Avantax (AVTA) 8-K Completion of Acquisition or Disposition of Assets

EXHIBIT 99.1

INFOSPACE, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

September 30, 2007

(amounts in thousands, except share data)

	Historical InfoSpace(1)			Mobile(2)		Pro Forma InfoSpace
ASSETS
Current assets:
Cash and cash equivalents	$	113,647		$	214	$	113,433
Short-term investments, available-for-sale		101,125			—		101,125
Accounts receivable, net of allowance of $969, $877 and $92		35,271			19,629		15,642
Prepaid expenses and other current assets		14,408			7,616		6,792
Assets of discontinued operations		87,561			—		87,561
Total current assets		352,012			27,459		324,553
Property and equipment, net		33,458			21,911		11,547
Goodwill and other intangible assets, net		44,237			114		44,123
Deferred tax assets, net		99,989			19,203		80,786
Other long-term assets		8,908			350		8,558
Total assets	$	538,604		$	69,037	$	469,567
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,791		$	6,207	$	5,584
Accrued expenses and other current liabilities		35,478			11,444		24,034
Short-term deferred revenue		8,842			8,842		—
Liabilities of discontinued operations		8,265			—		8,265
Total current liabilities		64,376			26,493		37,883
Long-term liabilities		679			39		640
Total liabilities		65,055			26,532		38,523
Commitments and contingencies		—			—		—
Stockholders’ equity:
Common stock, par value $.001—authorized, 900,000,000 shares; issued and outstanding, 33,192,903 shares		3			—		3
Additional paid-in capital		1,548,655			—		1,548,655
Accumulated earnings (deficit)		(1,076,540	)		42,505		(1,119,045	)
Accumulated other comprehensive income		1,431			—		1,431
Total stockholders’ equity		473,549			42,505		431,044
Total liabilities and stockholders’ equity	$	538,604		$	69,037	$	469,567

See accompanying notes to unaudited Pro Forma Condensed Consolidated Financial Statements.

INFOSPACE, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Nine Months Ended September 30, 2007

(amounts in thousands, except per share data)

	Historical InfoSpace(3)			Mobile(4)			Pro Forma InfoSpace
Revenues	$	188,767		$	87,288		$	101,479
Operating expenses:
Content and distribution		84,876			42,056			42,820
Systems and network operations		20,079			13,100			6,979
Product development		40,322			33,472			6,850
Sales and marketing		26,318			9,310			17,008
General and administrative		65,517			13,624			51,893
Depreciation		13,168			9,069			4,099
Amortization of intangible assets		2,895			2,895			—
Restructuring and other, net		(1,879	)		—			(1,879	)
Total operating expenses		251,296			123,526			127,770
Operating loss		(62,529	)		(36,238	)		(26,291	)
Other income (expense), net		12,449			(106	)		12,555
Loss before income taxes		(50,080	)		(36,344	)		(13,736	)
Income tax benefit (provision)		2,970			12,720	(5)		(9,750	)
Loss from continuing operations	$	(47,110	)	$	(23,624	)	$	(23,486	)
Loss from continuing operations per share – Basic and Diluted	$	(1.45	)				$	(0.72	)
Weighted average shares outstanding used in computing basic and diluted loss per share		32,421						32,421

See notes to the unaudited Pro Forma Condensed Consolidated Financial Statements.

INFOSPACE, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended December 31, 2006

(amounts in thousands, except per share data)

	Historical InfoSpace(6)			Mobile(4)			Pro Forma InfoSpace
Revenues	$	338,634		$	184,836		$	153,798
Operating expenses:
Content and distribution		174,000			111,654			62,346
Systems and network operations		30,244			18,750			11,494
Product development		41,435			34,621			6,814
Sales and marketing		43,854			27,919			15,935
General and administrative		51,571			17,065			34,506
Depreciation		13,626			8,582			5,044
Amortization of intangible assets		9,377			9,377			—
Restructuring		62,316			—			62,316
Total operating expenses		426,423			227,968			198,455
Operating loss		(87,789	)		(43,132	)		(44,657	)
Other income (expense), net		19,415			(165	)		19,580
Loss before income taxes		(68,374	)		(43,297	)		(25,077	)
Income tax benefit		43,700			15,154	(5)		28,546
Income (loss) from continuing operations	$	(24,674	)	$	(28,143	)	$	3,469
Income (loss) from continuing operations per share - Basic	$	(0.79	)				$	0.11
Weighted average shares outstanding used in computing basic income (loss) per share		31,254						31,254
Income (loss) from continuing operations per share - Diluted	$	(0.79	)				$	0.10
Weighted average shares outstanding used in computing diluted income (loss) per share		31,254						33,042

See notes to the unaudited Pro Forma Condensed Consolidated Financial Statements.

