YOU On Demand Reports 2013 Q2 Results

                    YOU On Demand Reports 2013 Q2 Results

Investor Update Call Scheduled Today at 4:30 p.m. ET

PR Newswire

NEW YORK, Aug. 14, 2013

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, weare now exclusively focused onoperatingYOU
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
inChina. The Company offers premium content, including
leadingHollywoodandChina-produced movie titles, to customers
acrossChinathrough 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 inChina, a highly experienced management team with international
background and expertise in Cable, Television, Film, Digital Media, Internet
and Telecom. YOU On Demand is headquartered inNew York, NYwith
itsChinaheadquarters in Beijing.

YOU On Demand currently has content deals in place with many ofHollywood'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              $         $   931,458  $           $  1,695,526
                     50,619                      51,557
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       1,997,561    2,388,356       3,899,940      4,799,557
expenses
Professional fees    299,027      528,415         625,312        940,792
Depreciation and     173,394      550,233         466,227        1,091,589
amortization
Impairments of       311,249      -               311,249        -
long-lived assets
Total operating      2,781,231    3,467,004       5,302,728      6,831,938
expense
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           (4,885)      -               (30,290)       -
liabilities
Change in fair value
of contingent        (42,046)     248,632         (83,694)       (463,433)
consideration
Gain (loss) on
investment in        2,275        (8,314)         (719)          (12,506)
unconsolidated
entities
Loss on write-off of -            (473,698)       -              (473,698)
uncollectible loans
Other                71,777       (58,383)        70,596         (58,562)
Net loss before
income taxes and     (3,523,214)  (3,953,039)     (6,992,946)    (8,230,635)
noncontrolling
interest
Income tax benefit   29,821       100,082         60,961         170,100
Net loss from
continuing           (3,493,393)  (3,852,957)     (6,931,985)    (8,060,535)
operations
Net loss from
discontinued         (97,823)     (397,467)       (334,398)      (974,418)
operations
Net loss             (3,591,216)  (4,250,424)     (7,266,383)    (9,034,953)
Plus: Net loss
attributable to      310,771      528,805         641,173        1,093,262
noncontrolling
interests
Net loss
attributable to YOU  $            $ (3,721,619)   $ (6,625,210)  $ (7,941,691)
On Demand            (3,280,445)
shareholders
Basic earnings per
share
Loss from continuing $       $           (0.44)         $    
operations           (0.22)       (0.33)                        (0.71)
Loss from
discontinued         nil          (0.02)          (0.01)         (0.05)
operations
 Basic earnings per $       $           (0.45)         $    
share                (0.22)       (0.35)                        (0.76)
Diluted earnings per
share
Loss from continuing $       $           (0.44)         $    
operations           (0.22)       (0.33)                         (0.71)
Loss from
discontinued         nil          (0.02)          (0.01)         (0.05)
operations
 Diluted earnings   $       $           (0.45)         $    
per share            (0.22)       (0.35)                         (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,          1,371               2,229
available for sale
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         1,226,294           1,498,852
operations
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     4,803,367           5,011,161
operations
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              410,475             368,628
consideration liability, current
Convertible promissory note            3,000,000           3,000,000
Warrant liabilities                    908,670             878,380
Current liabilities of discontinued    4,982,826           5,197,450
operations
Total current liabilities              14,075,527          11,991,325
Deferred license fees, noncurrent      -                   460,547
Contingent purchase price              410,475             368,628
consideration liability
Deferred tax and uncertain tax         176,114             237,075
position liabilities
Non-current liabilities of             68,774              68,774
discontinued operations
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 1,261,995           1,261,995
$3,500,000 atJune 30, 2013 and
December 31, 2012, respectively
Series B - 0 and 7,866,800 shares
issued and outstanding, liquidation
preference of $0 and $3,933,400        -                   3,223,575
atJune 30, 2013 and December 31,
2012, respectively
Series C - 250,000 shares issued and
outstanding, liquidation preference of 627,868             627,868
$1,000,000 atJune 30, 2013 and
December 31, 2012, respectively
Equity:
Common stock, $.001 par value;
1,500,000,000 shares authorized,
15,288,040 and 13,742,394 shares       15,288              13,742
issued at June 30, 2013 and December
31, 2012, respectively
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.

Website: http://www.yod.com
 
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