YOU On Demand Reports 2013 Q3 Results

                    YOU On Demand Reports 2013 Q3 Results

- Management Hosting Investor Call Today at 4:30pm ET -

PR Newswire

NEW YORK, Nov. 14, 2013

NEW YORK, Nov. 14, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ:
YOD) ("YOU On Demand" or the "Company"), a leading multi-platform
entertainment and Video On Demand (VOD) company in China, announced today its
unaudited operating results for the three-month period ended September 30,
2013 (a full copy of its quarterly report on Form 10-Q will also be posted at
www.sec.gov).

Conference Call: Chairman Shane McMahon and Chief Financial Officer Marc
Urbach are hosting a conference call today beginning at 4:30p.m.ET
(1:30p.m.PT). The dial-in numbers are (800)621-4410 or (+1)(303)223-2680
(international callers).

On November 5 (subsequent to the close of the 2013 third quarter), the Company
announced that C Media Limited, a leading China-based mobile video service
provider, raised its aggregate strategic investment in YOU On Demand to $6.0
million USD, with an additional $2.0 million USD Convertible Bridge Note
financing. In addition, C Media and YOU On Demand jointly agreed to extend C
Media's Phase 2 investment deadline – for up to $10.0 million USD of
additional capital – to December 4, 2013. As previously disclosed in early
July, C Media had made an initial $4.0 million USD investment in YOU On
Demand.

In addition and also subsequent to quarter-end, the Company forged a mobile
distribution agreement with Huawei, a leading global information and
communications technology (ICT) solutions provider and the third largest
global smartphone manufacturer. Per the agreement, Huawei is offering its
mobile customers feature films through YOU On Demand's newly launched mobile
application (App), YOU Cinema. The YOU Cinema App is now coming pre-loaded on
Huawei Mate smartphones featuring various Hollywood titles.

Shane McMahon, Chairman of YOU On Demand, commented, "C Media's strategic
investment, in multiple tranches, as well as our new mobile content
distribution agreement with Huawei via the YOU Cinema App, are milestones for
our organization. Partnering with these two respected China-based
organizations provides us with the requisite resources to continue YOU On
Demand's rapid expansion, awareness and brand recognition across multiple
distribution platforms, especially in the mobile space. We also plan to deploy
a portion of C Media's investment in further diversifying our array of
entertainment content and continue building YOU On Demand's multi-platform
brand."

YOD Q3 2013 Operating Results
Marc Urbach, YOU On Demand's President & CFO, commented, "We are delighted
with the very strong relationship YOD has been developing with the C Media
team over the past several months and we look forward to achieving additional
milestones as defined in our business plan in the coming months, specifically
with the financial and technological backing of C Media. We have been
strengthening our balance sheet in recent quarters, reflecting their growing
capital investment, plus the additional $4.7 million cash infusion we recently
received following our divestiture of the non-core Jinan Broadband assets."

Revenue for the quarter ended September 30, 2013 amounted to $0.1 million,
while total operating expenses declined approximately 35% to $2.0 million.
This lower cost base helped lead to a more than 30% reduction in the Company's
operating loss, to $2.6 million in Q3. A one-time $5.6 million gain on the
sale of YOD's non-core Jinan Broadband assets resulted in net income of $3.0
million, or diluted EPS of $0.14 per share – based on 15.6 million weighted
average shares outstanding at quarter-end.

The cash and cash equivalents balance at September 30, 2013 was $1.2 million,
but this does not reflect the additional $2.0 million infusion from C Media on
November 5, 2013, nor the remaining cash balance payment received from the
sale of the legacy Jinan Broadband assets on November 1, 2013.

About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment company
delivering premium content, including leading Hollywood and China-produced
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 ofHollywood's top studios
including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner
Bros., Miramax Films, Lionsgate and Magnolia Pictures, 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 New York, NY with its China headquarters in Beijing.

