NEW YORK, May 16, 2016 /PRNewswire/ -- YOU On Demand
Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or
"YOD"), "), a premium content Video On Demand service provider in
China evolving into a global,
mobile-driven, consumer data management platform for both
enterprises and consumers, announced today its Q1 2016 operating
results for the period ended March 31,
2016 (a full copy of the Company's quarterly report on Form
10-Q is also being posted at www.sec.gov).
NEW TIME: Conference Call: Chairman Bruno Wu, CEO Mingcheng
Tao and CFO Mei Chen will
host a conference call at 4:30 p.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 Q1 2016 Operating Results
Revenue for Q1 2016, which comprised of pre- Sun Seven Stars,
legacy model revenue, was $1,270,000,
as compared to $1,028,000 for the
same period in 2015, an increase of approximately $242,000, or 24%. This revenue increase was
primarily attributed to our new distribution channels on
Over-the-Top platforms, the aggregate of which comprised 51% of
total revenues in Q1 2016.
Cost of revenues was $916,000 for
Q1 2016, as compared to $1,043,000
for Q1 2015. The decrease of $127,000, or 12%, was primarily due to delays in
expected revenue from specific content titles, which impacted our
content license cost amortization pattern.
Gross profit for Q1 2016 was $354,000, as compared to gross loss of
$15,000 during the same period in
2015. The increase in gross profit of approximately $369,000 was primarily due to increase in
revenues from new and existing distribution channels.
Selling, general and administrative expenses ("SG&A") for Q1
2016, decreased approximately $283,000, to $2,165,000, as compared to $2,448,000 for the same period, 2015.
Salaries and personnel costs are the primary components of
SG&A, accounting for 33% of SG&A expenses for Q1
2016. During Q1 2016, salaries and personnel costs totaled
$709,000, a decrease of $146,000, or 17%, as compared to $855,000 for the same period of 2015. The
decrease was primarily due to staff reductions made as part of
business transformation and re-alignment strategy, which will be a
primary focus for the 2016 fiscal year.
Net loss was $2,274,000 for Q1
2016 compared to $2,919,000 in the
comparable 2015 period. Basic and diluted loss per share for Q1
2016 was $0.09 cents as compared to a
$0.12 cent loss per share in the same
period in 2015.
As of March 31, 2016, the Company
had cash of approximately $12,035,000
and total current assets of approximately $15,619,000.
CEO Mingcheng Tao stated, "The
evolution of the YOU On Demand 4-vertical business model is well
underway with three promising and key business development
partnerships announced over the past several weeks. Those
include business alignments with Frequency Networks, GoLive TV and
Huawei. With more business development deals to be announced
in the immediate future, we expect new business revenue, meaning
revenue from YOU On Demand's shift to a more global, mobile-driven,
consumer data management platform for both enterprises and
consumers, to begin ramping in Q3 2016. YOU On Demand's goal
is to be able to reach 600 million addressable and contracted users
(under contract with our distribution partners) by the end of
2016. In the meantime, YOU On Demand continues to streamline
its operations as part of its business transformation and
re-alignment strategy and that can be most clearly seen in the
continued reduction in our operating expenses, which began last
year."
About YOU On Demand Holdings, Inc.
(http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD) is leveraging and optimizing its
current operations as a premium content Video On Demand service
provider in China by evolving into
a global, B2B2C, mobile-driven, consumer data management platform
for both enterprises and consumers. By establishing the
world's premier multimedia, social networking and
e-commerce-enabled network with the largest global effective
connected user base, YOU On Demand, through this expanded,
cloud-based, ecosystem of connected screens combined with strong
partnerships with leading global providers, will be capable of
delivering a vast array of YOD–branded products and services to
enterprise customers and end-use consumers - anytime
and anywhere, across multiple platforms and devices.
