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 Tracking 1267 U.S. listed China Stocks and Counting...
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 You On Demand Holdings (OTC BB:CBBDD)

Thursday, November 13, 2014
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.


Thursday, August 14, 2014
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.


Tuesday, July 1, 2014
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.


Tuesday, June 3, 2014
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)   


Tuesday, April 1, 2014
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.


Tuesday, December 18, 2012
Deal Flow

Item 1.01 Entry Into a Material Definitive AgreementOn December 14, 2012, YOU On Demand Holdings, Inc. (the “Company”) entered into an underwriting agreement with Chardan Capital Markets LLC, as representative of the several underwriters, and National Securities Corporation, as qualified independent underwriter  (collectively, the “Underwriters”) in connection with the offer and sale by the Company of 1,800,000 shares of the Company’s common stock, par value $0.001 per share, at a price to the public of $1.50 per share.  The Company granted the Underwriters a 30-day option to purchase up to 270,000 additional shares of the Company’s common stock to cover over-allotments.  The Company expects to receive net proceeds from this offering of approximately $2,484,000, after deducting underwriting discounts and commissions.  The shares are being offered and sold under a prospectus supplement and related prospectus filed with the U.S. Securities and Exchange Commission pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-183689).  The offering is expected to close on or about December 18, 2012, subject to the satisfaction of specified closing conditions.  A copy of the underwriting agreement is attached as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated by reference herein.
 
In connection with the filing of the underwriting agreement, the Company is filing as Exhibit 5.1 hereto an opinion of Lewis and Roco LLP regarding certain Nevada law matters.


Tuesday, September 4, 2012
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.


Thursday, August 16, 2012
Comments & Business Outlook
YOU On Demand Holdings, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
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  


Tuesday, May 22, 2012
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”).

Wednesday, April 25, 2012
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.


Tuesday, April 19, 2011
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.

Monday, April 18, 2011
Comments & Business Outlook
YOU On Demand Holdings, Inc. and Subsidiaries
(Formerly China Broadband, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONSYears Ended December 31, 2010 and 2009
 
   
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

Monday, February 7, 2011
Investor Presentations
Please see the latest investor presentation here.

Monday, October 25, 2010
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.