Investors
(NASDAQ: IDEX)

YOU On Demand Reports 2013 Q2 Results
Investor Update Call Scheduled Today at 4:30 p.m. ET

NEW YORK, Aug. 14, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), the first national Video On Demand (VOD) platform in China, today announced its operating results for the three- and six-month periods ending June 30, 2013 (a full copy of its quarterly report on Form 10-Q will be posted at www.sec.gov).  Chairman Shane McMahon and President and CFO Marc Urbach are hosting an investor update conference call today at 4:30 p.m. ET to discuss the Company's recent results. The conference call dial-in is (800) 616-4018.

Marc Urbach, YOU On Demand's President & CFO, stated, "The cash and cash equivalents line item on our balance sheet at June 30 does not reflect two significant transactions that closed subsequent to the end of our most recent fiscal quarter which will ultimately provide gross proceeds totaling approximately $8.7 million:  C Media's Phase 1 strategic investment and the sale of YOU On Demand's legacy Jinan Broadband asset.  Further, as a result of the sale of Jinan Broadband, we are now exclusively focused on operating YOU On Demand's VOD platform."

Shane McMahon, YOU On Demand's Chairman, concluded, "With our liquidity position much improved, our management team better-aligned and key mobile partner C Media onboard, we believe YOD is in a strong position to further leverage its growing brand and catalogue of premium content, by exploring popular platforms such as mobile and internet, which will complement our existing digital cable platform."

It is important to note that YOU On Demand's revenues for the prior-year quarter and six-month periods principally reflect the operations of one of its two legacy businesses (Shandong Media), which has subsequently been sold (except for a 30% interest). Current quarter and six-month 2013 revenues do not reflect contributions from either holding.

About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD) is the first national Video On Demand platform in China. The Company offers premium content, including leading Hollywood and China-produced movie titles, to customers across China through its Transactional Video On Demand (TVOD), Subscription Video On Demand (SVOD) and Near Video On Demand (NVOD) services. YOU On Demand has secured alliances with leading global media operators and content developers. 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.

YOU On Demand currently has content deals in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, Universal Pictures, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers.

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             

Robert Rinderman or Norberto Aja

YOU On Demand             

JCIR – Investor Relations/Corporate Communications

212-206-1216                

212-835-8500

jason.finkelstein@yod.com          

YOD@jcir.com

@youondemand 

 
 

- Financial Tables Follow –

 

YOU On Demand Holdings, Inc. and Its Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

2013

 

2012

 

2013

 

2012

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

               

Revenue

$        50,619

 

$      931,458

 

$        51,557

 

$   1,695,526

Cost of revenue

790,019

 

1,064,554

 

1,638,604

 

2,024,782

Gross Loss

(739,400)

 

(133,096)

 

(1,587,047)

 

(329,256)

               

Operating expense:

             

Selling, general and administrative expenses

1,997,561

 

2,388,356

 

3,899,940

 

4,799,557

Professional fees

299,027

 

528,415

 

625,312

 

940,792

Depreciation and amortization

173,394

 

550,233

 

466,227

 

1,091,589

Impairments of long-lived assets

311,249

 

-

 

311,249

 

-

Total operating expense

2,781,231

 

3,467,004

 

5,302,728

 

6,831,938

               

Loss from operations

(3,520,631)

 

(3,600,100)

 

(6,889,775)

 

(7,161,194)

               

Interest & other income / (expense)

             

Interest income

225

 

1,215

 

574

 

2,403

Interest expense

(29,929)

 

(18,643)

 

(59,638)

 

(19,897)

Stock purchase right

-

 

(43,748)

 

-

 

(43,748)

Change in fair value of warrant liabilities

(4,885)

 

-

 

(30,290)

 

-

Change in fair value of contingent consideration

(42,046)

 

248,632

 

(83,694)

 

(463,433)

Gain (loss) on investment in unconsolidated entities

2,275

 

(8,314)

 

(719)

 

(12,506)

Loss on write-off of uncollectible loans

-

 

(473,698)

 

-

 

(473,698)

Other

71,777

 

(58,383)

 

70,596

 

(58,562)

               

Net loss before income taxes and noncontrolling interest

(3,523,214)

 

(3,953,039)

 

(6,992,946)

 

(8,230,635)

               

Income tax benefit

29,821

 

100,082

 

60,961

 

170,100

               

Net loss from continuing operations

(3,493,393)

 

(3,852,957)

 

(6,931,985)

 

(8,060,535)

               

Net loss from discontinued operations

(97,823)

 

(397,467)

 

(334,398)

 

(974,418)

               

Net loss

(3,591,216)

 

(4,250,424)

 

(7,266,383)

 

(9,034,953)

               

