Digital Domain Holdings Limited provided earnings guidance for the year ended December 31, 2016. For the year, while these efforts have resulted in a modest growth in revenue for the year ended December 31, 2016 when compared with the year ended December 31, 2015 and at a slight improvement in gross profit margin of approximately 17% compared with the gross profit margin of approximately 16% reported for fiscal year 2015, based on a preliminary review of the latest available unaudited consolidated financial statements of the Group for the fiscal year 2016, the loss for the fiscal year 2016 is expected to increase significantly as compared with the fiscal year 2015. Such an increase was primarily attributable to: (i) the recognition of estimated additional portions of approximately HKD 37 million of share-based payment expenses related to grant of share options (granted in May 2015, and January, June and July 2016); (ii) an increase by approximately HKD 160 million in administrative and other operating/projects expenses, comprising mainly legal and professional fees (including those incurred in relation to the acquisitions, collaborations and business development mentioned and for investor and public relations), director and staff remuneration (due to increased headcount and pay scale to accommodate the expansion of the Group) and additional portions of amortization of intangible assets; (iii) an increase by approximately HKD 13 million in finance costs mainly due to interest on a secured note issued in connection with the IMV acquisition and additional portions of imputed interest for the Company's zero coupon convertible notes and promissory note issued for acquisition of Lucrative Skill Holdings Limited (including Post Production Office Limited and its subsidiaries); and (iv) approximately HKD 110 million of content development and research and development costs incurred during the year on virtual reality content and games, 360 degree cameras and virtual human's interactive function being expensed instead of capitalized after due consideration and in an abundance of prudence following consultation with the company's auditor.