0001021096FALSE25 W 39th StreetNew YorkNYNASDAQTroika Media Group, Inc.00010210962024-03-292024-03-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 29, 2024
Former TRKA Media Group, Inc. (f/k/a Troika Media Group, Inc.)
(Exact name of registrant as specified in its charter)
Nevada 001-40329 83-0401552
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
25 W 39th Street New York, NY
10018
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (212) 213-0111
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)(1)
Name of each exchange on which registered
Common Shares $0.001 par valueTRKAQN/A
Redeemable Warrants to acquire Common SharesTRKAWQN/A
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
(1)
On December 7, 2023, Troika Media Group, Inc. (the “Company”) received a determination letter from The Nasdaq Stock Market (“Nasdaq”) notifying the Company of its determination that, in accordance with its authority under Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1, the Company’s securities would be suspended from trading. Trading of the Company’s common stock and warrants was suspended at the opening of business on December 18, 2023 and delisted from Nasdaq. On December 18, 2023, the Company’s common stock and warrants began trading on the OTC under the symbols “TRKAQ” and “TRKAWQ”, respectively.
Item 7.01 Regulation FD Disclosure

As previously disclosed, on December 7, 2023, the Company and certain of its subsidiaries (collectively, the “Debtors”) filed voluntary petitions under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (such court, the “Court” and such cases, the “Cases”).

On March 29, 2024, the Debtors filed monthly operating reports with the Court for the reporting month ended February 29, 2024, copies of which are attached to this Current Report on Form 8-K and are incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 is being furnished for informational purposes only and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. The filing of this current report (including the Monthly Operating Reports attached hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely by Regulation FD.

Item 8.01 Other Events

In lieu of filing Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K under Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company has filed, and will continue to file, with the Securities and Exchange Commission’s (the “Commission”), under cover of Current Reports on Form 8-K, copies of the monthly operating reports required to be submitted to the Court in accordance with the procedures outlined in Exchange Act Release No. 9660 (June 30, 1972) (“Release No. 9660”), the Commission’s Staff Legal Bulletin No. 2 (April 15, 1997) and the Commission’s related no-action correspondence. The Company will satisfy all other provisions of the Exchange Act, including filing all Current Reports on Form 8-K (with the exception of the financial information required by Item 9.01 of Form 8-K that would be triggered by a purchase or sale of assets by the Company) and satisfying the proxy, issuer tender offer and going-private provisions. The Current Reports on Form 8-K will include material events relating to the Company’s expected winding up and dissolution (including as to whether any liquidation payments will be made to security holders, the amount of any liquidation payments and the amount of any expenses incurred). The Company believes that this modified reporting program is consistent with the protection of its investors as set forth in Release No. 9660.

Cautionary Note Regarding the Monthly Operating Reports

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Reports, which were not prepared for the purpose of providing the basis for an investment decision relating to the Company’s securities. The Monthly Operating Reports are limited in scope and have been prepared solely for the purpose of complying with requirements of the Federal Rules of Bankruptcy Procedure applicable to the Cases. The Monthly Operating Reports were not reviewed by independent accountants, are in a format prescribed by applicable bankruptcy laws, and are subject to future adjustment. The financial information in the Monthly Operating Reports are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and, therefore, may exclude items required by GAAP, such as certain reclassifications, eliminations, accruals, valuations and disclosures. The Monthly Operating Reports also relate to periods that are different from the historical periods required in the Company’s reports pursuant to the Securities Act of 1933, as amended, or the Exchange Act.

Cautionary Statements Regarding Trading in the Company’s Securities.

THE COMPANY'S SECURITYHOLERS ARE CAUTIONED THAT TRADING IN THE COMPANY'S SECURITIES DURING THE PENDENCY OF THE CASES IS HIGHLY SPECULATIVE AND POSES SUBSTANTIAL RISKS. HOLDERS OF THE COMPANY'S COMMON STOCK OR OTHER EQUITY SECURITIES WILL NOT RECEIVE ANY PAYMENT OR OTHER DISTRIBUTION IN CONNECTION WITH THE ANTICIPATED LIQUIDATION OF THE DEBTORS. ACCORDINGLY, THE COMPANY URGES EXTREME CAUTION WITH RESPECT TO EXISTING AND FUTURE INVESTMENTS IN ITS SECURITIES.

