NEW YORK, March 30, 2015 /PRNewswire/ -- YOU On Demand
Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or
"YOD"), a leading Video On Demand ("VOD") service provider in
China delivering Hollywood movies and premium content to mobile
and TV screens, announced today its year-end operating results for
the period ended December 31, 2014 (a
full copy of the Company's annual report on Form 10-K is also being
posted at www.sec.gov).
Conference Call: Chairman Shane
McMahon, CEO Weicheng Liu and
Chief Financial Officer & President Marc Urbach will host a conference call at 8:00
a.m. ET today.
To join the webcast, please visit the 'Webcasts and Events'
section of the YOD corporate website, http://corporate.yod.com.
Otherwise, the toll-free dial-in is: 877/407-3107; international
callers should dial: 201/493-6796.
YOD Q4 and 2014 Operating Results
Revenues were $997,354 in Q4 2014,
a 536% increase from the corresponding period in 2013 and a 55%
increase over Q3 2014. Revenues for the full year were
approximately $2.0 million.
Gross loss for the year ended December
31, 2014 was $794,000, as
compared to $2.8 million during 2013.
The decrease in gross loss of approximately $2.0 million, or 72%, was mainly due to the
increased revenue related to the Company's VOD business.
The net loss from continuing operations was $13.0 million for the year compared to
$13.2 million in the comparable 2013 period.
The loss per share on a fully diluted basis for 2014 was
$1.47 compared to a $0.54 income per share loss in 2013, which
included $0.35 income per share from
discontinued operations.
As of December 31, 2014, cash and
cash equivalents were approximately $10,812,000.
CEO Weicheng Liu stated, "We are
pleased to have finished 2014 with another quarter of solid revenue
performance, marking the successful completion of a year of both
growth and transition. With our strategic entry into the mobile and
Internet space, we started to build top-line traction from the
second half of 2014 on, and we expect to continue this growth
trajectory with sequential growth quarter-over-quarter.
Internally, the Company has also streamlined its operations,
implemented cost-cutting measures and increased focus on our
products, the latter of which I will delve into further on our
earnings call. Continuing into 2015, the Company is now much
better positioned to capitalize on the market and to continue
building on 2014's growth momentum."
Departure of Chief Financial Officer
The Company today has announced that effective March 31, its President & Chief Financial
Officer, Mr. Marc Urbach, is
resigning from his position at YOU On Demand as part of the
Company's previously announced plans to ensure that key personnel
and positions are stationed in Beijing where operations are centered.
Marc will continue to support the finance function for the next 6
months and be heavily involved in the interviewing, hiring and
transitioning of a new China-based
CFO.
Mr. McMahon stated, "During Marc's tenure he has made
significant and vital contributions to the Company's growth and
development. He was instrumental in our successful uplisting to
Nasdaq in 2012 and the building of the Company's financial systems,
internal controls and infrastructure. I want to personally
thank Marc for his significant contributions to the Company and on
behalf of all of YOU On Demand, we wish him the best with his
future endeavors."
Mr. Urbach stated, "I am extremely proud of what the entire YOU
On Demand team has accomplished since we first set out to build
this entertainment platform in China. I want to personally thank Shane,
Weicheng, the Board, our investors and the entire YOU On Demand
team for this wonderful and challenging opportunity. I look
forward to assisting the Company for some time as YOU On Demand
finalizes its search for a China-based CFO."
In the interim, YOU On Demand's VP of Finance, Ms. Grace Y. He, will take over day-to-day finance
responsibilities while the Company completes the CFO hiring
process. Ms. He has over 8 years of experience in working
with U.S listed China-based
companies, is a certified public accountant in the U.S. and has
been working closely with Mr. Urbach over the past 18 months to
oversee our finance, accounting, risk management and internal
control functions in China.
About YOU On Demand Holdings, Inc.
