atreflect ~~April~~the ~~30,~~dollar ~~2013~~amount ~~and~~recognized isfor ~~payable~~financial statement reporting purposes for the applicable fiscal year, in ~~cash~~accordance bywith ~~August~~ASC 31718 with respect to outstanding stock options granted to each executive officer, ~~2013~~whether granted in that fiscal year or in prior fiscal years. ~~The~~These ~~discretionary~~balances ~~portion~~have not been adjusted for the potential impact of ~~his~~estimated ~~bonus~~forfeitures. ~~has~~Assumptions ~~not~~used ~~yet~~in ~~been~~the ~~determined~~calculation ~~but~~of ~~could~~this ~~include~~amount upare included in Note 8 to anthe ~~additional~~Company’s $6audited consolidated financial statements for the eight-month period ended December 31,~~250~~ 2013 included in this Transition Report on Form 10-K.
(6)	Effective November 1, 2013, Mr. Beck and the Company amended his employment agreement such that his annual base salary was reduced to $18,000 and that, effective January 1, 2014, his annual base salary would be $23,000.
(7)	Mr. Pickren’s employment agreement expired of its own accord on September 15, 2013; it was not renewed. Mr. Pickren’s employment was terminated for cause on October 8, 2013.
(8)	This chart reflects the fact that Mr. McCrea’s bonuses have historically been accrued at the end of the reporting period and cash settled immediately subsequent to the end of the reporting period.

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Executive Employment Agreements

On July 28, 2011, the Company’s CornerWorld, Inc. subsidiary entered into an employment agreement with Mr. Beck, its Chairman and Chief Executive Officer. Mr. Beck’s employment agreement has been modified multiple times, most recently as of November 1, 2013. Pursuant to his employment agreement, Mr. Beck is paid an annual base salary of $~~400~~23,000, and an annual performance based cash bonus subject to the discretion of the Board of Directors, ~~an annual warrant to purchase 1% of the then outstanding common shares of the Company at~~ a ~~strike price equal to the average closing price for CornerWorld’s common stock for the five trading days immediately preceding the date of grant, a~~ bonus fee of 2% of all equity and debt raised during the time of his contract payable out of proceeds at closing of such equity and/or debt capital transaction, a 3.50% fee for the transaction value of all acquisitions as defined in his employment agreement payable at closing, warrants equal to 3.25% of the equity issued pursuant to any debt and equity raised during the time of his employment agreement, ~~a warrant equal to 3.25% of the transaction value of any equity issued in association with all acquisitions~~ and the greater of 5% of fair market value or $5.0 million buyout fee in the case of a change in control. ~~In addition,~~ Mr. Beck’s employment agreement provides for an annual increase of Mr. Beck’s base salary by 5% every year during the term of the agreement; this adjustment was waived for the twelve month period beginning May 1, 2012. Mr. Beck’s employment agreement also provides that, if he is terminated without cause prior to the end of the employment agreement, he will be paid the full amount of his base salary for any days remaining in the full ten year term, the Company will purchase all equity instruments held by Mr. Beck and the Company will pay Mr. Beck $5.0 million within six months of his termination. Finally, Mr. Beck will receive 10% of amounts payable to the Company as a result of any patent infringement litigation. Mr. Beck’s employment agreement continues through July 27, 2021.

OnMr. ~~July~~McCrea ~~27,~~was ~~2012~~employed ~~and~~subject ~~again~~to onhis ~~July~~employment ~~29,~~agreement ~~2013~~which became effective August 1, ~~the~~2010. ~~Company~~Pursuant ~~and~~to his employment agreement, Mr. ~~Beck~~McCrea ~~agreed~~was paid an annual base salary of $165,000 and a cash bonus equivalent up to ~~amend~~25% of his base salary. With respect to Mr. ~~Beck~~McCrea’s ~~employment~~bonus, ~~agreement~~33% ~~such~~was ~~that~~at ~~Mr.~~the ~~Beck~~discretion of the Chief Executive Officer, 33% was payable to the extent the Company’s ~~annual~~EBITDA ~~salary~~exceeded ~~would~~$1.5 million and 33% if the Company completed its public filings in a timely manner. Mr. McCrea was also to be ~~reduced~~paid a severance equal to ~~$250,000~~six ~~per~~months ~~year~~of ~~for~~his ~~the~~base ~~period~~salary ~~from~~should he be terminated without cause. On July 2827, ~~2011~~2012, ~~through~~the ~~April~~Company ~~30,~~and ~~2014~~Mr. ~~After~~ ~~that~~McCrea ~~point,~~amended Mr. ~~Beck~~McCrea’s ~~salary~~employment ~~would~~agreement ~~return~~such toMr. ~~$400,000~~McCrea’s ~~per~~agreement ~~annum. In~~continued ~~addition~~through July 31, ~~the~~2014. All ~~amendment~~other ~~provided~~terms ~~that~~remain unchanged. Mr. ~~Beck~~McCrea’s ~~would~~employment ~~not~~agreement ~~receive~~expired ~~any~~of ~~annual~~its ~~warrant~~own ~~grants~~accord ~~until~~on July 2831, 2014 and was not renewed. Mr. McCrea continues to be an at-will employee of the Company.

OnDuring ~~September 13, 2011,~~ the ~~Company~~fiscal ~~entered~~year ~~into~~ended anDecember ~~employment agreement with Mr. Pickren~~31, ~~its President. Pursuant to his employment agreement~~2014, ~~Mr.~~there ~~Pickren~~have isbeen ~~paid~~no anoccurrences ~~annual base salary~~ of ~~$220,000~~the ~~and commissions based on new clients acquired by Mr. Pickren. Mr. Pickren was paid a one~~re-~~time~~pricing ~~signing bonus~~ of ~~$55,000~~an ~~related~~outstanding tooption ~~entering~~or ~~into~~other ~~this~~equity-based ~~agreement.~~award Inand ~~addition,~~no inwaiver ~~accordance~~or ~~with~~modification ~~his employment agreement, on September 21, 2011, Mr. Pickren was issued 250,000 options to purchase the Company’s common stock at an exercise price~~ of ~~$0.30~~any ~~per~~specified ~~share.~~performance ~~The~~target ~~option contains vesting provisions consistent~~ with ~~other~~respect ~~options issued~~ to ~~employees~~any ~~and~~amount ~~expires~~included atin ~~the~~non-stock ~~end~~incentive ofplan ~~5 years~~compensation. ~~Mr. Pickren’s employment agreement continues through September 15, 2013.~~

Mr. McCrea is employed subject to his employment agreement which became effective August 1, 2010. Pursuant to his employment agreement, Mr. McCrea is paid an annual base salary of $165,000 and a cash bonus equivalent up to 25% of his base salary. With respect to Mr. McCrea’s bonus, 33% is at the discretion of the Chief Executive Officer, 33% is payable to the extent the Company’s EBITDA exceeds $1.5 million and 33% if the Company completes its public filings in a timely manner. Mr. McCrea is also to be paid a severance equal to six months of his base salary should he be terminated without cause. On July 27, 2012, the Company and Mr. McCrea amended Mr. McCrea’s employment agreement such Mr. McCrea’s agreement continues through July 31, 2014. All other terms remain unchanged.

During the fiscal year ended April 30, 2013, there has been no occurrence of the re-pricing of any outstanding option or other equity-based award and no waiver or modification of any specified performance target with respect to any amount included in non-stock incentive plan compensation.

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OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END

The following table sets forth information regarding stock option awards previously granted which were outstanding at ~~April~~December 3031, ~~2013~~2014.

		Option Awards				Stock Awards
Name (a)	Number of Securities Underlying Unexercised Options Exercisable (b)	Number of Securities Underlying Unexercised Unexercisable Options (c)	Equity Incentive Plan: Number of Securities Underlying Unexercised Unearned Options (d)	Weighted Average Option Exercise Price ($) (e)	Option Expiration Date (f)	Number of Shares of Units of Stock That Have Not Vested (g)	Market Value of Shares of Units of Stock That Have Not Vested ($) (h)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested ($) (i)	Equity Incentive Plan Awards: Market of Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (j)
Scott N. Beck	—	—	—	—	—	—	—	—	—
Marc Pickren	675,000	125,000	—	$0.42	8/26/13	—	—	—	—
V. Chase McCrea III	200,000	—	—	$0.20	10/12/15	—	—	—	—
V. Chase McCrea III	400,000	50,000	—	$0.20	10/12/15	—	—	—	—

~~Stock~~- ~~Compensation~~16 ~~Plans:~~-

Stock Compensation Plans

Incentive Stock Plan

On August 17, 2007, the Company’s board of directors adopted and implemented the Company’s 2007 Incentive Stock Plan. Under the Incentive Stock Plan, the Company is authorized to issue 4,000,000 shares of its common stock to the Company’s directors, officers, employees, advisors or consultants.

Any Incentive Stock Option granted to an employee of the Company shall become exercisable over a period of no longer than 5five years, and no less than 20% of the shares covered thereby shall become exercisable annually. 25% of shares vest on the six month anniversary of the date of grant, the Initial Vesting Date, while the remaining options vest annually in 25% increments beginning on the first anniversary of the Initial Vesting Date. The options expire 5five years from the grant date.

The number of shares outstanding under the Company’s 2007 Incentive Stock Plan as of ~~April~~December 3031, ~~2013~~2014 was 1,~~320~~925,000.

Stock Compensation Plan

On August 17, 2007, the Company’s ~~board~~Board of ~~directors~~Directors adopted and implemented the Company’s 2007 Stock Compensation Plan. The total number of shares of the Company’s common stock which may be purchased or granted directly by Options, Stock Awards or Warrants under the Compensation Plan shall not exceed 4,000,000 shares of the Company’s common stock.

Awards granted to a participant of the Company shall become exercisable over a period of no longer than 5five years, and may vest as determined at the Company’s discretion at the time of grant.

AsThe number of ~~April 30, 2013, 925,000 authorized~~ shares outstanding under the Company’s 2007 Stock Compensation Plan ~~had~~as ~~been~~of ~~granted~~December 31, 2014 was 1,625,000.

Director Compensation

The Company does not pay compensation to its directors for their service at this time. Furthermore, the Company has no present formal plan for compensating our directors for their service in their capacity as such.

POTENTIAL PAYMENTS ON TERMINATION OR CHANGE IN CONTROL

~~Each of~~ Mr. Beck, ~~Mr.~~is ~~Pickren~~the ~~and~~lone ~~Mr. McCrea are~~ named Executive Officers currently employed subject to an employment ~~agreements~~agreement. Pursuant to ~~their~~his respective employment ~~agreements~~agreement, ~~they~~he ~~are~~is entitled to payments for termination for reasons other than cause or resulting from a change in control described as follows:

Should Mr. Beck be terminated prior to the expiration of his contract for a reason other than cause, as defined in his employment agreement, he is entitled to the following:


	a)	Payment of the full amount of base salary for the days remaining of the contract expiring in 2021 paid in full on the six month anniversary of the date of termination

	b)	Any bonus amount that would otherwise have been payable to Employee, payable on the next date on which a bonus amount would have otherwise been payable to Employee following the Termination Date, prorated through the Termination Date;

	c)	any vacation pay accrued but unpaid as of the Termination Date, payable in a single lump sum payment on the Termination Date; and

	d)	the lump sum payment of Five Million Dollars ($5,000,000) paid in full on the six month anniversary date of the date of termination.

- 17 -

a) Payment of the full amount of base salary for the days remaining of the contract for the full ten (10) year period of the contract; paid in full on the six month anniversary of the date of termination b) Any bonus amount that would otherwise have been payable to Employee, payable on the next date on which a bonus amount would have otherwise been payable to Employee following the termination Date, prorated through the Termination Date; c) any vacation pay accrued but unpaid as of the Termination Date, payable in a single lump sum payment on the Termination Date; and d) the lump sum payment of Five Million Dollars ($5,000,000) paid in full on the six month anniversary date of the date of termination.

Should Mr. Pickren be terminated prior to the expiration of his contract for a reason other than cause, as defined in his employment agreement, he is entitled to the following:

a) Payment of his base salary for one year b) The estimated cost of COBRA Insurance for one year; and c) any vacation pay accrued but unpaid as of the Termination Date, payable in a single lump sum payment on the Termination Date.

Should Mr. McCrea be terminated prior to the expiration of his contract for a reason other than cause, as defined in his employment agreement, he is entitled to the following:

a) Payment of his base salary for 180 days payable in accordance with the customary payroll practices of the Company for a period of 180 days b) Any bonus amount that would otherwise have been payable to Employee, payable on the next date on which a bonus amount would have otherwise been payable to Employee following the termination Date, prorated through the Termination Date; and c) any vacation pay accrued but unpaid as of the Termination Date, payable in a single lump sum payment on the Termination Date.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The table below sets forth, as of ~~July~~January 2922, ~~2013~~2015 (except where otherwise noted), certain information with respect to shares beneficially owned by (i) each person who is known by the Company to be the beneficial owner of more than five percent of the Company’s outstanding shares of Common Stock, (ii) each of the Company’s Directors, (iii) each of the executive officers and (iv) all current Directors and executive officers as a group. Beneficial ownership has been determined in accordance with Rule 13d-3 under the Exchange Act. Under this rule, certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares (for example, upon exercise of an option or warrant) within sixty (60) days of the date as of which the information is provided; in computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the following table does not necessarily reflect the person’s actual voting power at any particular date. As of ~~July~~January 2922, ~~2013~~2015, the Directors and executive officers of the Company held a total of 4363,~~895~~125,~~564~~730 shares of Common Stock entitled to vote, representing 2738.17% of the then outstanding shares of Common Stock.

- 18 -


Beneficial Owner	Amount of Common Stock Beneficially Owned as of January 22, 2015 (1)	Percentage of Common Stock Outstanding (1)

Executive Officers and Directors (2)
Scott Beck	56,787,044	34.9%
Marc Blumberg	3,138,686	1.9%
V. Chase McCrea III (3)	3,200,000	2.0%
All executive officers and directors as a group (consisting of 3 individuals)	63,125,730	38.7%

Other 5% stockholders:
IU Holdings II, LP (4)	58,314,132	35.8%
Total Executive Officers, Directors and Affiliates (2)	121,439,862	74.2%

Beneficial Owner		Amount of Common Stock Beneficially Owned as of July 29, 2013 (1)	Percentage of Common Stock Outstanding (1)
(1)	The number of shares of Common Stock outstanding as of January 22, 2015 was 162,937,110. The number of beneficially owned shares includes 200,000 shares issuable pursuant to stock options that may be exercised within sixty (60) days after January 22, 2015.
Executive Officers and Directors (2)
(2)	Except as indicated in the footnotes to this table and pursuant to applicable community property laws, the officers and Directors named in the table have sole voting and investment power with respect to all shares of Common Stock. Unless otherwise indicated, the business address of each beneficial owner listed is 13101 Preston Road, Suite 510, Dallas, Texas 75240.
Scott Beck (3)		29,051,038	18.3%
(3)	Includes 200,000 shares issuable upon exercise of stock options exercisable or that vest within 60 days of December 31, 2014.
Marc Blumberg (4), (7)		5,138,686	3.2%
(4)	The business address of this entity is 5005 LBJ, Freeway, Suite 370 Occidental Tower Management, Dallas, TX 75244. See “Certain Relationship ad Related Transactions” below for additional information regarding this entity.
Marc Pickren (5)		6,305,840	4.0%
V. Chase McCrea III (6)		3,400,00	2.2%
All executive officers and directors as a group (consisting of 4 individuals)		43,895,564	27.1%
Other 5% stockholders:
IU Holdings II, LP (8)		58,314,132	37.1%
Internet University, Inc. (7)		37,571,577	23.9%
Total Executive Officers, Directors and Affiliates (2)		139,781,273	76.1%

(1)	The number of shares of Common Stock outstanding as of July 29, 2013 was 157,313,704 The number of beneficially owned shares includes shares issuable pursuant to stock options that may be exercised within sixty (60) days after April 30, 2013 as well as warrants that are immediately exercisable. In addition, the table contemplates the issuance of shares and warrants to certain individuals and entities as detailed in Part II Item 5, “Recent Sales of Unregistered Securities”. At the time of this filing, all warrants had been issued but the share issuances had not yet been completed.
(2)	Except as indicated in the footnotes to this table and pursuant to applicable community property laws, the officers and Directors named in the table have sole voting and investment power with respect to all shares of Common Stock. Unless otherwise indicated, the business address of each beneficial owner listed is 13101 Preston Road, Suite 510, Dallas, Texas 75240.
(3)	Includes 1,321,000 shares issuable upon exercise of warrants immediately exercisable as of April 30, 2013.
(4)	Includes 1,500,000 warrants to purchase common stock exercisable within sixty (60) days of April 30, 2013. In addition, the number includes 500,000 shares issuable upon exercise of stock options exercisable or that vest within 60 days of April 30, 2013.
(5)	Includes 500,000 warrants to purchase common stock exercisable within sixty (60) days of April 30, 2013. In addition, number includes 675,000 shares issuable upon exercise of stock options exercisable or that vest within 60 days of April 30, 2013.
(6)	Includes 400,000 shares issuable upon exercise of stock options exercisable or that vest within 60 days of April 30, 2013.
(7)	Mr. Blumberg is a shareholder and the President of Internet University, Inc. His business address and the business address of this entity is 12404 Park Central, Suite 400, Dallas, Texas 75251.
(8)	The business address of this entity is 5005 LBJ, Freeway, Suite 370 Occidental Tower Management, Dallas, TX 75244.

As part of the Company’s 2008 acquisition of Enversa, the Company borrowed $1,500,000 from Internet University, Inc., Marc Blumberg and Marc Pickren (collectively, the “Enversa Sellers”). Mr. Blumberg is a member of the Company’s Board of ~~Director~~Directors as well as the former president of Internet University, Inc. and Mr. Pickren iswas the President of the Company. On March 30, 2011, the Company entered into amendments to its promissory notes with the Enversa Sellers (collectively the “Tier 4 Junior Notes”). The amendments to the Tier 4 Junior Notes revised the repayment schedules of the Tier 4 Junior Notes, among other things. The Company recorded interest of $69,726, $161,999 and $65,997 on these notes during the years ended April 30, 2013, 2012 and 2011, respectively. On October 31, 2012, the Company settled the ~~Tier~~notes 4to ~~Junior~~the ~~Notes~~Enversa Sellers in their entirety via the conversion to shares of the Company’s common stock. The outstanding principal balances on the notes themselves, as well as any outstanding accrued interest, were converted at the rate of $0.15/share. Accordingly, the ~~Tier~~notes 4to ~~Junior~~the ~~Notes~~Enversa Sellers had no outstanding balances at December 31, 2014. The Company recorded interest of $0, $0 and $69,726 on these notes during the year ended December 31, 2014, the eight-month period ended December 31, 2013 and the fiscal year ended April 30, 2013, respectively.

