REGAN ARTS 2015 Year End Review January 7, 2016 Judith Regan, CEO EFTA00602500

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Executive Summary * Preliminary Revenue of $6.3M, +7.5% or $0.4M versus plan, a reserve of $1.2M for returns is included * Through November 38 titles have been shipped via Simon & Schuster (revenue booked in the financials) * 11 Titles have revenue greater than $100k, represents 79% of total revenue * 8% or $0.5M of revenue comes from eBooks * Royalty Advances $3.2M have been paid, $1.75M for books in print and $1.5M not yet printed * Through November $1.0M has been earned against the $1.75M * Areserve of $0.8M is in the accounts to cover any unearned advance * As of October inventory is $0.3M, a reserve of $0.1M is currently held against this balance * During the year $5.1M in funding was received against a plan of $5.1M * Ended the year with $1.1M in the bank * Ended the year with a Gross Margin of 43% versus 37%, positive variance driven by lower PPB and plant expense * Other expenses $0.8M or 17% lower than plan driven by savings in M&P ($0.6M) and lower salaries (SO.2M) * EBIT loss of $1.6M better than plan by $1.1M or 41% EFTA00602501

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Preliminary Financials — FY 201 Revenue (Core) Revenue (Other) Reserve for Returns Direct Expenses PPB Freight Plant Expense Royalties Provision/Direct Charges Gross Margin GM% Other Expenses Third Party - Sales & Distribution (S&S) M&P Salaries Other Overheads 556,209 984,094 828,015 1,207,241 | 3,575,559 367,173 1,401,087 39.8% 58.7% 106,360 296,602 44,120 118,894 516,930 513,963 142,783 156,822 1,326,331 2,707,572 | 7,274,879 115,241 54,137 0 (1,223,861)| (1,223,861) 1,441,572 1,537,848 | 6,287,983 318,050 41,043 7,454 4,306| 22,118 109,357 55,929 306,909 651,199 | 1,662,949 86,245 454,763 613,557 330,607 | 2,712,424 42.6% 21.5% 226,763 84,542 542,497 360,989 (443,020) 314,806 __ (601,234) _(825,275)| (1,554,724) * December results not yet posted, final data to be received end of January from S&S 431,842 51,821 335,000 579,420 201,900 141 1,506,538 1,902,188 | 5,946,742 1) oO 1,506,538 1,807,446 | 5,852,000 433,787 | 1,404,480 278,455 1,260,622 910,010 1,258,141 | 3,707,227 153,388 = 845,552 35.5% 596,528 39.6% 180,785 278,500 579,420 201, 900 168, 227,561 1,240,605 1, ee 1,014,753) _ (382,005 (644,077) _(612,908)| (2,653,747)| 331,707 (1,223,861) (200,607) -21.7% (63,037) -74.0% (432,806) -52.5% 258,469 18.4% 306,313 65.4% (131,668) -3.6% 567,651 26.5% 293,506 41.8% (662,119) -69.0% (166,850) -7.2% 4,090 0.5% | sd 1,099,023 41.4% EFTA00602502

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Financial Notes & Assumptions * December results not yet available from S&S, revenue currently estimated at $0.7M * December includes a reserve for returns of $1.2M (Brings titles with a return % lower than 30% up to 30%, titles with returns above 30% are excluded) * December PPB and Plant expense based on YTD November Monthly average * December Royalty expense includes a placeholder of $450k to cover profit sharing titles (ISIS, Strong Looks Better & Restless Books) * December Provision for Inventory & Unearned advances includes a placeholder of $250k, will cover any unearned advance exposure of books in print * Other Expenses: * M&P based on 11 month average * Other Overheads based on 11 month average * Third Party Distribution 12% of estimated revenue EFTA00602503

