Original GBL Prospectus - Gabelli

GABELLI FUNDS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
A. Basis of Presentation
The unaudited interim consolidated Ñnancial statements of the Company included herein have been
prepared in accordance with generally accepted accounting principles for interim Ñnancial information and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by
generally accepted accounting principles for complete Ñnancial statements. In the opinion of management, the
unaudited interim consolidated Ñnancial statements reÖect all adjustments, which are of a normal recurring
nature, necessary for a fair presentation of Ñnancial position, results of operations and cash Öows of the
Company for the interim periods presented and are not necessarily indicative of a full year's results.
In preparing the unaudited interim consolidated Ñnancial statements, management is required to make
estimates and assumptions that aÅect the amounts reported in the Ñnancial statements. Actual results could
diÅer from those estimates.
These Ñnancial statements should be read in conjunction with the Company's audited consolidated
Ñnancial statements for the year ended December 31, 1997.
B. Notes Receivable
During the nine months ended September 30, 1998, the Company issued approximately $9 million of
common stock to employees and aÇliates of the Company in return for interest bearing demand notes
receivable.
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