- 1918 -

As part of the February 23, 2009 Woodland Acquisition, the Company borrowed $1,900,000 from IU Investments LLC. ~~On March 30, 2011, the Company entered into Amendment No. 3~~ (~~“IU Amendment No. 3”) to its Promissory Note to IU Investments, LLC (~~the “Tier 3 Junior Note”). IU ~~Amendment~~Investments, ~~No.~~LLC 3is ~~revised~~an ~~the~~entity ~~repayment~~owned ~~schedule~~by of the ~~Tier~~immediate 3family ~~Junior~~members ~~Note~~of ~~such that~~ the Company’s ~~will~~Chief ~~make~~Executive ~~principal~~Officer. ~~payments~~The ~~totaling~~outstanding ~~$27,417/month~~portion ~~until~~of ~~February 28, 2012, after which time~~ the ~~Company~~Tier ~~will~~3 ~~pay~~Junior ~~$67,200~~Note ~~annually~~along ~~beginning~~with ~~March~~its ~~31,~~accrued ~~2012~~interest ~~until~~was ~~such~~settled ~~time as the Tier 3 Junior Note is paid~~ in ~~full~~its entirety on ~~March~~September 3130, ~~2016~~2013. Accordingly, ~~The~~the Tier 3 Junior Note ~~was~~had ~~amended~~no onoutstanding ~~February~~balance ~~3, 2012 such that principal payments were deferred six months and interest payments will be payable~~ at ~~the~~December ~~choice of the Company at a rate of 10% per annum. IU Investments~~31, ~~LLC is an entity owned by the parents of the Company’s Chief Executive Officer~~2014. The Company recorded interest of $570,~~992,~~ $5526,~~073~~105 and $~~104~~57,~~324~~992 on ~~this~~the ~~facility~~Tier 3 Junior Note during the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the ~~and~~eight-month ~~2011,~~period ~~respectively.~~ended ~~The~~December ~~balance~~31, of2013 ~~this~~and ~~note~~the ~~totaled~~fiscal ~~$527,915~~year atended April 30, 2013, respectively.

On March 30, 2011, the Company entered into a subordinated $1.5,500,000 ~~million~~ promissory note with IU Holdings, LP (“IUH”) (the “Tier 2 Junior Note”) ~~in connection with the previously reported settlement with Ned Timmer~~. ~~Principal~~IUH ~~under~~is ~~the~~a ~~Tier~~partnership 2whose ~~Junior~~limited ~~Note~~partners isinclude ~~payable~~the inimmediate ~~quarterly~~family ~~installments~~members of ~~$187,500. The~~the Company’s ~~amended~~Chief ~~this~~Executive ~~note~~Officer. Steve ~~several times during the fiscal years ended April 30~~Toback, ~~2013 and 2012 such that interest on~~ the ~~outstanding~~uncle ~~principal~~of ~~amount under~~ the ~~Tier 2 Junior Note is payable at the~~ Company’s ~~choosing~~Chief atExecutive ~~a rate of 10% per annum and principal payments begin on May 31~~Officer, ~~2013. As~~served ~~additional~~as ~~consideration to induce~~ the ~~Tier 2~~manager ~~Junior~~of ~~Lender~~IU toHoldings, ~~enter~~GP, ~~into~~LLC, ~~this~~which ~~Promissory~~is ~~Note,~~ the ~~Company~~general ~~issued~~partner ~~the~~of ~~Tier 2~~IUH. ~~Junior~~The ~~Lender,~~outstanding ~~48,414,132~~portion ~~shares~~ of ~~CornerWorld~~this ~~Corporation~~note ~~Common~~along ~~stock. IUH~~with isits aaccrued ~~partnership~~interest ~~whose~~was ~~limited~~settled ~~partners~~in ~~include~~its ~~the~~entirety ~~parents~~on ofSeptember ~~the~~30, ~~Company’s Chief Executive Officer~~2013. ~~Steve Toback~~Accordingly, the ~~uncle~~Tier of2 ~~the~~Junior ~~Company’s~~Note ~~Chief~~had ~~Executive~~no ~~Officer,~~outstanding ~~serves~~balance asat ~~the~~December ~~manager of IU Holdings~~31, ~~GP, LLC, which is the general partner of IUH~~2014. The Company recorded interest expenses of $~~162~~0,~~314,~~ $~~160~~73,~~521~~006 and $15162,~~500~~314 ~~during~~on the ~~years~~Tier ~~ended~~2 ~~April~~Junior ~~30,~~Note ~~2013,~~during ~~2012~~the ~~and~~year ~~2011~~ended December 31, ~~respectively~~2014, tothe ~~IUH~~eight-month asperiod aended ~~result~~December of31, ~~this~~2013 ~~note. The~~and ~~balance~~the offiscal ~~this~~year ~~note~~ended ~~totaled $1,500,000 at~~ April 30, 2013, respectively.

On March 30, 2011, the Company entered into a subordinated $400,000 promissory note (the “Tier 5 Junior Note”) with Internet University~~. Principal~~ ~~under~~ (the “Tier 5 Junior ~~Note is payable in monthly installments of $25,000 commencing on April 30, 2011 until such point as the Tier 5 Junior Note matures~~Lender”). The ~~Company~~outstanding ~~amended~~portion of this note ~~multiple~~along ~~times~~with ~~during~~its ~~the~~accrued ~~fiscal~~interest ~~years~~was ~~ended~~settled ~~April~~in ~~30,~~its ~~2013~~entirety ~~and 2012 such that interest~~ on ~~the~~September ~~outstanding~~30, ~~principal~~2013. Accordingly, ~~amount under~~ the Tier 5 Junior Note ishad ~~payable~~no atoutstanding ~~the~~balance ~~Company’s choosing~~ at aDecember ~~rate of 10% per annum. As additional consideration to induce the Tier 5 Junior Lender to enter into this Promissory Note~~31, ~~the Company issued the Tier 5 Junior Lender, 12,910,435 shares of CornerWorld Corporation Common stock~~2014. The Company recorded interest expenses of $190,~~639,~~ $371,~~027~~342 and $519,~~000~~639 on ~~this~~the ~~facility~~Tier 5 Junior Note during the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the ~~and~~eight-month ~~2011,~~period ~~respectively. The~~ended ~~balance~~December of31, ~~this~~2013 ~~note~~and ~~totaled~~the ~~$10,000~~fiscal atyear ended April 30, 2013, respectively.

On March 30, 2011, the Company entered into a subordinated $389,942 promissory note (the “~~Tier~~Senior ~~7 Junior~~ Note”) with Scott N. Beck, the Company’s Chief Executive Officer. Principal under the Tier 7 Junior Note is payable in monthly installments of $12,746 until such point as the Tier 7 Junior Note matures on July 31, 2016. The Company amended this note ~~multiple~~on ~~times~~September ~~during~~30, ~~the~~2014 ~~fiscal~~such ~~years~~that ~~ended~~principal ~~April~~payments 30were deferred until December 31, ~~2013~~2014 and ~~2012~~the ~~such~~interest ~~that~~rate was reduced to 6.25%; interest on the outstanding principal amount under the Tier 7 Junior Note is payable at the Company’s choosing. The atCompany arecorded ~~rate~~interest of ~~10%~~$26,845, ~~per~~$24,186 ~~annum~~and $36,685 on the Senior Note during the year ended December 31, 2014, the eight-month period ended December 31, 2013 and the fiscal year ended April 30, 2013, respectively. AsOn ~~additional~~December ~~consideration~~31, 2014, the Company did not make its regularly scheduled payment totaling $12,746 to ~~induce~~Scott MrN. Beck, tothe ~~enter~~Company’s ~~into~~Chief ~~this~~Executive ~~Promissory~~Officer and the holder of the Senior Note, ~~the~~which ~~Company~~constituted ~~issued~~an event of default under the Senior Note. Mr. Beck 12did not call default but there can be no assurance that,~~585,802~~ ~~shares~~as ofthe ~~CornerWorld~~Company’s ~~Corporation~~Senior ~~Common~~Lender, ~~stock~~he will not do so. ~~The~~ ~~Tier~~It 7is ~~Junior~~anticipated that the Company will amend the Senior Note ~~consists~~at ~~primarily~~some offuture ~~prior~~point ~~accounts~~but ~~payable~~there ~~and~~can ~~accrued~~be ~~bonuses~~no assurance that we will be successful in amending the terms of the Senior Note. ~~The~~Should ~~Company~~we ~~recorded~~be ~~interest~~unsuccessful ofin ~~$36~~executing an amendment or an extension,~~685,~~ ~~$34~~Mr. Beck,~~631~~ ~~and~~as $3the senior lender,~~250~~ oncould ~~this~~move ~~facility~~to ~~during~~seize the ~~years~~underlying ~~ended~~collateral ~~April~~which ~~30,~~would ~~2013,~~have ~~2012~~a ~~and~~material ~~2011,~~adverse ~~respectively~~effect on the Company’s ability to continue as a going concern. The balance of this note totaled $338,958 at ~~April~~December 3031, ~~2013~~2014.

The Company is party to a lease agreement with 13101 Preston Road, LP pursuant to which it leases office space for its corporate headquarters. The limited partners of 13101 Preston Road, LP are trusts created by the father of the Company’s Chief Executive Officer. The lease iswas originally for 5five years with minimum future rentals of $3031,~~000~~900 in the next fiscal year, followed by $3113,~~200~~500 ~~and $32,400~~ in the final ~~two years~~year. The Company paid $~~106~~30,~~692~~000, $~~199~~20,~~820~~000 and $47106,~~922~~692 in rent during the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the eight-month period ended December 31, 2013 and ~~2011~~the fiscal year ended April 30, 2013, respectively. The Company also has a $2017,~~000~~500 deposit on the space for this lease.

The Company provides accounting, human resources and certain IT services to an entity controlled by the family of the Company’s Chief Executive Officer for $5,000 per month. The Company received $60,000, $40,000 and $560,000 from this entity during the ~~years~~year ended ~~April~~December 3031, 2014, the eight-month period ended December 31, 2013 and ~~2012~~the fiscal year ended April 30, 2013, respectively.

Policy Regarding Transactions with Related Persons

We do not have a formal, written policy for the review, approval or ratification of transactions between us and any director or executive officer, nominee for director, 5% stockholder or member of the immediate family of any such person that are required to be disclosed under Item 404(a) of Regulation S-K. However, our policy is that any activities, investments or associations of a director or officer that create, or would appear to create, a conflict between the personal interests of such person and our interests must be assessed by our Chief Executive Officer and our Chief Financial Officer and be at arms-length.

- 2019 -

ITEM 14. PRINCIPAL ACCOUNTANT FEES ~~AND~~& SERVICES

~~The~~Audit ~~following is a summary of fees~~ and ~~services~~Related ~~approved by the Company and billed by Schumacher and Associates, Inc. for the fiscal years ended April 30, 2013 and 2012.~~Fees

	Year ended April 30,
	2013		2012
Audit Fees (1)	$	53,500	$	54,200
Audit Related Fees (2)		—		—
Total (3)	$	53,500	$	54,200

The following is a summary of fees and services approved by the Company and billed by Montgomery Coscia Greilich LLP (“MCG”)for the fiscal year ended December 31, 2014 and the transitional eight month period December 31, 2013.

	(1)	Audit Fees. This represents the aggregate fees billed to us in each of fiscal 2013 and fiscal 2012 for professional services rendered by Schumacher and Associates, Inc. for (i) the audit of our annual financial statements included in our annual report on Form 10-K and (ii) the review of our interim financial statements included in the quarterly reports.
		Year ended December 31, 2014		Eight month period ended December 31, 2013
	(2)	Audit-Related Fees. The aggregate fees billed to us in each of fiscal 2013 and fiscal 2012 for professional services rendered by Schumacher and Associates, Inc. for audit-related fees including statutory and regulatory filings was zero. We do not currently engage Schumacher and Associates, Inc. to perform internal control testing.
Audit Fees (1)		$	25,000	$	21,000
	(3)	Tax Fees. We do not currently engage Schumacher and Associates, Inc. to perform tax services.
Audit Related Fees (2)			—		—
Total (3)		$	25,000	$	21,000

PART IV


	(1)	Audit Fees. This represents the aggregate fees billed to us in each of fiscal 2014 and the eight month period ended December 31, 2013 for professional services rendered by MCG for (i) the audit of our annual financial statements included in our annual report on Form 10-K and (ii) the review of our interim financial statements included in the quarterly reports.

	(2)	Audit-Related Fees. The aggregate fees billed to us in each of fiscal 2014 and the eight month period ended December 31, 2013 for professional services rendered by MCG for audit-related fees including statutory and regulatory filings was zero. We do not currently engage MCG to perform internal control testing.

	(3)	We do not currently engage MCG to perform tax or other services.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this Report:

(1.) Consolidated Financial Statements

The report of our independent registered public accounting firm and our consolidated financial statements are listed below and begin on page F-1 of this Annual Report on Form 10-K.

Financial Information

	Page Number
Report of Independent Registered Public Accounting Firm	F-1
Reports of Independent Registered Public Accounting Firms	F-1– F-2
Consolidated Balance Sheets	F-23
Consolidated Statements of Operations	F-34
Consolidated Statements of Stockholders’ Equity (Deficit)	F-45
Consolidated Statements of Cash Flows	F-56
Notes to Consolidated Financial Statements	F-67 – F-2419

(2.) Schedules

None.

(3.) Exhibits

The exhibits to this report are listed in the exhibit index below.

(b) Description of exhibits

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INDEX TO EXHIBITS


Exhibit
Numbers		Description
2.1		Share Exchange Agreement, dated May 11, 2007, by and among CornerWorld, Inc. and each of the shareholders of CornerWorld, Inc. and CornerWorld Corporation (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed May 30, 2007).
2.2		Letter Agreement, dated June 21, 2007, amending the Share Exchange Agreement, dated May 11, 2007, by and among CornerWorld, Inc. and each of the shareholders of CornerWorld, Inc. and CornerWorld Corporation (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed August 15, 2007).
2.3		Amendment No. 2, dated July 27, 2007, to the Share Exchange Agreement, dated May 11, 2007, by and among CornerWorld, Inc. and each of the shareholders of CornerWorld, Inc. and CornerWorld Corporation (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed August 15, 2007).
2.4		Amendment No. 3, dated August 8, 2007, to the Share Exchange Agreement, dated May 11, 2007, by and among CornerWorld, Inc. and each of the shareholders of CornerWorld, Inc. and CornerWorld Corporation (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed August 15, 2007).
2.5		Share Purchase Agreement, dated March 7, 2008, by and among CornerWorld Corporation., Sway, Inc. and the shareholders of Sway, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed March 13, 2008).
2.6		Amendment No. 1, dated March 12, 2008, to the Share Purchase Agreement, dated March 7, 2008, by and among CornerWorld Corporation, Sway, Inc. and the shareholders of Sway, Inc. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed March 13, 2008).
2.7		Share Exchange Agreement and Plan of Merger, dated August 27, 2008, by and among CornerWorld Corporation, Enversa Companies LLC, Leadstream LLC, and the holders of the membership interests of Leadstream (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed September 3, 2008).
2.8		Stock Purchase Agreement, dated February 23, 2009, by and among CornerWorld Corporation, Woodland Holdings Corp., Ned B. Timmer and HCC Foundation (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
2.9		Unit Purchase Agreement, dated February 23, 2009, by and among Woodland Holdings Corp., Phone Services and More, L.L.C., T2 Communications, L.L.C. and Ned B. Timmer (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
3.1		Articles of Incorporation of CornerWorld Corporation, formerly known as Olympic Weddings International, Inc., dated November 9, 2004 (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2, filed September 27, 2005).
3.2		Certificate of Correction of CornerWorld Corporation, formerly known as Olympic Weddings International, Inc., dated November 24, 2004 (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-Q, filed December 15, 2010)
3.3		Certificate of Change of CornerWorld Corporation, formerly known as Olympic Weddings International, Inc., dated October 18, 2006 (incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K, filed October 25, 2006).
3.4		Certificate of Amendment to Articles of Incorporation For Nevada Profit Corporations of CornerWorld Corporation, formerly known as Olympic Weddings International, Inc., dated May 4, 2007 (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-Q, filed December 15, 2010)
3.5		Bylaws of CornerWorld Corporation, formerly known as Olympic Weddings International, Inc., dated November 9, 2004 (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form SB-2, filed September 27, 2005).
4.1		Form of Registration Rights Agreement, dated August 27, 2008 by and among CornerWorld Corporation, Internet University, Inc., Marc Blumberg and Marc Pickren (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed September 3, 2008).
10.1		Form of Promissory Note, dated August 27, 2008, issued by CornerWorld Corporation to Leadstream Members (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed September 3, 2008).
10.2		Subscription Agreement, dated February 23, 2009, by and between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.9 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
10.3		Promissory Note, dated February 23, 2009, issued by CornerWorld Corporation to IU Investments, LLC (incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K, filed February 27, 2009).