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Titles with Revenue above $100k Total Sales Units Shipped Revenue Units Returned Return$ Net Revenue $ eBook Units ebook Revenue Total Revenue My Fight 150,641 2,100,644 15,606 (218,725) 1,881,919 22,952 236,848 2,118,767 Strong Looks Better 84,979 1,162,707 23 (317) 1,162,390 0 0 1,162,390 ISIS 54,920 400,062 2,767 (20,814) 379,248 12,580 92,752 472,000 Out Came the Sun 21,455 = 297,140 7,827 (109,355) 187,785 4,725 39,906 227,691 The Road To Happiness 12,856 177,721 263 (3,583) 174,138 34 222 174,360 How Dante can save the World 12,664 194,709 2,709 (41,863) 152,846 2,001 16,983 169,829 Bien Cuit 6,637. 169,500 0 169,500 2 28 169,528 Strong Looks Better 10,016 139,217 0 139,217 799 7,265 146,482 Ingredients 7,439 131,691 (398) 131,293 2,411 133,704 Sporting Guide 7,359 114,949 (61) 114,889 1,409 116,297 Empire 11,849 117,577 106,719 106,851 380,815 5,005,917 * Does not include December 2015 Revenue, data not yet available EFTA00602504

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Royalty Advances above $50k Title Books in Print Rousey Novels/Memoir Bien Cuit Out Came the Sun Strong Looks Better Naked How Dante Can Save your Life Road to Hapiness (Linda Gray) Why The Art of the Pimp Sporting Guide * Books Printed in December and/or on Profit Share, expense to be calculated at year end Books Not Yet in Print Drone Warrior Gospel of War Macklemore Rodger Memoir Found Toback KooKooLand Advance 458,334 270,000 215,000 215,000 150,000 120,000 70,000 56,334 55,000 1,609,668 300,000 100,000 87,500 70,000 68,750 62,500 56,667 745,417 Nov YTD Expense 578,695 25,743 77,959 0 43,838 48,758 0 14,265 13,511 802,769 i (120,361) 244,257 137,041 215,000 106,162 71,242 70,000 42,069 41,489 806,899 300,000 100,000 87,500 70,000 68,750 62,500 56,667 745,417 EFTA00602505

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Inventory as at October 2015 Oct-15 Oct-15 Closing Units Stock Value Regan Arts Title Restless Books Virtual Reality Letters to Yeyito Strong Looks Better Naked A Legend of the Future Bien Cuit A Planet for Rent Sporting Guide Where the Bird Sings Mega Weird Captivity Empire Between Clay & Dust Jimmie Lee My Fight Art of the Pimp How Dante Can Save your Life Out Came the Sun Allegiance Invisible Girl Wall Street Wars Gluten Lie Little Book of Lunch Road To Happiness Badge of Evil Dillie The Deer Lolito Dirty Little Secrets of College At Night She Cries Out Came the Sun Depth The Nakeds Immunity The Lie of Do What You Love Invaders Ingredients Journey of the Heroic Parent ISIS EFTA00602506

