EFTA02710037

From: Richard Joslin Sent: Monday, December 8, 2014 11:21 PM To: jeffrey E. Subject: Fwd: Latest Version of the Regan Arts Model Attachments: Regan Arts 2015 - Base Scenario 120814.pdf; ATT00001.htm; Regan Arts 2015 Worksheets dated 12-08-14 v1 - Current Scenario.xlsx; ATT00002.htm Fyi Begin forwarded message: From: "John Murphy' To: "Richard Joslin" Cc: "Eileen Alexanderson' Subject: FW: Latest Version of the Regan Arts Model Hi Rich, Latest version of the model attached. From a Cash Flow perspective minimum changes to the model we sent ove= on Friday, we pushed 1 title out from 2014 to 2016 and we amended the cal=ulation on the Canadian returns (original model had this in C$ I have conv=rted this to US$) From a P&L the Macklemore royalty advance was not picked up in th= model. This is a flat payment of $350k and the royalties are 0% and as su=h the model did not pick up the expense, I have now taken the full royalty=against the revenue in October 2015. I have also added a revenue tab to the PDF file which shows you what =itles make up the revenue in the P&L as an easy reference. Regards, John. From: John Murphy Se - To: Cc: Diana I ina Subject: Latest Version of the Regan Arts Model EFTA_R1_02119841 EFTA02710037 Hi Judith, Please find attached the latest version of the model. Revenue Revenue is up to $6.35m from $6.27M. We pushed Fo=nders and Failures to January 2016 from December 2014, we had $48k in retu=ns in 2015. (Revenue and Returns now occur in 2016 on this title) • The original=model had Canada returns at C$ we changed this to US$ and picked up anothe= $38k in revenue Expenses Expenses are up $350k. am now inc=uding the royalty advance in total against the revenue on Macklemore Note this do=s not impact the Cash Flow model as the advance was already included hereaspan> Current Overall Position Overall loss=in 2015 goes from -$1.42M to -$1.68M driven primarily by royalties to Mack=emore. The Cash Flo= has slightly improved going from -$4.89M to -$4.82M driven the pick-up in=revenue. This version of the PDF also includes a revenue tab so you can easily=what makes up the projected revenue in this model, based on the first prin= run and the estimated laydown from S&S. Regards, John. John Murphy COO/CFO Phaidon Press 65 Bleecker Street New York, NY 10012 2 EFTA_R1_02119842 EFTA02710038 3 EFTA_R1_02119843 EFTA02710039