Betawave Corporation reported consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company's total revenues decreased to $1,725,499 from $2,786,139 for the three months of 2009. This is primarily because retail advertising, which comprised the majority of the company's third quarter 2008 revenue, was one of the advertising sectors hardest hit by the recent economic crisis. For the quarter, net loss was $4,331,469 or $0.15 per basic and diluted share against $3,249,036 or $0.13 per basic and diluted share last year. For the nine months, the company reported net cash used in operating activities of $9,181,539 against $4,278,066 last year. The company anticipates that revenue will be in excess of $2 million for the fourth quarter of 2009 and that it could return to year-over-year revenue growth as early as the first quarter of 2010.

On November 9, 2009, Betawave Corporation and Silicon Valley Bank entered into a waiver and third amendment to loan and security agreement. Under the terms of the waiver and amendment, SVB agreed: to waive an event of default existing as a result of the company's violation of a minimum tangible net worth covenant under the existing loan and security agreement, dated as of March 28, 2009, between the company and SVB and that such minimum tangible net worth covenant would not apply from October 1, 2009 to November 23, 2009. In addition, the waiver and amendment amended the loan agreement to, among other things: add a covenant to the loan agreement that requires the company to maintain at least $1.5 million in unrestricted cash on deposit in the company's unrestricted operating, sweep and other accounts with SVB and its affiliates and reduce the borrowing base available under the loan agreement from $4 million to the lesser of the sum of 80% of eligible accounts and, at SVB's discretion, 60% of extended eligible accounts and $1.5 million. In connection with the waiver and amendment, the company and SVB also entered into an acknowledgement and reaffirmation of loan and security agreement under which the company, as a corporation that reincorporated into Delaware as of September 21, 2009, acknowledged and reaffirmed its obligations under the loan agreement.

Betawave Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company's total revenues increased 78% to $2,282,325 from $1,282,439 for the second quarter of 2008. Net loss was $2,581,790 or $0.09 basic and diluted per share against $3,562,052 or $0.14 basic and diluted per share a year ago. For the six months, the company reported net cash used in operating activities was $6,967,931 against $2,820,055 a year ago.