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): August
13, 2015
YOU ON DEMAND HOLDINGS, INC.
(Exact name of registrant as specified in its
charter)
Nevada |
001-35561 |
20-1778374 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
of incorporation) |
File Number) |
ID Number) |
375 Greenwich Street, Suite 516
New York, New
York 10013
(Address of principal executive offices) (Zip
Code)
Registrants telephone number, including area code:
212-206-1216
Not Applicable
(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:
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 2.02 Results of
Operations and Financial Condition.
On August 13, 2015, YOU On Demand Holdings, Inc., issued a
press release announcing its financial results for the second quarter 2015. A
copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information contained in this Item 2.02 and in the
accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18
of the Securities Exchange Act of 1934, as amended, or incorporated by reference
in any filing under the Exchange Act or the Securities Act of 1933, as amended,
except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD
Disclosure.
The information set forth in Item 2.02. Results of Operations
and Financial Condition, including the exhibit referred to therein, is
incorporated herein by reference.
The information contained in this Item 7.01 and in the
accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18
of the Securities Exchange Act of 1934, as amended, or incorporated by reference
in any filing under the Exchange Act or the Securities Act of 1933, as amended,
except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial
Statements and Exhibits.
The information contained in this Item 9.01 and in the
accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18
of the Securities Exchange Act of 1934, as amended, or incorporated by reference
in any filing under the Exchange Act or the Securities Act of 1933, as amended,
except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
YOU ON DEMAND HOLDINGS, INC. |
|
|
By: |
/s/ Weicheng Liu
|
|
Name: Weicheng Liu |
|
Title: Chief Executive Officer
|
Date: August 13, 2015
YOU On Demand Reports Q2 2015 Results
|
|
Q2 revenues increased 710% year-over-year
and 44% quarter-over-quarter |
|
|
Investor Update Call Scheduled Today at 8:00
a.m. ET |
New York, NY, August 13, 2015 -- YOU On Demand Holdings, Inc.
(NASDAQ: YOD) (YOU On Demand or the Company or YOD), a leading Chinese
multi-platform video streaming service provider delivering Hollywood movies and
premium content to mobile and TV screens, announced today its Q2 2015 operating
results for the period ended June 30, 2015 (a full copy of the Companys
quarterly report on Form 10-Q is also being posted at www.sec.gov).
Conference Call: Chairman Shane McMahon, CEO Weicheng
Liu and VP of Finance Grace He 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 Q2 2015 Operating Results
With revenues in Q2 2015 of approximately $1,480,000, YOD saw
year-over-year & quarter-over- quarter growth of 710% and 44%, respectively.
The increase in revenue was primarily attributable to the growth in the video
streaming business on mobile and Over-The-Top (OTT) platforms. 2015 YTD revenues
now stand at $2,508,000, surpassing total revenues for the entire year ended
2014 by $545,000, or 28%.
Gross profit for Q2 2015 was approximately $651,000, as
compared to a gross loss of $674,000 during the same period in 2014. The
increase in gross margin was primarily due to growth in revenue while
maintaining tight control of costs. YODs cost of revenue is largely comprised
of content licensing fees and, to a lesser extent, costs associated with direct
delivery of our content services such as content preparation fees and government
censorship clearance costs.
Selling, general and administrative expenses for Q2 2015
decreased approximately $612,000, to $1,659,000, as compared to $2,271,000 in Q2
2014. The decrease resulted predominantly from resource shifts to China as part
of our long-term cost savings and operations enhancement initiatives.
Salaries and personnel costs are the principal components of
selling, general and administrative expenses. While we added resources in the
area of product development and operations in Q2 2015, salaries and personnel
costs decreased 6% as compared to the same period in 2014, due to our cost
saving initiatives.
Total operating expense in Q2 2015 decreased 23% to $1,905,000
from $2,486,000 in the same period last year.
Net loss was $1,324,000 for Q2 2015 compared to net loss of
$1,086,000 in the comparable 2014 period. Net loss for Q2 2014 was primarily
affected by non-operating income of $1,502,000 due to change in fair value of
warrant liabilities. The Company recognizes certain warrants as derivative
liabilities and re-measures these warrants at the end of every reporting period
and upon settlement. The fair value change of these warrants is primarily
affected by fluctuation in closing stock price. Net loss for Q2 2015 was
primarily affected by loss from operations of $1,255,000.
