14. Unaudited Pro- Forma Operating Income for the Year Ended December 31, 2013 and 2012
The following table presents Unaudited Pro-Forma Operating Income (Loss) for the Company for the year ended December 31, 2013 and 2012 based on the assumption that both Reach Media and Symon had been acquired on January 1, 2012. These results are not, however, intended to reflect actual operations of the Company had the acquisitions occurred on January 1, 2012. Operating expenses do not included any acquisition related expenses. In addition, the analysis includes the effect of the following entries required under GAAP purchase accounting guidelines:
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Amortization expense includes amortization of the fair value Intangible Assets that were acquired. |
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Revenues have been reduced due to an adjustment of deferred revenue existing at the acquisition date to market value at the acquisition date. |
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December 31, 2013 |
December 31, 2012 |
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Revenues |
$ | 72,294,886 | $ | 64,632,528 | ||||
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Cost of Revenues |
38,667,085 | 33,173,716 | ||||||
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Gross Profit |
33,627,801 | 31,458,812 | ||||||
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Operating Expenses |
44,678,417 | 34,148,728 | ||||||
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Operating Income (Loss) |
(11,050,616 | ) | (2,689,916 | ) | ||||