MEDIABISTRO INC.

Recent accounting pronouncements: In August 2015, the Financial Accounting Standards Board, (“FASB”) issued the Accounting Standards Update (“ASU”) No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASC 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this ASU to the Company's financial condition, results of operations and cash flows.

In July 2015, in order to reduce expenses, the Company abandoned its lease in New York City, and began renting at a smaller location in New York City. The abandoned lease had a term expiring in January 2019. In conjunction with this abandonment, the Company entered into an amendment of lease and surrender agreement (the “Agreement”). Under the Agreement, the Company and the landlord agreed to terminate the lease for the property located at 475 Park Avenue, New York, New York. The Company further agreed to surrender the premises and pay the landlord $75. The Company and the landlord each released the other party from any claims under the lease. During the three and nine months ended September 30, 2015, the Company recorded a restructuring benefit of $269, which is included in operating expenses in the unaudited consolidated condensed statements of operations. The benefit is a result of the write off of deferred rent expenses offset by the abandonment of equipment, furniture and fixtures and leasehold improvements of the 475 Park Avenue location The Company does not have any further liabilities recorded in connection with this lease.

Cost of revenues from continuing operations primarily consists of payroll and benefits costs for trade show staff, trade show operations and technology consulting. Cost of revenues excludes depreciation and amortization. Cost of revenues from continuing operations was $250,000 and $1,052,000 for the three months ended September 30, 2015 and 2014, respectively, representing a decrease of 76%. This change was primarily due to a decrease in our trade show-related costs of $641,000, due to running five fewer shows in the three months ended September 30, 2015 than the three months ended September 30, 2014. Professional consulting fees also decreased $133,000 for the three months ended September 30, 2015 as compared to the three months ended September 30, 2014.

In July 2015, in order to reduce expenses, we abandoned our lease in New York City, and began renting at a smaller location in New York City.  The abandoned lease had a term expiring in January 2019.  In conjunction with this abandonment, in September, 2015, we entered into an amendment of lease and surrender agreement (the “Agreement”). Under the Agreement, we and the landlord agreed to terminate the lease for the property located at 475 Park Avenue, New York, New York. We further agreed to surrender the premises and pay the landlord $75,000. We each released the other party from any claims under the lease. During the three and nine months ended September 30, 2015, the Company recorded a gain on termination of lease of $269,000, which is included in operating expenses in the unaudited consolidated condensed statements of operations. The benefit is a result of the write off of $324,000 of deferred rent expense offset by the write off of equipment, furniture and fixtures and leasehold improvements of the 475 Park Avenue location. There were no further liabilities recorded in connection with this lease.

3DPrint.com. In September 2015, Sagamore III LLC (“Sagamore”) purchased all of the assets of the 3dprint.com website from Forum Advertising, LLC, a third party, for $600,000, which consists of a blog, email newsletters and numerous social media accounts. Mr. Meckler, our Chief Executive Officer, along with his wife Mrs. Meckler are equal owners of Sagamore III LLC. In connection with this acquisition by Sagamore, we entered into an Exclusive License Agreement with Sagamore to use, operate and improve the 3dPrint.com assets. We will also begin selling advertising space on the website. We will be responsible for all costs and revenues associated with the site. We believe that operating the purchased assets will continue to materially aid our promotion of the Inside 3D Printing trade shows by being able to advertise such shows to the readers of the 3DPrint.Com blog and related social media assets. We may terminate this agreement at anytime. Sagamore may not terminate this Agreement or sell the assets to a third party unless we are unable to pay the liabilities related to these assets. Further, Sagamore grants us the right to purchase the assets for $600,000 until the termination of this agreement. For the three and nine months ended September 30, 2015, the website provided revenues of $5,000 and expenses of $7,000.