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Appendix EFTA00602507

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November YTD Revenue - Regan Arts All Titles Total Sales Return$ Net Revenue $ eBook Units ebook Revenue Regan Arts My Fight 150,641 2,100,644 Strong Looks Better 84,979 1,162,707 ISIS 54,920 400,062 Out Came the Sun 21,455 = 297,140 The Road To Happiness 12,856 = 177,721 Bien Cuit 6,637 169,500 How Dante can save the World 12,664 194,709 Strong Looks Better 10,016 139,217 Ingredients 7,439 «131,691 Sporting Guide 7,359 «114,949 Empire 11,849 = 117,577 Allegiance 8,170 = 117,529 Dillie The Deer 5,891 76,664 Dirty Secrets College 6,727 80,385 My Fight signed Edition 5,172 68,926 Do What You Love 7,976 73,370 Gluten Lie 6,952 87,334 Invisible Girl 9,208 95,170 Wall Street Wars 6,337 92,532 Badge of Evil 6,029 84,017 The Invaders 4,773 64,402 At Night She Cries 6513 84,995 Artof the Pimp 9,206 128,681 Journey of the Heroic Parent 4,920 65,708 The Nakeds 6,806 87,086 Immunity 5,162 69,392 Jimme Lee 7,207 108,467 Little Book of Lunch 3,993 48,948 Depth 5,336 69,495 Lolito 4,031 31,438 Road To Happiness 2,110 27,200 Mega Weird 5,562 64,522 Mega Weird 1907 27,111 Virtual Reality 6,799 21,493 517,602 6,680,780 15,606 23 2,767 7,827 263 0 2,709 0 22 4 1,088 1,399 0 985 26 737 (218,725) (317) (20,814) (109,355) (3,583) 0 (41,863) 0 (398) (61) (10,858) (20,051) 0 (11,686) (375) (7,533) (27,439) (37,144) (36,196) (29,791) (11,704) (34,004) (79,242) (20,953) (43,270) (28,983) (74,001) (14,766) (37,752) (2,357) (2,218) (45,152) (14,815) (122,907) 83,314 (1,108,312) -16.1% -16.6% * Sales based on S&S for the US, Canada and Australia. Does not include any sales distributed outside of S&S. 1,881,919 1,162,390 379,248 187,785 174,138 169,500 152,846 139,217 131,293 114,889 106,719 97,478 76,664 68,699 68,551 65,838 59,895 58,026 56,335 54,226 52,698 50,991 49,439 44,756 43,816 40,409 34,466 34,181 31,744 29,080 24,982 19,370 12,295 (101,414) 5,572,468 55,603 EFTA00602508

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November YTD Revenue - Restless Books All Titles Total Sales Units Shipped Revenue Units Returned Return$ Net Revenue $ eBook Units ebook Revenue Restless Books A Legend of the Future 22,044 13,999 12 66 A Planet for Rent 26,894 19,220 0 0 Between Clay and 9,045 8,795 0 0 Captivity 32,905 32,888 0 i) Don Quixote 21,344 20,973 0 0 Letters to Yeyito 11,323 11,323 0 0 The Underground 10,382 10,329 0 0 Where the Bird Sing 52,520 1, 37,240 0 0 17,547 186,458 2,998 31,690) 154,768 12 66 -17.1% -17.0% * Sales based on S&S for the US, Canada and Australia. Does not include any sales distributed outside of S&S. EFTA00602509

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Royalty Advances — All Titles Books in Print Advances Nov YTD Advance Title 2014 2015 Accumulated Earnings Remaining Rousey Novels/Memoir 208,334 250,000 458,334 578,695 (120,361) Bien Cuit 90,000 180,000 270,000 25,743 244,257 Out Came the Sun 160,000 55,000 215,000 77,959 137,041 Strong Looks Better Naked 215,000 215,000 215,000 How Dante Can Save your Life 100,000 50,000 150,000 43,838 106,162 Road to Hapiness (Linda Gray) 120,000 120,000 48,758 71,242 The Art of the Pimp 42,500 13,834 56,334 14,265 42,069 Sporting Guide 45,000 10,000 55,000 13,511 41,489 The Journey of the Heroic Parent 20,000 10,000 30,000 9,288 20,712 Compass of Sympathy (Kermit Roosevelt Allegian 25,000 25,000 20,777 4,223 Dillie the Deer 22,500 22,500 14,545 7,955 Age-Free (Linda Gray) 20,000 20,000 0 20,000 The Lie of Doing What you Love 10,000 10,000 20,000 15,522 4,478 Ingredients 15,000 15,000 20,764 (5,764) The Gluten Lie 10,000 3,834 13,834 13,275 559 The Dirty Little Secret of Getting Into Top College 5,000 8,518 13,518 13,852 (334) Megalis 12,000 12,000 11,280 720 Invaders 10,000 10,000 12,784 (2,784) Immunity 10,000 10,000 9,646 354 Depth 10,000 10,000 7,353 2,647 Jimmie Lee and James 2,500 2,500 5,000 6,798 (1,798) The Nakeds 2,500 2,500 9,406 (6,906) Lolito 1,250 1,250 5,692 (4,442) The Little Book of Lunch 1,250 1,250 4,328 (3,078) 774,084 977,435 1,751,519 978,079 773,441 10 EFTA00602510