Cautionary Note Regarding Forward-Looking Statements

This Form 8-K includes statements that are, or may be deemed, “forward-looking statements.” In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” “approximately” or, in each case, their negative or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These forward-looking statements reflect the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity and the development of the industry in which we operate may differ materially from the forward-looking statements contained herein. Any forward-looking statements that we make in this Form 8-K speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date of this Form 8-K or to reflect the occurrence of unanticipated events. The Company’s forward-looking statements in this Form 8-K include, but are not limited to, statements about the Company’s anticipated liquidation and that no distributions are expected to be made to the Company’s securityholders in connection with the liquidation, the Cases or otherwise. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits:

Exhibit No.Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Former TRKA Media Group, Inc.
(Registrant)
Date: March 29, 2024By:/s/ Derek McKinney
(Signature)
Derek McKinney
General Counsel and Corporate Secretary

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $-1,191,675 b. Total receipts (net of transfers between accounts) $7,817,622 $7,991,109 c. Total disbursements (net of transfers between accounts) $1,660,311 $3,323,165 d. Cash balance end of month (a+b-c) $4,965,636 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $1,660,311 $3,323,165 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $16,220,273 e. Total assets $79,647,108 f. Postpetition payables (excluding taxes) $18,570,493 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $18,570,493 k. Prepetition secured debt $66,286,105 l. Prepetition priority debt $0 m. Prepetition unsecured debt $17,319,239 n. Total liabilities (debt) (j+k+l+m) $102,175,837 o. Ending equity/net worth (e-n) $-22,528,729 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $3,781,371 f. Other expenses $-7,770,839 g. Depreciation and/or amortization (not included in 4b) $422,306 h. Interest $357,677 i. Taxes (local, state, and federal) $13,990 j. Reorganization items $3,414,839 k. Profit (loss) $3,195,496 $-5,458,816 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 2 of 17

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 4 of 17

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 6 of 17

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 7 of 17

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $13,990 $39,262 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 8 of 17

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 9 of 17

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 10 of 17

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 11 of 17

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika Media Group, Inc. Case No. 23-11969 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 12 of 17

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 14 of 17

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 268 Filed 03/29/24 Entered 03/29/24 11:37:34 Main Document Pg 15 of 17

 

 

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Converge Direct, LLC Case No. 23-11957 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $10,203,950 b. Total receipts (net of transfers between accounts) $14,288,743 $49,935,221 c. Total disbursements (net of transfers between accounts) $13,102,354 $38,867,737 d. Cash balance end of month (a+b-c) $11,390,339 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $13,102,354 $38,867,737 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $5,602,175 b. Accounts receivable over 90 days outstanding (net of allowance) $37,388 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $11,358,853 e. Total assets $45,435,665 f. Postpetition payables (excluding taxes) $20,721,635 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $20,721,635 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $7,808,734 n. Total liabilities (debt) (j+k+l+m) $28,530,369 o. Ending equity/net worth (e-n) $16,905,296 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $13,085,312 b. Cost of goods sold (inclusive of depreciation, if applicable) $11,638,012 c. Gross profit (a-b) $1,447,300 d. Selling expenses $0 e. General and administrative expenses $1,194,244 f. Other expenses $-979 g. Depreciation and/or amortization (not included in 4b) $7,601 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $246,434 $573,275 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 2 of 18

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Converge Direct, LLC Case No. 23-11957 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 4 of 18

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Converge Direct, LLC Case No. 23-11957 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 6 of 18

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Converge Direct, LLC Case No. 23-11957 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 7 of 18

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Converge Direct, LLC Case No. 23-11957 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $83,139 $264,186 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 8 of 18

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Converge Direct, LLC Case No. 23-11957 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 9 of 18

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Converge Direct, LLC Case No. 23-11957 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 10 of 18

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Converge Direct, LLC Case No. 23-11957 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 11 of 18

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Converge Direct, LLC Case No. 23-11957 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 12 of 18

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 14 of 18

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 269 Filed 03/29/24 Entered 03/29/24 11:42:08 Main Document Pg 15 of 18

 

 

 