Basic and diluted loss per share for Q2 2015 was $0.06 as
compared to a $0.05 loss per share in the same period in 2014. For the six
months ended June 30, 2015, basic and diluted loss per share was $0.17 as
compared to a $1.50 loss per share for the same six-month period in 2014.
As of June 30 2015, the Company had cash and cash equivalents
of approximately $6.9 million and total current assets of approximately $10.9
million.
YOU On Demand CEO Weicheng Liu, stated, Our second-quarter and
year-to-date financial performance is the result of continued business momentum,
driven by solid execution of recent service launches, the strength and clout of
our distribution partners and steady growth in consumer uptake. In the second
quarter of 2015 we were able to grow revenues by 44% as compared to first
quarter 2015, and our revenue for the past six months has already surpassed our
revenue for the entire year of 2014 by 28%. These are direct results of our
intensified commitment to delivering high quality entertainment across a
spectrum of consumer devices and screens. In Q2, we announced two major
partnerships including: the launch of a mobile streaming service on C Media's
railway Wi-Fi platform and an expanded partnership with Dr. Peng Group which
offers YOU On Demand subscription services bundled with their sales of OTT boxes
and Smart TVs. With these and more partnerships to be announced in the coming
weeks and months we believe YOU On Demand is starting to hit its stride.
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 and
transactional streaming services. 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 and Twentieth
Century Fox Television Distribution, Miramax, 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 both New York, NY
and Beijing, China.
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., Its Subsidiaries and Variable
Interest Entity
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June
30, 2015 |
|
|
June
30, 2014 |
|
|
June
30, 2015 |
|
|
June
30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,479,648
|
|
|
182,696 |
|
|
2,507,576 |
|
|
320,377 |
|
Cost of revenue |
|
829,039 |
|
|
857,179 |
|
|
1,872,038 |
|
|
1,733,117 |
|
Gross profit/(loss)
|
|
650,609
|
|
|
(674,483 |
) |
|
635,538
|
|
|
(1,412,740 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense |
|
1,658,814 |
|
|
2,270,657 |
|
|
4,107,116 |
|
|
3,911,297 |
|
Professional fees |
|
151,363 |
|
|
76,231 |
|
|
440,081 |
|
|
261,715 |
|
Depreciation and amortization |
|
95,082 |
|
|
139,590 |
|
|
184,825 |
|
|
289,550 |
|
Total operating
expenses |
|
1,905,259 |
|
|
2,486,478 |
|
|
4,732,022 |
|
|
4,462,562 |
|
Loss from operations
|
|
(1,254,650 |
) |
|
(3,160,961 |
) |
|
(4,096,484 |
) |
|
(5,875,302 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest & other
|
|
|
|
|
|
|
|
|
|
|
|
|
income/(expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(30,232 |
) |
|
(28,321 |
) |
|
(58,555 |
) |
|
(2,317,059 |
) |
Change in fair value of warrant liabilities |
|
49,344 |
|
|
1,501,632 |
|
|
34,049 |
|
|
(937,386 |
) |
Change in fair value of contingent consideration |
|
- |
|
|
589,994 |
|
|
- |
|
|
(113,132 |
) |
Loss
on long-term equity investments |
|
(60,621 |
) |
|
(5,349 |
) |
|
(93,024 |
) |
|
(10,257 |
) |
Gain
from disposal of consolidated entities |
|
- |
|
|
- |
|
|
- |
|
|
727,963 |
|
Others
|
|
(36,576 |
) |
|
(15,015 |
) |
|
(46,343 |
) |
|
(67,681 |
) |
Net loss before income tax
and non-controlling interest |
|
(1,332,735 |
) |
|
(1,118,020 |
) |
|
(4,260,357 |
) |
|
(8,592,854 |
) |
Income tax benefit |
|
8,612 |
|
|
32,495 |
|
|
17,224 |
|
|
55,437 |
|
Net loss |
|
(1,324,123 |
) |
|
(1,085,525 |
) |
|