(http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD), is a leading multi-platform
entertainment service company delivering premium content, including
leading Hollywood movie titles, to
customers across China via
Subscription Video On Demand and Transactional Video On Demand. The
Company has secured alliances with leading global media operators
and content developers. YOU On Demand has content
distribution agreements in place with many of Hollywood's top
studios including Disney Media Distribution, Paramount Pictures,
NBC Universal, Twentieth Century Fox Television Distribution,
Miramax Films and Lionsgate, as well as a broad selection of the
best content from Chinese filmmakers. The Company has a
comprehensive end-to-end secure delivery system, governmental
partnerships and approvals and offers additional value-added
services. YOU On Demand has strategic partnerships with the largest
media entities in China, a highly
experienced management team with international background and
expertise in Cable, Television, Film, Digital Media, Internet and
Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.
Safe Harbor Statement
This press release contains certain statements that may include
"forward looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.
CONTACT:
Jason
Finkelstein
YOU On Demand
212-206-1216
jason.finkelstein@yod.com
@youondemand
Financial Tables Follow
YOU On Demand
Holdings, Inc. and Its Subsidiaries
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Year
Ended
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
Revenue
|
$ 1,962,622
|
|
$
308,695
|
Cost of
revenue
|
2,756,363
|
|
3,126,089
|
Gross
loss
|
(793,741)
|
|
(2,817,394)
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
Selling, general and
administrative expenses
|
7,459,192
|
|
7,608,742
|
|
Professional
fees
|
653,646
|
|
705,692
|
|
Depreciation and
amortization
|
536,689
|
|
774,480
|
|
Impairments of
long-lived assets
|
-
|
|
311,249
|
Total operating
expense
|
8,649,527
|
|
9,400,163
|
|
|
|
|
|
Loss from
operations
|
(9,443,268)
|
|
(12,217,557)
|
|
|
|
|
|
Interest & other
income (expense):
|
|
|
|
|
Interest expense,
net
|
(2,374,368)
|
|
(370,752)
|
|
Change in fair value
of warrant liabilities
|
(621,239)
|
|
(466,060)
|
|
Change in fair value
of contingent consideration
|
(160,766)
|
|
(251,963)
|
|
Loss on investment in
unconsolidated entities
|
(20,717)
|
|
(2,741)
|
|
Loss from disposal of
consolidated entities
|
(622,939)
|
|
-
|
|
Other
|
(85,516)
|
|
55,831
|
|
|
|
|
|
Net loss from
continuing operations
|
|
|
|
|
before income
taxes and non-controlling interests
|
(13,328,813)
|
|
(13,253,242)
|
Income tax
benefit
|
304,670
|
|
111,266
|
Net loss from
continuing operations
|
(13,024,143)
|
|
(13,141,976)
|
Net income from
discontinued operations
|
-
|
|
5,255,474
|
Net
loss
|
(13,024,143)
|
|
(7,886,502)
|
|
|
|
|
|
Plus: Net loss
attributable to non-controlling interests
|
615,683
|
|
1,054,970
|
|
|
|
|
|
Net loss attributable
to YOU On Demand shareholders
|
(12,408,460)
|
|
(6,831,532)
|
Dividends on
preferred stock
|
(16,402,161)
|
|
(1,358,364)
|
|
|
|
|
|
Net loss
attributable to YOU on Demand common shareholders
|
$ (28,810,621)
|
|
$ (8,189,896)
|
|
|
|
|
|
Basic and diluted
loss per share:
|
|
|
|
|
Loss from continuing
operations
|
$
(1.47)
|
|
$
(0.89)
|
|
Loss from
discontinued operations
|
-
|
|
0.35
|
|
Basic and diluted