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $1,991,570 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $1,991,570 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Converge Direct Interactive, LLC Case No. 23-11958 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 270 Filed 03/29/24 Entered 03/29/24 11:47:13 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name CD Acquisition Corp. Case No. 23-11959 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $0 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $0 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name CD Acquisition Corp. Case No. 23-11959 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name CD Acquisition Corp. Case No. 23-11959 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name CD Acquisition Corp. Case No. 23-11959 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name CD Acquisition Corp. Case No. 23-11959 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name CD Acquisition Corp. Case No. 23-11959 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name CD Acquisition Corp. Case No. 23-11959 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name CD Acquisition Corp. Case No. 23-11959 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name CD Acquisition Corp. Case No. 23-11959 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 271 Filed 03/29/24 Entered 03/29/24 11:51:36 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $9,352,769 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $9,352,769 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Lacuna Ventures, LLC Case No. 23-11960 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 272 Filed 03/29/24 Entered 03/29/24 11:57:26 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-98,902 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $-98,902 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Mission Media USA, Inc. Case No. 23-11961 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 273 Filed 03/29/24 Entered 03/29/24 12:01:55 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Mission Culture LLC Case No. 23-11962 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-9,735,519 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $5,625,311 n. Total liabilities (debt) (j+k+l+m) $5,625,311 o. Ending equity/net worth (e-n) $-15,360,830 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $7,262 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $-7,262 $-20,957 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Mission Culture LLC Case No. 23-11962 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Mission Culture LLC Case No. 23-11962 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Mission Culture LLC Case No. 23-11962 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Mission Culture LLC Case No. 23-11962 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Mission Culture LLC Case No. 23-11962 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Mission Culture LLC Case No. 23-11962 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Mission Culture LLC Case No. 23-11962 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Mission Culture LLC Case No. 23-11962 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 274 Filed 03/29/24 Entered 03/29/24 12:10:43 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-9,898,289 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $919,546 n. Total liabilities (debt) (j+k+l+m) $919,546 o. Ending equity/net worth (e-n) $-10,817,835 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika Design Group, Inc. Case No. 23-11963 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 275 Filed 03/29/24 Entered 03/29/24 12:14:53 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika IO, Inc. Case No. 23-11964 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-14,031,065 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $-14,031,065 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika IO, Inc. Case No. 23-11964 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika IO, Inc. Case No. 23-11964 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika IO, Inc. Case No. 23-11964 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika IO, Inc. Case No. 23-11964 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika IO, Inc. Case No. 23-11964 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika IO, Inc. Case No. 23-11964 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika IO, Inc. Case No. 23-11964 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika IO, Inc. Case No. 23-11964 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 276 Filed 03/29/24 Entered 03/29/24 12:19:03 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-382,168 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $-382,168 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika Mission Worldwide, Inc. Case No. 23-11965 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 277 Filed 03/29/24 Entered 03/29/24 12:23:49 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika Production Group, LLC Case No. 23-11966 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-1,385,275 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $720,766 n. Total liabilities (debt) (j+k+l+m) $720,766 o. Ending equity/net worth (e-n) $-2,106,041 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $44,697 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $-44,697 $-125,276 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika Production Group, LLC Case No. 23-11966 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika Production Group, LLC Case No. 23-11966 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika Production Group, LLC Case No. 23-11966 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika Production Group, LLC Case No. 23-11966 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika Production Group, LLC Case No. 23-11966 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika Production Group, LLC Case No. 23-11966 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika Production Group, LLC Case No. 23-11966 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika Production Group, LLC Case No. 23-11966 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 278 Filed 03/29/24 Entered 03/29/24 12:29:28 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika Services, Inc. Case No. 23-11967 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-4,369,074 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $-4,369,074 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $40,323 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika Services, Inc. Case No. 23-11967 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika Services, Inc. Case No. 23-11967 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika Services, Inc. Case No. 23-11967 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika Services, Inc. Case No. 23-11967 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika Services, Inc. Case No. 23-11967 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika Services, Inc. Case No. 23-11967 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika Services, Inc. Case No. 23-11967 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika Services, Inc. Case No. 23-11967 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 279 Filed 03/29/24 Entered 03/29/24 12:33:32 Main Document Pg 15 of 15

 

 
UST Form 11-MOR (12/01/2021) 2 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $0 b. Total receipts (net of transfers between accounts) $0 $0 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $0 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory ( (attach explanation))Book Market Other $0 d Total current assets $0 e. Total assets $-13,809,299 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $-13,809,299 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary course of business $0 $0 b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $0 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $0 d. Selling expenses $0 e. General and administrative expenses $0 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $0 $0 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 2 of 15

 

 
UST Form 11-MOR (12/01/2021) 4 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 4 of 15

 

 
UST Form 11-MOR (12/01/2021) 6 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 6 of 15

 
UST Form 11-MOR (12/01/2021) 7 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 7 of 15

 
UST Form 11-MOR (12/01/2021) 8 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire - During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Yes NoWere any payments made outside the ordinary course of business without court approval? (if yes, see Instructions) c. Yes NoWere any payments made to or on behalf of insiders? d. Yes NoAre you current on postpetition tax return filings? e. Yes NoAre you current on postpetition estimated tax payments? f. Were all trust fund taxes remitted on a current basis? Yes No g. Yes NoWas there any postpetition borrowing, other than trade credit? (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by the court? Yes No N/A i. Do you have: Worker's compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930? Yes No 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 8 of 15

