YOU On Demand Reports Q4 and Full Year 2015 Results

YOU On Demand Reports Q4 and Full Year 2015 Results

- Full Year revenues increased 135% vs prior year

- Q4 2015 revenues increased 241% vs Q3 2015

- Investor Update Call Scheduled For Today at 4:30 p.m. EDT

NEW YORK, March 30, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or "YOD"), a leading Video On Demand ("VOD") service provider in China delivering Hollywood movies and premium content to mobile and TV screens, announced today its year-end operating results for the period ended December 31, 2015 (a full copy of the Company's annual report on Form 10-K is also being posted at www.sec.gov).

Conference Call: Chairman Bruno Wu, Vice Chairman Shane McMahon, CEO Mingcheng Tao and VP of Finance Grace He will host a conference call at 4:30 p.m. EDT 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 Q4 and 2015 Operating Results

Revenue for the 12-month period ended December 31, 2015 was $4,606,000, as compared to $1,963,000 for the same period in 2014, an increase of 135% year-over-year. Revenue for Q4 2015 was $1,623,000 compared to $476,000 in Q3 2015, a 241% quarter-over-quarter increase.

Net loss was $1,963,000 for Q4 2015 compared to $2,371,000 in the comparable 2014 period. Basic and diluted loss per share for Q4 2015 was $0.08 cents as compared to a $0.10 cent loss per share in the same period in 2014. Net loss for the twelve-month period ended December 31, 2015 was $8,541,000 compared to $13,024,000 in the comparable FY 2014 period. For the twelve-month period ended December 31, 2015, basic and diluted loss per share was $0.34 cents as compared to a $1.47 loss per share for the same twelve-month period in 2014.

As of December 31 2015, the Company had cash of approximately $3.8 million and total current assets of approximately $10.1 million. It should be noted that cash as of December 31, 2015 does not include the $10.0 million in cash proceeds received by YOU On Demand in Q1 2016 from Bruno Wu's and Beijing Sun Seven Stars Culture Development Limited's initial investment in YOD.

Chairman Bruno Wu stated, "We are pleased to have finished 2015 with solid revenue performance, marking the successful completion of a year of both growth and transition. My team has begun steering YOU On Demand in a direction where we can leverage and optimize our current operations as a premium content Video On Demand service provider in China and evolve the brand into a global, mobile-driven, consumer management platform. By striving to establish the world's premier multimedia, social networking and e-commerce-enabled network, 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 both businesses and end-use consumers - anytime and anywhere, across multiple platforms and devices."

"And to YOU On Demand's current and patient investors, a priority for me this year is to communicate more consistently with all of you," continued Mr. Wu. "We have a vision and shared expectations for this Company and I count all of you as my partners in attaining those goals. I personally intend to make certain this Company, its brand and publicly-traded security, finally attain the attention they deserve, along with a fair and strong valuation."

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 Video On Demand and Transactional Video On Demand. 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," "intends," "will" 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


CONSOLIDATED STATEMENTS OF OPERATIONS



Twelve Months Ended

December 31, December 31,

2014

2015
----


Revenue $4,606,380 $1,962,622

Cost of revenue 3,673,895 2,756,363
--------- ---------

Gross profit/(loss) 932,485 (793,741)
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Operating expenses:

Selling, general and administrative expenses 8,237,056 7,459,192

Professional fees 715,723 653,646

Depreciation and amortization 390,373 536,689


Total operating expense 9,343,152 8,649,527
--------- ---------

Loss from operations (8,410,667) (9,443,268)

Interest and other income/(expense)

Interest expense, net (119,913) (2,374,368)

Change in fair value of warrant liabilities 189,833 (621,239)

Change in fair value of contingent consideration - (160,766)

Equity share of loss on equity method investments (156,135) (20,717)

Impairment of equity method investments (214,998) -

Loss from disposal of consolidated entities - (622,939)

Others 136,511 (85,516)


Loss before income taxes and non-controlling interest (8,575,369) (13,328,813)

Income tax benefit 34,448 304,670
------ -------

Net loss (8,540,921) (13,024,143)


Net loss attributable to non-controlling interest 439,648 615,683
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Net loss attributable to YOU On Demand shareholders (8,101,273) (12,408,460)

Dividends on preferred stock - (16,402,161)
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Net loss attributable to YOU on Demand common shareholders $(8,101,273) $(28,810,621)
=========== ============


Basic and diluted loss per share $(0.34) $(1.47)


Weighted average shares outstanding:

Basic and diluted 23,948,487 19,600,510






YOU On Demand Holdings, Inc., Its Subsidiaries and Variable Interest Entity


CONSOLIDATED BALANCE SHEET

December 31, December 31,

2015 2014
---- ----

ASSETS
------

Current assets:

Cash $3,768,897 $10,812,371

Restricted cash 2,994,364 -

Accounts receivable, net 1,689,415 1,091,076

Licensed content, current 556,591 1,041,609

Prepaid expenses 362,421 196,474

Deferred issuance cost 551,218 -

Other current assets 157,594 22,442

Total current assets 10,080,500 13,163,972
---------- ----------

Property and equipment, net 154,434 320,671

Licensed content, non-current 21,085 35,648

Intangible assets, net 2,412,591 2,320,103

Goodwill 6,648,911 6,648,911

Equity method investments 450,115 850,054

Other non-current assets 58,089 365,006

Total assets $19,825,725 $23,704,365
=========== ===========


LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
--------------------------------------------------------------

Current liabilities:

Accounts payable $45,788 $110,814

Deferred revenue 15,080 13,431

Accrued expenses 1,196,066 797,340

Accrued license fees 933,532 348,007

Convertible promissory note 3,000,000 3,000,000

Warrant liabilities 395,217 585,050

Deposit payable 2,994,364 -

Accrued salaries 1,058,124 970,821

Other current liabilities 312,170 278,622

Total current liabilities 9,950,341 6,104,085
--------- ---------

Deferred tax liability 330,124 364,572
------- -------

Total liabilities 10,280,465 6,468,657
---------- ---------


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
December 31, 2015 and 2014, 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
7,365,283 shares issued and outstanding, liquidation preference of $12,696,245 and $12,889,250
at September 30, 2015 and December 31, 2014, respectively 7,255 7,365

Common stock, $0.001 par value; 1,500,000,000 shares authorized, 24,249,109 and 23,793,702
shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively 24,249 23,794

Additional paid-in capital 97,512,542 96,347,272

Accumulated deficit (86,457,840) (78,356,567)

Accumulated other comprehensive loss (414,910) (66,032)


Total YOU On Demand shareholder's equity 10,671,296 17,955,832

Non-controlling interest (2,388,031) (1,982,119)
---------- ----------

Total equity 8,283,265 15,973,713
--------- ----------

Total liabilities, convertible redeemable preferred stock and equity $19,825,725 $23,704,365
=========== ===========


SOURCE YOU On Demand Holdings, Inc.

YOU On Demand Holdings, Inc.

Web Site: http://corporate.yod.com


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