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Exhibit
Numbers		Description
10.4		Letter Agreement with Oberon Securities, LLC, dated February 20, 2009, by and between CornerWorld Corporation and Oberon Securities, LLC (incorporated by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
10.5w		Warrant to purchase 250,000 shares of CornerWorld Corporation common stock, dated February 23, 2009, issued by CornerWorld Corporation to Peter Lazor (incorporated by reference to Exhibit 10.16 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
10.6w		Employment Agreement between CornerWorld Corporation and Scott N. Beck dated August 22, 2008 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.7w		Warrant issued to Marc Blumberg dated November 21, 2008 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.8w		Warrant issued to Marc Blumberg dated February 23, 2009 (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.9w		Warrant issued to Scott N. Beck dated February 23, 2009 (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.10		Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.11		Amendment No. 2 to Line of Credit dated as of March 31, 2010 between Enversa Companies and Internet University, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.12	Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.13	Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.14	Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.15	Amendment No. 2 to Promissory Note dated as of May 14, 2010 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed May 21, 2010)
10.16w	Employment Agreement between CornerWorld Corporation and V. Chase McCrea III, effective August 1, 2010 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed October 12, 2010)
10.17	Settlement Agreement dated February 3, 2011 by and between CornerWorld Corporation and Ned B. Timmer. (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed March 17, 2011)
10.18w	Stock Option Agreement dated October 13, 2010 between CornerWorld Corporation and V. Chase McCrea III, Chief Financial Officer (incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q, filed March 17, 2011)
10.19	Credit Agreement dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company & Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed April 5, 2011)
10.20	Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed April 5, 2011)
10.21	Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed April 5, 2011)
10.22	Warrant dated as of March 30, 2011 for Pacific Specialty Insurance Company purchase 4,381,004 Shares of Common Stock (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed April 5, 2011)
10.23	Warrant dated as of March 30, 2011 for Emerald Crest Capital Partners II, LP purchase 4,381,004 Shares of Common Stock (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed April 5, 2011)

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10.4		Letter Agreement with Oberon Securities, LLC, dated February 20, 2009, by and between CornerWorld Corporation and Oberon Securities, LLC (incorporated by reference to Exhibit 10.14 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
Exhibit
10.5w		Warrant to purchase 250,000 shares of CornerWorld Corporation common stock, dated February 23, 2009, issued by CornerWorld Corporation to Peter Lazor (incorporated by reference to Exhibit 10.16 to the Company’s Current Report on Form 8-K, filed February 27, 2009).
Numbers		Description
10.6w		Employment Agreement between CornerWorld Corporation and Scott N. Beck dated August 22, 2008 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.7w		Warrant issued to Marc Blumberg dated November 21, 2008 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.8w		Warrant issued to Marc Blumberg dated February 23, 2009 (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.9w		Warrant issued to Scott N. Beck dated February 23, 2009 (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q/A, filed July 27, 2010).
10.10		Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.11		Amendment No. 2 to Line of Credit dated as of March 31, 2010 between Enversa Companies and Internet University, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.12		Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.13		Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.14		Amendment No. 1 to Promissory Note dated as of March 31, 2010 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 6, 2010)
10.15		Amendment No. 2 to Promissory Note dated as of May 14, 2010 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed May 21, 2010)
10.16w		Employment Agreement between CornerWorld Corporation and V. Chase McCrea III, effective August 1, 2010 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed October 12, 2010)
10.17		Settlement Agreement dated February 3, 2011 by and between CornerWorld Corporation and Ned B. Timmer. (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed March 17, 2011)
10.18w		Stock Option Agreement dated October 13, 2010 between CornerWorld Corporation and V. Chase McCrea III, Chief Financial Officer (incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q, filed March 17, 2011)
10.19		Credit Agreement dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company & Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed April 5, 2011)
10.20		Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed April 5, 2011)
10.21		Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed April 5, 2011)
10.22		Warrant dated as of March 30, 2011 for Pacific Specialty Insurance Company purchase 4,381,004 Shares of Common Stock (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed April 5, 2011)
10.23		Warrant dated as of March 30, 2011 for Emerald Crest Capital Partners II, LP purchase 4,381,004 Shares of Common Stock (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed April 5, 2011)
10.24		A form of the Pledge and Security Agreement dated as of March 30, 2011 (incorporated by reference to Exhibit 10.6 to the Company’s Form 8-K, filed April 5, 2011)
10.25		Subordination Agreement dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company & Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K, filed April 5, 2011)
10.26		Joinder Agreement dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company & Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed April 5, 2011)
10.27		Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and IU Holdings, LP (incorporated by reference to Exhibit 10.9 to the Company’s Form 8-K, filed April 5, 2011)
10.28		Amendment No. 3 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.10 to the Company’s Form 8-K, filed April 5, 2011)
10.29		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.11 to the Company’s Form 8-K, filed April 5, 2011)
10.30		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.12 to the Company’s Form 8-K, filed April 5, 2011)
10.31		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.13 to the Company’s Form 8-K, filed April 5, 2011)
10.32		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.14 to the Company’s Form 8-K, filed April 5, 2011)
10.33		Promissory Note dated as of March 30, 2011 by and among Woodland Holdings Corporation and Ned Timmer (incorporated by reference to Exhibit 10.15 to the Company’s Form 8-K, filed April 5, 2011)
10.34		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.16 to the Company’s Form 8-K, filed April 5, 2011)
10.35		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.17 to the Company’s Form 8-K, filed April 5, 2011)
10.36		Warrant dated as of March 30, 2011 for Dragonfly Partners to purchase 6,133,406 Shares of Common Stock (incorporated by reference to Exhibit 10.18 to the Company’s Form 8-K, filed April 5, 2011)
10.37		Amendment No. 1 to Promissory Note dated as of June 3, 2011 between CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed June 8, 2011)
10.38w		CornerWorld Corporation 2007 Incentive Stock Plan
10.39w		CornerWorld Corporation 2007 Stock Compensation Plan
10.40w		Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 28, 2011
10.41		Amendment No. 1 to Promissory Note dated as of June 2, 2011 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed June 8, 2011)
10.42		Amendment No. 2 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed September 9, 2011)
10.43		Amendment No. 4 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed September 9, 2011)
10.44		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed September 9, 2011)
10.45		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed September 9, 2011)
10.46		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed September 9, 2011)
10.47		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.6 to the Company’s Form 8-K, filed September 9, 2011)
10.48		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K, filed September 9, 2011)
10.49		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed September 9, 2011)

- 23 -

10.26		Joinder Agreement dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and Pacific Specialty Insurance Company & Sovereign - Emerald Crest Capital Partners II, LP (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed April 5, 2011)
Exhibit
10.27		Promissory Note dated as of March 30, 2011 by and among Enversa Companies, LLC & S Squared, LLC and IU Holdings, LP (incorporated by reference to Exhibit 10.9 to the Company’s Form 8-K, filed April 5, 2011)
Numbers		Description
10.28		Amendment No. 3 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.10 to the Company’s Form 8-K, filed April 5, 2011)
10.29		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.11 to the Company’s Form 8-K, filed April 5, 2011)
10.30		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.12 to the Company’s Form 8-K, filed April 5, 2011)
10.31		Amendment No. 2 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.13 to the Company’s Form 8-K, filed April 5, 2011)
10.32		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.14 to the Company’s Form 8-K, filed April 5, 2011)
10.33		Promissory Note dated as of March 30, 2011 by and among Woodland Holdings Corporation and Ned Timmer (incorporated by reference to Exhibit 10.15 to the Company’s Form 8-K, filed April 5, 2011)
10.34		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.16 to the Company’s Form 8-K, filed April 5, 2011)
10.35		Promissory Note dated as of March 30, 2011 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.17 to the Company’s Form 8-K, filed April 5, 2011)
10.36		Warrant dated as of March 30, 2011 for Dragonfly Partners to purchase 6,133,406 Shares of Common Stock (incorporated by reference to Exhibit 10.18 to the Company’s Form 8-K, filed April 5, 2011)
10.37		Amendment No. 1 to Promissory Note dated as of June 3, 2011 between CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed June 8, 2011)
10.38w		CornerWorld Corporation 2007 Incentive Stock Plan
10.39w		CornerWorld Corporation 2007 Stock Compensation Plan
10.40w		Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 28, 2011
10.41		Amendment No. 1 to Promissory Note dated as of June 2, 2011 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed June 8, 2011)
10.42		Amendment No. 2 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed September 9, 2011)
10.43		Amendment No. 4 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed September 9, 2011)
10.44		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed September 9, 2011)
10.45		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed September 9, 2011)
10.46		Amendment No. 3 to Promissory Note dated as of September 6, 2011 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed September 9, 2011)
10.47		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.6 to the Company’s Form 8-K, filed September 9, 2011)
10.48		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K, filed September 9, 2011)
10.49		Amendment No. 1 to Promissory Note dated as of September 6, 2011 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed September 9, 2011)
10.50w		Amendment Number 1 to Employment Agreement by and between CornerWorld Corporation and Scott Beck dated December 15, 2011
10.51		Amendment No. 3 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed February 7, 2012)
10.52		Amendment No. 5 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed February 7, 2012)
10.53		Amendment No. 4 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed February 7, 2012)
10.54		Amendment No. 4 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed February 7, 2012)
10.55		Amendment No. 4 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed February 7, 2012)
10.56		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.6 to the Company’s Form 8-K, filed February 7, 2012)
10.57		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K, filed February 7, 2012)
10.58		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed February 7, 2012)
10.59		Amendment No. 4 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.59 to the Company’s Form 10-K, filed July 30, 2012)
10.60		Amendment No. 3 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.60 to the Company’s Form 10-K, filed July 30, 2012)
10.61		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.61 to the Company’s Form 10-K, filed July 30, 2012)
10.62		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.62 to the Company’s Form 10-K, filed July 30, 2012)
10.63		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.63 to the Company’s Form 10-K, filed July 30, 2012)
10.64		Amendment No. 3 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.64 to the Company’s Form 10-K, filed July 30, 2012)
10.65		Amendment No. 3 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.65 to the Company’s Form 10-K, filed July 30, 2012)
10.66w		Amendment Number 2 to Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 27, 2012
10.67w		Amendment Number 1 to Employment Agreement by and between CornerWorld Corporation and V. Chase McCrea III dated July 27, 2012
10.68		Amendment No. 7 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed November 5, 2012)
10.69		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed November 5, 2012)
10.70		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed November 5, 2012)
10.71		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed November 5, 2012)
10.72		Amendment No. 4 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed November 5, 2012)
10.73w		Amendment Number 3 to Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 28, 2013

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10.54		Amendment No. 4 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed February 7, 2012)
Exhibit
10.55		Amendment No. 4 to Promissory Note dated as of February 3, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed February 7, 2012)
Numbers		Description
10.56		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.6 to the Company’s Form 8-K, filed February 7, 2012)
10.74		Membership Interests Purchase Agreement by and among Woodland Wireless Solutions, LTD., CornerWorld Corporation and Ranger Wireless Holdings, LLC for 100% of the Issued and Outstanding Membership Interests of S Squared, L.L.C. dated as of September 30, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed October 4, 2013)
10.57		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.7 to the Company’s Form 8-K, filed February 7, 2012)
10.75		Pro-Forma balance sheet as of July 31, 2013 and pro-forma statement of operations for the three month period ended July 31, 2013 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed October 4, 2013)
10.58		Amendment No. 2 to Promissory Note dated as of February 3, 2012 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.8 to the Company’s Form 8-K, filed February 7, 2012)
10.76		Amendment No. 4 to the Employment Agreement dated as of July 28, 2011 between CornerWorld Corporation and Scott Beck (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed October 4, 2013)
10.59		Amendment No. 4 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and IU Holdings, LP (incorporated by reference to Exhibit 10.59 to the Company’s Form 10-K, filed July 30, 2012)
10.77		Amendment No. 4 to Promissory Note dated as of March 30, 2011 between CornerWorld Corporation and Scott Beck (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed November 6, 2013)
10.60		Amendment No. 3 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.60 to the Company’s Form 10-K, filed July 30, 2012)
10.78w		Amendment Number 5 to Employment Agreement dated as of July 28, 2011 between CornerWorld Corporation and Scott Beck (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed November 6, 2013)
10.61		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.61 to the Company’s Form 10-K, filed July 30, 2012)
10.79w		Amended and Restated Employment Agreement dated as of July 28, 2011 between CornerWorld Corporation and Scott Beck (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed November 6, 2013)
10.62		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.62 to the Company’s Form 10-K, filed July 30, 2012)
10.63		Amendment No. 5 to Promissory Note dated as of July 27, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.63 to the Company’s Form 10-K, filed July 30, 2012)
10.64		Amendment No. 3 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and Scott N. Beck (incorporated by reference to Exhibit 10.64 to the Company’s Form 10-K, filed July 30, 2012)
10.65		Amendment No. 3 to Promissory Note dated as of July 27, 2012 by and among CornerWorld Corporation and Kelly Larabee Morlan (incorporated by reference to Exhibit 10.65 to the Company’s Form 10-K, filed July 30, 2012)
10.66w		Amendment Number 2 to Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 27, 2012
10.67w		Amendment Number 1 to Employment Agreement by and between CornerWorld Corporation and V. Chase McCrea III dated July 27, 2012
10.68		Amendment No. 7 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and IU Investments, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed November 5, 2012)
10.69		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed November 5, 2012)
10.70		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Marc Blumberg (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed November 5, 2012)
10.71		Amendment No. 6 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Marc Pickren (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed November 5, 2012)
10.72		Amendment No. 4 to Promissory Note dated as of October 31, 2012 between CornerWorld Corporation and Internet University, Inc. (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K, filed November 5, 2012)
10.73*w		Amendment Number 3 to Employment Agreement by and between CornerWorld Corporation and Scott Beck dated July 28, 2013
21.1*		Subsidiaries of CornerWorld Corporation.
31.1*		Certification of Chief Executive Officer pursuant to Rule 13(a)-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
31.2*		Certification of Chief Financial Officer pursuant to Rule 13(a)-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
32.1**		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
32.2**		Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350.
101***		Interactive Data Files of Financial Statements and Notes.
*		Filed herewith.
**		Furnished (and not filed) herewith pursuant to Item 601(b)(32)(ii) of Regulation S-K under the Exchange Act.
***		Furnished (and not filed) herewith pursuant to Regulation S-T under the Exchange Act.
w		Management plan, compensatory arrangement or employment agreement.

- 25 -

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CornerWorld, Corporation
August 13, 2013	By:	/s/ Scott Beck
March 31, 2015	By:	/s/ Scott Beck
		Scott Beck
		Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Title	Date
/s/ Scott Beck	Chairman of the Board of Directors and	~~August~~March 1331, ~~2013~~2015
Scott Beck	Chief Executive Officer
	(Principal Executive Officer)
/s/ V. Chase McCrea III	Chief Financial Officer	~~August~~March 1331, ~~2013~~2015
V. Chase McCrea III	(Principal Financial and Accounting Officer)
/s/ Marc Blumberg	Director	~~August~~March 1331, ~~2013~~2015
Marc Blumberg

- 26 -

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

CornerWorld Corporation

We have audited the accompanying consolidated balance sheets of CornerWorld Corporation as of ~~April~~December 3031, ~~2013~~2014 and ~~2012,~~2013 and the related consolidated statements of operations, cash flows and stockholders’ equity (deficit), ~~and cash flows~~ for the ~~years~~year ended ~~April~~December 3031, ~~2013,~~2014 ~~2012~~ and ~~2011.~~the ~~These~~eight-month ~~financial~~period ~~statements~~ended ~~are~~December ~~the~~31, ~~responsibility~~2013. ofCornerWorld ~~the Company~~Corporation’s management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits 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 audits 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 consolidated 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 audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of CornerWorld Corporation as of December 31, 2014 and 2013 and the results of their operations and their cash flows for the year ended December 31, 2014 and the eight-month period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America.

The consolidated financial statements of the Company for the fiscal year ended April 30, 2013 were audited by other auditors whose report dated August 12, 2013, expressed an un-modified opinion thereon.

/s/ MONTGOMERY COSCIA AND GREILICH, LLP

Dallas, Texas

March 30, 2015

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

CornerWorld Corporation

We have audited the accompanying consolidated statements of operations, stockholders’ equity (deficit), and cash flows for the year ended April 30, 2013. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 audits 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide 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 CornerWorld Corporation as of April 30, 2013 and 2012, and the consolidated~~ results of its operations and cash flows for CornerWorld Corporation for the ~~years~~year ended April 30, 2013, ~~2012 and 2011~~ in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 1, the Company has suffered significant losses since inception and has working capital and shareholders’ deficits at April 30, 2013, which raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to this matter are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ SCHUMACHER & ASSOCIATES, INC.

Denver, Colorado

August 12, 2013 except for Note 3 related to April 30, 2013, as to which the date is July 16, 2014

F-12

CornerWorld Corporation

Consolidated Balance Sheets

	April 30,
	December 31, 2014			December 31, 2013
	2013			2012
Assets
Current assets:
Cash	$	170,~~150,880~~746		$	~~890~~857,~~415~~954
Accounts receivable, net		~~634~~42,~~594~~101			1119,~~070,293~~904
Prepaid expenses and other current assets		9165,~~935~~132			~~132~~152,~~036~~317
Total current assets		1177,~~877,409~~979			21,~~092~~130,~~744~~175
Property and equipment, net		642,~~900~~677			~~154~~19,~~673~~486
Goodwill		1,581,850			2,136,836
Other assets		7			28,000
Patent		4,413,842			5,971,670
TOTAL ASSETS	$	180,663		$	1,177,661
Intangibles, net		—			—
Liabilities and Stockholders’ Equity (Deficit)
Other assets		28,032			28,729
TOTAL ASSETS	$	7,966,033		$	10,384,652
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	1230,~~300,310~~134		$	1225,~~894,043~~064
Accrued expenses		~~867~~329,~~350~~103			~~708~~347,~~874~~967
Notes payable, current portion, net of unamortized discount of $7,045 and $340,303 at April 30, 2013 and 2012, respectively		3,139,273			1,196,013
Notes payable related parties, current portion		152,952			101,968
Notes payable related parties, current portion, net of unamortized discount of $313,500 and $161,685 at April 30, 2013 and 2012, respectively		893,161			1,627,524
Lease payable, current portion		2,662			10,704
Lease payable, current portion		10,704			10,704
Deferred revenue		75,687			70,322
Deferred revenue		327,545			385,146
Other current liabilities		9,266			—
Warrants		873,861			—
Total current liabilities		799,804			756,025
Total current liabilities		7,412,204			5,822,304
Long-term liabilities:
Notes payable, net of current portion, net of unamortized discount of $216,769 and $530,268 at April 30, 2013 and 2012, respectively		1,486,773			4,249,731
Notes payable related parties, net of current portion		186,006			236,990
Notes payable related parties, net of current portion, net of unamortized discount of $0 and $7,045 at April 30, 2013 and 2012, respectively		1,476,667			2,225,041
Lease payable, net of current portion		—			2,383
Lease payable, net of current portion		9,139			18,988
Total liabilities		985,810			995,398
Warrants		—			754,091
Commitments and Contingencies		—			—
Total liabilities		10,384,783			13,070,155
Stockholders’ equity (deficit):
Commitments and Contingencies (See notes 1-2, 4-9 and 11-13)
Stockholders’ deficit:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.001 par value, 250,000,000 shares authorized; 157,313,704 and 147,547,607 shares issued and outstanding, at April 30, 2013 and April 30, 2012, respectively		157,313			147,547
Common stock, $0.001 par value, 250,000,000 shares authorized; 162,937,110 and 156,813,704 shares issued and outstanding, at December 31, 2014 and 2013, respectively		162,937			156,813
Additional paid-in capital		11,~~783~~806,~~945~~865			1011,~~164~~801,~~724~~224
Accumulated deficit		(1412,~~360~~774,~~008~~949	)		(1211,~~997~~775,774	)
Total stockholders’ deficit		(2,418,750	)		(2,685,503	)
Total stockholders’ equity (deficit)		(805,147	)		182,263
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	7,966,033		$	10,384,652
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	180,663		$	1,177,661

The accompanying notes are an integral part of these consolidated financial statements