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Royalty Advances — Books Not Yet in Print Drone Warrior 150,000 150,000 0 300,000 Gospel of War 100,000 10.000 0 100,000 Macklemore 87,500 87,500 0 87,500 Rodger Memoir 70,000 70,000 0 70,000 Why 70,000 70,000 0 70,000 Found 68,750 68,750 0 68,750 Toback 62,500 62,500 0 62,500 KooKooLand 28,333 28,333 56,667 0 56,667 Ford Memoir 36,667 36,667 0 36,667 Doll Parts 36,000 36,000 0 36,000 This is the Truth 33,332 33,332 0 33,332 Rewilding 31,250 31,250 0 31,250 Inherited Disorders 30,000 30,000 0 30,000 Parenting Book/Who Are You/Fashion Book 30,000 30,000 0 30,000 Book on Pakistan 25,000 25,000 0 25,000 Kendall & Kylie Jenner for Lex and Livia Series of 24,000 24,000 0 24,000 Deceptive Desserts 20,000 20,000 0 20,000 Fat-Burning Machine 20,000 20,000 ie} 20,000 Mad at Something 20,000 20,000 0 20,000 Man of La Salsa 20,000 20,000 0 20,000 McConnell 20,000 20,000 0 20,000 The Curse of Beauty 20,000 20,000 0 20,000 The Limits of Bad Behaviour 20,000 20,000 0 20,000 The Malibu Biodynamic Diet 10,000 10,000 20,000 0 20,000 Mark Oldman Book 18,750 18,750 0 18,750 Food Stuff 15,000 15,000 0 15,000 Tea with Dutches 15,000 15,000 0 15,000 The 5-6-7-8 Diet 15,000 15,000 0 15,000 Untitled: Dance Fitness Book 15,000 15,000 0 15,000 Work by Peter Arno 15,000 15,000 0 15,000 10 EFTA00602511

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Royalty Advances — Books Not Yet in Print (continued) Mrs Ravenbach's Way 0,000 14,500 0 14,500 Police Brutality soo 12,500 0 12,500 American Fat 10,000 10,000 0 10,000 Founders & Failures 10,000 10,000 0 10,000 My Enemy/My brother 10,000 10,000 0 10,000 Trousdale Estates 10,000 10,000 0 10,000 We Tortures some folks 10,000 10,000 0 10,000 Woman on the Front Lines 10,000 10,000 0 10,000 The Hollywood Backdrop 9,250 9,250 0 9,250 The Art of Hollywood Backdroping 8,500 8,500 0 8,500 The 2am Principle 7,500 7,500 0 7,500 Carefrontation 7,083 7,083 0 7,083 Books that changed my life 7,000 7,000 0 7,000 The Books That Changed my Life 7,000 7,000 0 7,000 Stand Up and Fight 6,000 6,000 0 6,000 Why Bernie Sanders Matters 6,000 6,000 0 6,000 Frosen Place 5,000 5,000 0 5,000 The Casual Sex Project 5,000 5,000 0 5,000 The Unfinished Palazzo 5,000 5,000 0 5,000 Work 2/ Waclawiak 5,000 5,000 0 5,000 The Singing Bone 4,688 4,688 0 4,688 Dirty Little Secrets: Dream Job 4,423 4,423 0 4,423 Upstate Girls 2,000 2,000 0 2,000 Califrontation 1,250 1,250 0 1,250 597,250 895,859 1,493,109 0 1,493,109 11 EFTA00602512