 
UST Form 11-MOR (12/01/2021) 9 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)? Yes No m. Yes No N/AIf yes, have you made all Domestic Support Obligation payments? Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ G. Grant Lyon Signature of Responsible Party Interim CEO Printed Name of Responsible Party 03/29/2024 DateTitle G. Grant Lyon 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 9 of 15

 
UST Form 11-MOR (12/01/2021) 10 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 10 of 15

 
UST Form 11-MOR (12/01/2021) 11 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 11 of 15

 
UST Form 11-MOR (12/01/2021) 12 Debtor's Name Troika-Mission Holdings, Inc. Case No. 23-11968 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 12 of 15

 

 
In re: Troika Media Group, Inc. Lead Case No.: 23 11969 Consolidated Balance Sheets February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ION GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS NC ROIKA MEDIA GROUP INC Total Consolidated February February February February February February February February February February February February February February 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ASSETS (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Current assets Cash and cash equivalents 1,916,550$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,844,096$ 9,760,646$ Restricted cash (1) - - - - - - - - - - - - 6,565,041 6,565,041 Accounts receivable, net 5,602,175 - - - - - - - - - - - - 5,602,175 Contract assets 1,885,684 - - - - - - - - - - - - 1,885,684 Prepaid expenses and other current assets 1,954,130 - - - - - - - - - - - 1,811,136 3,765,266 Total current assets 11,358,539 16,220,273 27,578,812 Non-current assets Property and equipment, net 197,073 - - - - - - - - - - - 45,798 242,871 Operating lease right-of-use assets, net 2,236,680 - - - - - - - - - - - - 2,236,680 Amortizable intang ble assets, net - - - - - 0 - - - - - - 30,311,716 30,311,716 Goodwill - - - - - - - - - - - - 21,614,359 21,614,359 Other assets 548,554 - - - - - - - - 184,530 - - - 733,084 Due to related Party (2) 31 094 820 1 991 570 - 9 352 769 (98 902) (9 735 519) (9 898 289) (14 031 065) (382 168) (1 569 805) (4 369 074) (13 809 299) 11 454 962 (0) Total assets 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,299)$ 79,647,108$ 82,717,521$ LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Liabilities Not Subject to Compromise Current liabi ities Accounts payable 13,208,804$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 53,606$ 13,262,410$ Accrued and other current liabi ities - - - - - - - - - - - - 7,451,887 7,451,887 Accrued b llable expenses 6,642,114 - - - - - - - - - - - - 6,642,114 Deferred Revenue 870,717 - - - - - - - - - - - - 870,717 Current portion of long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 65,000 65,000 Total current liabilities Not Subject to Compromise 20,721,635 7,570,493 28,292,128 Non-current l ab lities Long-term debt, net of deferred financing costs (3) - - - - - - - - - - - - 11,000,000 11,000,000 Total liabilities Not Subject to Compromise 20,721,635 18,570,493 39,292,128 Liabilities Subject to Compromise (4) Current liabi ities Accounts payable 1,821,919$ -$ -$ -$ -$ 1,014,755$ 84,296$ -$ -$ -$ -$ -$ 237,414$ 3,158,385$ Accrued and other current liabi ities 451,314 - - - - 546,257 - - - 100,044 - - 4,135,351 5,232,966 Deferred Revenue 625,566 - - - - 2,456,168 835,250 - - - - - - 3,916,984 Current portion of long-term debt, net of deferred financing costs - - - - - - - - - - - - 2,492,908 2,492,908 Acquisition liabi ities - - - - - - - - - - - - 9,346,504 9,346,504 Convertible note payable - - - - - - - - - - - - 60,006 60,006 Operating lease liabil ties, current 646,907 - - - - 443,224 - - - 571,503 - - - 1,661,635 Taxes payable, net - - - - - 58,242 - - - - - - - 58,242 Restructuring liabilities - - - - - - - - - - - - 99,408 99,408 Contingent iab lity - - - - - - - - - - - - 939 224 939 224 Total current liabilities Subject to Compromise 3,545,707 4,518,647 919,546 671,547 17,310,814 26,966,261 Non-current l ab lities Long-term debt, net of deferred financing costs - - - - - - - - - - - - 66,286,105 66,286,105 Operating lease liabil ties, non-current 4,263,028 - - - - 1,106,664 - - - 49,219 - - - 5,418,910 Other long-term liabil ties - - - - - - - - - - - - 8,425 8,425 Total liabilities Subject to Compromise 7,808,734 5,625,311 919,546 720,766 83,605,344 98,679,701 Total liabilities 28,530,369 5,625,311 919,546 720,766 102,175,837 137,971,828 Total stockholders’ equity (deficit) 16,905,296 1,991,570 9,352,769 (98,902) (15,360,830) (10,817,835) (14,031,065) (382,168) (2,106,040) (4,369,074) (13,809,298) (22,528,729) (55,254,308) Total liabilities and stockholders’ equity (deficit) 45,435,665$ 1,991,570$ $ 9,352,769$ (98,902)$ (9,735,519)$ (9,898,289)$ (14,031,065)$ (382,168)$ (1,385,275)$ (4,369,074)$ (13,809,298)$ 79,647,108$ 82,717,521$ – – – – – – – – – – – – – – (1) Restricted cash amount of $6.6M are funds held in escrow relating to bankruptcy professional fees. (2) Due to related party is related to intercompany accounts that net to zero in conso idation. (3) Long-term Debt Not Subject to Compromise is related to Debtor in Possession ("DIP") financing. (4) Liabilities Subject to Compromise relates to a l pre-petition ob igations, including any priority or secured claims. 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 14 of 15

