WEB NEWS Deal Flow
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
Amount to be Registered (1)
Proposed Maximum Offering Price Per Unit (2)
Proposed Maximum Aggregate Offering Price (2)
Amount of Registration Fee
(3)
Common Stock, $0.001 par value
4,921,054
$2.37
$11,662,897.98
$1,355.23
Common Stock, $0.001 par value, issuable upon conversion of Series A Preferred Stock
933,333
$2.37
$2,211,999.21
$257.03
Common Stock, $0.001 par value, issuable upon conversion of Series E Preferred Stock
6,857,140
$2.37
$16,251,421.8
$1,888.42
Common Stock, $0.001 par value, issuable upon conversion of Series E Preferred Stock issuable upon conversion of a promissory note
1,938,411
$2.37
$4,594,034.07
$533.83
Common Stock, $0.001 par value, issuable upon exercise of warrants to purchase shares of Common Stock
162,500
$2.37
$385,125
$44.75
Common Stock, $0.001 par value, issuable upon exercise of options to purchase shares of Common Stock
1,090,555
$2.37
$2,584,615.35
$300.33
Total:
15,902,993
$2.37
$37,690,093.41
$4,379.59
Deal Flow
YOU ON DEMAND HOLDINGS, INC.
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
Amount to be Registered (1)
Proposed Maximum Offering Price Per Unit (2)
Proposed Maximum Aggregate Offering Price (2)
Amount of Registration Fee
Common Stock, $0.001 par value
4,921,054
$2.37
$11,662,897.98
$1,355.23
Common Stock, $0.001 par value, issuable upon conversion of Series A Preferred Stock
933,333
$2.37
$2,211,999.21
$257.03
Common Stock, $0.001 par value, issuable upon conversion of Series E Preferred Stock
6,857,140
$2.37
$16,251,421.8
$1,888.42
Common Stock, $0.001 par value, issuable upon conversion of Series E Preferred Stock issuable upon conversion of a promissory note
1,938,411
$2.37
$4,594,034.07
$533.83
Common Stock, $0.001 par value, issuable upon exercise of warrants to purchase shares of Common Stock
162,500
$2.37
$385,125
$44.75
Common Stock, $0.001 par value, issuable upon exercise of options to purchase shares of Common Stock
1,090,555
$2.37
$2,584,615.35
$300.33
Total:
15,902,993
$2.37
$37,690,093.41
$4,379.59
Comments & Business Outlook
Item 1.01 Entry into a Material Definitive Agreement.
On March 26, 2015, Zhong Hai Shi Xun Information Technology Co., Ltd, (“Zhong Hai Video”), the operating company of YOU On Demand Holdings, Inc. (the “Company” or “YOD”) in the People’s Republic of China (“PRC” or “China”), entered into a Mobile Video-on-Demand Service Cooperation Agreement (the “Agreement”) with C Media Limited (“C Media”), pursuant to which YOD’s subscription video-on-demand (“SVOD”) and transactional video-on-demand (“TVOD”) services will become available to users through C Media’s railway Wi-Fi mobile video service platform. The details of the Agreement, including its addendum, were finalized on April 28, 2015. The initial term of the Agreement is one year, during which period C Media will pay to Zhong Hai Video a minimum guarantee payment of RMB1,200,000 yuan (the “Base Revenue”) as well as additional fees in excess of the Base Revenue based on revenue sharing terms as prescribed in the Agreement. Mr. Xuesong Song is the Executive Chairman of the Company and also serves as the Chairman and Chief Executive Officer of C Media. C Media is a shareholder of the Company.
The foregoing summary of the Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Agreement which will be filed with the Company’s quarterly report on form 10-Q for the quarter ended March 31, 2015.
Comments & Business Outlook
YOU On Demand Holdings, Inc. and Its Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS
2014
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 expense
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 and 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 long-term equity investments
(20,717
)
(2,741
)
Loss from disposal of consolidated entities
(622,939
)
-
Others
(85,516
)
55,831
Net loss from continuing operations before income taxes and non-controlling interest
(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
)
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 and deemed 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
)
Income 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
Management Discussion and Analysis
Revenues
Revenue for the year ended December 31, 2014 was $1,963,000, as compared to $309,000 for 2013. The increase is revenue of approximately $1,654,000 was attributable to the growth of our VOD business.
