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HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

















































































































































































































































































Three Months Ended June 30,

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2002

2002

Pro forma*

Actual

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NET REVENUES

$ 16,522,685

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$ 16,522,685

 

 

COST
OF REVENUES

11,468,041

11,468,041

Gross
margin

5,054,644

5,054,644

OPERATING EXPENSES:

General
and administrative

1,245,679

1,245,679
Selling and marketing

861,779

861,779
Salaries
and benefits

3,489,967

3,489,967
Amortization of CBS advertising
**
238,125

5,025,145
Depreciation
and amortization

942,681

942,681

Total
operating expenses

6,778,231

11,565,251

Operating
loss

(1,723,587)

(6,510,607)

EQUITY
IN EARNINGS – INVESTMENTS

14,575

14,575

OTHER:

Interest
expense

(237,705)

(237,705)
Interest income

7,209

7,209
Other,
net

(18,446)

(18,446)

Loss
before minority interest

(1,957,954)

(6,744,974)

MINORITY
INTEREST IN EARNINGS OF SUBSIDIARIES

(189,411)

(189,411)

Net loss

$ (2,147,365)

$ (6,934,385)

Basic and diluted loss
per common share

$ (0.11)

$ (0.25)

Weighted average common
and common equivalent

shares outstanding – basic
and diluted

19,662,197

28,276,884
 

* Pro forma. Assumes the Viacom Exchange Transaction occurred on January 1,
2002.


**The pro forma above assumes a straight line amortization of $1.27 million
over a period of 16 months.


The $1.27 million reflects the approximate book value of the $5 million in
advertising retained in the Viacom Exchange Transaction.

Click here to see CONDENSED CONSOLIDATED BALANCE SHEETS

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