loss per share
|
$
(1.47)
|
|
$
(0.54)
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic and
diluted
|
19,600,510
|
|
15,226,216
|
|
|
|
|
|
YOU On Demand
Holdings, Inc. and Its Subsidiaries
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
December
31,
|
|
December
31,
|
|
ASSETS
|
2014
|
|
2013
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
10,812,371
|
|
$
3,822,889
|
|
|
Accounts receivable,
net
|
1,091,076
|
|
175,211
|
|
|
Licensed content,
current
|
1,041,609
|
|
428,322
|
|
|
Prepaid
expenses
|
196,474
|
|
330,013
|
|
|
Debt issuance costs,
net
|
-
|
|
128,879
|
|
|
Other current
assets
|
22,442
|
|
48,928
|
|
Total current
assets
|
13,163,972
|
|
4,934,242
|
|
|
|
|
|
|
|
Property and
equipment, net
|
320,671
|
|
499,858
|
|
Licensed content,
non-current
|
35,648
|
|
162,646
|
|
Intangible assets,
net
|
2,320,103
|
|
2,621,527
|
|
Goodwill
|
6,648,911
|
|
6,105,478
|
|
Long-term equity
investments
|
850,054
|
|
673,567
|
|
Other non-current
assets
|
365,006
|
|
-
|
|
Total
assets
|
$
23,704,365
|
|
$
14,997,318
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
110,814
|
|
656,545
|
|
|
Deferred
revenue
|
13,431
|
|
68,969
|
|
|
Accrued expenses and
other liabilities
|
2,046,783
|
|
1,075,944
|
|
|
Accrued license
fees
|
348,007
|
|
1,200,764
|
|
|
Contingent purchase
price consideration liability
|
-
|
|
578,744
|
|
|
Convertible
promissory note
|
3,000,000
|
|
3,000,000
|
|
|
Warrant
liabilities
|
585,050
|
|
1,344,440
|
|
Total current
liabilities
|
6,104,085
|
|
7,925,406
|
|
|
Deferred income tax
liability
|
364,572
|
|
125,809
|
|
|
Convertible
promissory note
|
-
|
|
2,000,000
|
|
Total
liabilities
|
6,468,657
|
|
10,051,215
|
|
Commitments
and contingencies
|
|
|
|
|
Convertible
redeemable preferred stock:
|
|
|
|
|
|
Series A - 7,000,000
shares issued and outstanding, liquidation preference of $3,500,000
at December 31, 2014 and December 31, 2013, respectively
|
1,261,995
|
|
1,261,995
|
|
|
Series C – Nil
and 87,500 shares issued and outstanding, liquidation preference
of nil and $350,000 at December 31, 2014 and December 31,
2013, respectively
|
-
|
|
219,754
|
|
|
Series D 4%
- Nil and 2,285,714 shares issued and outstanding,
liquidation preference of nil and $4,000,000 at December 31,
2014 and December 31, 2013, respectively
|
-
|
|
4,000,000
|
|
Equity:
|
|
|
|
|
|
Series E Preferred
Stock, $0.001 par value; 16,500,000 shares authorized, 7,365,283
and nil shares issued and outstanding, liquidation preference
of $12,889,250 and nil at December 31, 2014 and December 31,
2013, respectively
|
7,365
|
|
-
|
|
|
Common stock, $0.001
par value; 1,500,000,000 shares authorized, 23,793,702 and
15,794,762 shares issued at December 31, 2014 and December 31,
2013, respectively
|
23,794
|
|
15,794
|
|
|
Additional paid-in
capital
|
96,347,272
|
|
67,417,025
|
|
|
Accumulated
deficit
|
(78,356,567)
|
|
(65,856,053)
|
|
|
Accumulated other
comprehensive loss
|
(66,032)
|
|
(715,090)
|
|
Total YOU On
Demand shareholder's equity
|
17,955,832
|
|
861,676
|
|
Non-controlling
interest
|
(1,982,119)
|
|
(1,397,322)
|
|
Total
equity/(deficit)
|
15,973,713
|
|
(535,646)
|
|
Total
liabilities, convertible redeemable preferred stock
and equity
|
$
23,704,365
|
|
$
14,997,318
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/you-on-demand-reports-2014-results-300057107.html
SOURCE YOU On Demand Holdings, Inc.