Net loss attributable to non-controlling interest
Hua Cheng has a 20% non-controlling interest in Zhong Hai Video and as such we allocate 20% of the operating loss of Zhong Hai Video to Hua Cheng. During the year ended December 31, 2014, $616,000 of our operating loss from Zhong Hai Video was allocated to Hua Cheng. For the year ended December 31, 2013, operating loss attributable to non-controlling interest was $1,055,000, of which $878,000 was allocated to Hua Cheng.
Comments & Business Outlook
YOU On Demand Holdings, Inc., Its Subsidiaries and Variable Interest Entity UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
2014
2013
2014
2013
Revenue
$
644,891
$
95,295
$
965,268
$
146,852
Cost of revenue
873,025
712,327
2,606,142
2,350,931
Gross loss
(228,134
)
(617,032
)
(1,640,874
)
(2,204,079
)
Operating expenses:
Selling, general and administrative expense
1,861,053
1,726,967
5,772,350
5,856,484
Professional fees
114,271
78,379
375,986
474,114
Depreciation and amortization
124,936
154,719
414,486
620,946
Impairments of long-lived assets
-
-
-
311,249
Total operating expense
2,100,260
1,960,065
6,562,822
7,262,793
Loss from operations
(2,328,394
)
(2,577,097
)
(8,203,696
)
(9,466,872
)
Interest & other income/(expense):
Interest expense, net
(29,151
)
(29,818
)
(2,346,210
)
(88,882
)
Change in fair value of warrant liabilities
281,537
(6,840
)
(655,849
)
(37,130
)
Change in fair value of contingent consideration
(47,634
)
(15,649
)
(160,766
)
(99,343
)
Gain/(loss) on investment in unconsolidated entities
(6,389
)
8,592
(16,646
)
7,873
Gain on sale of subsidiary
-
-
755,426
-
Loss on dissolution of a variable interest entity
-
-
(27,463
)
-
Others
(14,783
)
(11,827
)
(82,464
)
58,769
Net loss from continuing operations before income tax and non-controlling interest
(2,144,814
)
(2,632,639
)
(10,737,668
)
(9,625,585
)
Income tax benefit
28,812
21,168
84,249
82,129
Net loss from continuing operations
(2,116,002
)
(2,611,471
)
(10,653,419
)
(9,543,456
)
Net income from discontinued operations
-
5,589,872
-
5,255,474
Net income/(loss)
(2,116,002
)
2,978,401
(10,653,419
)
(4,287,982
)
Net loss attributable to non-controlling interest
169,364
193,512
696,708
834,685
Net income/(loss) attributable to YOU On Demand shareholders
(1,946,638
)
3,171,913
(9,956,711
)
(3,453,297
)
Dividend on preferred stock
-
(1,029,829
)
(16,402,161
)
(1,029,829
)
Net income/(loss) attributable to YOU on Demand common shareholders
$
(1,946,638
)
$
2,142,084
$
(26,358,872
)
$
(4,483,126
)
Basic and diluted loss per share:
Loss from continuing operations
$
(0.09
)
$
(0.22
)
$
(1.45
)
$
(0.65
)
Income from discontinued operations
-
0.36
-
0.35
Basic and diluted income/(loss) per share
$
(0.09
)
$
0.14
$
(1.45
)
$
(0.30
)
Weighted average shares outstanding:
Basic and diluted
22,012,166
15,553,097
18,203,124
15,034,841
Management Discussion and Analysis
Revenue
Revenue for the three months ended September 30, 2014, totaled $645,000, as compared to $95,000 for 2013. The increase in revenue of approximately $550,000 was attributable to the growth of our VOD business.
Net Loss Attributable to Non-controlling Interest
Hua Cheng has a 20% non-controlling interest in Zhong Hai Video and as such we allocate 20% of the operating loss of Zhong Hai Video to Hua Cheng. During the three months ended September 30, 2014, $169,000 of our operating loss from Zhong Hai Video was allocated to Hua Cheng, as compared to $193,000 during the same period of 2013.