(4,243,133 |
) |
|
(8,537,417 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
non-controlling interests |
|
7,303 |
|
|
292,560 |
|
|
127,524 |
|
|
527,344 |
|
Net loss attributable to
YOU On Demand shareholders |
|
(1,316,820 |
) |
|
(792,965 |
) |
|
(4,115,609 |
) |
|
(8,010,073 |
) |
Dividends and deemed
dividends on preferred stock |
|
- |
|
|
- |
|
|
- |
|
|
(16,402,161 |
) |
Net loss attributable to
YOU on Demand common shareholders |
|
(1,316,820 |
) |
|
(792,965 |
) |
|
(4,115,609 |
) |
|
(24,412,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
$ |
(0.06 |
) $ |
|
(0.05 |
) |
$ |
(0.17 |
) $ |
|
(1.50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
23,851,602 |
|
|
16,598,990 |
|
|
23,833,760 |
|
|
16,267,036 |
|
YOU On Demand Holdings, Inc., and Its
Subsidiaries
UNAUDITED CONSOLIDATED BALANCE SHEET
|
|
June 30, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
6,865,510
|
|
$ |
10,812,371
|
|
Accounts
receivable, net |
|
2,680,483 |
|
|
1,091,076 |
|
Licensed content, current |
|
722,893 |
|
|
1,041,609 |
|
Prepaid
expenses |
|
556,819 |
|
|
196,474 |
|
Other current assets |
|
109,294 |
|
|
22,442 |
|
Total current assets |
|
10,934,999 |
|
|
13,163,972 |
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
248,711 |
|
|
320,671 |
|
Licensed content, non-current |
|
26,200 |
|
|
35,648 |
|
Intangible
assets, net |
|
2,315,759 |
|
|
2,320,103 |
|
Goodwill |
|
6,648,911 |
|
|
6,648,911 |
|
Long-term
equity investments |
|
757,441 |
|
|
850,054 |
|
Other non-current assets |
|
475,745 |
|
|
365,006 |
|
Total assets |
$ |
21,407,766 |
|
$ |
23,704,365 |
|
|
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE REDEEMABLE
PREFERRED STOCK AND EQUITY |
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts
payable |
|
30,614 |
|
|
110,814 |
|
Deferred revenue |
|
331,177 |
|
|
13,431 |
|
Accrued
expenses and other liabilities |
|
2,916,098 |
|
|
2,046,783 |
|
Accrued license fees |
|
895,799 |
|
|
348,007 |
|
Convertible
promissory note |
|
3,000,000 |
|
|
3,000,000 |
|
Warrant liabilities |
|
551,001 |
|
|
585,050 |
|
Total current liabilities |
|
7,724,689 |
|
|
6,104,085 |
|
Deferred income tax liability |
|
347,348 |
|
|
364,572 |
|
Total liabilities |
|
8,072,037 |
|
|
6,468,657 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible redeemable preferred
stock: |
|
|
|
|
|
|
Series A
- 7,000,000 shares issued and outstanding, liquidation preference
of $3,500,000 at
June 30, 2015 and December 31, 2014, respectively |
|
1,261,995 |
|
|
1,261,995 |
|
Equity: |
|
|
|
|
|
|
Series E
Preferred Stock - $0.001 par value; 16,500,000 shares
authorized,
7,326,426 and 7,365,283 shares issued and outstanding, liquidation
preference of
$12,821,246 and $12,889,245 at June 30, 2015 and December 31,
2014,
respectively |
|
7,326 |
|
|
7,365 |
|
Common stock,
$0.001 par value; 1,500,000,000 shares authorized, 23,860,369 and
23,793,702 shares
issued and outstanding at June 30, 2015 and December 31,
2014, respectively
|
|
23,861 |
|
|
23,794 |
|
Additional paid-in capital |
|
96,691,120 |
|
|
96,347,272 |
|
Accumulated
deficit |
|
(82,472,176 |
) |
|
(78,356,567 |
) |
Accumulated other comprehensive loss |
|
(65,637 |
) |
|
(66,032 |
) |
Total YOU On Demand shareholders
equity |
|
14,184,494 |
|
|
17,955,832 |
|
Non-controlling interest |
|
(2,110,760 |
) |
|
(1,982,119 |
) |
Total equity |
|
12,073,734 |
|
|
15,973,713 |
|
Total liabilities,
convertible redeemable preferred stock and equity |
$ |
21,407,766 |
|
$ |
23,704,365 |
|
Seven Stars Cloud Group, Inc. (NASDAQ:SSC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Seven Stars Cloud Group, Inc. (NASDAQ:SSC)
Historical Stock Chart
From Sep 2023 to Sep 2024