BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30
2006      2005
ASSETS
CURRENT ASSETS:      
Cash and cash equivalents
$766,000
      
$595,000
Receivables, net
856,000
      
767,000
Inventories
56,090,000
      
44,406,000
Prepaid expenses and other current assets
3,060,000
      
1,965,000
Deferred income taxes
3,288,000
      
1,855,000
Total current assets
64,060,000
      
49,588,000
PROPERTY AND EQUIPMENT, Net
15,850,000
      
9,988,000
INTANGIBLE ASSETS, Net
GOODWILL
4,300,000
3,131,000
      
172,000
---------
DEFERRED INCOME TAXES
1,891,000
      
1,690,000
OTHER ASSETS
398,000
      
309,000
TOTAL
$89,630,000
      
$61,747,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:      
Short-term borrowings
Current portion of long-term debt
Accounts payable
$ 23,446,000
1,839,000
8,098,000
      
$7,385,000
246,000
5,006,000
Income taxes payable
---------
      
72,000
Accrued expenses and other current liabilities
5,220,000
      
5,376,000
Total current liabilities
38,603,000
      
18,085,000
NOTES PAYABLE
CAPITAL LEASE OBLIGATIONS
4,176,000
4,000
      
109,000
152,000
DEFERRED RENT & LEASE INCENTIVES
DEFERRED GAIN ON SALE-LEASEBACK
1,691,000
169,000
      
1,333,000
221,000
Total liabilities
44,643,000
      
19,900,000
STOCKHOLDERS' EQUITY
44,987,000
      
41,847,000
TOTAL
$89,630,000
      
$61,747,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
  
Three Months Ended
  
Six Months Ended
  
June 30
June 30
  
2006   2005 2006   2005
NET SALES $53,178,000   $43,441,000 $91,848,000   $74,786,000
COST OF GOODS SOLD 23,795,000   18,761,000 42,368,000   33,879,000
GROSS PROFIT 29,383,000   24,680,000 49,480,000   40,907,000
OPERATING EXPENSES:  
Selling, marketing and distribution 24,212,000   18,465,000 45,751,000   35,884,000
General and administrative
Depreciation and amortization		 2,101,000
1,531,000		   2,178,000
970,000		 4,122,000
2,857,000		   3,818,000
1,922,000
Total operating expenses 27,844,000   21,613,000 52,730,000   41,624,000
INCOME (LOSS) FROM OPERATIONS
1,539,000
  
3,067,000
(3,250,000)
  
(717,000)
INTEREST INCOME 2,000   1,000 4,000   41,000
INTEREST EXPENSE (516,000)   (297,000) (785,000)   (448,000)
INCOME (LOSS) BEFORE PROVISION  
(BENEFIT) FOR INCOME TAXES 1,025,000   2,771,000 (4,031,000)   (1,124,000)
PROVISION (BENEFIT) FOR INCOME TAXES 385,000   1,053,000 (1,512,000)   (427,000)
NET INCOME (LOSS) $640,000   $1,718,000 $(2,519,000)   $(697,000)
NET INCOME (LOSS) PER SHARE:
BASIC $ 0.07   $ 0.19 $ (0.28)   $ (0.08)
DILUTED $ 0.06   $ 0.18 $ (0.28)   $ (0.08)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,177,000   9,187,000 9,135,000   9,183,000
DILUTED 10,308,000   9,760,000 9,135,000   9,183,000