Comments & Business Outlook
YOU On Demand Holdings, Inc., Its Subsidiaries and Variable Interest Entity UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
2014
2013
2014
2013
Revenue
$
182,696
$
50,619
$
320,377
$
51,557
Cost of revenue
857,179
790,019
1,733,117
1,638,604
Gross loss
(674,483
)
(739,400
)
(1,412,740
)
(1,587,047
)
Operating expense:
Selling, general and administrative expenses
2,270,657
2,073,537
3,911,297
4,050,767
Professional fees
76,231
223,051
261,715
474,485
Depreciation and amortization
139,590
173,394
289,550
466,227
Impairments of long-lived assets
-
311,249
-
311,249
Total operating expense
2,486,478
2,781,231
4,462,562
5,302,728
Loss from operations
(3,160,961
)
(3,520,631
)
(5,875,302
)
(6,889,775
)
Interest & other income (expense):
Interest expense, net
(28,321
)
(29,704
)
(2,317,059
)
(59,064
)
Change in fair value of warrant liabilities
1,501,632
(4,885
)
(937,386
)
(30,290
)
Change in fair value of contingent consideration
589,994
(42,046
)
(113,132
)
(83,694
)
Gain (loss) on investment in unconsolidated entities
(5,349
)
2,275
(10,257
)
(719
)
Gain (loss) on sale of subsidiary
-
-
755,426
-
Loss on dissolution of variable interest entity
-
-
(27,463
)
-
Other
(15,015
)
71,777
(67,681
)
70,596
Net loss from continuing operations before income taxes and noncontrolling interest
(1,118,020
)
(3,523,214
)
(8,592,854
)
(6,992,946
)
Income tax benefit
32,495
29,821
55,437
60,961
Net loss from continuing operations
(1,085,525
)
(3,493,393
)
(8,537,417
)
(6,931,985
)
Net loss from discontinued operations
-
(97,823
)
-
(334,398
)
Net loss
(1,085,525
)
(3,591,216
)
(8,537,417
)
(7,266,383
)
Plus: Net loss attributable to noncontrolling interests
292,560
310,771
527,344
641,173
Net loss attributable to YOU On Demand shareholders
(792,965
)
(3,280,445
)
(8,010,073
)
(6,625,210
)
Dividends on preferred stock
-
-
(16,402,161
)
-
Net loss attributable to YOU on Demand common shareholders
$
(792,965
)
$
(3,280,445
)
$
(24,412,234
)
$
(6,625,210
)
Basic and diluted loss per share:
Loss from continuing operations
$
(0.05
)
$
(0.22
)
$
(1.50
)
$
(0.44
)
Loss from discontinued operations
-
nil
-
(0.01
)
Basic and diluted loss per share
$
(0.05
)
$
(0.22
)
$
(1.50
)
$
(0.45
)
Weighted average shares outstanding:
Basic and diluted
16,598,990
14,938,780
16,267,036
14,771,261
Management Discussion and Analysis
Revenues
Revenues for the three months ended June 30, 2014, totaled $183,000, as compared to $51,000 for 2013. The increase in revenue of approximately $132,000 was attributable to the growth of our VOD business.
Net Loss Attributable to Non-controlling Interest
Hua Cheng has a 20% non-controlling interest in Zhong Hai Video and as such we allocate 20% of the operating loss of Zhong Hai Video to Hua Cheng. During the three months ended June 30, 2014, $292,000 of our operating loss from Zhong Hai Video was allocated to Hua Cheng, as compared to $260,000 during the same period of 2013.
49% of the operating loss of our Jinan Broadband subsidiary was allocated to Shandong Cable (previously Jinan Parent), the 49% co-owner of this business. During the three months ended June 30, 2013, $51,000 of our operating loss from Jinan Broadband was allocated to Jinan Parent. Effective July 31, 2013, the Company sold its 51% interest in Jinan Broadband. See Note 4 to our unaudited consolidated financial statements included in this report.