INFOSPACE, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended December 31, 2005

(amounts in thousands, except per share data)

	Historical InfoSpace(6)		Mobile(4)			Pro Forma InfoSpace
Revenues	$	301,416	$	157,412		$	144,004
Operating expenses:
Content and distribution		137,239		77,342			59,897
Systems and network operations		20,323		12,731			7,592
Product development		26,918		20,278			6,640
Sales and marketing		28,927		13,118			15,809
General and administrative		39,639		12,295			27,344
Depreciation		8,264		4,937			3,327
Amortization of intangible assets		11,467		11,455			12
Total operating expenses		272,777		152,156			120,621
Operating income		28,639		5,256			23,383
Other income (expense), net		89,524		(52	)		89,576
Income before income taxes		118,163		5,204			112,959
Income tax benefit (provision)		29,681		(1,821	)(5)		31,502
Income from continuing operations	$	147,844	$	3,383		$	144,461
Income from continuing operations per share - Basic	$	4.58				$	4.47
Weighted average shares outstanding used in computing basic income per share		32,284					32,284
Income from continuing operations per share - Diluted	$	4.15				$	4.06
Weighted average shares outstanding used in computing diluted income per share		35,616					35,616

See notes to the unaudited Pro Forma Condensed Consolidated Financial Statements.

INFOSPACE, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended December 31, 2004

(amounts in thousands, except per share data)

	Historical InfoSpace(6)			Mobile(4)			Pro Forma InfoSpace
Revenues	$	213,188		$	92,515		$	120,673
Operating expenses:
Content and distribution		82,312			34,696			47,616
Systems and network operations		13,578			7,373			6,205
Product development		19,926			14,249			5,677
Sales and marketing		20,996			8,790			12,206
General and administrative		35,655			10,816			24,839
Depreciation		6,628			3,166			3,462
Amortization of intangible assets		7,230			7,185			45
Restructuring and other, net		(2,981	)		—			(2,981	)
Total operating expenses		183,344			86,275			97,069
Operating income		29,844			6,240			23,604
Other income (expense), net		5,431			(367	)		5,798
Income before income taxes		35,275			5,873			29,402
Income tax benefit (provision)		5,523			(2,056	)(5)		7,579
Income from continuing operations	$	40,798		$	3,817		$	36,981
Income from continuing operations per share - Basic	$	1.27					$	1.15
Weighted average shares outstanding used in computing basic income per share		32,109						32,109
Income from continuing operations per share - Diluted	$	1.12					$	1.01
Weighted average shares outstanding used in computing diluted income per share		36,541						36,541

See notes to the unaudited Pro Forma Condensed Consolidated Financial Statements.

INFOSPACE, INC.

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Nine Months Ended September 30, 2007, and

Years Ended December 31, 2006, 2005, and 2004

The accompanying unaudited Pro Forma Condensed Consolidated Financial Statements consist of the historical Condensed Consolidated Financial Statements of the Company, adjusted to exclude the historical results of the Company’s Mobile Business, which includes the Mobile Services Business and mobile media content product line, as described below:

1. Represents the unaudited historical balance sheet accounts of the Company and was derived from the Company’s unaudited condensed consolidated balance sheet as previously reported in its Quarterly Report on Form 10-Q as of September 30, 2007, before reflecting its Mobile Business as discontinued operations.

2. Represents the unaudited historical balance sheet accounts of the Company’s Mobile Business as of September 30, 2007.

3. Represents the historical results of operations of the Company and was derived from the Company’s unaudited condensed consolidated statement of operations as previously reported in its Quarterly Report on Form 10-Q for the nine months ended September 30, 2007, after reflecting its directory business as discontinued operations but before reflecting its Mobile Business as discontinued operations.

4. Represents the historical operating results of the Company’s Mobile Business for the periods presented.

5. Represents income taxes attributed to the Company’s Mobile Business at an effective rate of 35%.

6. Represents the historical results of operations of the Company and was derived from the Company’s unaudited condensed consolidated statements of operations as previously reported on the Current Report on Form 8-K filed on November 6, 2007 reflecting the Company’s historical operating results for the years ended December 31, 2006, 2005, and 2004, after reflecting its directory business as discontinued operations but before reflecting its Mobile Business as discontinued operations.