A LIFESTYLE COMPANY

GAIAM, INC. CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31
PART II
2000 1999 1998
Net revenue $60,588,018 $45,724,662 $30,738,540
Cost of goods sold 23,793,492 18,175,787 13,173,536
Gross profit 36,794,526 27,548,875 17,565,004
Expenses:
Selling and operating 27,309,857 22,337,950 14,186,215
Corporate, general and administration 5,056,903 3,086,514 2,393,946
Total expenses 32,366,760 25,424,464 16,580,161
Income from operations 4,427,766 2,124,411 984,843
Other income (expense):
Realized gain on sale of securities and other (see Note 3) (73,947) 971,159 696,992
Interest expense (209,167) (365,294) (308,501)
Other income (expense) (283,114) 605,865 388,491
Income before income taxes and minority interest 4,144,652 2,730,276 1,373,334
Provision for income taxes 1,555,487 1,062,789 251,955
Minority interest in net income (loss) of
consolidated subsidiary, net of tax (59,706) (50,858) 261,598
Net income $2,648,871 $ 1,718,345 $ 859,781
Net income per share:
Basic $0.24 $0.20 $0.11
Diluted $0.23 $0.19 $0.11
Shares used in computing net income per share:
Basic 10,858,139 8,785,205 8,072,877
Diluted 11,525,120 9,119,108 8,118,791
See accompanying notes.
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