Auditor trail
Item 4.01. Changes in Registrant’s Certifying Accountant
YOU On Demand Holdings, Inc. (the “Company”) previously engaged UHY LLP (“UHY”) as its independent auditor for the fiscal year ending December 31, 2014. UHY has served as the independent auditor for the Company since August, 1, 2007. On June 24, 2014, the Company’s audit committee authorized the dismissal of UHY as its independent registered public accounting firm. The dismissal became effective on June 25, 2014.
UHY’s audit reports on the Company’s financial statements for the fiscal years ended December 31, 2013 and 2012 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles, except that both reports contain an explanatory paragraph regarding the going concern assumption.
During the Company’s fiscal years ended December 31, 2013 and 2012, and through June 25, 2014, there have been (i) no disagreements with UHY on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to UHY’s satisfaction, would have caused them to make reference to the subject matter in connection with their report on the Company’s financial statements for such years, and (ii) there were no reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K, except that for the fiscal years ended December 31, 2013 and 2012, the Company’s Board of Directors discussed with UHY the existence of a material weakness in the Company’s internal control over financial reporting, as more fully described in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2013 and December 31, 2012, filed on March 31, 2014 and April 8, 2013, respectively, with the Securities and Exchange Commission.
Deal Flow
YOU ON DEMAND HOLDINGS, INC.
CALCULATION OF REGISTRATION FEE
Proposed
Maximum
Proposed
Amount
Amount to be
Offering
Maximum
of
Title of each class of
Registered
Price Per
Aggregate
Registra
securities to be registered
(1)
Unit (2)
Offering Price (2)
tion Fee
Common Stock, $0.001 par value, issuable upon conversion of Series E Preferred Stock
7,428,574
$
2.66
19,760,007
2,545 (3)
Comments & Business Outlook
YOU On Demand Holdings, Inc. and Its Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS
2013
2012
Revenue
$
308,695
$
1,700,799
Cost of revenue
3,126,089
3,460,772
Gross loss
(2,817,394
)
(1,759,973
)
Operating expense:
Selling, general and administrative expenses
7,608,742
9,689,763
Professional fees
705,692
1,046,095
Depreciation and amortization
774,480
2,159,149
Impairments of long-lived assets
311,249
-
Total operating expense
9,400,163
12,895,007
Loss from operations
(12,217,557
)
(14,654,980
)
Interest & other income / (expense)
Interest income
3,426
2,974
Interest expense
(374,178
)
(77,965
)
Stock purchase right
-
(43,748
)
Cost of reset provision
-
(658,719
)
Change in fair value of warrant liabilities
(466,060
)
647,302
Change in fair value of contingent consideration
(251,963
)
1,313,443
Loss (gain) on investment in unconsolidated entities
(2,741
)
67,675
Loss on investment write-off
-
(95,350
)
Loss on write-off of uncollectible loans
-
(513,427
)
Gain on deconsolidation of Shandong Media
-
141,814
Other
55,831
(139,739
)
Net loss from continuing operations before income taxes and noncontrolling interest
(13,253,242
)
(14,010,720
)
Income tax benefit
111,266
354,294
Net loss from continuing operations
(13,141,976
)
(13,656,426
)
Net gain (loss) from discontinued operations (including gain on disposal of $5,616,269 in 2013)
5,255,474
(2,630,979
)
Net loss
(7,886,502
)
(16,287,405
)
Plus: Net loss attributable to noncontrolling interests
1,054,970
2,074,098
Net loss attributable to YOU On Demand shareholders
(6,831,532
)
(14,213,307
)
Dividends on preferred stock
(1,358,364
)
(924,132
)
Net loss attributable to YOU on Demand common shareholders
$
(8,189,896
)
$
(15,137,439
)
Basic earnings (loss) per share
Loss from continuing operations
$
(0.89
)
$
(1.12
)
Gain (loss) from discontinued operations
0.35
(0.24
)
Basic loss per shares
$
(0.54
)
$
(1.36
)
Diluted earnings (loss) per share
Loss from continuing operations
$
(0.89
)
$
(1.12
)
Gain (loss) from discontinued operations
0.35
(0.24
)
Diluted loss per shares
$
(0.54
)
$
(1.36
)
Weighted average shares outstanding
Basic
15,226,216
11,099,746
Diluted
15,226,216
11,099,746
Management Discussion and Analysis
Revenues
Revenues for the year ended December 31, 2013, totaled $309,000, as compared to $5,000 for 2012. The increase is revenue of approximately $304,000 is attributable to the growth of our VOD business.
