BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31
2008       2007
ASSETS
CURRENT ASSETS:      
Cash and cash equivalents
$814,000
      
$789,000
Receivables, net
7,781,000
      
2,187,000
Inventories
77,030,000
      
74,018,000
Prepaid expenses and other current assets
1,677,000
      
1,817,000
Deferred income taxes
2,002,000
      
6,363,000
Total current assets
89,304,000
      
85,174,000
PROPERTY AND EQUIPMENT, Net
35,654,000
      
25,927,000
INTANGIBLE ASSETS, Net
3,580,000
      
4,016,000
GOODWILL
6,296,000
      
3,131,000
DEFERRED INCOME TAXES
5,053,000
      
1,740,000
OTHER ASSETS
418,000
      
462,000
TOTAL
$140,305,000
      
$120,450,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:      
Short-term borrowings
Current portion of long-term debt
Accounts payable
$ 38,673,000
3,366,000
19,261,000
      
$38,774,000
2,353,000
18,004,000
Accrued expenses and other current liabilities
6,607,000
      
5,758,000
Total current liabilities
67,907,000
      
64,889,000

LONG-TERM CONVERTIBLE DEBT
NOTES PAYABLE
CAPITAL LEASE OBLIGATIONS
17,413,000
3,630,000
1,638,000
      
-
2,621,000
2,243,000
DEFERRED RENT AND LEASE INCENTIVES
DEFERRED GAIN ON SALE-LEASEBACK
8,228,000
76,000
      
4,850,000
129,000
Total liabilities
98,892,000
      
74,732,000
STOCKHOLDERS' EQUITY
41,413,000
      
45,718,000
TOTAL
$140,305,000
      
$120,450,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31
2008   2007
NET SALES $46,378,000   $44,224,000
COST OF GOODS SOLD 23,043,000   20,924,000
GROSS PROFIT 23,335,000   23,300,000
OPERATING EXPENSES:
Selling, marketing and distribution 25,865,000   25,340,000
General and administrative
Depreciation and amortization		 2,029,000
2,068,000		   2,055,000
1,815,000
Total operating expenses 29,962,000   29,210,000
LOSS FROM OPERATIONS
(6,627,000)
  
(5,910,000)
INTEREST INCOME 2,000   3,000
INTEREST EXPENSE (1,031,000)   (706,000)
LOSS BEFORE BENEFIT FROM
INCOME TAXES (7,656,000)   (6,613,000)
BENEFIT FROM INCOME TAXES (2,680,000)   (2,478,000)
NET LOSS $ (4,976,000)   $ (4,135,000)
NET LOSS PER SHARE:
BASIC $ (0.52)   $ (0.44)
DILUTED $ (0.52)   $ (0.44)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,481,000   9,336,000
DILUTED 9,481,000   9,336,000