F-23

CornerWorld Corporation

Consolidated Statements of Operations

	For the Years Ended April 30,
		For the Year Ended December 31,		Eight-month Period Ended December 31,			For the Year Ended April 30,
	2013			2012			2011
	2014			2013			2013
Sales, net	$	7988,~~181,842~~221		$	10673,~~141,603~~954		$	111,~~761~~925,~~553~~734
Costs of goods sold		1528,~~344,453~~854			2271,~~598,967~~356			3722,~~952,158~~398
Gross profit		5459,~~837,389~~367			7402,~~542,636~~598			71,~~809~~203,~~395~~336
Expenses:
Selling, general and administrative expenses		31,~~162~~411,~~028~~576			5826,~~356,777~~388			63,~~499~~102,~~977~~555
Depreciation and amortization		116,~~640,215~~808			233,~~024,538~~755			271,~~277,309~~608
Total Operating expenses		4,802,243			7,381,315			8,777,286
Total operating expenses		1,428,384			860,143			3,174,163
Operating income (loss)		1,035,146			161,321			(967,891	)
Operating loss		(969,017	)		(457,545	)		(1,970,827	)
Other income (expense), net:
Interest expense		(126,~~842,294~~845	)		(237,~~348,196~~171	)		(1237,~~022,192~~371	)
Other income (expense), net		(~~555~~3,~~086~~313	)		81(248,~~828~~161	)		~~435~~(555,~~235~~086	)
Total other expense, net		(230,~~397,380~~158	)		(2285,~~266,368~~332	)		(~~586~~792,~~957~~457	)
Loss before income taxes		(1999,~~362,234~~175	)		(2742,~~105,047~~877	)		(12,~~554~~763,~~848~~284	)
Income taxes		—			—			—
Net loss	$	(1,362,234	)	$	(2,105,047	)	$	(1,554,848	)
Loss from continuing operations		(999,175	)		(742,877	)		(2,763,284	)
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.02	)
Income from discontinued operations, net of tax		—			538,568			1,401,050
Weighted average number shares outstanding – basic and diluted		152,390,521			147,324,142			99,888,432
Gain from disposal of discontinued operations, net of tax		—			2,788,543			—
Net income (loss)	$	(999,175	)	$	2,584,234		$	(1,362,234	)
Basic earnings (loss) per share from continuing operations	$	(0.01	)	$	0.00		$	(0.02	)
Basic earnings per share from discontinued operations	$	0.00		$	0.02		$	0.01
Basic earnings (loss) per share	$	(0.01	)	$	0.02		$	(0.01	)
Diluted earnings (loss) per share from continuing operations	$	(0.01	)	$	0.00		$	(0.02	)
Diluted earnings per share from discontinued operations	$	0.00		$	0.02		$	0.01
Diluted earnings (loss) per share	$	(0.01	)	$	0.02		$	(0.01	)
Basic weighted average number shares outstanding		161,880,193			157,070,847			152,390,521
Diluted weighted average number shares outstanding		161,880,193			163,204,253			152,390,521

The accompanying notes are an integral part of these consolidated financial statements

F-3

CornerWorld Corporation

Consolidated Statement of Stockholders’ Equity (Deficit)

	Common Shares						Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount			Capital			Deficit			Equity (deficit)
Balance, May 1, 2010		95,518,317			95,518			7,740,043			(9,337,879	)		(1,502,318	)
Issuance of Common Stock to IU Holdings, LP		48,414,132			48,414			414,147			—			462,561
Issuance of Common Stock to Internet University, Inc.		12,910,435			12,910			110,440			—			123,350
Issuance of Common Stock to CEO		12,585,802			12,586			107,662			—			120,248
Issuance of Common Stock to consultant		1,194,215			1,194			10,216			—			11,410
Issuance of Common Stock to employees, officers and directors		10,300,000			10,300			88,109			—			98,409
Return of stock to treasury associated with recapitalization		(33,950,000	)		(33,950	)		(290,417	)		—			(324,367	)
Issuance of warrants associated with debt financing		—			—			52,467			—			52,467
Stock-based compensation expense		—			—			149,570			—			149,570
Gain on settlement of related party debt		—			—			1,624,548			—			1,624,548
Net loss		—			—			—			(1,554,848	)		(1,554,848	)
Balance, April 30, 2011		146,972,901			146,972			10,006,785			(10,892,727	)		(738,970	)
Stock-based compensation expense		—			—			158,514			—			158,514
Cash-less exercise of stock options and warrants		574,706			575			(575	)		—			—
Net loss		—			—			—			(2,105,047	)		(2,105,047	)
Balance, April 30, 2012		147,547,607			147,547			10,164,724			(12,997,774	)		(2,685,503	)
Stock-based compensation expense		—			—			164,071			—			164,071
Conversion of debt to common stock		9,766,097			9,766			1,455,150			—			1,464,916
		—			—			—			(1,362,234	)		(1,362,234	)
Balance, April 30, 2013		157,313,704		$	157,313		$	11,783,945		$	(14,360,008	)	$	(2,418,750	)

The accompanying notes are an integral part of these consolidated financial statements

F-4

CornerWorld Corporation

Consolidated Statements of ~~Cash~~Stockholders’ ~~Flow~~Equity (Deficit)

	For the Years Ended April 30,
	Common Shares						Additional Paid-in			Accumulated			Total Stockholders’
	2013			2012			2011
	Shares			Amount			Capital			Deficit			Equity (deficit)
Cash Flows from Operating Activities
Balance, May 1, 2012		147,547,607			147,547			10,164,724			(12,997,774	)		(2,685,503	)
Net loss	$	(1,362,234	)	$	(2,105,047	)	$	(1,554,848	)
Stock-based compensation expense		—			—			164,071			—			164,071
Adjustments to reconcile net loss to net cash used in operating activities
Conversion of debt to common stock		9,766,097			9,766			1,455,150			—			1,464,916
Depreciation and amortization		1,640,215			2,024,538			2,277,309
Net loss		—			—			—			(1,362,234	)		(1,362,234	)
Amortization of loan discounts		501,987			841,101			—
Balance, April 30, 2013		157,313,704			157,313			11,783,945			(14,360,008	)		(2,418,750	)
Provision for doubtful accounts		162,560			253,227			53,794
Return of shares to treasury		(500,000	)		(500	)		500			—			—
Stock-based compensation		164,071			158,514			149,570
Stock-based compensation expense		—			—			16,779			—			16,779
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Net income		—			—			—			2,584,234			2,584,234
Accounts receivable		273,139			454,184			(18,332	)
Balance, December 31, 2013		156,813,704		$	156,813		$	11,801,224		$	(11,775,774	)	$	182,263
Prepaid expenses and other current assets		40,101			(19,064	)		6,967
Exercise of warrants		6,123,406			6,124			(6,124	)		—			—
Other assets		697			(597	)		3,052
Stock-based compensation expense		—			—			11,765			—			11,765
Impairment of goodwill		554,986			—			—
Net loss		—			—			—			(999,175	)		(999,175	)
Accounts payable		(582,956	)		(1,068,952	)		193,842
Balance, December 31, 2014		162,937,110		$	162,937		$	11,806,865		$	(12,774,949	)	$	(805,147	)
Accrued expenses		258,193			170,648			323,491
Deferred revenue		(57,601	)		(75,269	)		262,646
Other liabilities		119,770			101,417			(49,713	)
Net cash provided by operating activities		1,712,928			734,700			1,647,778
Cash Flows from Investing Activities
Fixed assets acquired pursuant to capital lease		(2,463	)		(2,436	)		—
Purchases of property and equipment		—			(17,015	)		(164,294	)
Proceeds from sale of fixed assets		—			17,400			—
Net cash used in investing activities		(2,463	)		(2,051	)		(164,294	)
Cash Flows from Financing Activities
Proceeds from issuance of notes payable		—			—			5,000,000
Principal payments on debt		(1,160,000	)		(518,495	)		(3,165	)
Proceeds from issuance of related party notes payable		—			—			1,500,000
Principal payments on related party notes payable		(290,000	)		(195,489	)		(1,074,732	)
Proceeds from line of credit, net of repayments		—			—			(215,000	)
Proceeds from issuance of common stock		—			—			—
Consulting settlement in lieu of common stock		—			—			—
Fees paid for debt issuance		—			(62,500	)		(346,500	)
Cash settlement of litigation		—			—			(6,000,000	)
Net cash used in financing activities		(1,450,000	)		(776,484	)		(1,139,397	)
Net increase (decrease) in cash		260,465			(43,835	)		344,087
Cash at beginning of year		890,415			934,250			590,163
Cash at end of year	$	1,150,880		$	890,415		$	934,250
Cash paid for:
Interest	$	855,626		$	1,231,702		$	1,010,447
Income taxes	$	—		$	—		$	—
Non-Cash Financing Activities:
Conversion of debt to common stock	$	1,464,916		$	—		$	—
Acquisition of fixed assets pursuant to capital lease	$	—		$	32,128		$	—
Issuance of common stock and warrants for debt financing	$	—		$	—		$	770,036
Issuance of common stock to employees, officers and directors	$	—		$	—		$	98,409

The accompanying notes are an integral part of these consolidated financial statements

F-5

CornerWorld Corporation

Consolidated Statements of Cash Flows


	For the Year Ended December 31,			For the Eight-month Period Ended December 31,			For the Year Ended April 30,
	2014			2013			2013
Cash Flows from Operating Activities
Net income (loss)	$	(999,175	)	$	2,584,234		$	(1,362,234	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization		16,808			33,755			71,608
Amortization of loan discounts		—			7,045			501,987
Provision for doubtful accounts		87,253			41,538			162,560
Stock-based compensation		11,765			16,779			164,071
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(9,450	)		(44,002	)		183,764
Prepaid expenses and other current assets		87,185			(72,556	)		4,209
Other assets		27,993			32			697
Impairment of goodwill		—			—			554,986
Accounts payable		5,070			(724,668	)		(339,413	)
Accrued expenses		(18,864	)		(481,455	)		284,577
Deferred revenue		5,365			9,587			(51,099	)
Other liabilities		9,266			—			—
Changes in assets and liabilities of discontinued operations		—			(1,949,521	)		1,537,215
Net cash provided by (used in) operating activities		(776,784	)		(579,232	)		1,712,928
Cash Flows from Investing Activities
Proceeds from the sale of subsidiary		—			8,300,000			—
Fixed assets acquired pursuant to capital lease		(2,639	)		(6,062	)		(2,463	)
Net cash provided by (used in) investing activities		(2,639	)		8,293,938			(2,463	)
Cash Flows from Financing Activities
Financing fees		—			(249,000	)		—
Principal payments on debt		—			(4,791,316	)		(1,160,000	)
Principal payments on related party notes payable		—			(2,037,915	)		(290,000	)
Settlement of warrant		—			(929,017	)		—
Payments on capital lease		(7,785	)		(384	)		—
Net cash used in financing activities		(7,785	)		(8,007,632	)		(1,450,000	)
Net increase (decrease) in cash		(787,208	)		(292,926	)		260,465
Cash at beginning of period		857,954			1,150,880			890,415
Cash at end of period	$	70,746		$	857,954		$	1,150,880

Cash paid for:
Interest	$	—		$	431,642		$	855,626
Income taxes	$	—		$	—		$	—
Non-Cash Financing Activities:
Conversion of debt to common stock	$	—		$	—		$	1,464,916
Acquisition of fixed assets pursuant to capital lease	$	—		$	—		$	—

The accompanying notes are an integral part of these consolidated financial statements

F-6

CornerWorld Corporation

Notes to Consolidated Financial Statements

~~April~~December 3031, ~~2013~~2014

1. Basis of Presentation

Organization

CornerWorld Corporation (“the Company”, “CornerWorld”, “we”, “our” or “us”) was incorporated in the State of Nevada, on November 9, 2004 ~~as Olympic Weddings International, Inc~~. ~~Effective May 1, 2007, we changed our name to CornerWorld Corporation.~~

The Company is a marketing and ~~technology~~telecommunications services company creating opportunities from the increased accessibility of content across mobile, television and internet platforms. Our key asset is the patented 611 Roaming ServiceTM from RANGER Wireless Solutions ®, which generates revenue by processing approximately 10.2 million calls from roaming wireless customers per year and seamlessly connecting them to their service provider.

OnThe ~~August~~Company ~~27,~~provides ~~2008,~~marketing ~~CornerWorld~~services ~~entered~~through ~~into~~its asubsidiaries ~~Share~~Enversa ~~Exchange~~Companies ~~Agreement~~LLC ~~and Plan of Merger~~ (~~the~~ “Enversa ~~Agreement~~”) ~~with~~and ~~Enversa~~Leadstream ~~Companies~~ LLC, ~~a Texas limited liability company~~ (“~~Enversa~~Leadstream”), ~~Leadstream~~both ~~LLC,~~of which are a Texas limited liability ~~company (“Leadstream”)~~companies. Enversa, ~~and~~ the ~~holders~~parent company of ~~the~~Leadstream, ~~membership~~offers ~~interests~~a full menu of ~~Leadstream.~~services ~~Pursuant~~for tobrand ~~the~~and ~~Enversa~~direct ~~Agreement,~~response oncustomer ~~August~~acquisition 27campaigns, ~~2008,~~including ~~Leadstream~~media ~~merged~~buying ~~with~~ and ~~into~~planning. ~~Enversa~~It ~~(the~~provides ~~“Merger”),~~customer ofrelationship ~~which~~marketing ~~CornerWorld~~and isinteractive ~~the~~services, ~~sole~~as ~~member.~~well ~~Enversa~~as ~~was~~customer ~~the~~data ~~surviving~~collection ~~company~~and inanalysis ~~the~~tools ~~Merger~~used ~~and,~~for asplanning ~~such,~~and ~~acquired~~targeting ~~all~~client ~~right,~~marketing ~~title~~efforts ~~and~~across ~~interest~~a innetwork ~~and~~of topartner, ~~all~~representative ~~real estate~~ and ~~other~~owned ~~property~~content ofsites. ~~Leadstream~~Enversa ~~and~~identifies ~~became~~qualified ~~responsible~~leads for ~~all~~advertisers ~~liabilities~~thereby ~~and~~connecting ~~obligations~~them ofwith ~~Leadstream~~potential ~~and~~consumers. Enversa. Asalso utilizes a ~~result~~pay-for-performance ofpricing ~~the~~model ~~Merger,~~which ~~Enversa~~is ~~became~~very aappealing ~~subsidiary~~to ofclients ~~CornerWorld.~~because ~~Prior~~it toinsures ~~the~~that ~~Merger,~~they ~~the~~are ~~Company~~billed ~~was~~solely infor ~~the~~campaign ~~development~~performance. ~~stage~~Finally, ~~and~~Enversa ~~had~~provides ~~not~~search ~~realized~~engine ~~any~~optimization ~~revenues~~services ~~from~~(“SEO”), ~~its~~domain ~~operations.~~leasing ~~See~~and ~~also~~website ~~Note~~management 3,services ~~Acquisitions,~~on ~~for~~a ~~more~~recurring ~~detail~~monthly basis.

~~Enversa~~The ~~offers~~Company aprovides ~~full~~telecommunications ~~menu of~~ services ~~for~~through ~~brand~~its ~~and~~Woodland ~~direct~~Holdings ~~response~~Corporation ~~customer~~(“Woodland”) ~~acquisition~~subsidiary. Woodland ~~campaigns,~~is ~~including~~the ~~media~~parent ~~buying~~company ~~and~~of ~~planning~~Woodland ~~for~~Wireless ~~online~~Solutions, ~~and mobile media~~Ltd. It(“Woodland ~~provides~~Wireless”), ~~customer~~West ~~relationship~~Michigan ~~marketing~~Co-Location ~~and~~Services, ~~interactive~~L.L.C. ~~services~~(“WMCLS”), asT2 ~~well~~TV, asL.L.C. ~~customer~~(“T2 ~~data collection and analysis tools used for planning and targeting client marketing efforts across a network of partner~~TV”), ~~representative~~Phone ~~and~~Services ~~owned~~& ~~content sites~~More, ~~including CornerWorld~~L.~~com~~L. ~~Moreover~~C., ~~Enversa~~doing ~~operates~~business ~~several~~as adVisitatel ~~networks~~(“PSM”) and aT2 ~~proprietary~~Communications, ~~request~~L.L.C. ~~for proposal~~ (~~RFP~~“T2”). As ~~technology that highlights promotional offers from~~ a ~~variety~~provider of ~~corporate~~Internet ~~clients.~~and ~~Enversa~~VoIP ~~uses~~services, anT² ~~established~~is ~~media~~a ~~auction~~Competitive ~~technology~~Local toExchange ~~deliver~~Carrier ~~significantly~~(CLEC) ~~more~~which ~~inventory~~delivers ~~than~~leading-edge ~~current~~technology ~~market rates. Enversa effectively enables media properties~~ to ~~compete~~residential ~~against each other, empowering advertisers to extend their marketing budgets beyond typical marketplace levels through fair~~ and ~~free~~business ~~market competition~~customers. ~~Using~~Offerings ~~its~~include: ~~proprietary~~phone ~~technology~~lines, ~~Enversa~~internet ~~identifies~~connections, ~~qualified~~colocation ~~leads~~and ~~for~~both ~~advertisers~~long ~~thereby~~distance ~~connecting~~and ~~them~~toll-free ~~with potential consumers~~services. PSM ~~Enversa~~is also ~~utilizes~~ a ~~pay-for-performance~~CLEC ~~pricing model~~ which isholds ~~very~~an ~~appealing~~FCC to214 ~~clients~~License ~~because~~as ita ~~insures~~wholesale ~~that~~long ~~they~~distance ~~are~~service ~~billed~~provider ~~solely~~to ~~for~~the ~~campaign~~carrier ~~performance.~~community ~~Finally, Enversa’s Gulf Media Solutions, LLC (“Gulf”) subsidiary, provides search engine optimization services (“SEO”), domain leasing~~ and ~~website~~large ~~management~~commercial ~~services~~users onof atransport ~~recurring monthly basis to over 300 customers~~minutes.

On ~~February~~September 2330, ~~2009,~~2013 ~~CornerWorld~~Woodland ~~completed~~sold its acquisition (the “Woodland Acquisition”) of all of the issued and outstanding equity interests of each of Woodland Wireless Solutions, Ltd. (“Woodland Wireless”), West Michigan Co-Location Services, L.L.C. (“WMCLS”) and T2 TV, L.L.C. (“T2 TV”), and forty voting member units of S Squared, LLC, doing business ~~in the state of Michigan~~ as “Ranger Wireless Solutions, LLC” (“Ranger”), ~~through~~whose ~~its~~key ~~newly-formed~~asset ~~wholly-owned~~was ~~subsidiary, Woodland Holdings Corp. (“Woodland Holdings”), pursuant to~~ the ~~terms~~patented of611 aRoaming ~~Stock~~ServiceTM ~~Purchase~~from ~~Agreement,~~RANGER ~~dated~~Wireless ~~February 23~~Solutions®, ~~2009~~which ~~(the~~generates ~~“Effective~~revenue ~~Date”),~~ by ~~and~~processing ~~among~~approximately ~~Woodland Holdings, CornerWorld, Ned B~~10.2 ~~Timmer~~million ~~and~~calls ~~HCC~~from ~~Foundation~~roaming ~~(“HCC~~wireless ~~Foundation”).~~customers ~~Immediately~~per ~~following~~year ~~the~~and ~~Woodland~~seamlessly ~~Acquisition,~~connecting ~~the~~them ~~forty~~to ~~voting~~their ~~member~~service ~~units~~provider. See ofNote ~~Ranger~~3, ~~that~~Discontinued ~~were~~Operations, ~~purchased~~for bymore ~~Woodland~~information ~~Holdings~~with ~~were~~respect ~~contributed~~ to ~~Woodland~~the ~~Wireless~~sale ~~and all other issued and outstanding voting member units~~ of Ranger ~~remained held by Woodland Wireless~~.