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. In
addition, the Company has governmental partnerships and licenses as
well as numerous JV partnerships and strategic cooperation
agreements with an array of distribution and content partners in
the global new media space. 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. and Its
Subsidiaries and Variable Interest
Entity
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Revenue
|
$
|
1,269,726
|
|
1,027,928
|
Cost of
revenue
|
|
915,780
|
|
1,042,999
|
Gross
profit/(loss)
|
|
353,946
|
|
(15,071)
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
2,165,053
|
|
2,448,302
|
|
Professional
fees
|
|
367,446
|
|
288,718
|
|
Depreciation and
amortization
|
|
97,463
|
|
89,743
|
Total operating
expense
|
|
2,629,962
|
|
2,826,763
|
Loss from
operations
|
|
(2,276,016)
|
|
(2,841,834)
|
Interest and other
income/(expense)
|
|
|
|
|
|
Interest expense,
net
|
|
(33,473)
|
|
(28,323)
|
|
Change in fair value
of warrant liabilities
|
|
37,023
|
|
(15,295)
|
|
Equity share of loss
on equity method investments
|
|
(10,348)
|
|
(32,403)
|
|
Others
|
|
162
|
|
(9,767)
|
Loss before income
taxes and non-controlling interest
|
|
(2,282,652)
|
|
(2,927,622)
|
Income tax
benefit
|
|
8,612
|
|
8,612
|
Net
loss
|
|
(2,274,040)
|
|
(2,919,010)
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
|
137,569
|
|
120,221
|
|
|
|
|
|
|
Net loss
attributable to YOU on Demand common shareholders
|
$
|
(2,136,471)
|
|
(2,798,789)
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
|
(0.09)
|
|
(0.12)
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic and
diluted
|
|
24,484,562
|
|
23,815,720
|
|
|
|
|
|
|
YOU On Demand Holdings, Inc., Its Subsidiaries and
Variable Interest Entity
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
$
|
12,035,320
|
|
$
|
3,768,897
|
|
Restricted
cash
|
|
-
|
|
|
2,994,364
|
|
Accounts receivable, net
|
|
2,843,010
|
|
|
1,689,415
|
|
Licensed content, current
|
|
298,711
|
|
|
556,591
|
|
Prepaid expenses
|
|
278,809
|
|
|
362,421
|
|
Deferred
issuance cost
|
|
-
|
|
|
551,218
|
|
Other current assets
|
|
163,534
|
|
|
157,594
|
|
Total current
assets
|
|
15,619,384
|
|
|
10,080,500
|
|
Property and equipment, net
|
|
120,625
|
|
|
154,434
|
|
Licensed content, non-current
|
|
17,732,899
|
|
|
21,085
|
|
Intangible assets, net
|
|
2,350,399
|
|
|
2,412,591
|
|
Goodwill
|
|
6,648,911
|
|
|
6,648,911
|
|
Equity
method investments
|
|
441,916
|
|
|
450,115
|
|
Other non-current assets
|
|
58,318
|
|
|
58,089
|
|
Total
assets
|
$
|
42,972,452
|
|
$
|
19,825,725
|
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable (including accounts payable of consolidated
variable interest entities ("VIEs") without recourse to the Company
of $44,306 and $44,867 as of March 31, 2016 and December 31, 2015,
respectively)
|
$
|
46,025
|
|
$
|
45,788
|
|
Deferred revenue (including deferred revenue of VIEs without
recourse to the Company of nil and $15,080 as of March 31,
2016 and December 31, 2015, respectively)
|
|
-
|
|
|
15,080
|
|
Accrued expenses (including accrued expenses of VIEs without
recourse to the Company of $599,891 and $280,038 as of March 31,
2016 and December 31, 2015, respectively)
|
|
1,619,330
|
|
|
1,196,066
|
|
Accrued
salaries (including accrued salaries of VIEs without recourse to
the Company of nil and $10,861 as of March 31, 2016 and December
31, 2015, respectively)
|
|
1,335,554
|
|
|
1,058,124
|
|
Other
current liabilities (including other current liabilities of VIEs
without recourse to the Company of $343,890 and $298,422,
respectively as of March 31, 2016 and December 31, 2015)
|
|
356,208
|
|
|
312,170
|
|
Accrued license fees (including accrued license fees of VIEs
without recourse to the Company of $1,336,040 and $933,532 as of
March 31, 2016 and December 31, 2015, respectively)
|
|
1,336,040
|
|
|
933,532
|
|
Convertible promissory note
|
|
20,593,967
|
|
|
3,000,000
|
|
Warrant liabilities
|
|
358,194
|
|
|
395,217
|
|
Deposit
payable
|
|
-
|
|
|
2,994,364
|
|
Total current
liabilities
|
|
25,645,318
|
|
|
9,950,341
|
|
Deferred income
taxes
|
|
321,512
|
|
|
330,124
|
|
Total
liabilities
|
|
25,966,830
|
|
|
10,280,465
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
redeemable preferred stock:
|
|
|
|
|
|
|
Series A -
7,000,000 shares issued and outstanding, liquidation
preference of $3,500,000 as of March 31, 2016 and December 31,
2015, respectively
|
|
1,261,995
|
|
|
1,261,995
|
|
Equity:
|
|
|
|
|
|
|
Series E Preferred
Stock - $0.001 par value; 16,500,000 shares authorized, 7,254,997
and 7,254,997 shares issued and outstanding, liquidation preference
of $12,696,245 and $12,696,245 share as of March 31, 2016 and
December 31, 2015, respectively
|
|
7,255
|
|
|
7,255
|
|
Common stock, $0.001 par value; 1,500,000,000 shares
authorized, 28,861,344 and 24,249,109 shares issued and outstanding
as of March 31, 2016 and December 31, 2015, respectively
|
|
28,861
|
|
|
24,249
|
|
Additional paid-in capital
|
|
107,229,200
|
|
|
97,512,542
|
|
Accumulated deficit
|
|
(88,594,311)
|
|
|
(86,457,840)
|
|
Accumulated other comprehensive loss
|
|
(396,391)
|
|
|
(414,910)
|
|
Total YOU On
Demand shareholder's equity
|
|
18,274,614
|
|
|
10,671,296
|
|
Non-controlling interest
|
|
(2,530,987)
|
|
|
(2,388,031)
|
|
Total
equity
|
|
15,743,627
|
|
|
8,283,265
|
|
Total liabilities,
convertible redeemable preferred stock and equity
|
$
|
42,972,452
|
|
$
|
19,825,725
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/you-on-demand-reports-q1-2016-results-300268836.html
SOURCE YOU On Demand Holdings, Inc.