ARTISTdirect, Inc. (OTCBB - ARTD) Enterprise Value Calculation *Pro forma common shares x assumed common stock price $3.00 $3.50 $4.50 $5.50 $6.50 $7.50 Common Shares Shares Shares Shares Shares Shares Shares Balance at March 31, 2006 6,939,957 6,939,957 6,939,957 6,939,957 6,939,957 6,939,957 6,939,957 4/18/10 Sub-debt conversion 1.55 $ 100,000 100,000 100,000 100,000 100,000 100,000 100,000 4/27/10 Libra FE, LP 2.00 237,500 237,500 237,500 237,500 237,500 237,500 237,500 Libra cashless exercise (113,636) (113,636) (113,636) (113,636) (113,636) (113,636) (113,636) 5/2/10 Senior Debt warrant exercise 1.85 $ 2,816,667 2,816,667 2,816,667 2,816,667 2,816,667 2,816,667 2,816,667 9,980,488 9,980,488 9,980,488 9,980,488 9,980,488 9,980,488 9,980,488 Convertible Sub-Debt ($27,799,281) 1.55 $ 17,935,020 17,935,020 17,935,020 17,935,020 17,935,020 17,935,020 17,935,020 Employee/Consultant/Advisor/Artist Options Strike Price Range Analysis: 0.50 $ 130,000 108,333 111,429 115,556 118,182 120,000 121,333 0.79 231,844 170,792 179,513 191,142 198,543 203,666 207,423 0.85 259,659 186,089 196,599 210,612 219,530 225,704 230,231 1.00 92,500 61,667 66,071 71,944 75,682 78,269 80,167 1.55 3,303,098 1,596,497 1,840,297 2,165,364 2,372,225 2,515,436 2,620,458 1.95 170,000 59,500 75,286 96,333 109,727 119,000 125,800 3.00 400,000 - 57,143 133,333 181,818 215,385 240,000 4.80 33,332 - - - 4,242 8,718 12,000 5.10 10,000 - - - 727 2,154 3,200 7.50 360,973 - - - - - - 36.00 1,689 - - - - - - 40.00 18,946 - - - - - - 139.28 $ 47,208 - - - - - - 5,059,249 2,182,878 2,526,338 2,984,286 3,280,676 3,488,331 3,640,611 Warrants Strike Price Range Analysis: 0.50 $ 220,000 183,333 188,571 195,556 200,000 203,077 205,333 1.43 3,113,709 1,629,508 1,841,536 2,124,241 2,304,145 2,428,693 2,520,028 1.55 114,985 55,576 64,063 75,379 82,580 87,566 91,221 2.00 433,333 144,444 185,714 240,741 275,757 300,000 317,778 40.00 $ 35,967 - - - - - - 3,917,994 2,012,861 2,279,885 2,635,917 2,862,482 3,019,335 3,134,361 Pro forma common shares 36,892,751 32,111,248 32,721,732 33,535,710 34,058,666 34,423,174 34,690,480 Balance outstanding on non-convertible senior debt 13,307,292 $ 13,307,292 $ 13,307,292 $ 13,307,292 $ 13,307,292 $ 13,307,292 $ 13,307,292 $ Less: Cash Balance at May 31, 2006 (6,338,678) (6,338,678) (6,338,678) (6,338,678) (6,338,678) (6,338,678) (6,338,678) Senior debt, net 6,968,614 $ 6,968,614 $ 6,968,614 $ 6,968,614 $ 6,968,614 $ 6,968,614 $ 6,968,614 $ Equity value* 96,333,743 $ 114,526,061 $ 150,910,697 $ 187,322,665 $ 223,750,633 $ 260,178,601 $ Add: Senior debt, net 6,968,614 6,968,614 6,968,614 6,968,614 6,968,614 6,968,614 Total Enterprise Value 103,302,357 $ 121,494,675&n bsp;$ 157,879,311 $ 194,291,279 $ 230,719,247 $ 267,147,215 $ Assumed common stock price |