As a result of the Woodland Acquisition, Ranger became a wholly-owned subsidiary of Woodland Wireless. In addition, pursuant to a Unit Purchase Agreement (the “Unit Purchase Agreement”) entered into on the Effective Date among Woodland Holdings, Phone Services and More, L.L.C., doing business as Visitatel (“PSM”), T2 Communications, L.L.C. (“T2 Communications”) and Ned B. Timmer, Woodland Holdings agreed to purchase all of the outstanding voting member units of each of PSM and T2 Communications, for an aggregate purchase price of $300,000. Final consummation of the transactions contemplated by the Unit Purchase Agreement took place on March 30, 2011. Prior to March 30, 2011, the Company accounted for PSM and T2 Communications as Variable Interest Entities (“VIE’s”) and consolidated them for accounting purposes. Spinoff

FOn November 5, 2014, the Company announced that it had signed a non-6binding letter of intent (the “LOI”) to merge its interests with another entity. As discussions surrounding the LOI progressed, the Company determined that the most efficient way to effectuate the merger would be to spin-off all of the Company’s operations into Woodland. Accordingly, on March 17, 2015, Woodland filed a Registration Statement on Form 10 with the SEC. In addition, on March 17, 2015, the Company’s Board of Directors unanimously approved the spin-off to become effective immediately preceding the merger proposed pursuant to the LOI.

~~CornerWorld~~Change ~~Corporation~~in Fiscal Year

~~Notes~~The Company’s year-end is December 31. On April 29, 2014, the Company announced that it was changing its fiscal year end from April 30 to ~~Consolidated~~December ~~Financial~~31. Accordingly, ~~Statements~~this transitional report on form 10-K details the Company’s accounts as of December 31, 2013 and its results of operations, cash flow and stockholders’ equity (~~Continued~~deficit) for the eight-month period then ended as well as its accounts as of April 30, 2013, the last date the Company was audited, and its results of operations, cash flow and stockholders’ equity (deficit) for the two years then ended. Moving forward, the Company will report its accounts on a more standard calendar reporting basis filing quarterly reports as of March 31, June 30 and September 30 each year and an annual report as of December 31 of each future year. See Note 13, Transition Period Comparative Data (unaudited), for more information with respect to our change in fiscal year end.

April 30, 2013

Subsequent to the closing of the Unit Purchase Agreement, the Company slightly adjusted the manner in which it managed the assets acquired in the Woodland Acquisition; these assets comprise 100% of the Company’s Communication Services Segment. As a result of the closing of the Unit Purchase Agreement, Woodland Wireless, Ranger and WMCLS are collectively referred to herein as the “Ranger Wireless Group”. T2 Communications, T2TV and PSM are collectively referred to herein as the “T2 Group”.

RANGER® is a shortcode application service provider to the wireless industry. The core service offered is 611 Roaming Service™, a patented application providing seamless means for connecting wireless subscribers to reach their home providers customer service call center while roaming on another provider’s network. Calls are sent to RANGER® for treatment from nearly 40 wireless providers throughout North America. On an annual basis, RANGER® processes approximately 11 million calls with an infrastructure capable of handling millions more. RANGER® also manages an online portal which allows carriers access to their monthly statements and reporting on call volume to and from their company.

As a provider of Internet Protocol Television (IPTV), Internet and VoIP services, T² Communications delivers leading-edge technology to residential and business customers in Michigan. Offerings include: phone lines, Internet connections, colocation and long distance and toll-free services. T² is a Competitive Local Exchange Carrier (CLEC) that manages its own Fiber to the Premise (FTTP) network with a 10 gigabit backbone and up to 1 gigabit per second connections to end users.

PSM holds an FCC 214 License as a wholesale long distance service provider to the carrier community and large commercial users of transport minutes.

The Company’s year-end is April 30th.

Going Concern

These consolidated financial statements have been prepared on a going-concern basis which assumes that the Company will be able to realize assets and discharge liabilities in the normal course of business for the foreseeable future.

The Company has experienced losses amounting to $1,362,234 for the year ended April 30, 2013 while it had $1,150,880 in cash and cash equivalents and had a working capital deficiency of $5,534,795 as of April 30, 2013. The Company’s current cash reserves are insufficient to sustain operations over the course of the next year based on the current schedule of maturities of the Company’s short-term secured debt. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to meet its commitments as they become payable, including the paydown event discussed in more detail in note 5, and its other debt service is dependent on the ability of the Company to either obtain financing necessary to re-pay the Company’s senior lender or to renegotiate maturity dates with all of its secured creditors. The Company is in the process of renegotiating the maturities of all of its financing commitments with its various secured creditors but the negotiations have not yet been completed. There are no assurances that the Company will be successful in achieving these goals which raises significant doubt as to the Company’s ability to continue as a going concern.

2. Summary of Significant Accounting Policies

This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles (“GAAP”) in the United States of America and have been consistently applied in the preparation of the financial statements. The financial statements are stated in United States of America dollars.

In June 2009, the Financial Accounting Standards Board (“FASB”) issued the FASB Accounting Standards Codification (the “ASC”), the single source of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (“GAAP”) in the United States. All guidance contained in the Codification carries an equal level of authority. The ASC supersedes all existing non- SEC accounting and reporting standards and was effective for the Company beginning July 1, 2009. The FASB will not issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead, it will issue Accounting Standards Updates. The FASB will not consider Accounting Standards Updates as authoritative in their own right; these updates will serve only to update the ASC, provide background information about the guidance, and provide the bases for conclusions on the changes in the ASC. The adoption of the ASC did not have a material impact on our condensed consolidated financial statements.

F-7

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

2. Summary of Significant Accounting Policies

This summary of significant accounting policies is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles (“GAAP”) in the United States of America and have been consistently applied in the preparation of the consolidated financial statements. The consolidated financial statements are stated in United States of America dollars.

Receivables

Accounts receivable include uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days from invoice date. Payments of accounts receivable are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

The carrying amount of accounts receivable is reduced by a valuation allowance for doubtful accounts that reflects management’s best estimate of the amounts that will not be collected based on historical collection trends. The allowance for doubtful accounts was $6180,~~349~~790 and $~~142~~44,~~548~~574 as of ~~April~~December 3031, ~~2013~~2014 and ~~2012~~2013, respectively.

Selling, General and Administrative Expenses

The Company previously received administrative support from Enversa’s former parent company, Internet University, Inc. (“Internet University”). Included in such administrative support were human resources, payroll, information technology and facilities services. Prior to February 1, 2011, the Company operated from office space provided by Internet University and utilized furniture and equipment provided by Internet University in such office space. The costs of such services were billed to CornerWorld and were reflected in the income statements in the total amount of $253,999 for the year ended April 30, 2011. Subsequent to February 1, 2011, the Company relocated to new office space.

Additionally, prior to April 30, 2011, all of CornerWorld’s and Enversa’s employees were leased to the Company through an agreement between CornerWorld, Enversa, and Internet University. CornerWorld and Enversa employees were paid under the federal employer identification number and are included in the employee benefit programs, such as life, health and disability insurance and 401(k) of a subsidiary of Internet University. The selling, general and administrative expenses on the income statement reflects a total of $2,531,345 of actual salaries for CornerWorld’s corporate and Enversa personnel during the year ended April 30, 2011, as well as an allocation of payroll taxes and employee benefits calculated at 15% of salary. Subsequent to April 30, 2011, all employees began being paid under the Company’s federal employer identification number.

Fair Value of Financial Instruments

ASC No. 850 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company’s cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable, accounts payable-related party and accrued liabilities approximate their estimated fair values due to their short-term maturities. Notes payable are carried at their face value net of their issuance costs which management believes is a reasonable approximation for their fair value. Warrants with put features are carried at their minimum cash put value discounted for the time value of money. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these consolidated financial statements.

Income Taxes

The Company accounts for income taxes in accordance with ASC No. 740 which requires the use of the asset and liability method of accounting of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Basic and Diluted Earnings (Loss) Per Share

In accordance with ASC 260, ~~the~~ basic ~~and~~earnings ~~diluted~~ (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted ~~net~~earnings ~~income~~(loss) per share, if any, is computed similar to basic earnings (loss) per share except that the denominator is adjusted for the potential dilution that could occur if stock options, warrants, and other convertible securities were exercised or converted into common stock. ~~Potentially dilutive securities were not included in the calculation of the diluted loss per share as their effect would be anti-dilutive.~~

Revenue Recognition

The Company recognizes revenue in accordance with Staff Accounting Bulletin (“SAB”) No. 101, “Revenue Recognition in Financial Statements,” as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectability is probable. Sales are recorded net of sales discounts.

At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. In addition, revenue is recognized monthly as SEO services are provided or in the form of revenues from domain leases.

F-8

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

For Woodland, the majority of revenue is derived from month-to-month, bundled service contracts for the phone and internet services used by each customer. Revenue ~~Recognition~~is recognized as the services are provided.

At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. At Gulf, revenue is recognized monthly as SEO services are provided or in the form of revenues from domain leases.

For Woodland, the majority of revenue is derived from month-to-month, bundled service contracts for the phone, television and internet services used by each customer. Revenue is recognized as the services are provided.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with an original maturity of three (3) months or less to be cash equivalents.

Property and ~~equipment~~Equipment

Property and equipment are recorded at cost and depreciated over their ~~estimates~~estimated useful lives using the straight-line method as follows:


Computer equipment	3 years
Office furniture	5 years
Computer software packages	3 years
Capitalized software development	3 years
Leasehold improvements	3 years

Expenditures for maintenance and repairs which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations. Management periodically reviews the carrying value of its property and equipment for impairment. The property and equipment had not incurred any impairment loss at ~~April~~December 3031, ~~2013~~2014.

Website development costs representing capitalized costs of design, configuration, coding, installation and testing of the Company’s website are capitalized until initial implementation. Upon implementation, the asset is amortized to expense over its estimated useful life of three (3) years using the straight-line method. Ongoing website post-implementation costs of operation, including training and application maintenance, will be charged to expense as incurred.

Long-Lived Assets

The Company accounts for its long-lived assets in accordance with ~~the~~ ASC 360. The Company’s primary long-lived assets are ~~Goodwill, a patent and~~ property and equipment. ~~The~~ ASC 360 requires a company to assess the recoverability of its long-lived assets whenever events and circumstances indicate the carrying value of an asset or asset group may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. Management reviews its long-lived assets annually and concluded that, as of April 30, 2013, due to negative cash flows and the continuing deterioration of market conditions in the for-profit education space, the goodwill associated with Enversa had become permanently impaired. Accordingly, the Company recorded a charge to earnings ~~in the fourth quarter~~ totaling $554,986 to impair Enversa’s goodwill~~. Management~~ ~~does~~for ~~not believe its fixed assets or~~ the ~~Goodwill~~year ~~and~~ended ~~patent~~April ~~associated with its Woodland acquisitions are impaired. See also Note 4~~30, ~~Intangible Assets and Goodwill~~2013.

Stock-Based Compensation

F-9

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

~~Stock~~The Company’s determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company’s stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on comparable companies. These factors could change in the future, affecting the determination of stock based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company’s options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company’s options. Although the fair value of the Company’s options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 8 Stock Based Compensation, for more details.

The Company’s determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company’s stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on comparable companies. These factors could change in the future, affecting the determination of stock based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company’s options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company’s options. Although the fair value of the Company’s options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 7 Stock Based Compensation, for more details.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of CornerWorld Corporation, its wholly owned subsidiaries and entities determined to meet the definition of ~~VIE’s~~Variable Interest Entities. All significant intercompany transactions and balances have been eliminated in consolidation.

Concentrations of ~~cash~~Cash and ~~cash~~Cash ~~equivalents~~Equivalents

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Federal Deposit Insurance Corporation (FDIC) currently insures accounts at each institution for up to $250,000. At times, cash balances may exceed the FDIC insurance limit of $250,000. At ~~April~~December 3031, ~~2013~~2014 and ~~2012,~~2013 the Company had $~~853,432~~0 and $~~253~~476,~~489~~000, respectively, in excess of that which is insured by the FDIC.

Concentration of credit risk

Credit is extended based on an evaluation of the customer’s financial condition, and the Company does not require collateral. Write-offs of accounts receivable have historically been nominal. The Company’s top three customers comprised 71.3% of total revenue during the year ended April 30, 2013. In addition, approximately 49.2%, 30.1% and 32.2% of total revenue was derived from the Company’s largest customer during the years ended April 30, 2013, 2012 and 2011, respectively.

Recent Accounting Pronouncements

Issuance of Stock for Non-Cash Consideration

All issuances of the Company’s stock for non-cash consideration have been assigned a dollar amount equaling either the market value of the shares issued or the value of consideration received, whichever is more readily determinable.

Reclassifications

Certain prior year accounts have been reclassified to conform to the current year’s presentation.

3. Discontinued Operations

We completed the sale of our Ranger business on September 30, 2013 for $7.5 million in cash plus a contingent receivable for $800,000 which we collected in November 2013; we recognized a gain of $2,788,543 on the sale, net of tax. The decision to sell Ranger allowed us to retire substantially all of our secured debt, including debt with loan covenants for which we were previously not in compliance. Our Ranger operations, previously reported within the Communications Services segment, have been reclassified as discontinued operations in our unaudited Condensed Consolidated Financial Statements for the operations up to the date of sale for the eight-month period ended December 31, 2013 and the fiscal year ended April 30, 2013. In addition, all secured debt retired as a result of the divestiture have been reclassified as discontinued operations and interest plus loan discounts from all secured debt, including the Company’s put warrants, directly paid off as a result of the divestiture of Ranger, was allocated to discontinued operations for all periods presented. Finally, the Company’s patent and all of its goodwill, as of April 30, 2013 were part of the assets divested while all revenues related to the Company’s customer concentrations as of December 31, 2013 and April 30, 2013 were also part of the discontinued operations.

F-10

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

3.The ~~Property~~following ~~and~~is ~~Equipment~~a summary of the operating results of our discontinued operations:

Property and equipment is summarized as follows at April 30:


	For the Year Ended December 31, 2014		For the Eight-month Period Ended December 31, 2013		For the Year Ended April 30, 2013
Sales, net	$	—	$	2,014,095	$	5,256,108

Income from discontinued operations before income taxes		—		538,568		1,401,050
Income taxes		—		—		—
Net income from discontinued operations	$	—	$	538,568	$	1,401,050

		2013			2012
Computer equipment	$	1,080,772		$	1,095,149
Furniture		116,497			154,250
Leasehold improvements		15,077			15,077
Software		100,373			100,373
Total		1,312,719			1,364,849
Less: accumulated depreciation and amortization		(1,247,819	)		(1,210,176	)
Property and equipment, net	$	64,900		$	154,673

There were no assets and liabilities held for sale as of December 31, 2014 and 2013.

~~Depreciation~~4. ~~expense~~Property ~~for property~~ and ~~equipment for the years ended April 30, 2013, 2012 and 2011 was $82,387, $355,606, and $386,145 respectively.~~Equipment

4.Property ~~Intangible~~and ~~Assets~~equipment ~~and~~is ~~Goodwill~~summarized as follows:

Intangible Assets


	December 31,
	2014			2013
Computer equipment	$	236,583		$	236,583
Furniture		86,499			86,499
Software		79,061			79,061
Leasehold improvements		9,977			9,977
Total		412,120			412,120
Less: accumulated depreciation and amortization		(409,443	)		(392,634	)
Property and equipment, net	$	2,677		$	19,486

~~Identifiable~~Depreciation ~~intangibles~~expense ~~acquired~~for inproperty ~~connection~~and ~~with~~equipment ~~business acquisitions accounted~~ for ~~under~~ the ~~purchase~~year ~~method~~ended ~~are~~December ~~recorded~~31, at2014, ~~their~~the ~~respective~~eight-month ~~fair~~period ~~values.~~ended ~~The~~December ~~Company~~31, is2013 ~~amortizing~~and the ~~identifiable~~year ~~intangibles~~ended ~~over~~April ~~their~~30, ~~estimated~~2013 ~~useful~~was ~~lives~~$16,808, ~~ranging~~$33,755 ~~from~~and ~~three~~$71,608, ~~to seven years~~respectively. ~~Intangibles consist of the following at April 30:~~

		2013			2012		Estimated Useful Life (Years)
Patent	$	10,904,792		$	10,904,792		7
Customer list		1,000,000			1,000,000		3
		11,904,792			11,904,792
Accumulated amortization		(7,490,950	)		(5,933,122	)
	$	4,413,842		$	5,971,670

5. Debt

Amortization expense related to identifiable intangible assets totaled $1,557,828, $1,668,932 and $1,891,164 for the years ended April 30, 2013, 2012 and 2011, respectively. The estimated amortization for the next five years is as follows:


	As of December 31
	2014			2013
Long-term Debt
Note payable to CEO; the note matures July 31, 2016. At December 31, 2014, the interest rate was 6.25%. This note is collateralized by all assets of the Company save for the Ranger patent. See also Note 8, Related Party Transactions.		338,958			338,958
Total debt		338,958			338,958
Less current portion of long-term debt		(152,952	)		(101,968	)
Non-current portion of long-term debt	$	186,006		$	236,990

2014	1,557,828
2015	1,557,828
2016	1,298,186

As previously noted, on September 30, 2013, the Company sold 100% of the outstanding membership interests of Ranger. By executing the sale of Ranger, the Company was able to payoff substantially all of its secured creditors including reacquiring the common stock purchase warrants originally issued to the Senior Lender (the “Warrants”), pursuant to which the Senior Lender could have purchased up to 8,762,008 shares of the Company’s common stock for an aggregate price of $100. The Warrants were not exercisable prior to March 30, 2014 but were being carried as a liability due to the fact that they could be put to the Company for $1,000,000 on March 30, 2014. In addition to retiring the Warrants and the notes payable to the Senior Lender, unamortized loan fees of $396,913 were written off as a result of the sale of Ranger and the subsequent retirement of substantially all secured payables.

Goodwill

Goodwill represents the excess of acquisition cost over the net assets acquired in a business combination and is not amortized in accordance with ASC 350. The provisions of ASC 350 require that the Company allocate its goodwill to its various reporting units, determine the carrying value of those businesses, and estimate the fair value of the reporting units so that a two-step goodwill impairment test can be performed. In the first step of the goodwill impairment test, the fair value of each reporting unit is compared to its carrying value. Management reviews, on an annual basis, the carrying value of goodwill in order to determine whether impairment has occurred. Impairment is based on several factors including the Company’s projection of future discounted operating cash flows. If an impairment of the carrying value were to be indicated by this review, the Company would perform the second step of the goodwill impairment test in order to determine the amount of goodwill impairment, if any.

F-11

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

AsSubstantially ~~previously~~all ~~noted, due to negative cash flows and the continuing deterioration~~ of ~~market conditions in~~ the ~~for-profit education space, the~~ Company’s ~~management~~secured ~~determined~~notes ~~that,~~payable ~~the~~were ~~goodwill~~also ~~associated~~paid ~~with~~off ~~Enversa~~as ~~had become permanently impaired. As such, the Company recorded~~ a ~~charge~~result toof ~~earnings in~~ the ~~fourth~~sale ~~quarter~~of ~~totaling $554,986 to impair Enversa’s goodwill~~Ranger. The ~~goodwill~~remaining ~~that~~collateralized ~~remains~~note ~~totals $1~~payable,~~581,850~~ ~~and~~due ~~relates solely~~ to the Company’s ~~Communication Services segment. Based on management’s review~~CEO, ~~that~~contains ~~goodwill~~no ~~was~~restrictive ~~not~~covenants ~~impaired~~or asevents of ~~April~~default ~~30,~~other ~~2013~~than non-payment.

