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

Exhibit 99.1

InfoSpace, Inc.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

March 31, 2011

(Amounts in thousands, except per share data)

	Historical InfoSpace(1)			Mercantila (2)			Pro Forma InfoSpace
ASSETS
Current assets:
Cash and cash equivalents	$	149,053		$	2,512		$	146,541
Short-term investments, available-for-sale		100,713						100,713
Accounts receivable, net		20,637			306			20,331
Other receivables		1,872			922			950
Prepaid expenses and other current assets		2,955			1,142			1,813
Total current assets		275,230			4,882			270,348
Property and equipment, net		7,521			278			7,243
Goodwill		69,878			12,413			57,465
Other intangible assets, net		1,262			979			283
Other long-term assets		4,334						4,334
Total assets	$	358,225		$	18,552		$	339,673
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,299		$	2,562		$	11,737
Accrued expenses and other current liabilities		24,273			2,563			21,710
Total current liabilities		38,572			5,125			33,447
Other long-term liabilities		1,025						1,025
Total liabilities		39,597			5,125			34,472
Investment in Mercantila, net					13,427	(3)		(13,427	)
Stockholders’ equity:
Common stock		4						4
Additional paid-in capital		1,327,935						1,327,935
Accumulated deficit		(1,009,338	)					(1,009,338	)
Accumulated other comprehensive income		27						27
Total stockholders’ equity		318,628			—			318,628
Total liabilities and stockholders’ equity	$	358,225		$	18,552		$	339,673

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

InfoSpace, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

Three months ended March 31, 2011

(Amounts in thousands, except per share data)

	Historical InfoSpace (4)			Mercantila (5)			Pro Forma InfoSpace
Revenues:
Services	$	51,650		$	—		$	51,650
Product		9,979			9,979			—
Total revenues		61,629			9,979			51,650
Cost of sales:
Services		31,716			—			31,716
Product		8,761			8,761			—
Total cost of sales		40,477			8,761			31,716
Gross profit		21,152			1,218			19,934
Expenses and other income:
Engineering and technology		2,197			534			1,663
Sales and marketing		9,495			2,528			6,967
General and administrative		5,462			301			5,161
Depreciation		677			15			662
Amortization of other intangible assets		121			121			—
Other loss (income), net		(65	)		10			(75	)
Total expenses and other loss (income)		17,887			3,509			14,378
Income (loss) before income taxes		3,265			(2,291	)		5,556
Income tax benefit (expense)		(1,130	)		802	(6)		(1,932	)
Net income (loss)	$	2,135		$	(1,489	)	$	3,624
Income per share - Basic	$	0.06					$	0.10
Income per share - Diluted	$	0.06					$	0.10
Weighted average shares outstanding used in computing basic income per share		36,339						36,339
Weighted average shares outstanding used in computing diluted income per share		37,084						37,084

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

InfoSpace, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

Year ended December 31, 2010

(Amounts in thousands, except per share data)

	Historical InfoSpace (7)			Mercantila (5)			Pro Forma InfoSpace
Revenues:
Services	$	214,343		$	—		$	214,343
Product		32,492			32,492			—
Total revenues		246,835			32,492			214,343
Cost of sales:
Services		129,972			—			129,972
Product		28,578			28,578			—
Total cost of sales		158,550			28,578			129,972
Gross profit		88,285			3,914			84,371
Expenses and other income:
Engineering and technology		9,749			1,278			8,471
Sales and marketing		35,822			7,677			28,145
General and administrative		33,454			612			32,842
Depreciation		3,177			39			3,138
Amortization of other intangible assets		283			283			—
Other income, net		(15,313	)		(66	)		(15,247	)
Total expenses and other income		67,172			9,823			57,349
Income (loss) before income taxes		21,113			(5,909	)		27,022
Income tax benefit (expense)		(7,410	)		2,068	(6)		(9,478	)
Net income (loss)	$	13,703		$	(3,841	)	$	17,544
Income per share - Basic	$	0.38					$	0.49
Income per share - Diluted	$	0.37					$	0.48
Weighted average shares outstanding used in computing basic income per share		35,886						35,886
Weighted average shares outstanding used in computing diluted income per share		36,829						36,829

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

InfoSpace, Inc.

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

Three months ended March 31, 2011, and year ended December 31, 2010

The accompanying unaudited Pro Forma Condensed Consolidated Financial Statements consist of the historical Consolidated Financial Statements of the Company, adjusted to exclude the carrying value of assets and liabilities from the balance sheet, and exclude the historical results of the Company’s Mercantila business, as described below:

⁽¹⁾  Represents the unaudited balance sheet accounts of the Company as previously presented in the Company’s unaudited condensed consolidated balance sheet in its Quarterly Report on Form 10-Q as of March 31, 2011, before reflecting its Mercantila business as discontinued operations.

⁽²⁾  Represents the unaudited balance sheet accounts of the Company’s Mercantila business as of March 31, 2011, before reflecting its Mercantila business as discontinued operations.

⁽³⁾  Represents the net carrying value of the Company’s investment in the Mercantila business.

⁽⁴⁾  Represents the results of operations of the Company as previously presented in the Company’s unaudited condensed consolidated statement of operations in its Quarterly Report on Form 10-Q for the three months ended March 31, 2011, before reflecting its Mercantila business as discontinued operations.

⁽⁵⁾  Represents the operating results of the Company’s Mercantila business for the periods presented, and only includes the results after May 10, 2010, which was the date that the Company acquired certain assets from Mercantila, Inc.

⁽⁶⁾  Represents income taxes attributed to the Company’s Mercantila business at an effective rate of 35%.

⁽⁷⁾  Represents the results of operations of the Company as previously presented in the Company’s consolidated statements of operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, before reflecting its Mercantila business as discontinued operations.