Deal Flow
We may offer, issue and sell from time to time our common stock , preferred stock, debt securities, warrants or units up to $50,000,000 or its equivalent in any other currency, currency units, or composite currency or currencies in one or more issuances. We may offer and sell the securities separately, together or as units, in separate classes or series, in amounts, at prices and on terms to be determined at the time of sale. This prospectus provides a general description of offerings of these securities that we may undertake.
On August 30, 2012, the Company closed the transactions contemplated by the Purchase Agreement and issued and sold to Investors (i) an aggregate of 646,250 Class A Units (consisting of an aggregate of 646,250 shares of Common Stock and Warrants to purchase 646,250 shares of Common Stock), and (ii) an aggregate of 250,000 Class B Units (consisting of an aggregate of 250,000 shares of Series C Preferred Stock and Warrants to purchase 250,000 shares of Common Stock). The Company received aggregate gross proceeds of $3,585,000.
Comments & Business Outlook
Three Months Ended
Six Months Ended
June 30,
June 30,
June 30,
June 30,
2012
2011
2012
2011
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Revenue
$
2,283,405
$
1,894,396
$
4,320,984
$
3,592,320
Cost of revenue
1,927,150
1,100,675
3,719,171
2,350,745
Gross profit
356,255
793,721
601,813
1,241,575
Operating expense:
Selling, general and administrative expenses
2,582,585
2,283,661
5,329,023
4,096,349
Professional fees
528,415
549,324
940,792
867,004
Depreciation and amortization
1,248,413
1,119,327
2,479,727
2,193,654
Impairment of long-lived assets
-
321,748
-
321,748
Total operating expense
4,359,413
4,274,060
8,749,542
7,478,755
Loss from operations
(4,003,158
)
(3,480,339
)
(8,147,729
)
(6,237,180
)
Interest & other income / (expense)
Interest income
1,677
2,189
4,390
5,127
Interest expense
(18,839
)
(361
)
(20,512
)
(916
)
Stock purchase right
(43,748
)
(155,166
)
(43,748
)
(155,166
)
Change in fair value of contingent consideration
248,632
(2,290,135
)
(463,433
)
(2,251,526
)
Loss on investment in unconsolidated entities
(8,314
)
(6,106
)
(12,506
)
(12,904
)
Loss on write-off of uncollectible loans
(473,698
)
-
(473,698
)
-
Other
(58,383
)
1,786
(58,562
)
1,783
Loss before income taxes and noncontrolling interest
(4,355,831
)
(5,928,132
)
(9,215,798
)
(8,650,782
)
Income tax benefit
105,407
111,512
180,845
186,932
Net loss
(4,250,424
)
(5,816,620
)
(9,034,953
)
(8,463,850
)
Plus: Net loss attributable to noncontrolling interests
528,805
232,315
1,093,262
652,939
Net loss attributable to YOU On Demand shareholders
$
(3,721,619
)
$
(5,584,305
)
$
(7,941,691
)
$
(7,810,911
)
Net loss per share attributable to YOU On Demand shareholders
Basic
$
(0.35
)
$
(0.01
)
$
(0.76
)
$
(0.01
)
Diluted
$
(0.35
)
$
(0.01
)
$
(0.76
)
$
(0.01
)
Weighted average shares outstanding
Basic
10,530,916
9,266,639
10,499,247
9,040,000
Diluted
10,530,916
9,266,639
10,499,247
9,040,000
Deal Flow
On May 10, 2012, at the Company’s request, the Chairman and Chief Executive Officer of YOU On Demand Holdings, Inc. (the “Company”), Mr. Shane McMahon,
made a loan to the Company in the amount of
$3,000,000 . In consideration for the loan, the Company issued a convertible note to Mr. McMahon in the aggregate principal amount of
$3,000,000 (the “Note”).