5On December 31, 2014, the Company did not make its regularly scheduled payment totaling $12,746 to Scott N. ~~Debt~~Beck, the Company’s Chief Executive Officer, which constituted an event of default under the Company’s lone senior secured note. Mr. Beck did not call default but there can be no assurance that, as the Company’s senior secured lender, he will not do so. It is anticipated that the Company will amend the note with Mr. Beck at some future point but there can be no assurance that we will be successful in amending the terms of Mr. Beck’s senior secured note. Should we be unsuccessful in executing an amendment or an extension, Mr. Beck, as the senior secured lender, could move to seize the underlying collateral which would have a material adverse effect on the Company’s ability to continue as a going concern.

	As of April 30,
	2013			2012
Long-term Debt
Notes payable to Emerald Crest Capital (the “Senior Lender”); the notes mature March 31, 2015. The interest rate was floating at LIBOR plus 12%; the notes’ floor utilizes a minimum LIBOR of 3%. At April 30, 2013 the total rate was 15%. These notes are collateralized by all assets of the Company.	$	3,700,000		$	4,500,000
Note payable IU Holdings, LP; the note matures February 28, 2015. At April 30, 2013, the interest rate was 10%. This note is collateralized by all assets of the Company save for the Ranger patent. See also note 11, Related Party Transactions.		1,500,000			1,500,000
Note payable to IU Investments, LLC, due March 31, 2016. At April 30, 2013, the interest rate was 10%. These notes are collateralized by all assets of the Company save for the Ranger patent. See also note 11, Related Party Transactions.		527,915			527,915
Notes payable to Internet University and the other selling members of Enversa; the notes were converted to equity on October 31, 2012. See also note 11, Related Party Transactions.		—			1,364,199
Note payable to Internet University; the note matures April 30, 2013. At April 30, 2013, the interest rate was 10%. This note is collateralized by all assets of the Company save for the Ranger patent. See also note 11, Related Party Transactions.		10,000			300,000
Note payable to Ned B. Timmer; the note matures April 30, 2016. At April 30, 2013, the interest rate was 10%. This note is collateralized by all assets of Woodland Holdings, Corporation, including the Ranger patent.		1,440,000			1,800,000
Note payable to CEO; the note matures July 31, 2015. At April 30, 2013, the interest rate was 10%. This note is collateralized by all assets of the Company save for the Ranger patent. See also note 11, Related Party Transactions.		338,958			338,958
Note payable to Kelly Larabee Morlan; the note matures December 31, 2013. At January 31, 2013, the interest rate was 10%. This note is not collateralized.		16,316			16,316
Total debt		7,533,189			10,347,388
Less current portion of long-term debt		(4,352,979	)		(3,325,525	)
Non-current portion of long-term debt	$	3,180,210		$	7,021,863

On March 29, 2011, the Company also entered into a warrant purchase agreement with the Senior Lender. Pursuant to the Purchase Agreement, the Company issued the Senior Lender a common stock purchase warrant (the “Warrant”), pursuant to which the Senior Lender may purchase up to 8,762,008 shares of the Company’s common stock for an aggregate price of $100, have a 5 year term and contain certain put and call options. The Warrant is not exercisable prior to March 30, 2014. Using the Black-Scholes model, the value of the warrant issued to the Senior Lender was less than the net present value of the minimum $1,000,000 cash value of the warrants. Therefore, the net present value of $1,000,000, totaling $873,861 and $754,091 at April 30, 2013 and 2012, respectively, was recorded as a loan discount, which is being amortized to earnings as additional interest expense over the remaining term of the loan. The warrant will be revalued at each reporting date, and adjusted to earnings. In addition, other loan fees of $717,569 were incurred from the issuance of 75,104,584 shares of the Company’s stock, $512,750 was paid or accrued, and $52,467 was incurred from the grant of additional warrants during March 2011. These fees are being amortized to earnings as additional interest over the remaining term of the loans. The unamortized balance of these deferred costs was $537,313 and $1,039,302 at April 30, 2013 and 2012, respectively, and is reflected as a loan discount to the outstanding balance of $7,533,189 and $10,347,388 at April 30, 2013 and 2012, respectively.

F-12

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

April 30, 2013

The notes payable to the Senior Lenders include certain restrictive covenants with respect to the Company’s earnings, leverage and accounts payable. Failure to comply with these covenants could result in the acceleration of all or part of the notes payable to the Senior Lender, depending on the particular covenant, creating a “Paydown Event.” Effective April 30, 2013, the Company was not in compliance with a covenant whereby the Company’s marketing segment did not maintain a minimum level of earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the credit agreement with the Senior Lender. Accordingly, the Company was subject to a Paydown Event potentially resulting in a requirement to paydown approximately an additional $1.3 million on June 30, 2013. Failure to obtain a waiver or amendment would entitle the Senior Lender to declare an Event of Default under the Notes, which could lead to an acceleration of all other amounts payable under the Notes. This would entitle the Senior Lender to exercise its remedies under the notes, including foreclosing upon the collateral securing the notes. Any failure to obtain a waiver or amendment of this Paydown Event could inhibit the Company’s ability to continue as a going concern and would result in a material adverse effect on the Company.

Future minimum principal payments pursuant to the above long term debt agreements are as follows:

Year ending April 30
As of December 31, 2014
2014	$	4,352,979
2015	$	152,952
2015		2,707,214
2016		152,952
2016		472,996
2017		33,054
Total	$	7338,~~533,189~~958

6. Leases

The Company leases its facilities under non-cancelable operating lease agreements. The leases expire on various dates through 2016 and provide for minimum monthly rents of approximately $43,~~150~~500. Rent expense for the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the eight-month period ended December 31, 2013 and ~~2011~~the fiscal year ended April 30, 2013 was approximately $~~138~~24,~~982~~137, $~~283~~138,~~649~~982 and $~~539~~283,~~947~~649, respectively. See also Note 11, Related Party Transactions, for more details.

The Company also has a capital lease on telecom equipment. The lease expires on March 1, 2015 and the Company makes monthly payments of $892 pursuant to the terms of this lease.

Future minimum lease payments under non-cancelable leases are as follows:

2014	$	55,559
As of December 31, 2014
2015	$	4133,~~017~~685
2016		3213,~~400~~500
Total lease payments	$	~~128~~47,~~976~~185

F-13

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

April 30, 2013

7. Equity

Preferred Stock

The Company’s authorized preferred stock consists of 10,000,000 shares with a par value of $0.001 per share. There were no issued and outstanding preferred shares as of ~~April~~December 3031, ~~2013~~2014.

Common Stock

The Company’s authorized common stock consists of 250,000,000 shares with a par value of $0.001 per share. As of ~~April~~December 3031, ~~2013~~2014, ~~157~~162,~~313~~937,~~704~~110 shares of common stock were issued and outstanding.

On October 31, 2012, the Company issued 9,766,097 shares of common stock in exchange for retiring approximately $1,464,916 of debt and accrued interest. The outstanding principal balances on the notes converted, as well as any outstanding accrued interest, were converted at the rate of $0.15/share. See also Note 11 Related Party Transactions for more detail.F-12

On March 30, 2011, the Company issued 75,104,584 shares to certain creditors with respect to the issuance of debt or extension of terms of their outstanding commitments. Similarly, on March 30, 2011, the Company issued 10,300,000 shares to certain officers and key employees.

On March 30, 2011, in connection with the February 3, 2011 Settlement Agreement, the Company retired 33,950,000 shares. See also Note 10, Commitments and Contingencies, for more detail.

On September 19, 2011, the Company issued 514,705 shares pursuant to the cash-less exercise of warrants. On September 22, 2011, the Company issued 60,001 shares pursuant to the cash-less exercise of employee stock options.

Warrants

The following summarizes the Company’s warrant transactions for the years ended April 30, 2012, 2011 and 2010:

	Number of Warrants			Weighted Average Exercise Price Per Share
Outstanding and exercisable, May 1, 2010		13,671,000		$	0.32
Granted		14,895,415			0.00
Cancelled or Expired		(2,750,000	)		0.07
Outstanding, April 30, 2011		25,816,415		$	0.11
Granted		—			—
Exercised		(1,250,000	)		0.20
Cancelled or Expired		—			—
Outstanding, April 30, 2012		24,566,415		$	0.11
Granted		—			—
Cancelled or Expired		(420,000	)		1.46
Outstanding, April 30, 2013		24,146,415		$	0.08
Weighted average fair value of warrants granted:
2011	$	0.00
2012	$	—
2013	$	—

F-14

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

~~The following table summarizes information about warrants outstanding as of April 30, 2013:~~Warrants

	Warrants Outstanding and Exercisable
Range of Exercise Prices	Number		Weighted Average Exercise Price
$0.00 - $0.20		14,895,415	$	0.00
$0.20 - $1.40		9,251,000	$	0.21

The following summarizes the Company’s warrant transactions for the year ended December 31, 2014, the eight-month period ended December 31, 2013 and the year ended April 30, 2013:

As part of the February 23, 2009 Woodland Acquisition, the Company issued warrants to Timmer, who later became an employee and a member of the Board of Directors. The warrants allowed Timmer or his assigns to purchase 33,950,000 shares of the Company’s common stock for consideration of $100. Timmer and his assigns exercised the warrants on July 23, 2009 and acquired 33,950,000 shares of the Company’s common stock. This stock was returned as part of the February 3, 2011 Settlement Agreement (the “Settlement Agreement”) between the Company and Timmer. See also Note 9, Commitments and Contingencies, for more detail.


	Number of Warrants			Weighted Average Exercise Price Per Share
Outstanding and exercisable, May 1, 2012		24,566,415		$	0.11
Granted		—			—
Cancelled or Expired		(420,000	)		1.46
Outstanding, April 30, 2013		24,146,415		$	0.08
Granted		—			—
Cancelled or Expired		(14,942,009	)		0.09
December 31, 2013		9,204,406		$	0.07
Granted		—			—
Exercised		(6,123,406	)		—
Cancelled or Expired		(3,081,000	)		0.07
December 31, 2014		—		$	—

Pursuant to the financing of the Settlement Agreement, the Company issued warrants to one of the lenders to purchase up to 8,762,008 shares of the Company’s Common stock. These warrants contain certain put and call features, including a put feature that the warrants will not be exercisable for less than $1.0 million in cash, and are not exercisable prior to March 30, 2014.

In connection with the sourcing of capital required to fund the Settlement Agreement, the Company issued warrants to Dragonfly Capital Partners LLC (the “Dragonfly Warrants”) to purchase up to 6,133,406 shares of the Company’s common stock. The warrants can be exercised for an aggregate price of $100 and have a 5 year term.

8. Stock Based Compensation Plans

Incentive Stock Plan

On August 17, 2007, the Company’s ~~board~~Board of ~~directors~~Directors adopted and implemented the Company’s 2007 Incentive Stock Plan. Under the Incentive Stock Plan, the Company is authorized to issue 4,000,000 shares of its common stock to the Company’s directors, officers, employees, advisors or consultants.

~~The~~There ~~number~~were of1,925,000 shares outstanding under the Company’s 2007 Incentive Stock Plan as of ~~April~~December 3031, ~~2013 was 1,290,000~~2014.

Stock Compensation Plan

Awards granted to a participant of the Company shall become exercisable over a period of no longer than 5five years, and may vest as determined at the Company’s discretion at the time of grant.

AsThere ofwere ~~April 30~~1, ~~2013~~625, ~~925,~~000 ~~authorized~~ shares outstanding under the Company’s 2007 Stock Compensation Plan ~~had~~as ~~been~~of ~~granted~~December 31, 2014.

F-1513

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

A summary of the shares reserved for grant and awards available for grant under each Stock Plan is as follows:

	April 30, 2013
	December 31, 2014
	Shares Reserved for Grant	Awards Available for Grant
Incentive Stock Plan	4,000,000	2,~~680~~075,000
Stock Compensation Plan	4,000,000	32,~~075~~375,000
	8,000,000	54,~~755~~450,000

The Company issues awards to employees, qualified consultants and directors that generally vest over time based solely on continued employment or service during the related vesting period and are exercisable over a five to ten year service period. Options are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant.

The fair value of each stock-based award is estimated on the grant date using the Black-Scholes option-pricing model. Expected volatilities are based on comparable companies. The expected term of options granted subsequent to the adoption ASC 718 is derived using the simplified method as defined in the SEC’s SAB No. 107. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury interest rates in effect at the time of grant. The fair value of options granted was estimated using the following weighted-average assumptions:

	For the Year Ended April 30
	For the Year Ended December 31,	For the Eight-month Period Ended December 31,	For the Year Ended April 30,
	2013	2012	2011
	2014	2013	2013
Expected term (in years)	5.0	~~5.0~~—	5.0
Expected volatility	~~100~~125.0%	~~100.0~~—%	76100.10%
Risk-free interest rate	01.255%	~~0.9~~—%	20.2%
Dividend yield	~~0.0~~—%	~~0.0~~—%	0.0%

A summary of activity under the Stock Plans and changes during the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the eight-month period ended December 31, 2013 and ~~2011~~the year ended April 30, 2013 is presented below:

	Weighted-Average
	Shares			Exercise Price		Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at May 1, 2010		2,579,000		$	0.54		3.47	$	0.00
Outstanding at May 1, 2012		2,910,000		$	0.35		3.12	$	44,600
Granted		750,000			0.20
Cancelled/forfeited		(809,000	)		0.87
Exercised		—			—
Outstanding at April 30, 2011		2,520,000		$	0.35	$	3.36	$	0.00
Granted		1,130,000			0.29
Cancelled/forfeited		(679,999	)		0.20
Exercised		(60,001	)		0.20
Outstanding at April 30, 2012		2,910,000		$	0.35	$	3.12	$	44,600
Granted		30,000			0.29
Cancelled/forfeited		(695,000	)		0.20
Outstanding at April 30, 2013		2,245,000		$	0.38	$	1.49	$	~~0.00~~—
Options vested and expected to vest		2,245,000		$	0.38		1.49	$	0.00
Granted		—			—
Options exercisable at end of period		1,895,000		$	0.40		1.15	$	0.00
Cancelled/forfeited		(1,605,000	)		0.44
Outstanding at December 31, 2013		640,000		$	0.22		1.63	$	—
Granted		3,200,000			0.11
Cancelled/forfeited		(290,000	)		0.21
Outstanding at December 31, 2014		3,550,000		$	0.13		3.94	$	20,000
Options vested and expected to vest		1,905,000		$	0.12		3.76	$	5,000
Options exercisable at end of period		1,130,000		$	0.15		3.32	$	5,000

F-1614

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

During the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the eight-month period ended December 31, 2013 and ~~2011~~the year ended April 30, 2013, the Company recognized $~~164~~11,~~071~~765, $~~158~~16,~~514~~779 and $~~149~~164,~~570~~071 of stock-based compensation expense, respectively. As of ~~April~~December 3031, ~~2013,~~2014 ~~2012~~ and ~~2011~~2013 there was $8626,~~642,~~835 ~~$273,673~~ and $~~362~~18,~~548~~646, respectively, of total unrecognized compensation cost, net of forfeitures, related to unvested employee and director stock option compensation arrangements. That cost is expected to be recognized on a straight-line basis over the next 13.4994 weighted average years.

9. Commitments and Contingencies

Litigation

On ~~December~~October 1110, ~~2009~~2013, the Company’s former President, ~~received~~Marc aA. ~~letter~~Pickren (~~the~~ “~~Notice~~Pickren”) ~~from~~filed ana ~~attorney~~lawsuit ~~representing~~in ~~Timmer~~Dallas ~~which~~County ~~alleged~~District ~~certain~~Court ~~defaults~~alleging, ~~with~~among ~~respect~~other tothings, that ~~certain~~the ~~Secured~~Company ~~Debenture~~had ~~issued~~wrongfully byterminated ~~the~~his ~~Company~~employment; ~~and the Company~~Pickren’s ~~wholly-owned~~suit ~~subsidiary,~~sought ~~Woodland~~claims ~~Holdings,~~approximating ~~in favor of Timmer~~$265,000. Pickren’s ~~with~~employment aagreement ~~maturity~~expired ~~date~~on ofSeptember ~~February 23~~15, ~~2012,~~2013 ~~that~~and ~~certain~~was ~~Purchase~~not ~~Money~~renewed. ~~Note~~Pickren ~~issued~~was byremoved ~~Woodland~~as ~~Holdings~~President ~~in favor~~ of ~~Timmer~~CornerWorld ~~with~~Corporation aon ~~maturity~~October ~~date of February 23~~4, ~~2012,~~2013 ~~and~~though ~~certain~~he ~~related~~remained ~~security~~employed ~~agreements~~as ~~and~~the ~~collateral~~President ~~perfection~~of ~~agreements~~Enversa ~~all~~until ofOctober ~~which~~8, ~~were~~2013 inwhen ~~connection~~he ~~with~~was ~~the~~terminated ~~Woodland~~for ~~Acquisition~~cause. The ~~Further,~~Company onsettled ~~December 14, 2009,~~ the ~~Company~~lawsuit ~~received~~out ~~documents~~of ~~from~~court ~~Timmer~~for ~~pursuant~~an toundisclosed ~~which~~amount ~~Timmer~~in ~~purported~~August ~~to appoint new directors and officers of each of the Woodland’s subsidiaries~~2014.

The Company believed that the events described in the Notice did not constitute defaults and, on December 14, 2009 the Company filed an action against Timmer, another member of the Company’s Board of Directors, and certain other parties in the United States District Court for the Western District of Michigan for fraud, breach of contract, breach of fiduciary duty, conversion and other matters and requesting, among other things, injunctive relief and damages.

On December 21, 2009, the Company presented its arguments in the United States District Court for the Western District of Michigan. On December 22, 2009, the judge issued an order (the “Order”) which denied Timmer’s request for an injunction against the Company and granted the Company’s request for injunction against Timmer. Among other things, the injunction ordered: (1) The actions taken by Timmer on December 10, 2009 to gain corporate control over Woodland are deemed null and void; (2) Timmer shall return to CornerWorld all collateral and/or property belonging to the Company over which he has asserted control, including, but not limited to, the funds contained in bank accounts; and (3) Timmer shall be removed from active management of the Woodland employees, but shall be retained on the Board of Directors of the Company. The Company immediately moved to comply with the Order.

On December 31, 2009, Timmer filed a motion for reconsideration and the Company immediately responded.

On January 7, 2010, Timmer’s motion for reconsideration was denied.

The Company entered into mediation discussions with Mr. Timmer on June 21, 2010 and again on August 11, 2010. The parties did not agree to a settlement as a result of those mediation discussions.

On November 16, 2010, the judge in the United States District Court for the Western District of Michigan issued two orders (the “Second Orders”) which dismissed most of Timmer’s default claims while also simultaneously denying his request for relief from the preliminary injunction entered on December 22, 2009. The Second Orders also denied CornerWorld’s claim for summary judgment.

