Troika Media Reports First Quarter Fiscal Year 2022 Results

Troika Media Group, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)                         Three Months Ended September 30,           2021   2020   CASH FLOWS FROM OPERATING ACTIVITIES:           Net loss   $                               (2,139,000)  $                                (3,921,000)   Adjustments to reconcile net loss to net cash provided by (used in) operating activities:           Depreciation                                        30,000                                        31,000     Amortization of intangibles                                      172,000                                      540,000     Amortization of right-of-use assets                                                  –                                                  –     Amortization of discount on convertible note payables                                                  –                                        17,000     Impairment of goodwill                                                  –                                                  –     Impairment of intangibles                                                  –                                                  –     Release of contingent earn out                                                  –                                                  –     Stock-based compensation on options                                      107,000                                      166,000     Stock-based compensation on warrants                                        67,000                                      154,000     Stock-based compensation relating to Redeeem acquisition                                      805,000                                                  –     Warrants related to legal settlement                                                  –                                                  –     Warrants related to financing of convertible note payables                                                  –                                                  –     Imputed interest for note payable                                                  –                                          4,000     Gain on early termination of operating lease                                           3,000                                                  –     Loss on derivative liabilities                                      (12,000)                                        23,000     Discount on derivative liability                                                  –                                                  –     Income from government grants                                                  –                                                  –     (Recovery) and provision for bad debt                                      (69,000)                                    (100,000)     Preferred shares converted to common stock                                                  –                                                  –     Beneficial conversion features on convertible promissory notes                                                  –                                                  –     Tax provision for income                                                  –                                                  –     Gain from derecognition of liabilities from discontinued operations                                                  –                                                  –   Change in operating assets and liabilities:             Accounts receivable                                    (580,000)                                    (426,000)     Prepaid expenses                                        45,000                                      (48,000)     Accounts payable and accrued expenses                                    (969,000)                                   2,030,000     Deferred expenses                                                  –                                                  –     Due from related parties                                                  –                                                  –     Other assets                                      (68,000)                                        (4,000)     Rental deposits                                                  –                                                  –     Operating lease liability                                    (222,000)                                      171,000     Deferred rent                                                  –         Due to related parties                                      (34,000)                                                  –     Other long-term liabilities                                    (168,000)                                                  –     Taxes payable                                                  –         Contract liabilities relating to revenue                                   1,170,000                                      181,000     Contract liabilities to government grants                                    (399,000)                                                  –     Liabilities of discontinued operations                                                  –                                                  –       Net cash used in operating activities                                 (2,261,000)                                 (1,182,000)                   CASH FLOWS FROM INVESTING ACTIVITIES:             Net cash paid for acquisiton of Redeeem                                                  –                                                  –     Purchase of fixed assets                                      (68,000)                                        (7,000)       Net cash used in investing activities                                      (68,000)                                        (7,000)                   CASH FLOWS FROM FINANCING ACTIVITIES:             Issuance of series D convertible preferred shares for cash                                                  –                                                  –     Proceeds from initial public offering net of offering costs                                                  –                                                  –     Proceeds from stimulus loan programs                                                  –                                      565,000     Payments to note payable of related party                                      (20,000)                                                  –     Proceeds from convertible note payable                                                  –                                      150,000     Payments to convertible note payable                                                  –                                                  –       Net cash provided by financing activities                                      (20,000)                                      715,000                   CASH FLOWS FROM DISCONTINUED OPERATIONS             Net income from discontinued operations                                                  –                                                  –       Gain from release of contingent earn out                                                  –                                                  –       Change in accounts payable and accrued expenses                                                  –                                                  –     Net cash used in discontinued operations – operating activities                                                  –                                                  –     Net cash used in discontinued operations – financing activities                                                  –                                                  –       Net cash (used in) provided by discontinued operations                                                  –                                                  –                   Effect of exchange rate on cash                                        35,000                                        (9,000)                   NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $                               (2,314,000)  $                                   (483,000)   CASH AND CASH EQUIVALENTS — beginning of period                                 12,066,000                                   1,706,000   CASH AND CASH EQUIVALENTS — end of period $                                 9,752,000  $                                  1,223,000                   SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:             Cash paid during the period for:               Income taxes $                                                –  $                                                 –       Interest expense $                                        3,000  $                                                 –     Noncash investing and financing activities:               Retirement of common stock $    $                                                 –       Shares to be issued for Redeeem acquisition $                                                –  $                                                 –       Record derivative liability on convertible notes $                                                –  $                                     110,000       Issuance of common stock related to convertible note payables $                                                –  $                                  1,300,000       Issuance of common stock related to stock payable $                                                –  $                                                 –       Conversion of converible note payable $                                                –  $                                  1,400,000       Deemed dividend on preferred stock $                                                –  $                                                 –       Right-of-use assets acquired through adoption of ASC 842 $                                                –  $                                  8,931,000       Right-of-use assets acquired through operating leases $                                    467,000  $                                  2,398,000                    The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.