 
In re: Troika Media Group, Inc. Lead Case No.: 23-11969 Consolidated Statements of Operations For the post petition period February 2024 $ in USD TROIKA MEDIA GROUP, INC. & RELATED DEBTORS CONVERGE DIREC LLC CONVERGE DIREC IN ERAC IVE LLC CD ACQUISI ION CORP LACUNA VEN URES LLC MISSION MEDIA USA INC MISSION CUL URE LLC ROIKA DESIGN GROUP INC ROIKA IO INC ROIKA MISSION WORLDWIDE INC ROIKA PRODUC ON GROUP LLC ROIKA SERVICES INC ROIKA MISSION HOLDINGS INC ROIKA MEDIA GROUP INC Total Consolidated Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 Feb 1 Feb 29 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 (unaud ted) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaud ted) (unaudited) (unaud ted) Revenue 13,085,312$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,085,312$ Cost of revenue 11,638,012$ - - - - - - - - - - - - 11,638,012 Gross margin 1,447,300 - - - - - - - - - - - - 1,447,300 Gross margin % 11.1% NA NA NA NA NA NA NA NA NA NA NA NA 11.1% Operating expenses Selling, general and administrative expenses 1,194,244 - - - - 7,262 - - - 44,697 - - 3,781,371 5,027,575 Depreciation and amortization 7,601 - - - - - - - - - - - 422,306 429,906 Total operating expenses 1,201,845 - - - - 7,262 - - - 44,697 - - 4,203,676 5,457,481 Operating loss 245,455 - - - - (7,262) - - - (44,697) - - (4,203,676) (4,010,181) Other income (expense) Interest expense (1) - - - - - - - - - - - - (357,677) (357,677) Miscellaneous income (expense) (2) 979 - - - - - - - - - - - 7 770 839 7 771 817 Total other expense 979 - - - - - - - - - - - 7,413,162 7,414,140 Loss from operations before income taxes 246,434 - - - - (7,262) - - - (44,697) - - 3,209,485 3,403,959 Income tax expense - - - - - - - - - - - - (13 990) (13 990) Net loss from continuing operations after income tax 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Net loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 Foreign currency translation adjustment - - - - - - - - - - - - - - Comprehensive loss 246,434 - - - - (7,262) - - - (44,697) - - 3,195,496 3,389,970 1.9% NA NA NA NA NA NA NA NA NA NA NA NA 25.9% (1) TMG Interest expense includes interest on new DIP loan as well as amortization on Deferred Financing Fees. (2) Miscellaneous income for Troika Media Group Inc. relates to a legal retainer refunded. 23-11969-dsj Doc 280 Filed 03/29/24 Entered 03/29/24 12:38:33 Main Document Pg 15 of 15

 
v3.24.1
Cover
Mar. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Mar. 29, 2024
Entity Incorporation, State or Country Code NV
Entity File Number 001-40329
Entity Tax Identification Number 83-0401552
Entity Address, Address Line One 25 W 39th Street
Entity Address, City or Town New York
Entity Address, State or Province NY
City Area Code 212
Local Phone Number 213-0111
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares $0.001 par value
Trading Symbol TRKAQ
Security Exchange Name NASDAQ
Amendment Flag false
Entity Central Index Key 0001021096
Entity Emerging Growth Company false
Entity Address, Postal Zip Code 10018
Entity Registrant Name Troika Media Group, Inc.
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