F-17

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

April 30, 2013

As previously noted, on February 3, 2011, the Company and Timmer (collectively the “Parties”), entered into the Settlement Agreement, pursuant to which:

· Timmer canceled an aggregate of $6.1 million principal on outstanding notes payable. These notes were comprised of the Secured Debenture, dated as of February 23, 2009, issued by Woodland Holdings to Timmer, and the Purchase Money Note dated as of February 23, 2009, issued by Woodland Holdings Corporation to Timmer. These notes had outstanding balances totaling $1.9 million and $4.2 million as of February 3, 2011, respectively. · Timmer returned all collateral stock certificates/membership interests of the Company’s subsidiaries in his possession, including Woodland Holdings, T2TV, WMCLS, Woodland Wireless, Ranger, T2 Communications and PSM. · Timmer returned all CornerWorld common stock beneficially owned by him representing approximately 35% of the total outstanding stock of the Company. This included 31,450,000 shares held by the Ned Timmer Trust and 2,100,000 shares in the name of Ned Timmer. In addition, Timmer returned 400,000 shares held by HCC Foundation and warrants to purchase 2,750,000 shares. Finally, Timmer agreed that he will never purchase, own or control any CornerWorld Common stock. · Timmer resigned from the CornerWorld Board of Directors, resigned his position as an officer of the Company and his employment agreement was terminated. · On or prior to March 30, 2011, CornerWorld paid Timmer (1) $6.0 million in cash (the “Lump Sum Payment”) and issued (2) a Promissory Note (the “Note”) for $1.8 million. The Note is payable in five annual payments of $360,000 with the first payment due April 30, 2012; the first payment was made on May 1, 2012. In addition, the Note bears interest at 10%. The Note is secured by existing collateral held by Timmer as set forth in the Pledge and Security Agreements dated February 23, 2009 made by the Company, CornerWorld, Inc., Enversa Companies, LLC, Woodland Holdings Corp., Woodland Wireless Solutions Ltd., S Squared LLC, West Michigan Co-Location Services, LLC and T2 TV, LLC in favor of Ned B. Timmer and will be subordinated to any third party financing of the Lump Sum Payment, among other things. · The lease between Woodland Holdings, a CornerWorld subsidiary, and Sol Danzer Enterprises, LLC (“SD”) was terminated. · The Parties agreed that the second closing of the Unit Purchase Agreement for the purchase of 100% of the member voting units of T2 Communications, LLC and Phone Services and More, LLC took place contemporaneously with the funding of the Lump Sum Payment. · The Parties agreed to dismiss all legal proceedings within 5 business days of the funding of the Lump Sum Payment.

The Settlement Agreement was contingent upon the Company obtaining third party financing for the Lump Sum Payment by March 30, 2011. On March 30, 2011, the Company consummated the Settlement Agreement with Timmer by making a payment to Timmer totaling $6.0 million, among other things. In accordance with the Settlement Agreement, subsequently, the Company and Timmer dismissed all legal proceedings against each other.

From time to time, the Company is involved in litigation matters relating to claims arising from the ordinary course of business. While the results of such claims and legal actions cannot be predicted with certainty, the Company’s management does not believe that there are claims or actions, pending or threatened against the Company, the ultimate disposition of which would have a material adverse effect on our business, results of operations, financial condition or cash flows.

F-18

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

April 30, 2013

Employment Agreements

~~The~~On July 28, 2011, the Company’s ~~has~~CornerWorld, Inc. subsidiary entered into an employment ~~contract~~agreement with Mr. ~~Scott~~ Beck, ~~the~~its ~~Chairmen~~Chairman ofand ~~the~~Chief ~~Board~~Executive ofOfficer. ~~Directors~~Mr. ~~who~~Beck’s ~~also~~employment ~~serves~~agreement has been modified multiple times, most recently as ~~the~~of ~~Chief~~November ~~Executive~~1, ~~Officer~~2013. Pursuant to his employment agreement, Mr. Beck is paid an annual base salary of $~~400~~18,000, anwhich ~~annual~~adjusted ~~performance~~to ~~based~~a ~~cash~~base ~~bonus~~salary ~~subject~~of to$23,000 ~~the~~effective ~~discretion~~January of1, ~~the~~2014. In ~~board~~addition, ofMr. ~~directors,~~Beck is entitled to an annual ~~warrant~~performance-based tocash ~~purchase~~bonus 1%subject ofto the ~~then~~discretion ~~outstanding~~of ~~common~~the ~~shares~~Board of ~~the Company~~Directors, a bonus fee of 2~~.00~~% of all equity and debt raised during the time of his contract payable out of proceeds at closing of such equity and/or debt capital transaction, a 3.50% fee for the transaction value of all acquisitions as defined in his employment agreement payable at closing, warrants equal to 3.25% of the equity issued pursuant to any debt and equity raised during the time of his employment agreement, a warrant equal to 3.25% of the transaction value of any equity issued in association with all acquisitions and the greater of 5% of fair market value or $5.0 million buyout fee in the case of a change in control~~; in addition, Mr~~. ~~Beck’s employment agreement provides for an annual increase of~~ Mr. Beck’s ~~base salary by 5% every year during the term of the agreement. Mr. Beck’s~~ employment agreement also provides that, if he is terminated without cause prior to the end of the employment agreement, he will be paid the full amount of his base salary for any days remaining in the full ten year term, the Company will purchase all equity instruments held by Mr. Beck and, ~~finally,~~ the Company will pay Mr. Beck $5.0 million within six months of his termination. Finally, Mr. Beck will receive 10% of amounts payable to the Company as a result of any patent infringement litigation. Mr. Beck’s employment agreement was amended on July 28, 2012 and again on July 30, 2013 such that his salary remained at $250,000 per annum through April 30, 2014 and he did not receive his annual equity grant. His employment agreement continues through July 27, 2021. ~~See also Note 13, Subsequent Events.~~

The Company’s ~~has~~Chief anFinancial ~~employment agreement with Mr. Marc Pickren~~Officer, ~~its President~~V. ~~Pursuant~~Chase toMcCrea ~~his employment agreement~~III, ~~Mr. Pickren is paid an annual base salary of $220,000 and commissions based on new clients acquired by Mr. Pickren. Mr. Pickren~~ was ~~paid~~employed asubject ~~one-time signing bonus of $55,000 related~~ to ~~entering into this agreement. In addition, in accordance with~~ his employment agreement, onwhich ~~September~~expired ~~21,~~on ~~2011,~~July ~~Mr. Pickren was issued 250~~31,~~000~~ ~~options~~2014 ~~to purchase the Company’s common stock~~ at awhich ~~price~~time ofit ~~$0.30~~was ~~per~~not ~~share; the option contains vesting provisions consistent with other options issued to employees and expires at the end of 5 years~~renewed. Mr. ~~Pickren’s~~McCrea ~~employment~~remains ~~agreement~~an ~~continues~~at-will ~~through~~employee ~~September 15, 2013. The agreement contains certain severance payments, upon termination~~ of ~~employment~~the ~~(except for cause), as defined in his employment agreement~~Company.

The Company has an employment contract with Mr. Chase McCrea, its Chief Financial Officer. The contract provides for an annual salary of $165,000 and includes certain bonus provisions up to 25% of his base salary based on the company achieving certain earnings thresholds, among other things. This agreement expires in 2014. The agreement contains certain severance payments, upon termination of employment (except for cause), as defined in his employment agreement.F-15

F-19

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

10. Segment Reporting

The Company operates in three integrated business segments: (i) marketing services, (ii) communications services and (iii) Corporate, formerly, on-line media networks:

	For the Year Ended April 30
	For the Year Ended December 31,			For the Eight-month Period Ended December 31,			For the Year Ended April 30,
	2013			2012			2011
	2014			2013			2013
Net sales:
Marketing Services	$	1706,~~749,491~~566		$	4592,~~311,811~~756		$	51,~~586~~749,~~604~~491
Communications Services		5244,~~432,351~~155			581,~~829,792~~198			6176,~~174,949~~243
Corporate		—37,500			—			—
Total net sales	$	7988,~~181,842~~221		$	10673,~~141,603~~954		$	111,~~761~~925,~~553~~734
Income (loss) before income taxes:
Income (loss) from continuing operations before income taxes:
Marketing Services	$	~~554~~42,~~997~~321		$	~~(104~~1,~~303~~770	)	$	~~(152~~554,~~647~~997	)
Communications Services		1(46,~~350,649~~723	)		1(162,~~344,736~~887	)		~~742~~(410,~~076~~939	)
Corporate		(3994,~~267,880~~773	)		(3581,~~345,480~~760	)		(2,~~144~~907,~~277~~342	)
Total loss before income taxes	$	(1,362,234	)	$	(2,105,047	)	$	(1,554,848	)
Total loss from continuing operations before income taxes	$	(999,175	)	$	(742,877	)	$	(2,763,284	)
Depreciation and amortization included in operating income:
Net Income (loss):
Marketing Services	$	642,~~183~~321		$	~~117~~1,~~104~~770		$	~~336~~554,~~948~~997
Communications Services		1(46,~~587,005~~723	)		12,~~846~~979,~~364~~960			1,~~899~~350,~~353~~649
Corporate		47(994,~~027~~773	)		61(397,~~070~~496	)		41(3,~~008~~267,880	)
Total depreciation and amortization	$	1,640,215		$	2,024,538		$	2,277,309
Net income (loss)	$	(999,175	)	$	2,584,234		$	(1,362,234	)
Intangible assets:
Depreciation and amortization:
Marketing Services	$	—		$	—3,368		$	~~111~~6,~~104~~183
Communications Services		410,~~413,842~~709			510,~~971,670~~474			718,~~529,498~~398
Corporate		—6,099			—19,913			—47,027
Total segment identifiable intangible assets	$	4,413,842		$	5,971,670		$	7,640,602
Total depreciation and amortization	$	16,808		$	33,755		$	71,608
Goodwill:
Marketing Services	$	—		$	—		$	—
Communications Services		1,581,850			1,581,850			1,581,850
Corporate		—			554,986			554,986
Total segment identifiable assets	$	1,581,850		$	2,136,836		$	2,136,836
Total assets:
Marketing Services	$	~~179~~90,~~722~~729		$	~~491~~172,~~889~~617		$	1179,~~446,413~~722
Communications Services		724,~~709,598~~414			9133,~~129,572~~978			107,~~758~~709,~~753~~598
Corporate		7665,~~713~~520			~~763~~871,~~191~~066			~~903~~76,~~866~~713
Total segment identifiable assets	$	7180,~~966,033~~663		$	101,~~384~~177,~~652~~661		$	137,~~109~~966,~~032~~033

There were no material intersegment sales. Operating income is defined as third party sales less operating expenses. All of the Company’s business activities are conducted within the United States geographic boundaries.

~~F-20~~11. Related Party Transactions

F-16

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

11As part of the February 23, 2009 Woodland Acquisition, the Company borrowed $1,900,000 from IU Investments LLC (the “Tier 3 Junior Note”). IU ~~RELATED~~Investments, ~~PARTY~~LLC ~~TRANSACTIONS~~is an entity owned by the immediate family members of the Company’s Chief Executive Officer. The outstanding portion of the Tier 3 Junior Note along with its accrued interest was settled in its entirety on September 30, 2013. Accordingly, the Tier 3 Junior Note had no outstanding balance at December 31, 2014. The Company recorded interest of $0, $26,105 and $57,992 on the Tier3 Junior Note during the year ended December 31, 2014, the eight-month period ended December 31, 2013 and the fiscal year ended April 30, 2013, respectively.

~~The~~On ~~Company’s~~March ~~Enversa~~30, ~~division~~2011, ~~received~~the ~~administrative~~Company ~~support~~entered ~~from~~into ~~its~~a ~~former~~subordinated ~~parent company~~$1,500,000 ~~Internet~~promissory ~~University~~note with IU Holdings, ~~Inc.~~LP (“~~Internet~~IUH”) ~~University~~(the “Tier 2 Junior Note”). IUH ~~Included~~is ina ~~such~~partnership ~~administrative~~whose ~~support~~limited ~~are~~partners ~~human~~include ~~resources,~~the ~~payroll,~~immediate ~~information~~family ~~technology~~members ~~and~~of ~~facilities~~the ~~services~~Company’s Chief Executive Officer. Steve ~~Prior~~Toback, tothe ~~moving~~uncle onof ~~February~~the 1Company’s Chief Executive Officer, ~~2011~~served as the manager of IU Holdings, ~~Enversa~~GP, ~~operated~~LLC, ~~from~~which ~~office~~is ~~space~~the ~~provided~~general bypartner ~~Internet~~of ~~University~~IUH. ~~and~~The ~~utilized~~outstanding ~~furniture~~portion ~~and~~of ~~equipment~~this ~~provided~~note byalong ~~Internet~~with ~~University~~its accrued interest was settled in ~~such~~its ~~office~~entirety ~~space.~~on ~~The~~September ~~costs~~30, of2013. Accordingly, ~~such~~the ~~services~~Tier ~~have~~2 ~~been~~Junior ~~billed~~Note tohad ~~CornerWorld~~no ~~and~~outstanding ~~are~~balance ~~reflected~~at inDecember ~~the~~31, ~~income~~2014. ~~statements~~The inCompany ~~the~~recorded ~~total~~interest ~~amount~~expenses of $~~253~~0,~~999~~ ~~for~~$73,006 and $162,314 on the Tier 2 Junior Note during the year ended ~~April~~December 3031, ~~2011. Enversa~~2014, ~~received~~the noeight-month ~~administrative~~period ~~support~~ended ~~during~~December 31, 2013 and the fiscal ~~years~~year ended April 30, 2013, ~~and 2012~~respectively.

~~Additionally,~~On ~~for~~March ~~the period from August 2008 through April~~ 30, 2011, ~~all~~the ofCompany ~~CornerWorld’s~~entered ~~and~~into ~~Enversa’s~~a ~~employees~~subordinated ~~were~~$400,000 ~~leased~~promissory tonote ~~Enversa~~(the ~~through~~“Tier a5 ~~certain~~Junior ~~Transition~~Note”) ~~Services~~with ~~Agreement between CornerWorld, Enversa, and~~ Internet University, ~~Inc.~~(the ~~CornerWorld~~“Tier ~~and~~5 ~~Enversa~~Junior ~~employees~~Lender”). The ~~were~~outstanding ~~paid~~portion ~~under~~of ~~the~~this ~~federal~~note ~~employer~~along ~~identification~~with ~~number~~its ~~and~~accrued ~~are~~interest ~~included~~was settled in ~~the~~its ~~employee~~entirety ~~benefit~~on ~~programs~~September 30, ~~such as life~~2013. Accordingly, ~~health~~the ~~and~~Tier ~~disability~~5 ~~insurance~~Junior ~~and~~Note ~~401(k)~~had ofno aoutstanding ~~subsidiary~~balance ofat ~~Internet~~December ~~University.~~31, 2014. The ~~selling,~~Company ~~general~~recorded ~~and~~interest ~~administrative~~ expenses ~~on the income statement reflects a total~~ of $20,~~531~~ $1,~~345~~342 ofand ~~actual~~$19,639 ~~salaries~~on ~~for~~the ~~CornerWorld’s~~Tier ~~corporate~~5 ~~and~~Junior ~~Enversa~~Note ~~personnel~~ during the ~~years~~year ended ~~April~~December 3031, ~~2011~~2014, asthe ~~well~~eight-month asperiod anended ~~allocation~~December of31, ~~payroll~~2013 ~~taxes~~ and ~~employee~~the ~~benefits~~fiscal ~~calculated~~year atended ~~15% of salary. Subsequent to~~ April 30, ~~2011~~2013, ~~all employees were paid under the Company’s federal employer identification number~~respectively.

On ~~August~~March 2730, ~~2008~~2011, ~~Enversa~~the Company entered into a subordinated $~~500~~389,~~000~~942 ~~line~~promissory ofnote ~~credit~~(the “Senior Note”) with ~~Internet~~Scott ~~University~~N. ~~which~~Beck, ~~was~~the ~~originally~~Company’s ~~intended~~Chief toExecutive ~~expire~~Officer. Principal onunder ~~February~~the ~~23,~~Tier ~~2009.~~7 ~~From~~Junior ~~time~~Note tois ~~time~~payable in monthly installments of $12,746 ~~Enversa~~until ~~and~~such ~~Internet~~point ~~University~~as the Tier 7 Junior Note matures on July 31, 2016. The Company amended ~~the~~this ~~line~~note ofon ~~credit~~September 30, ~~which~~2014 ~~extended~~such ~~the~~that ~~maturity~~principal ~~date~~payments were deferred until December 31, ~~2010~~2014 and ~~provided~~the ainterest ~~schedule~~rate ~~for~~was ~~payments~~reduced to 6.25%; ~~The~~interest ~~line~~on ofthe ~~credit~~outstanding ~~bears~~principal ~~interest~~amount atunder ~~8.00%~~the ~~per~~Tier ~~annum~~7 ~~and~~Junior Note is ~~secured~~payable byat athe ~~second~~Company’s ~~priority~~choosing. The ~~security~~Company recorded interest inof ~~CornerWorld’s~~$26,845, ~~membership~~$24,186 ~~interests~~and ~~in Enversa~~$36,685 aon ~~first~~the ~~priority~~Senior ~~security~~Note ~~interest~~during inthe ~~all~~year ofended ~~Enversa’s~~December ~~assets~~31, ~~and~~2014, inthe ~~all~~eight-month ~~products~~period ended December 31, ~~proceeds~~2013 and the fiscal year ended April 30, ~~revenues~~2013, ~~distributions~~respectively. On December 31, ~~dividends~~2014, ~~stock~~the ~~dividends~~Company did not make its regularly scheduled payment totaling $12,746 ~~securities~~to ~~and~~Scott ~~other~~N. ~~property~~Beck, ~~rights~~the ~~and~~Company’s ~~interests~~Chief ~~that~~Executive ~~CornerWorld~~Officer and ~~Enversa~~the ~~receives~~holder orof isthe atSenior ~~any~~Note, ~~time~~which ~~entitled~~constituted toan ~~receive~~event of default under the Senior Note. Mr. ~~There~~Beck ~~was~~did not call default but there can be no ~~outstanding~~assurance ~~balance~~that, ~~under~~as the ~~line~~Company’s ofSenior ~~credit~~Lender, athe ~~April~~will ~~30,~~not ~~2013~~do ~~and~~so. ~~2012~~It ~~and~~is anticipated that the Company will amend the Senior Note at some future point but there can be no ~~longer~~assurance ~~has~~that ~~access~~we towill be successful in amending the ~~unused~~terms ~~portion~~of the Senior Note. Should ~~The~~we ~~Company~~be ~~recognized~~unsuccessful ~~interest~~in ~~expenses~~executing ~~totaling~~an $6amendment or an extension,~~944~~ ~~during~~Mr. ~~the~~Beck, ~~year~~as ~~ended~~the ~~April~~senior 30lender, ~~2011~~could ~~related~~move to ~~this~~seize ~~line~~the underlying collateral which would have a material adverse effect on the Company’s ability to continue as a going concern. The balance of ~~credit~~this note totaled $338,958 at December 31, 2014.

