YTB INTERNATIONAL, INC.

Consolidated Statements of Operations

Years Ended December 31, 2006 and 2005

 

		2006			2005
NET REVENUES
Online travel store sales and monthly fees		$	36,887,611		$	14,302,638
Travel commissions and services			7,364,413			4,941,007
Franchise service fees and other fees			332,345			443,693
Training programs and marketing materials			5,766,081			1,579,960
Other			546,280			326,019
Net revenues			50,896,730			21,593,317
OPERATING EXPENSES
Marketing commissions			29,908,507			13,881,404
Travel commissions			4,893,012			3,454,033
Depreciation and amortization			408,025			944,619
Marketing and selling			3,144,211			239,853
General and administrative			18,595,959			8,954,335
Total operating expenses			56,949,714			27,474,244
LOSS FROM OPERATIONS			(6,052,984	)		(5,880,927	)
OTHER INCOME (EXPENSE)
Change in fair value of derivatives			-			312,143
Interest and dividend income			170,224			102,049
Interest expense			(93,617	)		(2,986,052	)
Total other income (expense)			76,607			(2,571,860	)
NET LOSS		$	(5,976,377	)	$	(8,452,787	)
NET LOSS PER SHARE:
Weighted-average shares outstanding			27,433,491			24,861,904
Net loss per share - basic and diluted		$	(0.22	)	$	(0.34	)