In an SEC filing yesterday, The Orchard released unaudited, pro forma financial statements related to its acquisition of some of TVT Records's assets (read EX-99.2). The Financial Accounting Standards Board requires that business combinations are to be allocated based on the purchase price. In this case, The Orchard purchased TVT assets for $5.5 million and offer the pro forma financial statements of the combined company for illustrative purposes.

TVT's liabilities as of March 31, 2008 totaled $23.7 million. Over $7.7 million of that was accrued royalties. In order to state the acquired assets at fair market value, TVT's liabilities were adjusted to $1 million.

On the income statement, TVT's revenues for the calendar year 2007 were $16.002 million. After operating expenses of $19.06 million, TVT's net loss from operations was $10.75 million. Its total loss (after interest expense) was $14.655 million.

Ouch.

In June, The Orchard acquired TVT Records' master recordings and physical distribution unit, among other assets (no publishing, though). A few weeks back, it hired Michael Bull, formerly with Caroline Distribution, to be the GM of TVT Distribution. With TVT Distribution (gotta rename that, seriously) The Orchard can build a roster of indie labels for physical distribution to add to its digital distribution business.

[music jobs] New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.