Phoenix-based Dotsafe Inc.--the company that reportedly offered its first 2 million customers free internet filtering--has quietly gone out of business, leaving many school districts scrambling.

"Dotsafe is no longer in business, and the assets and the contracts ... that Dotsafe was performing in the internet filtering market are currently being distributed," said Neil Kohler, the company's former chief executive, in an interview April 20.

"The company ran into the obstacles that a lot of dot-coms have had," he said. "The board of directors elected to cease operations in the middle

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