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            Nine Months Ended
                  September 30,  September 30,  September 30,   September 30,
                  2013           2012           2013            2012
                  (unaudited)    (unaudited)    (unaudited)     (unaudited)
Revenue           $ 95,295       $ 4,176        $  146,852      $ 1,699,702
Cost of revenue     712,327        714,250         2,350,931      2,739,032
Gross loss          (617,032)      (710,074)       (2,204,079)    (1,039,330)
Operating
expense:
  Selling,
  general and       1,658,255      2,331,402       5,558,195      7,130,959
  administrative
  expenses
  Professional      147,091        138,063         772,403        1,078,855
  fees
  Depreciation
  and               154,719        533,557         620,946        1,625,146
  amortization
  Impairments of
  long-lived        -              -               311,249        -
  assets
Total operating     1,960,065      3,003,022       7,262,793      9,834,960
expense
Loss from           (2,577,097)    (3,713,096)     (9,466,872)    (10,874,290)
operations
Interest & other
income /
(expense)
  Interest income   611            360             1,185          2,763
  Interest          (30,429)       (27,802)        (90,067)       (47,699)
  expense
  Stock purchase    -              -               -              (43,748)
  right
  Change in fair
  value of          (6,840)        (636,308)       (37,130)       (636,308)
  warrant
  liabilities
  Change in fair
  value of          (15,649)       537,784         (99,343)       74,351
  contingent
  consideration
  Gain on
  investment in     8,592          64,797          7,873          52,291
  unconsolidated
  entities
  Loss on
  write-off of      -              -               -              (473,698)
  uncollectible
  loans
  Gain on
  deconsolidation   -              141,814         -              141,814
  of Shandong
  Media
  Other             (11,827)       (1,473)         58,769         (60,035)
Net loss before
income taxes and    (2,632,639)    (3,633,924)     (9,625,585)    (11,864,559)
non-controlling
interest
Income tax          21,168         96,026          82,129         266,126
benefit
Net loss from
continuing          (2,611,471)    3,537,898       (9,543,456)    (11,598,433)
operations
Net gain (loss)
from discontinued
operations
(including gain
on disposal of      5,589,872      (899,529)       5,255,474      (1,873,947)
$5,616,269)
Net income (loss)   2,978,401      (4,437,427)     (4,287,982)    (13,472,380)
Plus: Net loss                                                
attributable to
non-controlling     193,512        389,274         834,685        1,482,536
interests
Net income (loss)                                              
attributable to
YOU On Demand       3,171,913      (4,048,153)     (3,453,297)    (11,989,844)
shareholders
Dividends on        (1,029,829)    -               (1,029,829)    -
preferred stock
Net income (loss)
attributable to                                            
YOU On
                  $ 2,142,084    $ (4,048,153)  $  (4,483,126)  $ (11,989,844)
Demand common
shareholders
Basic earnings
per share
  Loss from
  continuing      $ (0.22)       $ (0.32)       $  (0.65)       $ (1.02)
  operations
  Gain (loss)
  from              0.36           (0.04)          0.35           (0.09)
  discontinued
  operations
  Basic earnings
  (loss) per      $ 0.14         $ (0.36)       $  (0.30)       $ (1.11)
  shares
Diluted earnings
(loss)per share
  Loss from
  continuing      $ (0.22)       $ (0.32)       $  (0.65)       $ (1.02)
  operations
  Gain (loss)
  from              0.36           (0.04)          0.35           (0.09)
  discontinued
  operations
  Diluted
  earnings (loss) $ 0.14         $ (0.36)       $  (0.30)       $ (1.11)
  per share
Weighted average
shares
outstanding
  Basic             15,553,097     11.293,895      15,034,841     10,765,931
  Diluted           15,553,097     11,293,895      15,034,841     10,765,931



You On Demand Holdings, Inc. and Its Subsidiaries
CONSOLIDATED BALANCE SHEETS
                                                September 30,   December 31,
                                                2013            2012
                                                (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                       $ 1,214,490     $ 3,277,891
Marketable equity securities, available for       1,714           2,229
sale
Accounts receivable, net                          111,943         -
Licensed content, current                         737,017         681,457
Prepaid expenses                                  279,452         412,669
Note receivable, sale of Jinan Broadband          3,911,088       -
Other current assets                              4,684           135,486
Current assets of discontinued operations         -               1,498,852
Total current assets                              6,260,388       6,008,584
Property and equipment, net                       566,877         729,763
Licensed content, noncurrent                      200,227         530,367
Intangible assets, net                            2,705,635       3,416,858
Goodwill                                          6,105,478       6,105,478
Investment in unconsolidated entities             681,304         655,834
Non-current assets of discontinued operations     -               5,011,161
Total assets                                    $ 16,519,909    $ 22,458,045
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                $ 1,575,448     $ 885,366
Accrued expenses and liabilities                  1,161,910       953,134
Deferred license fees, current                    988,401         -
Other Current liabilities                         36,429          708,367
Contingent purchase price consideration           426,124         368,628
liability, current
Convertible promissory note                       3,000,000       3,000,000
Warrant liabilities                               915,510         878,380
Current liabilities of discontinued operations    -               5,197,450
Total current liabilities                         8,103,822       11,991,325
Deferred license fees, concurrent                 -               460,547
Contingent purchase price consideration           -               368,628
liability
Deferred tax liability                            154,946         237,075
Non-current liabilities of discontinued           -               68,774
operations
Total liabilities                                 8,258,768       13,126,349
Commitments and Contingencies
Convertible redeemable preferred stock, $.001
par value; 50,000,000 shares authorize
Series A - 7,000,000 shares issued and                           
outstanding, liquidation preference of
$3,500,000 at September 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 September 30, 2013 and December                    
31, 2012, respectively
                                                  -               3,223,575
Series C - 87,500 and 250, 00 shares issued and                  
outstanding, liquidation preference of $350,000
and $1,000,000 at September 30, 2013 and                         
December 31, 2012, respectively
                                                  219,754         627,868
Series D 4% - 2,285,714 and 0 shares issued and                  
outstanding, liquidation preference of
$4,000,000 and $0 at September 30, 2013 and                      
December 31, 2012
                                                  3,711,794       -
Equity:
Common stock, $.001 par value; 1500,000,000                      
shares authorized, 15,793,314 and 13,742,394
shares issued at September 30, 2013 and                          
December 31, 2012, respectively
                                                  15,793          13,742
Additional paid-in capital                        67,438,268      62,388,502
Accumulated deficit                               (62,477,818)    (58,841,664)
Accumulated other comprehensive (loss) income     (737,100)       604,632
Total YOU On Demand equity                        4,239,143       4,165,212
Non-controlling interest                          (1,171,545)     53,046
Total equity                                      3,067,598       4,218,258
Total liabilities and equity                    $ 16,519,909    $ 22,458,045



SOURCE YOU On Demand Holdings, Inc.

Website: http://www.yod.com
 
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