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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
































































































































































































































































































































































































































Six Months Ended June 30,

Three Months Ended June 30,













- Advertisement -
2001

2000

2001

2000





















NET REVENUES

$ 26,611,300

$ 9,983,245

- Advertisement -
$ 13,259,263

$ 5,905,549







COST OF REVENUES

17,259,917

2,879,710


8,340,732

- Advertisement -
1,843,092











Gross margin

9,351,383

7,103,535

4,918,531

4,062,457











OPERATING EXPENSES:








General and administrative

3,715,010

5,211,512

1,885,279

2,954,654

Selling and marketing

2,032,495

5,297,684

1,106,902

2,878,953

Salaries and benefits

6,223,580

5,160,505

3,103,744

2,727,590

Amortization of CBS advertising

9,810,064

9,375,904

4,761,772

5,251,707

Amortization of goodwill and intangibles

3,604,497


3,330,569

1,804,317

1,678,635

Depreciation and amortization

747,560

658,475

397,662

341,020

Reverse for closed stores and lease
termination costs

(289,801)

9,755

(17,785)

9,755











Total operating expenses

25,843,405

29,044,404

13,041,891

15,842,314











Operating loss

(16,492,022)

(21,940,869)

(8,123,360)

(11,779,857)











EQUITY IN EARNINGS – INVESTMENTS

476,634

1,253,959

28,759

148,622











OTHER INCOME (EXPENSE):














Interest expense

(235,075)

(188,418)

(179,439)

(92,037)

Interest income

79,330

72,615

29,605

35,434

Other, net

(168,175)

28,407


(173,089)

28,407











Loss before minority interest

(16,339,308)

(20,774,306)

(8,417,524)

(11,659,431)












MINORITY INTEREST

(101,997)

(152,855)

(57,124)

(93,704)











NET LOSS

$ (16,441,305)

$ (20,927,161)

$ (8,474,648)

$ (11,753,135)











Basic and diluted net loss per common
share

$ (0.65)

$ (0.93)

$ (0.33)

$ (0.51)











Weighted average shares outstanding

25,226,067

22,544,098

25,739,897

23,257,368









































NET LOSS

$ (16,441,305)

$ (20,927,161)

$ (8,474,648)

$ (11,753,135)











Add Back:








Amortization of CBS advertising –
non-cash

9,810,064

9,375,904

4,761,772

5,251,707

Amortization of goodwill and intangibles

3,604,497

3,330,569

1,804,317

1,678,635

Depreciation and amortization

747,560

658,475

397,662

341,020

Interest, net

155,745

115,803

149,834

56,603

Equity in loss of investments of less
then 50% ownership *

306,167

42,779

255,784

42,779

Acquisition costs – non-cash

170,593

170,593



14,794,626

13,523,530

7,539,962

7,370,744











ADJUSTED EBITDA LOSS

$ (1,646,679)

$ (7,403,631)

$ (934,686)

$ (4,382,391)





















* Includes MovieTickets.com and Beach
Wrestling LLC


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