Joint Venture
NEW YORK , April 25, 2012 /PRNewswire / -- YOU On Demand Holding, Inc.'s (OTCBB: CBBD) PRC joint venture, China 's leading national Pay-Per-View (PPV) and Video On Demand (VOD) platform, announced that it has signed a deal with Miramax to distribute films from its renowned library for Transactional Video On Demand (TVOD).
The titles represent some of the top films in movie history ranging from the Oscar® winning There Will Be Blood and Chicago to pop culture icons like Pulp Fiction and the Scream series.
"The Miramax library includes some of the best known, award winning and critically acclaimed films Hollywood has to offer," said Shane McMahon , Chairman and CEO of YOU On Demand. "We are very excited to add Miramax films to the YOU On Demand platform."
Miramax now joins YOU On Demand's content partner family including Warner Bros., Disney, Lionsgate, Magnolia, K2 Communications, Gravitas Ventures, American Media Works and Film Buff.
Liquidity Requirements
As discussed above, on July 30, 2010, we consummated financings which resulted in gross proceeds of $9.625 million. While we believe that the proceeds from these financings will sustain our business operations for the near term, we anticipate that we
will need to raise additional funds to fully implement our business model and related strategies. In addition, the fact that we have incurred significant continuing losses during 2010 and have relied on debt and equity financings to fund out operations to date, could raise substantial doubt about our ability to continue as a going concern.
Comments & Business Outlook
2010
2009
Revenue
$
7,648,962
$
8,443,088
Cost of revenue
4,722,058
5,661,502
Gross profit
2,926,904
2,781,586
Selling, general and adminstrative expenses
3,919,384
3,227,625
Professional fees
1,240,290
641,334
Depreciation and amortization
4,282,586
3,564,334
Impairments of long-lived assets
2,405,008
1,239,291
Loss from operations
(8,920,364
)
(5,890,998
)
Interest & other income / (expense)
Interest income
8,113
8,354
Interest expense
(553,971
)
(362,424
)
Inducement to convert and reduction in conversion price of convertible notes
(6,706,141
)
-
Change in fair value of warrant liabilities and modification to certain warrants
669,133
(512,027
)
Change in fair value of contingent consideration
(501,127
)
-
Loss on sale of marketable equity securities
(14,650
)
(14,828
)
Loss on equity investment
(15,240
)
-
Other
(3,482
)
(13,613
)
Net loss before income taxes and noncontrolling interest
(16,037,729
)
(6,785,536
)
Income tax benefit
517,723
243,655
Net loss, net of tax
(15,520,006
)
(6,541,881
)
Plus: Net loss attributable to noncontrolling interests
2,616,032
1,102,756
Net loss attributable to YOU On Demand
$
(12,903,974
)
$
(5,439,125
)
Dividends on preferred stock
(2,315,309
)
-
Net loss attributable to YOU On Demand common shareholders
$
(15,219,283
)
$
(5,439,125
)
Net loss per share
Basic
$
(0.07
)
$
(0.09
)
Diluted
$
(0.07
)
$
(0.09
)
Weighted average shares outstanding
Basic
219,823,760
60,334,180
Diluted
219,823,760
60,334,180
Investor Presentations
Please see the latest investor presentation
here .
Deal Flow
On October 20, 2010, China Broadband, Inc. entered into separate
Warrant Exchange Agreements with the holders of different series of warrants to purchase shares of the Company’s common stock. Pursuant to the Agreements, (i) the holders of Warrants issued on January 11, 2008 to purchase an aggregate of
9,699,993 shares of the Company’s common stock at an exercise price of
$0.20 per share, have exchanged their Warrants for an aggregate of
485,000 shares of the Company’s common stock, and (ii) the holders of Warrants issued on July 30, 2010 to purchase an aggregate of
622,591,300 shares of the Company’s common stock at an exercise price of
$0.05 per share, have exchanged their Warrants for an aggregate of
373,554,780 shares of the Company’s common stock. Following the consummation of the transactions contemplated by the Agreements, there are
829,836,723 shares of common stock outstanding (on a fully diluted basis) and
11,393,500 Warrants to purchase shares of Company common stock at exercise prices ranging from $
0.60 to $2.00.