BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31
2007       2006
ASSETS
CURRENT ASSETS:      
Cash and cash equivalents
$789,000
      
$740,000
Receivables, net
2,187,000
      
1,061,000
Inventories
74,018,000
      
57,249,000
Prepaid expenses and other current assets
1,817,000
      
2,153,000
Deferred income taxes
6,363,000
      
3,503,000
Total current assets
85,174,000
      
64,706,000
PROPERTY AND EQUIPMENT, Net
25,927,000
      
15,118,000
INTANGIBLE ASSETS, Net
4,016,000
      
4,387,000
GOODWILL
3,131,000
      
3,131,000
DEFERRED INCOME TAXES
1,740,000
      
1,835,000
OTHER ASSETS
462,000
      
358,000
TOTAL
$120,450,000
      
$89,535,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:      
Short-term borrowings
Current portion of long-term debt
Accounts payable
$ 38,774,000
2,353,000
18,004,000
      
$17,417,000
1,882,000
15,222,000
Accrued expenses and other current liabilities
5,758,000
      
4,926,000
Total current liabilities
64,889,000
      
39,447,000
NOTES PAYABLE
CAPITAL LEASE OBLIGATIONS
2,621,000
2,243,000
      
4,360,000
12,000
DEFERRED RENT AND LEASE INCENTIVES
DEFERRED GAIN ON SALE-LEASEBACK
4,850,000
129,000
      
1,533,000
182,000
Total liabilities
74,732,000
      
45,534,000
STOCKHOLDERS' EQUITY
45,718,000
      
44,001,000
TOTAL
$120,450,000
      
$89,535,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31
2007   2006
NET SALES $44,224,000   $38,671,000
COST OF GOODS SOLD 20,924,000   18,574,000
GROSS PROFIT 23,300,000   20,097,000
OPERATING EXPENSES:
Selling, marketing and distribution 25,340,000   21,540,000
General and administrative
Depreciation and amortization		 2,055,000
1,815,000		   2,020,000
1,326,000
Total operating expenses 29,210,000   24,886,000
LOSS FROM OPERATIONS
(5,910,000)
  
(4,789,000)
INTEREST INCOME 3,000   2,000
INTEREST EXPENSE (706,000)   (269,000)
LOSS BEFORE BENEFIT FROM
INCOME TAXES (6,613,000)   (5,056,000)
BENEFIT FROM INCOME TAXES (2,478,000)   (1,896,000)
NET LOSS $ (4,135,000)   $ (3,160,000)
NET LOSS PER SHARE:
BASIC $ (0.44)   $ (0.35)
DILUTED $ (0.44)   $ (0.35)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 9,336,000   9,092,000
DILUTED 9,336,000   9,092,000