RVUE HOLDINGS, INC.

Basic and diluted loss per common share is computed by dividing the loss by the weighted average number of common shares outstanding for the period. Since the Company incurred losses attributable to common stockholders during the three and six months ended June 30, 2016 and 2015, diluted loss per common share has not been computed by giving effect to all potentially dilutive common shares that were outstanding during the three and six months ended June 30, 2016 and 2015 since this would have an anti-dilutive effect. 

In May 2016, the Company entered into a $44,625 financing agreement for the Company’s annual directors and officers insurance. The term of the financing agreement is ten months and the interest rate is 5.77%. The first payment of $4,581 was made in June 2016 and the final payment will be in March 2017.

Core fees were $307,005 for the six-month period ended June 30, 2016, a $309,033 or 50.2% decrease from the $616,038 rVue fees for the six-month period ended June 30, 2015. In the second quarter of 2015 rVue had a significant campaign that accounted for as the rVue platform gains traction with advertisers and agencies, we expect to generate additional revenue and fees in the second half of 2016 from advertisers and agencies for placing advertising with DpbM networks through rVue. This is the focus of our business and the area in which we expect to generate the majority of our revenue in 2016 and beyond. We cannot provide assurance that advertisers or agencies will accept the rVue platform as their platform of choice for placing advertising with DpbM networks.

Office support and supply expense for the six-month period ended June 30, 2016 decreased $6,098 or 4.3%, compared to the six-month period ended June 30, 2015. The decrease is attributable to a $6,000 decrease in membership fees, a $1,339 decrease in payroll fees, a $2,820 decrease in state fees, and a $2,857 decrease in miscellaneous expenses offset by a $6,918 increase in outside consultants rVue has engaged in operations and software development.

Net cash used in investing activities totaled $97,928 for the six-month period ended June 30, 2016 compared to $60,168 of net cash used in investing activities in the six-month period ended June 30, 2015. In the six-month period ended June 30, 2016, cash used in investing activities consisted of $97,928 of software development costs. In the six-month period ended June 30, 2015, cash used in investing activities consisted of $60,248 of software development costs and that amount was offset by a decrease in deposits of $80.