AsThe ~~part~~Company ofis ~~the~~party ~~Company’s~~to ~~acquisition~~a oflease ~~Enversa,~~agreement ~~the~~with ~~Company~~13101 ~~borrowed~~Preston $1Road,~~500,000~~ ~~from~~LP ~~Internet~~pursuant ~~University,~~to ~~Inc.,~~which ~~Marc~~it ~~Blumberg~~leases ~~and~~office ~~Marc~~space ~~Pickren~~for ~~(collectively,~~its ~~the~~corporate ~~“Enversa Sellers”)~~headquarters. ~~Mr.~~The ~~Blumberg~~limited ispartners ~~a member~~ of ~~the~~13101 ~~Company’s~~Preston ~~Board of Director as well as the president of Internet University~~Road, ~~Inc.~~LP ~~and~~are ~~Mr.~~trusts ~~Pickren~~created isby the ~~President~~father of the Company~~. On~~’s ~~March~~Chief ~~30,~~Executive ~~2011,~~Officer. ~~the~~The ~~Company~~lease ~~entered~~was ~~into~~originally ~~amendments~~for tofive ~~its~~years ~~promissory notes~~ with ~~the~~minimum ~~Enversa~~future ~~Sellers~~rentals ~~(collectively~~of ~~the~~$31,900 ~~“Tier~~in ~~4 Junior Notes”). The amendments to~~ the ~~Tier~~next 4fiscal ~~Junior~~year, ~~Notes~~followed ~~revised~~by ~~the~~$13,500 ~~repayment~~in ~~schedules of~~ the ~~Tier~~final ~~4 Junior Notes, among other things~~year. The Company ~~recorded~~paid ~~interest of~~ $6930,~~726~~000, $~~161~~20,~~999~~000 and $65106,~~997~~692 onin ~~these~~rent ~~notes~~ during the ~~years~~year ended ~~April~~December 3031, ~~2013~~2014, ~~2012~~the ~~and~~eight-month ~~2011,~~period ~~respectively. On~~ended ~~October~~December 31, ~~2012,~~2013 ~~the~~and ~~Company settled~~ the ~~Tier~~fiscal 4year ~~Junior~~ended ~~Notes~~April in30, ~~their~~2013, ~~entirety via the conversion to shares of the Company’s common stock~~respectively. The ~~outstanding~~Company ~~principal~~also ~~balances~~has ona ~~the notes themselves~~$17,500 asdeposit ~~well~~on ~~as any outstanding accrued interest, were converted at~~ the ~~rate~~space offor ~~$0.15/share. Accordingly,~~this ~~the Tier 4 Junior Notes had no outstanding balances at April 30, 2013~~lease.

OnThe ~~February 23, 2009 the~~ Company ~~completed~~provides ~~the acquisition of all of its Michigan-based operating divisions (the “Woodland Acquisition”). As a result of the Woodland Acquisition~~accounting, ~~the~~human ~~Company~~resources ~~issued debt~~ and ~~equity~~certain ~~securities~~IT services to ~~Mr.~~an ~~Ned~~entity ~~Timmer~~controlled ~~(“Timmer”)~~by ~~who became a member of~~ the ~~Board~~family of ~~Directors and~~ the ~~President of the~~ Company’s ~~Woodland~~Chief ~~division.~~Executive ~~Timmer~~Officer ~~was~~for ~~the~~$5,000 ~~holder~~per ofmonth. The aCompany received $460,~~200~~000, $40,000 ~~secured~~and ~~debenture~~$60,000 asfrom ~~well~~this asentity aduring ~~holder~~the ofyear ~~the~~ended ~~Company’s~~December $331,~~100~~ 2014,~~000~~ ~~purchase~~the ~~money~~eight-month ~~note. Both~~period ofended ~~these~~December ~~notes~~31, ~~were~~2013 ~~settled~~and asthe ~~part~~fiscal ofyear ~~the~~ended ~~February~~April 330, ~~2011~~2013, ~~settlement with Timmer as detailed below~~respectively.

As part of the February 23, 2009 Woodland Acquisition, the Company borrowed $1,900,000 from IU Investments LLC. On March 30, 2011, the Company entered into Amendment No. 3 (“IU Amendment No. 3”) to its Promissory Note to IU Investments, LLC (the “Tier 3 Junior Note”). IU Amendment No. 3 revised the repayment schedule of the Tier 3 Junior Note such that the Company will make principal payments totaling $27,417/month until February 28, 2012, after which time the Company will pay $67,200 annually beginning March 31, 2012 until such time as the Tier 3 Junior Note is paid in full on March 31, 2016. The Tier 3 Junior Note was amended on February 3, 2012 such that principal payments were deferred six months and interest payments will be payable at the choice of the Company at a rate of 10% per annum. IU Investments, LLC is an entity owned by the parents of the Company’s Chief Executive Officer. The Company recorded interest of $57,992, $55,073 and $104,324 on this facility during the years ended April 30, 2013, 2012 and 2011, respectively. The balance of this note totaled $527,915 at April 30, 2013.F-17

F-21

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

On December 22, 2009, the judge in the United States District Court for the Western District of Michigan issued an order (the “Order”) which, among other things, ordered: (1) The actions taken by Timmer on December 10, 2009 to gain corporate control over Woodland are deemed null and void; (2) Timmer shall return to CornerWorld all collateral and/or property belonging to the Company over which he has asserted control, including, but not limited to, the funds contained in bank accounts; and (3) Timmer shall be removed from active management of the Holland employees, but shall be retained on the Board of Directors of the Company.

As detailed in the Form 8-K filed on February 16, 2011, on February 3, 2011, CornerWorld and Timmer entered into a Settlement Agreement the principal terms of which were as follows:

· Timmer canceled an aggregate of $6.1 million principal on outstanding notes payable. These notes had outstanding balances totaling $1.9 million and $4.2 million, respectively. The Company paid interest expenses to Timmer totaling approximately $729,533 and $886,333 on these two facilities during the years ended April 30, 2011 and 2010, respectively. · Timmer returned all collateral stock certificates/membership interests in his possession. · Timmer returned all CornerWorld common stock in his possession representing approximately 35% of the total outstanding stock of the Company. This included 31,450,000 shares held by the Ned Timmer Trust and 2,100,000 shares in the name of Ned Timmer. In addition, Timmer returned 400,000 shares held by HCC Foundation and warrants to purchase 2,750,000 shares. · Timmer resigned from the CornerWorld Board of Directors, resigned his position as an officer of the Company and his employment agreement was terminated. · Timmer terminated the lease between Woodland Holdings, a CornerWorld subsidiary, and Sol Danzer Enterprises, LLC. During the years ended April 30, 2011 and 2010, the Company paid approximately $211,644 and $211,644 in rent and management fees to Timmer as a result of this lease.

On March 30, 2011, CornerWorld paid Timmer $7.8 million. The payment was comprised of (1) $6.0 million in cash (the “Lump Sum Payment”) and (2) a Promissory Note (the “Timmer Note”) for $1.8 million. Subsequent to the Lump Sum Payment and the issuance of the Timmer Note, Timmer is no longer affiliated with the Company as an employee, a shareholder or a member of its Board of Directors. Accordingly, subsequent to March 30, 2011, Timmer is no longer a related party.

The Company funded the Lump Sum Payment with a combination of third party and related party financing as described in the Company’s Form 8-K filed on April 5, 2011.

A portion of the Lump Sum Payment was sourced from IU Holdings, LP (“IUH”). On March 30, 2011, the Company entered into a subordinated $1.5 million promissory note with IUH (the “Tier 2 Junior Note”). Principal under the Tier 2 Junior Note is payable in quarterly installments of $187,500. The Company amended this note several times during the fiscal years ended April 30, 2013 and 2012 such that interest on the outstanding principal amount under the Tier 2 Junior Note is payable at the Company’s choosing at a rate of 10% per annum and principal payments begin on May 31, 2013. As additional consideration to induce the Tier 2 Junior Lender to enter into this Promissory Note, the Company issued the Tier 2 Junior Lender, 48,414,132 shares of CornerWorld Corporation Common stock. IUH is a partnership whose limited partners include the parents of the Company’s Chief Executive Officer. Steve Toback, the uncle of the Company’s Chief Executive Officer, serves as the manager of IU Holdings, GP, LLC, which is the general partner of IUH. The Company recorded interest expenses of $162,314, $160,521 and $15,500 during the years ended April 30, 2013, 2012 and 2011, respectively, to IUH as a result of this note. The balance of this note totaled $1,500,000 at April 30, 2013.

On March 30, 2011, the Company entered into a subordinated $400,000 promissory note (the “Tier 5 Junior Note”) with Internet University. Principal under the Tier 5 Junior Note is payable in monthly installments of $25,000 commencing on April 30, 2011 until such point as the Tier 5 Junior Note matures. The Company amended this note multiple times during the fiscal years ended April 30, 2013 and 2012 such that interest on the outstanding principal amount under the Tier 5 Junior Note is payable at the Company’s choosing at a rate of 10% per annum. As additional consideration to induce the Tier 5 Junior Lender to enter into this Promissory Note, the Company issued the Tier 5 Junior Lender, 12,910,435 shares of CornerWorld Corporation Common stock. The Company recorded interest expenses of $19,639, $37,027 and $5,000 on this facility during the years ended April 30, 2013, 2012 and 2011, respectively. The balance of this note totaled $10,000 at April 30, 2013.

F-22

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

April 30, 2013

On March 30, 2011, the Company entered into a subordinated $389,942 promissory note (the “Tier 7 Junior Note”) with Scott N. Beck, the Company’s Chief Executive Officer. Principal under the Tier 7 Junior Note is payable in monthly installments of $12,746 until such point as the Tier 7 Junior Note matures. The Company amended this note multiple times during the fiscal years ended April 30, 2013 and 2012 such that interest on the outstanding principal amount under the Tier 7 Junior Note is payable at the Company’s choosing at a rate of 10% per annum. As additional consideration to induce Mr. Beck to enter into this Promissory Note, the Company issued Mr. Beck 12,585,802 shares of CornerWorld Corporation Common stock. The Tier 7 Junior Note consists primarily of prior accounts payable and accrued bonuses. The Company recorded interest of $36,685, $34,631 and $3,250 on this facility during the years ended April 30, 2013, 2012 and 2011, respectively. The balance of this note totaled $338,958 at April 30, 2013.

The Company is party to a lease agreement with 13101 Preston Road, LP pursuant to which is leases office space for its corporate headquarters. The limited partners of 13101 Preston Road, LP are trusts created by the father of the Company’s Chief Executive Officer. The lease is for 5 years with minimum future rentals of $30,000 in the next fiscal year, followed by $31,200 and $32,400 in the final two years. The Company paid $106,692, $199,820 and $47,922 in rent during the years ended April 30, 2013, 2012 and 2011, respectively. The Company also has a $20,000 deposit on the space for this lease.

The Company provides accounting, human resources and certain IT services to an entity controlled by the family of the Company’s Chief Executive Officer for $5,000 per month. The Company received $60,000 and $5,000 from this entity during the years ended April 30, 2013 and 2012, respectively.

12. Income Taxes

The Company accounts for income taxes in accordance with ASC 740. Due to continued losses from operations, since the inception of the Company, no provision for income taxes has been made in these consolidated financial statements. The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:

	Year ended April 30,
	Year Ended December 31, 2014		Eight-month Period Ended December 31, 2013
	2013		2012
Federal statutory rate	34.00%		34.00%
Effect of:
Valuation allowance	(34.00%	)	(34.00%	)
Effective income tax rate	—%		—%

The Company is in the process of completing its federal income tax return and does not expense to have an income tax liability due to continued losses from operations. The Company’s estimated income tax provision is summarized below:

	Year ended April 30,
	Year Ended December 31, 2014			Eight-month Period Ended December 31, 2013
	2013				2012
Income tax expense (benefit):
Income tax expense (benefit):
Federal - current	$	(686,784	)	$	(534,014	)
Federal- current	$	(50,699	)		$	(378,455	)
Federal - deferred		349,653			1,415,119
Federal - deferred		(219,635	)			(333,130	)
Total		(337,131	)		881,105
Total		(270,334	)			(711,585	)
Less: valuation allowance		337,131			881,105
Less: valuation allowance		270,334				711,585
Total	$	—		$	—
Total	$	—			$	—

We will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. At ~~April~~December 3031, ~~2013~~2014 we had no unrecognized tax benefits in income tax expense, and do not expect any for the year ended ~~April~~December 3031, ~~2014~~2015. Our income tax returns are no longer subject to Federal tax examinations by tax authorities for years before April 30, ~~2010~~2012.

~~F-23~~The estimated components of the deferred tax asset are as follows:


	Year Ended December 31, 2014			Eight-month Period Ended December 31, 2013
Deferred tax assets:
Net operating loss carryforwards	$	2,145,327		$	1,458,542
Depreciation and amortization		741,298			423,733
Stock compensation expense		1,956,714			1,952,714
Other deferred tax assets		155,735			155,736
Other deferred tax liabilities		(10,645	)		(10,645	)
Total deferred tax assets		4,988,429			3,980,080
Valuation allowance		(4,988,429	)		(3,980,080	)
Net deferred tax assets	$	—		$	—

F-18

CornerWorld Corporation

Notes to Consolidated Financial Statements (Continued)

~~April~~December 3031, ~~2013~~2014

~~The~~For ~~components~~the ofyear ended December 31, 2014 and the eight-month period ended December 31, 2013 the cumulative deferred tax ~~asset~~assets of $4,988,429 and $3,980,080 and respectively, are offset by a valuation allowance due to the uncertainty of the realization of the net operating loss carryforwards. The cumulative income tax loss carryforward, of $6,309,785, if not used, will expire in various years through 2035, and is severely restricted as ~~follows:~~per the Internal Revenue Code if there is a change in ownership.

	Year ended April 30,
	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	864,042		$	863,709
Amortization		1,113,051			1,001,320
Merger & acquisition fees		465,076			465,076
Stock compensation expense		1,947,009			1,888,257
Other deferred tax assets		305,144			211,633
Other deferred tax liabilities		(23,497	)		(26,761	)
Total deferred tax assets		4,670,825			4,403,234
Valuation allowance		(4,670,825	)		(4,403,234	)
Net deferred tax assets	$	—		$	—

13. Transition Period Comparative Data

~~For~~The ~~the~~following ~~year~~tables ~~ended~~present ~~April~~certain ~~30,~~financial ~~2013~~information ~~and~~as ~~April 30, 2012 the cumulative deferred tax asset~~ of ~~$4,670,825~~ and ~~$4,403,234~~for ~~and respectively, are offset by a valuation allowance due to~~ the ~~uncertainty~~eight-month ofperiods ~~the~~ended ~~realization~~December ~~of the net operating loss carryforwards. The cumulative income tax loss carryforward~~31, of2013 ~~$2,541,301, if not used, will expire in various years through 2033,~~ and is2012: ~~severely restricted as per the Internal Revenue Code if there is a change in ownership.~~

13. SUBSEQUENT EVENTS


	Eight-month Period Ended December 31,
	2013			2012
					(unaudited)
Sales, net	$	673,954		$	1,508,517
Costs of goods sold		271,356			541,808
Gross profit		402,598			966,709

Operating expenses		860,143			2,142,644
Operating loss		(457,545	)		(1,175,935	)

Other income (expense), net		(285,332	)		(143,021	)
Income taxes		—			—
Loss from continuing operations		(742,877	)		(1,318,956	)
Income from discontinued operations, net of tax		538,568			1,058,424
Gain from disposal of discontinued operations, net of tax		2,788,543			—
Net income (loss)	$	2,584,234		$	(260,532	)

Basic earnings (loss) per share from continuing operations	$	0.00		$	(0.01	)
Basic earnings per share from discontinued operations	$	0.02		$	0.01
Basic earnings (loss) per share	$	0.02		$	0.00
Diluted earnings (loss) per share from continuing operations	$	0.00		$	(0.01	)
Diluted earnings per share from discontinued operations	$	0.02		$	0.01
Diluted earnings (loss) per share	$	0.02		$	0.00

Basic weighted average number shares outstanding		157,070,847			150,802,973
Diluted weighted average number shares outstanding		163,204,253			150,802,973

~~The~~14. ~~Company~~Subsequent ~~has evaluated all subsequent events through the date the financial statements were available to be issued.~~Events

AsOn ofMarch ~~April 30~~17, ~~2013,~~2015 the Company’s ~~did~~Board ~~not~~of ~~have~~Directors ~~sufficient~~unanimously ~~Adjusted~~approved ~~EBITDA~~the tospin-off beof inall ~~compliance~~of ~~with~~ the ~~minimum~~Company’s ~~EBITDA~~operating ~~covenant~~subsidiaries ~~for~~into the ~~marketing~~Company’s ~~division~~wholly ~~and~~owned ~~the~~Woodland ~~Company~~subsidiary ~~did~~to ~~not~~become ~~have~~effective ~~sufficient~~immediately ~~cash~~preceding ~~reserves~~the tomerger ~~completely~~proposed ~~make~~pursuant to the ~~anticipated~~LOI. ~~Paydown~~All ~~Event~~CornerWorld toshareholders ~~the~~will ~~Senior~~be ~~Lenders. Accordingly,~~entitled ~~the~~to ~~Company~~receive ~~stopped~~their ~~paying~~pro-rata ~~all~~ownership ~~Junior~~percentage ~~Creditors~~of ~~and~~Woodland. ~~received~~The Company filed a ~~notice~~Registration ofStatement ~~default~~on ~~from~~Form ~~two~~10 ~~junior~~for ~~creditors,~~the ~~Ned~~purposes ~~Timmer~~of ~~and~~spinning IUoff ~~Holdings,~~all ~~LP,~~of ~~shortly~~the ~~thereafter~~Company’s operating subsidiaries. .The ~~Company~~Registration ~~immediately~~Statement ~~began~~was ~~negotiations~~filed ~~with~~under ~~its~~the ~~Senior~~name ~~Lender~~of the Company’s Woodland Holdings Corporation subsidiary.

In the second half of July 2013, the Company and its Senior Lender reached an agreement in principle whereby the Paydown Event and all requirements with respect to the Company’s marketing division, including the Paydown Event, would be removed via an amendment to the credit agreement with the Senior Lender. In addition, the Senior Lender waived the default related to the Paydown Event, modified the Company’s interest rate and adjusted the Company’s amortization schedule, among other things. The Company and it Senior Lender are currently in the process of memorializing the modifications to the Company’s credit agreement with the Senior Lender but the modifications must also be approved by the Company’s multiple subordinated creditors which has not yet taken place. Assuming we are successful in completing the proposed amendment with the Senior Lender, negotiating a waiver with our subordinated lenders and our operations remain consistent with their historical levels, we anticipate we will have adequate cash to support our existing operations over the next twelve months. However, there can be no assurance that we will consummate the proposed amendment with the Senior Lender or the Junior Lenders. Should we be unsuccessful in executing the proposed amendments, the Senior Lender could move to seize the underlying collateral which would have a material adverse effect on the Company’s ability to continue as a going concern.F-19

On July 29, 2013, the Company and Mr. Beck agreed to amend Mr. Beck’s employment agreement such that Mr. Beck’s annual salary would be reduced to $250,000 per year for the period from May 1, 2013 through April 30, 2014. After that point, Mr. Beck’s salary would return to $400,000 per annum. In addition, the amendment provided that Mr. Beck would not receive the annual warrant grant until July 28, 2014.

F-24

Filing Compare · Cornerworld Corp