Plus:  Net loss attributable to noncontrolling interests

310,771

 

528,805

 

641,173

 

1,093,262

               

Net loss attributable to YOU On Demand shareholders

$ (3,280,445)

 

$ (3,721,619)

 

$ (6,625,210)

 

$ (7,941,691)

               

Basic earnings per share

             

Loss from continuing operations

$           (0.22)

 

$          (0.33)

 

(0.44)

 

$          (0.71)

Loss from discontinued operations

nil

 

(0.02)

 

(0.01)

 

(0.05)

  Basic earnings per share

$           (0.22)

 

$          (0.35)

 

(0.45)

 

$          (0.76)

               

Diluted earnings per share

             

Loss from continuing operations

$           (0.22)

 

$         (0.33)

 

(0.44)

 

$          (0.71)

Loss from discontinued operations

nil

 

(0.02)

 

(0.01)

 

(0.05)

  Diluted earnings per share

$           (0.22)

 

$         (0.35)

 

(0.45)

 

$          (0.76)

               

Weighted average shares outstanding

             

Basic

14,938,780

 

10,530,916

 

14,771,261

 

10,499,247

Diluted

14,938,780

 

10,530,916

 

14,771,261

 

10,499,247

               
   
   
 

YOU On Demand Holdings, Inc. and Its Subsidiaries

CONSOLIDATED BALANCE SHEETS

       
 

June 30,

 

December 31,

 

2013

 

2012

 

(Unaudited)

   

ASSETS

     

Current assets:

     

Cash and cash equivalents

$             291,804

 

$          3,277,891

Marketable equity securities, available for sale

1,371

 

2,229

Accounts receivable, net

16,344

 

-

Licensed content, current

994,125

 

681,457

Prepaid expenses

308,394

 

412,669

Other current assets

80,678

 

135,486

Current assets of discontinued operations

1,226,294

 

1,498,852

Total current assets

2,919,010

 

6,008,584

       

Property and equipment, net

611,431

 

729,763

Licensed content, noncurrent

280,505

 

530,367

Intangible assets, net

2,786,345

 

3,416,858

Goodwill

6,105,478

 

6,105,478

Investment in unconsolidated entities

667,855

 

655,834

Non-current assets of discontinued operations

4,803,367

 

5,011,161

Total assets

$       18,173,991

 

$       22,458,045

       

LIABILITIES AND EQUITY

     

Current liabilities:

     

Accounts payable

$          2,434,474

 

$             885,366

Accrued expenses and liabilities

1,412,708

 

953,134

Deferred license fees, current

856,467

 

-

Other current liabilities

69,907

 

708,367

Contingent purchase price consideration liability, current

410,475

 

368,628

Convertible promissory note

3,000,000

 

3,000,000

Warrant liabilities

908,670

 

878,380

Current liabilities of discontinued operations

4,982,826

 

5,197,450

Total current liabilities

14,075,527

 

11,991,325

       
       

Deferred license fees, noncurrent

-

 

460,547

Contingent purchase price consideration liability

410,475

 

368,628

Deferred tax and uncertain tax position liabilities

176,114

 

237,075

Non-current liabilities of discontinued operations

68,774

 

68,774

Total liabilities

14,730,890

 

13,126,349

       

Commitments and Contingencies

     
       

Convertible redeemable preferred stock, $.001 par value; 50,000,000

     
       

Shares authorized

     

Series A - 7,000,000 shares issued and outstanding, liquidation preference of $3,500,000 at June 30, 2013 and December 31, 2012, respectively

1,261,995

 

1,261,995

       

Series B - 0 and 7,866,800 shares issued and outstanding, liquidation preference of $0 and $3,933,400 at June 30, 2013 and December 31, 2012, respectively

-

 

3,223,575

       

Series C - 250,000 shares issued and outstanding, liquidation preference of $1,000,000 at June 30, 2013 and December 31, 2012, respectively

627,868

 

627,868

       

Equity:

     

Common stock, $.001 par value; 1,500,000,000 shares authorized, 15,288,040 and 13,742,394 shares issued at June 30, 2013 and December 31, 2012, respectively

15,288

 

13,742

Additional paid-in capital

66,886,440

 

62,388,502

Accumulated deficit

(65,466,874)

 

(58,841,664)

Accumulated other comprehensive income

686,568

 

604,632

Total YOU On Demand equity

2,121,422

 

4,165,212

Noncontrolling interests

(568,184)

 

53,046

       

Total equity

1,553,238

 

4,218,258

       

Total liabilities and equity

$       18,173,991

 

$       22,458,045

                       
 

 

SOURCE YOU On Demand Holdings, Inc.

 

Source: PR Newswire (August 14, 2013 - 4:00 PM EDT) 

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